Shelter Afrique back on recovery path, cuts losses to Sh59m
EARNINGS: Pan African housing development financier, Shelter Afrique is back on a recovery path, reducing its losses to Sh59 million for the year ended December 31, 2019, from Sh923 million the previous year.
Chairman Steve Mainda said despite the minimal loss, the Nairobi-headquartered company had put the distressful past behind it and had successfully turned around to become financially viable.
“Enhanced corporate governance practices backed by a strong, diverse, competent and ethical Board, robust enterprise risk management, a new business model, and debt restructuring plans have played key roles in fast-tracking the recovery process,” he said after releasing the results in Nairobi.
Managing Director Andrew Chimphondah said the company had projected a return to financial viability by 2020 and overall financial sustainability by 2023.
“The return to financial stability as indicated by a significant reduction in our operating loss in 2019 is an indication that the turnaround strategy has been both successful and effective,” he added.
Loan pipeline
With the commencement of loan commitments leading to disbursements on the robust loan pipeline of Sh50 billion from 2020 and beyond, Chimphondah said the company was poised to return to profitability and provide returns to the 46 shareholders.
During the period under review, the results show, the company maintained a strong liquidity position with a cash balance of Sh5.6 billion, closing the year with a liquid ratio of 29 per cent, 14 percentage points above the 15 per cent minimum policy limit.
