ICON Properties : FY2023 Financials

ICON PROPERTIES PLC

ICON PROPERTIES PLC

Profit after tax

K19.2bn

for the year ended 31 December 2023

SUMMARY AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Total income	Total assets
K20.9bn	K122.6	bn
for the year ended 31 December 2023
	for the year ended 31 December 2023

	SUMMARYFor the year STATEMENTended 31 DecemberOF COMPREHENSIVE2023	INCOME
	For the year ended 31 December 2023
				31 December 2023		31 December 2022
	Income			31 DecemberK'202300		31 DecemberK'202200
				K'000		K'000
	IncomeRevenue			5,968,590	5,167,640
	Revenue			5,968,590	5,167,640
	Increase in fair value of investee companies and properties	11,849,970	14,298,399
	Dividend income			2,507	1,288
	Finance income			2,365,552	2,837,259
	Other income			737,601	449,590
	Total income			20,924,220		22,754,176
	Expenses			(3,936,441)	(3,189,188)
	Profit before income tax			16,987,779		19,564,988
	Income tax credit/(expense)			2,171,571	(2,858,880)
	Profit for the year			19,159,350		16,706,108
	Basic and diluted earnings per share (MK)			2.87		2.50
	SUMMARY STATEMENT OF FINANCIAL POSITION
	As at 31 December 2023
				31 December 2023		31 December 2022
	ASSETS				K'000		K'000
	Non-current assets
	Investment properties			96,090,160	83,984,585
	IFRS 16 lease smoothing asset			300,131	-
	Investment in associate			8,500,000	6,800,000
	Investment in shares			126,548	112,000
	Investment in treasury notes			11,826,523	11,741,508
	Deferred tax asset			321,656	-
	Office equipment			405	3,970
	Total non-current assets			117,165,423		102,642,063
	Current assets			0		0
	Trade and other receivables			1,815,102	2,596,673
	Tax recoverable			282,680	-
	Cash and cash equivalents			3,299,140	3,585,362
	Total current assets			5,396,922		6,182,035
	Total assets			122,562,345	108,824,098
	EQUITY AND LIABILITIES
	Equity
	Share capital			58,209,424	58,209,424
	Restructuring reserve			8,012,031	8,012,031
	Retained earnings			54,653,218	36,951,712
	Total equity			120,874,673		103,173,167
	Non - current liabilities			0		0
	Deferred tax liability			-	3,436,807
	Deferred income			373,107	392,905
	Total non - current liabilities			373,107		3,829,712
	Current liabilities
	Trade and other payables			1,314,565	1,558,459
	Tax payable			-	262,760
	Total current liabilities			1,314,565		1,821,219
	Total equity and liabilities			122,562,345		108,824,098
				0		0
	SUMMARY STATEMENT OF CHANGES IN EQUITY
	For the year ended 31 December 2023
				31 December 2023		31 December 2022
	Balance at the beginning of period				K'000		K'000
			103,173,167	87,904,881
	Distributable profit for the year			3,490,553	3,709,365
	Non-distributable profit for the year			15,668,797	12,996,743
	Adjustment on reorganisation			-	165,378
	IFRS 16 lease smoothing adjustment			278,956	-
	Dividends paid			(1,736,800)	(1,603,200)
	Balance at the end of period			120,874,673		103,173,167
				0		0
	SUMMARY STATEMENT OF CASH FLOWS
	For the year ended 31 December 2023
				31 December 2023		31 December 2022
					K'000		K'000
	Net cash generated from operating activities			1,137,688	1,000,745
	Net cash generated from/(used in) investing activities	312,890	(4,065,973)
	Net cash used in financing activities			(1,736,800)		(1,603,200)
	Net decrease in cash and cash equivalents			(286,222)	(4,668,428)
	Balance at the beginning of the year			3,585,362		8,253,790
	Cash and cash equivalents at the end of the year		3,299,140		3,585,362

BASIS OF PREPARATION

The Directors have prepared the summary financial statements to meet the listing requirements of the Malawi Stock Exchange. The Directors have considered the requirements of the Malawi Stock Exchange and believe that the summary statement of financial position, summary statement of comprehensive income, summary statement of changes in equity and summary statement of cash flows are sufficient to meet the requirements of the users of the summary financial statements. The amounts in the summary financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The summary financial statements have been derived from the annual audited financial statements which were approved by the Board of Directors on 25 March 2024.

PERFORMANCE

The Company generated a total income of K20.9 billion (2022: K22.8 billion) for the year, including an increase in properties' fair

value of K11.8 billion (2022: K14.3 billion). The Company's income performance was lower due to property revaluation gains and finance income. The property revaluation gains on properties were lower than the corresponding year due to normalisation of above normal growth on some properties in the previous year following market realignments. Investment income decreased due to reduced cash balances following additional investment in Oasis Hospitality Limited at K1.7 billion (2022: K6.8 billion), bringing the total investment to K8.5 billion. Oasis Hospitality Limited is in the process of constructing an hotel in Lilongwe led by Blantyre Hotels Plc.

Revenue growth of 15% improved from the previous year's growth of 6% due to executed rental escalations and a consistent occupancy rate of above 90% throughout the financial year.

Total expenses for the year were at K3.9 billion (2022: K3.2 billion) being a 23% increase. Some of the major expense areas included utility costs, repairs and maintenance and administration costs. The Company recorded an aggregate tax credit for the year due to the recalculation of deferred taxes which use annual CPI indices. This year, the recalculation led to a reduction in deferred tax liabilities hence recording a tax credit.

The Company reported a profit after tax of K19.2 billion (2022: 16.7 billion) for the year ended 31 December 2023.

In March 2024, after the year end, the Company finalised piloting of the automated parking management system at Chichiri Shopping Centre, the system is now operational.

In April 2024, the double story classroom block at Mbayani Primary School in Blantyre which was built together with the NICO Foundation, was handed over.

The Company will seek to continue responding to the needs of its tenants and the broader community whilst delivering value to its shareholders.

DIVIDEND

The Directors have recommended a final dividend of MK935.2 million (2022: MK868.4 million) representing 14 tambala per

share (2022: 13 tambala). The payment date will be announced after the Company's Annual General Meeting (AGM).

An interim dividend of MK868.4 million (2022: MK801.6 million) representing 13 tambala per share (2022: 12 tambala), was paid on 27 October 2023.

This will bring the total dividend for the year to MK1.804 billion (2022: MK1.670 billion) representing 27 tambala per share.

*OUTLOOK

The country's economic outlook faces volatility owing to rising food and energy prices, global instability including wars, environmental occurrences and changing economic fundamentals such as rising inflation. Following the devaluation of the Malawi Kwacha by 44% as announced by the Reserve Bank of Malawi on 9 November 2023, foreign currency reserves remain low which risks further pressure on the local unit. High inflationary pressures have resulted in suppliers of goods and services hiking their prices hence impacting Company costs as well as disposable income of current and prospective tenants.

Rental growth is expected to continue however as the property market gradually adjusts to changes in the economic landscape. Management will continue controlling expenditure levels whilst ensuring that service delivery is unaffected.

As the Company progresses in its strategic projects it will cautiously manage its cashflows to balance between operational and capital needs.

*Unaudited

APPROVAL OF THE AUDITED FINANCIAL STATEMENTS

The summary audited financial statements were approved by the Board of Directors on 25 March 2024.

By order of the board;

E. Chapola	D. Kamkwamba
Chairperson, Board of Directors	Chairperson, Finance and Audit Committee

Report of the Independent Auditor on the Summary Financial Statements

To the shareholders of ICON Properties Plc

Opinion

The summary financial statements, which comprise the summary statement of financial position as at 31 December 2023, the summary statement of comprehensive income, summary statement of changes in equity and summary statement of cash flows for the year then ended and related notes, are derived from the audited financial statements of ICON Properties plc for the year ended 31 December 2023.

In our opinion, the accompanying summary financial statements are a fair summary of the audited financial statements of ICON Properties Plc and in accordance with the requirements of the Malawi Stock Exchange Listing Requirements for summary financial statements.

Summary Financial Statements

The summary financial statements do not contain all the disclosures required by International Financial Reporting Standards as issued by the International Accounting Standards Board. Reading the summary financial statements and the auditor's report thereon, therefore, is not a substitute for reading the audited financial statements of ICON Properties Plc and the auditor's report thereon. The summary financial statements and the audited financial statements do not reflect the effects of events that occurred subsequent to the date of our report on the audited financial statements.

The Audited Financial Statements and Our Report Thereon

We expressed an unmodified audit opinion on the audited financial statements in our report dated 19 April 2024. That report also includes the communication of key audit matters. Key audit matters are those matters that in our professional judgement were of most significance in our audit of the financial statements of the current year.

Directors' Responsibility for the Summary Financial Statements

The Directors are responsible for the preparation of the summary financial statements in accordance with the requirements of the Malawi Stock Exchange Listing Requirements.

Auditor's Responsibility

Our responsibility is to express an opinion on whether the summary financial statements are a fair summary of the audited financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 (Revised), Engagements to Report on Summary Financial Statements.

Chartered Accountants

Nkondola Uka

Partner

24 April 2024

Michiru House
Victoria Avenue, Blantyre
P. O.Box 3117, Blantyre, Malawi
Tel: [phone]
[e-mail]
www.iconproperties.mw	ICON PROPERTIES PLC