RDC ANTICIPATES PROFIT DECLINE
RDC Properties Limited has announced to shareholders that profit before tax for the half year ended 30 June 2020 will be approximately between 20 percent and 30 percent or P6.3 million to P9.4 million lower than the P31.4 million reported for the period ended 30 June 2019.
The Botswana Stock Exchange listed property company said the main reasons for the decrease are challenging operating conditions due to the significant impact of the national lockdowns in Botswana and South Africa, particularly on the hospitality sector.“However, the company has managed to mitigate the effect as a result of variable debt facilities in South Africa allowing the Company to take advantage of significant interest rate cuts,” said the company chaired by Guido Giachetti. He is also a shareholder.
Furthermore, RDC said as at 30 June 2020, there has been an unrealised gain on exchange arising from US Dollar denominated investments which benefited significantly from US Dollar strength resulting from the global COVID pandemic. “The information contained in this announcement represents only a preliminary assessment made by the Board based on the information made available to the Board as at the date hereof. Full details will be provided upon the release of the final abridged un-audited financial results for the period, which will be by mid-September 2020, and the actual results may differ from those disclosed herein,” said RDC.
Shareholders have been advised to exercise caution when dealing with the Company’s securities until the abridged un-audited financial results are released.