Brainworks reports a 22% increase in revenue

DIVERSIFIED investment holding company Brainworks, which completed its primary listing on the JSE in October last year, said improved political developments in Zimbabwe boded well for the company in the future.

In its maiden annual results covering the year ended December, the group reported a 22 percent increase in revenue to $58.6 million (R693m), as compared to $48.1m reported last year.

Growth has been recorded across all the group’s three operating segments, but its major growth had been recorded by the hospitality segment.

The group reported a loss attributable to owners of the parent of $11.1million, while headline loss a share was 14.22 US cents a share. The group did not declare a dividend.

Hospitality contributed 88 percent of the total revenues for the year under review; whereas it was 3 percent lower when compared to the prior year on the back of revenue growth in the group’s other investments.

The growth in hospitality was driven by the increase in hotel occupancy from 44 percent recorded in the prior year, to 52 percent for the past financial year.

The group’s other investments contributed $6.8m to this year’s revenues.

Hospitality revenue of $51.8m represents growth of 19 percent relative to $43.6m recorded in 2016.

“Following the political developments towards the end of 2017, the new government has declared that “Zimbabwe is open for business”, and that broad theme has been well received by the business community in general, and international investors in particular,” the group said.

Brainworks’ headquarters are in Mauritius and its investment is based on the Zimbabwean hospitality, real estate, financial services and logistics sectors.

It said the current Zimbabwean government had already begun to reverse some policies that were previously considered restrictive to investors coming into the country, and these business-friendly developments had reignited investor interest in Zimbabwe, particularly within the hospitality sector.