Habesha Registers 5 Million Birr in Profit

Habesha Construction Materials and Development Share Company, Ethiopia announced a profit of 5 million birr for the four months that it has been in operation, May-June.

The company was able to gross 16.6 million birr for the four months it has been in operation in spite of several it faced including the challenge of a financial sector reluctant to finance real estate projects, problems with acquiring land, and bureaucratic issues as well as shareholders defaulting on paying on contributions noted the report represented to the general assembly by the board of directors. 

The actual revenue earned by the company from constructions erected on the land it has acquired was just 3.3 million birr while it earned 13.3 million birr from joint ventures. The company spent 6.9 million birr over the last year enabling it retain 7.8 million before taxes making up 25 percent of its current paid up capital.

The profit means that Habesha will pay 15.8 percent in dividends per share although the board is counseling that shareholders not withdraw dividends so that the current profits can be used to augment the company’s capital. 

Reinvesting the money would enable the company to undertake more projects Eskinder Desta, Chairman of the Board of Directors. If shareholders don’t withdraw their money within the next 15 days the board will proceed on the assumption that they have accepted the proposal to reinvest the profit he added.