Business Reporter
DAWN Properties’ revenue for the first quarter to June at $1,07 million was 13 percent down on the same period last year, signifying the prevailing harsh trading conditions, chief executive officer Mr Justin Dowa said on Friday. In a trading update to shareholders at the company’s annual general meeting, Mr Dowa said the business was in transition but the coming in of new shareholders would help to unlock value going forward.

Rent income was 4 percent ahead of the first quarter last year.

“Trading conditions remained very harsh even though occupancies showed marginal signs of recovery against the corresponding period last year,” said Mr Dowa.

Occupancies are recovering, particularly at The Elephant Hills Hotel in Victoria Falls and Amber Mutare Hotel, where numbers are ahead of expectations.

Mr Dowa said the consultancy business registered significant decline in revenue which was 27 percent down on the same period last year.

“However, investments made in upgrading systems together with the robust cost control measures which have been instituted should start to show positive results and the business is expected to turn to profit this financial year. Initiatives are also underway to diversify revenue streams by offering new services so we are no longer restricted to the suite of services that we were under the CB Richard Ellis brand,” said Mr Dowa.

He said performance is expected to pick up as the company is moving from the traditional low trade season, which is the first quarter going into the high season.

“I will focus on what we will doing for the future. Our business is transition mode. We are very excited by the changes that have happened at shareholder level which puts the company in a very exciting growth phase. As we see it, all the ingredients are now in place for us to deliver. We clearly now have stability at all strategic levels,” said Mr Dowa.

On the mandatory offer to minority shareholders, Mr Dowa said Brainworks has not yet come up with a price for the offer but the majority shareholder has now approached an adviser for the process.

“The mandatory offer is still being worked on by the party that is going to make the offer to the minority, so at this stage we do not have a date because there’s a lot of background work to be done. But the offer is being formulated. At this stage we don’t have a price but that information should be forthcoming as soon as possible,” he said.

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