Turnstar anticipates a surge in profit
Turnstar Holdings profit for the year ended January 2024 is expected to grow by 58 percent to P177.5 million, boosted by increase in rental income during the year. e group reported that its rental income driven by increase in operational expenses, resulted in an increase of approximately P 22.8 million in the group’s operational pro t compared to the P153 million recorded in 2023. In its trading statement, the Group stated that the rental revenues which increased to P328. 5 million is attributed to strong income growth. “is was due to strong rental income growth in all jurisdictions in which the Group operates.”
During the year the Group restructured its loan facilities from the prior year. “is together with the US Dollar appreciation against the Botswana Pula resulted in an increase of the Group’s nance costs by 26 percent to P38.8 million.”
Due to challenging economic conditions a ecting prices of raw materials, the group reported that it remains resolute in its growth plans. “We anticipate a stronger year ahead. And have geared ourselves accordingly to seize key opportunities as we continue to invest, manage and grow properties that bring about real returns for communities and investors.” e company also indicated that notable challenges in the property market are the high competition and limited demand due to the country’s small population. Among other challenges is high development costs and low rentals. “is paradox is not without impact on the business. e inherent challenge for us is how to match property costs and yet still maintain a decent return on investment for our shareholders.”
Turnstar Holdings Group Managing Director, Gulaam Abdoola said they remain bullish about growing Turnstar to reach a target of P3 billion in asset value. “Our future is bold, ambitious and bright and we have every intention of doubling, tripling and indeed going beyond this.”