Turnstar records profit surge
Turnstar Holdings will record 41 percent increase in profit before tax for its half year ended July 2021 due to increase in rental revenue during the year.
The group announced that its rental revenues for the half year ended 31 July 2021, increased substantially, compared to the corresponding period ended July 2020.
“Due to the above, the Group’s profit before tax, for the half year ended 31 July 2021, is expected to be higher by at least 41 percent ( P17.85m) from P43,167 million for the half year ended 31 July 2020 to approximately P61,018 million for the half year ended 31 July 2021,” states the Company.
According to a trading statement signed by the Board of Directors, Turnstar Holdings made a strategic decision last year to grant rental concessions to its tenants during lockdowns and this resulted in declined rental revenues by approximately P12.28 million. In its full year ended January 2021, Turnstar Holdings recorded declined profits to P81, 3 million, compared to P116 million recorded last year. Botswana operations recorded a revenue of P134, 5 million, Tanzania recorded P105.6 million while Dubai recorded P5 million.
The Group profits last year were also affected by foreign exchange factors which include the appreciation of the US Dollar against the Botswana Pula during the half year ended 31 July 2020 and as such the Group had a substantial forex loss on the US dollar loan. “The US dollar appreciation against the Botswana Pula for the current half year ended 31 July 2021 was less than the corresponding previous half year ended 31 July 2020. Accordingly, the Forex loss on the US dollar loan for the half year ended 31 July 2021 is substantially less than that of the previous half year ended 31 July 2020,” states the Company.
Presenting the Group results for the year ended January 2021, Turnstar Holdings Managing Director, Gullaam Abdoola stated that the US dollar appreciated against the Botswana Pula and the Group had a net forex loss, on the US dollar loan of P2.6 million, compared to a net forex gain of P10.44 million in January last year, when Turnstar had a corresponding US dollar intercompany loan in Mlimani. “The group experienced a drop in the share price due to overseas funds exiting in Botswana, due to the European Economic Community grey listing. The company’s net asset value per share is P 2.89,” he said.