According to the parastatal’s latest financial results, it recorded a significant drop in profits after tax, down by P19 million to P10 million during the six months. The decline marked a stark decrease from the P29 million recorded during the same period last year. The reduced profitability has been attributed primarily to increased impairment expenses on rental receivables, according to the group's financial results. On the other hand, the BHC experienced a 31% increase in total revenue, reaching P358 million compared to P273 million in the prior year. Directors credited the growth to increases in rental income, contracts income and facilities management fees. The BHC CEO, Nkaelang Matenge, noted that an impairment expense of P19 million on rental receivables played a big role in the decline in profitability. “For the first half of the year, the receivables impairment expense rose to P32.4 million, a sharp increase from P13 million in the same period last year, primarily due to delayed payments from a major customer,” he said in a statement accompanying the results.
Rental income rose by P27 million, representing a 16% year-on-year increase, largely due to rental subsidies. Facilities management fees and revenue from contracts contributed P6 million and P54 million respectively to the revenue surge.
