BHC optimistic despite dip in profitability
Pauline Dikuelo | Tuesday October 28, 2025 09:00
The state-owned property company said in its latest financial results that gross profit increased by P71 million to P441.4 million, but the gross margin fell to 59.7%, down from 70.5% recorded in 2024. The parastatal’s numbers showed that the decline in margins and higher costs led to an operating loss of P116.8 million, compared to an operating profit of P23.7 million in the previous year. The unimpressive bottom line overshadows the topline as BHC’s total revenue grew by 40.8% year-on-year to P739.5 million, up from P525.2 million recorded in 2024. This was largely driven by strong third-party construction projects and steady rental income growth, it added. After factoring in finance costs and a modest contribution from joint-venture income, the Corporation posted a loss after tax of P104.6 million, reversing the P29.2 million profit achieved in 2024.
A statement accompanying the results noted that profitability was eroded by elevated costs, particularly impairment expenses totaling P219.2 million, mainly arising from rental receivables linked to one of the Corporation’s major stakeholders. BHC described this as a one-off adjustment reflecting updated risk and recoverability assessments aimed at ensuring prudence in balance-sheet management. However, directors remain optimistic about the long-term outlook despite the short-term financial setback. “The impairment charge we recognised this year was a strategic decision to strengthen our balance sheet and ensure transparency in our financial reporting,” they noted. “While it impacted our profitability, it positions the Corporation for sustainable growth going forward. We remain confident that our diversification efforts and partnerships with the private sector will enhance delivery and improve financial performance in the years ahead.” The results showed that rental income rose by 15.8% to P392.2 million, with residential properties contributing P387.1 million while commercial rentals added P5.2 million. On the other hand, construction and management contract revenues nearly doubled to P336.8 million, supported by turnkey projects worth P139.4 million, other third-party projects at P86.3 million, facilities management at P80.2 million, and professional fees totaling P13.3 million.
As of 31 March 2025, BHC remained well-capitalised, with total assets of P2.613 billion and equity of P1.544 billion, representing about 59% of the balance sheet. Investment properties accounted for P1.236 billion, supported by property, plant, and equipment, as well as other operational assets. Meanwhile, on the development front, the Corporation delivered 712 houses under the Self-Help Housing Agency (SHHA) turnkey scheme during the review period. BHC said it plans to deliver 605 additional social housing units across the country in the coming year under the Bonno Turnkey Programme. Commercially, it had 574 housing units under various stages of construction in Gaborone, Kazungula, Palapye, Rakops, and Tsabong, all expected to be completed in the 2025–2026 financial year. To accelerate delivery and expand its housing footprint, BHC is set to collaborate with the private sector. The planned partnerships are expected to play a pivotal role in achieving the Corporation’s ambitious goal of delivering 100,000 housing units during its current strategic period