eBusiness Weekly
Enacy Mapakame
Listed property firm, WestPop Holdings Limited, reported a solid performance for the financial year 2023, exceeding both budget and prior year results.
Revenue bulked 37 percent to US$16,1 million, with a confirmed order book exceeding US$25 million, which, according to the group, represents an achievement of both the budget set 13 months prior and an increase on the previous year’s results.
The Victoria Falls Stock Exchange (VFEX) listed firm also boasts a healthy pipeline of current projects valued at US$174 million, with an anticipated gross profit of US$68 million.
According to chairman, Dr Michael Louis, this trajectory positions the company to achieve its ambitious target of US$50 million in annual sales with a gross profit exceeding US$20 million by 2027.
This growth is projected to translate to a pre-tax profit of USD 12-14 million annually.
The group recorded a net profit after tax of US$50 million for the year with the sharp increase attributable to gains in the group’s investment property portfolio.
A recent market-based valuation of the group’s land banks inclusive of its 70 percent stake in Sunshine Development Private Limited done during the period gave a combined fair value of US$250 million by end of FY23.
While operating expenses rose in 2023 due to one-time costs associated with its Initial Public Offering (IPO) and listing on the VFEX, the company’s liquidity improved dramatically. Cash and equivalents increased by 209 percent year-on-year, reaching US$2,66 million.
Additionally, WestProp closed the year with a healthy current ratio of 3,93, indicating its ability to meet short-term financial obligations.
Despite the economic volatility affecting businesses, WestProps’ prospects remain positive on the back of its strong project pipeline.
Dr Louis indicated the company is sitting on a multi-billion-dollar project pipeline that spans across residential and commercial segments that are expected to be implemented concurrently during the current financial year.
Some of the projects are already underway targeting the high end and diaspora markets, with the group presenting its case to potential investors as far as the US capital Washington DC.
The initiatives are in line with the group’s ambitious target of putting a billion bricks into the ground by 2050, providing luxurious lifestyles in Zimbabwe.
The current and approved immediate projects pipeline of US$174 million is an increase of US$27 million over the half-year published amount due to the completion of more ready-to-build projects.
“Confirmed sales from this pipeline have amounted to US$56,7 million, which has resulted in a net forward pipeline of US$118 million (more than two years of sales).
“We anticipate this pipeline to increase to over US$300 million by Q2 of 2025 as we continue to plan and build up to our 2030 goal of US$100 million sales per year,” he said.
Dr Louis also indicated the group has earmarked several new major projects that will run concurrently in 2024.
Two high-dollar developments are already underway, namely Pomona City, a large-scale urban development, and The Hills Lifestyle Estate, a luxury golf estate with branded amenities and residences.
Construction on The Hills is set to begin in May, with a groundbreaking ceremony planned. Upon completion, it will boast several firsts for the country, including a water driving range and significant green space.
The group also has plans to complete road construction for Pomona City this year and launch an apartment complex there. The remaining development details for the multi-billion dollar city will be announced in early 2025.
Additionally, the group is finalising negotiations with South African partners for a major shopping mall, “The Mall of Zimbabwe,” which is expected to begin construction later this year.
Dr Louis also highlighted the group got approval from the board and that of ZimWorX to commence construction of their first 5,500 square meter head office in Borrowdale by the end of May this year.
“To achieve all this the group is far advanced with discussions with international strategic partners in construction and shopping centre design and tenant mix to set a world-class standard for Zimbabwe as well as the much-required skill transfer.
“Another positive investment for the group is in its first manufacturing division which produces aluminium door and window frames in-house at a higher quality than any other local producers,” he said.
