UNAUDITED SUMMARISED CONSOLIDATED FINANCIAL RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2023
Summarised Consolidated Statement of Comprehensive Income
Summarised Consolidated Statement of Changes in Equity
OVERVIEW OF OPERATIONS
for the six months ended 30 June 2023
Revenue
Cost of sales
Gross profit
Sales and distribution expenses Administrative and operating expenses
Operating profit
Finance income
Finance expense
Profit before income tax
Income tax expense
CONSOLIDATED
Unaudited | Unaudited | Audited | ||
6 months | 6 months | 12 months | ||
Jun-23 | Jun-22 | Dec-22 | ||
P'000 | P'000 | P'000 | ||
180,887 | 164,899 | 355,728 | ||
(108,935) | (96,901) | (206,745) | ||
71,952 | 67,998 | 148,983 | ||
(5,611) | (4,626) | (9,283) | ||
(46,207) | (47,145) | (94,024) | ||
20,134 | 16,227 | 45,676 | ||
815 | 1,318 | 2,537 | ||
(13,143) | (11,645) | (26,547) | ||
7,806 | 5,900 | 21,666 | ||
(2,516) | 3,544 | (2,422) |
for the six months ended 30 June 2023
Stated | Treasury | Retained | Total | |||||||
capital | shares | earnings | equity | |||||||
P'000 | P'000 | P'000 | P'000 | |||||||
Year ended 31 December 2021 | ||||||||||
Balance at 1 January 2022 | 18,500 | (5,915) | 110,183 | 122,768 | ||||||
Total comprehensive income for the year | - | - | 19,244 | 19,244 | ||||||
Balance at 31 December 2022 | 18,500 | (5,915) | 129,427 | 142,012 | ||||||
Period ended 30 June 2023 | ||||||||||
Balance at 1 January 2023 | 18,500 | (5,915) | 129,427 | 142,012 | ||||||
Total comprehensive income for the year | - | - | 5,290 | 5,290 | ||||||
Balance at 30 June 2023 | 18,500 | (5,915) | 134,717 | 147,302 |
Summarised Consolidated Statement of Cash Flows
for the six months ended 30 June 2023
The business saw a 10% increase in revenue against the period ended 30 June 2022. The main driver for the good revenue performance was on the back of higher average daily rates ("ADR"), predominantly propelled by hotels in the leisure destinations, given the increase in arrivals of foreign guests when compared to 2022. The Group revenue per available room ("RevPAR") closed the six months 8% ahead of the same period in 2022.
After returning to profitability in the 2022 financial period, Cresta Marakanelo Limited ("CML") continues to be profitable in the first half ended, 30 June 2023. This has been in line with the general and positive recovery across the tourism and hospitality industry. The first quarter's performance was relatively low in line with the seasonality of the business. The second quarter saw an increase in performance when compared to the first quarter, contributing 56% of the revenue generated for the six months ended 30 June 2023.
The stronger revenue performance, coupled with robust cost containment measures in
Profit from continuing operations
Other comprehensive income
Total comprehensive income
Basic and diluted earnings per share (thebe)
Earnings per share from continuing operations
5,290 | 9,444 | 19,244 | ||
- | - | - | ||
5,290 | 9,444 | 19,244 | ||
2.92 | 5.22 | 10.64 | ||
2.92 | 5.22 | 10.64 |
Cash flows from operating activities
Cash generated from operations Interest paid
CONSOLIDATED
Unaudited | Unaudited | Audited |
6 months | 6 months | 12 months |
Jun-23 | Jun-22 | Dec-22 |
P'000 | P'000 | P'000 |
50,810 | 29,242 | 85,485 |
(9,604) | (8,923) | (20,601) |
place, culminated in an operating profit, which was 24% stronger than in 2022 and profit before tax, which was 32% ahead of the same period last year. The good performance was notwithstanding that the Company strategically increased its absolute spend in sales and marketing costs as a deliberate investment in sustainable profitability of the business into the future, having significantly reduced this class of spend during the pandemic. The finance cost on the interest-bearing borrowings increased in 2022 by 8% due to the increase in the prime lending rate from 6.26% in 2022 to 6.76% as at 30 June 2023. Earnings before interest, tax, depreciation, and amortisation ("EBITDA") achieved during
Summarised Consolidated Statement of Financial Position
as at 30 June 2023
Tax refund
Net cash generated from operating activities
- | - | 178 | ||
41,206 | 20,319 | 65,062 |
the period was P43.32 million, an 8% improvement on the prior year's P40.1 million.
ASSETS
Non-current assets
Property, plant and equipment Right-of-use-asset Intangible assets
Lease rights/Software Goodwill
Deferred income tax assets
Current assets
Inventories
Trade and other receivables Current income tax assets
CONSOLIDATED
Unaudited | Unaudited | Audited | ||
Jun-23 | Jun-22 | Dec-22 | ||
P'000 | P'000 | P'000 | ||
418,418 | 440,230 | 422,180 | ||
339,294 | 339,532 | 336,164 | ||
57,496 | 73,769 | 64,827 | ||
379 | 234 | 516 | ||
5,274 | 5,274 | 5,274 | ||
15,975 | 21,421 | 15,399 | ||
74,715 | 83,151 | 79,466 | ||
3,577 | 2,615 | 3,072 | ||
25,083 | 26,375 | 20,141 | ||
- | 124 | 124 |
Cash flows from investing activities
Purchase of property, plant and equipment Purchase of computer software
Proceeds on disposal of plant and equipment Interest received
Net cash utilised in investing activities
Cash flows from financing activities
Repayment of borrowings
Interest paid - finance lease
Payment of lease liabilities
Net cash utilised in financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year Exchange loss on cash and cash equivalents
Cash and cash equivalents at end of period
(22,598) | (4,475) | (14,414) | ||
- | - | (472) | ||
3 | 38 | 56 | ||
815 | 1,318 | 2,537 | ||
(21,780) | (3,119) | (12,293) | ||
(19,568) | (6,079) | (29,397) | ||
(3,536) | (2,724) | (7,395) | ||
(6,787) | (7,601) | (13,433) | ||
(29,891) | (16,404) | (50,225) | ||
(10,465) | 796 | 2,544 | ||
56,129 | 53,241 | 53,241 | ||
391 | - | 344 | ||
46,055 | 54,037 | 56,129 |
STATEMENT OF FINANCIAL POSITION
The Group has increased the shareholder's equity during the period under review by 11% from P132.2 million in 2022 to P147.3 million. The upward trend in the shareholder's net worth is after offsetting the decrease in total assets by a more than proportionate decrease in liabilities. Total assets declined by 6% compared to the half year ended 30 June 2022, while total liabilities decreased by 12%. This was primarily due to the expected decline in book values in right-of-use assets and matching lease liabilities and the P7.9 million decline in cash and cash equivalents on the back of strategic deployment of cash into needful refurbishments and debt service payments.
CASH FLOW
During the half year 2023, the Group generated stronger positive cash flows from operating activities of P41.2 million (2022: P20.3 million), with a superior EBITDA cash conversion rate of 95% compared to 51% in 2022. Cash generated from operations was grew by 74% from P29.2 million in 2022 to P50.8 million. Net cash utilised in investing
Cash and cash equivalents
Total assets
EQUITY
Capital and reserves
Stated capital
Treasury shares
Retained earnings
LIABILITIES
Non-current liabilities
Borrowings
Lease liabilities
Current liabilities
Trade and other payables Current income tax liabilities Borrowings
Lease liabilities Contract liabilities
Total liabilities
Total equity and liabilities
46,055 | 54,037 | 56,129 | ||||
493,133 | 523,381 | 501,646 | ||||
147,302 | 132,212 | 142,012 | ||||
18,500 | 18,500 | 18,500 | ||||
(5,915) | (5,915) | (5,915) | ||||
134,717 | 119,627 | 129,427 | ||||
222,641 | 284,870 | 257,315 | ||||
164,150 | 207,831 | 188,015 | ||||
58,491 | 77,039 | 69,300 | ||||
123,190 | 106,299 | 102,319 | ||||
41,777 | 30,818 | 31,674 | ||||
616 | - | - | ||||
51,138 | 50,314 | 46,839 | ||||
18,220 | 14,379 | 14,507 | ||||
11,439 | 10,788 | 9,299 | ||||
345,831 | 391,169 | 359,634 | ||||
493,133 | 523,381 | 501,646 | ||||
Summarised Consolidated Segmental Information
For the six months ended 30 June 2023
Cresta | Cresta | Cresta | Cresta | |||||||||||
Urban | African | Control | Com- | |||||||||||
Urban | Heart- | African | Finger- | |||||||||||
Oasis | beat | Roots | Unit | bined | ||||||||||
P'000 | P'000 | P'000 | P'000 | P'000 | P'000 | |||||||||
Revenue | 39,173 | 38,305 | 56,209 | 46,413 | 787 | 180,887 | ||||||||
Operating profit | 1,414 | 73 | 1,793 | 4,973 | 11,881 | 20,134 | ||||||||
Reportable segment profit | 929 | 59 | (277) | 4,081 | 3,014 | 7,806 | ||||||||
before tax | ||||||||||||||
Income tax expense | (2,516) | |||||||||||||
Net profit after tax | 5,290 | |||||||||||||
Total assets | 107,613 | 134,881 | 94,224 | 91,902 | 64,513 | 493,133 | ||||||||
Total liabilities | 32,425 | 13,204 | 57,625 | 68,357 | 174,220 | 345,831 |
Summarised Consolidated Segmental Information For the six months ended 30 June 2022
Cresta | Cresta | Cresta | Cresta | ||||||||||
Urban | African | Control | Com- | ||||||||||
Urban | Heart- | African | Finger- | ||||||||||
Oasis | beat | Roots | Unit | bined | |||||||||
P'000 | P'000 | P'000 | P'000 | P'000 | P'000 | ||||||||
Revenue | 35,280 | 33,905 | 56,551 | 39,306 | (143) | 164,899 | |||||||
Operating profit | 2,976 | 3,770 | 8,049 | 2,387 | (955) | 16,227 | |||||||
Reportable segment profit | 2,438 | 3,752 | 7,102 | 1,303 | (8,695) | 5,900 | |||||||
before tax | |||||||||||||
Income tax credit | 3,544 | ||||||||||||
Net profit after tax | 9,444 | ||||||||||||
Total assets | 108,532 | 135,473 | 96,555 | 97,985 | 84,836 | 523,381 | |||||||
Total liabilities | 16,224 | 2,872 | 54,367 | 30,335 | 287,371 | 391,169 |
activities amounted to P21.8 million (2022: P3.1 million), representing a 598% increase against 2022 due to the ongoing expansionary and refurbishment projects which entrenches the Group's strategic imperative of fostering sustainable profitability into the future. Cash outflow from finance activities in 2023 increased by 82% mainly due to the increase in the debt service obligations with loan capital repayments totalling P19.6 million (2022: P6.1 million) for the six months.
SUBSEQUENT EVENTS
Other than matters discussed in this publication, the Board and Management are not aware of any material events that have occurred subsequent to the end of the reporting period that require adjustments and or disclosure in the financial statements.
OUTLOOK
The top strategic priority for the Company is the continued implementation of expansion projects and refurbishments of the existing asset portfolio. Cash generation as a strategic imperative remains instructive as this will be key in self-funding some of the various projects in the pipeline. The Company will continue to closely monitor and proactively respond to the unique challenges and opportunities presented by the current operating environment, as well as entrench its revenue yielding tactics to ensure it remains competitive, while also leveraging on technology and digitalisation to optimise operations, service provision and cost effectiveness.
APPRECIATION
We would like to commend management, staff, and our fellow directors for their unwavering commitment to ensuring sustainable profitability. The Group has been able to maintain its leadership positioning in the hospitality industry, and this is, in no small part, on the back of the laudable efforts of all stakeholders associated with the Group.
Signed on behalf of the Board.
Financial Highlights
10% | 24% | 32% | ||||||
Revenue grew from P165.9m | Operating profit increased | Profit before tax grew from | ||||||
in 2022 to P180.9m in 2023 | from P16.2m in 2022 to | P5,9m in 2022 to P7.8m | ||||||
P20.1m in 2023 | in 2023 | |||||||
74% | 6% | 12% | ||||||
Cash generated from operations | Total assets declined | Total liabilities reduced from | ||||||
increased from P29,2m in 2022 | from P523,3m in 2022 to | P391,2m in 2022 to P345,8m | ||||||
to P50,8m in 2023 | P493,1m in 2023 | in 2023 | ||||||
15% | 11% | |||||||
Cash and cash equivalents | Total shareholder's equity | |||||||
decreased from P54.0m to | grew from 132,2m in 2022 to | |||||||
P46.1m in 2023 | P147,3m in 2023 | |||||||
BASIS OF PREPARATION AND CHANGES TO THE GROUP'S ACCOUNTING POLICIES
The interim condensed consolidated financial statements for the six months ended 30 June 2023 do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2022.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Directors consider that there are no material uncertainties that may cast significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period.
New standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2022, except for the adoption of new standards effective as of 1 January 2023. The Group has not adopted any other standard, interpretation or amendment that has been issued but is not yet effective. Several amendments and interpretations apply for the first time in 2023, but do not have an impact on the interim condensed consolidated financial statements of the Group. These amendments and interpretations, effective as of 1 January 2023, are amendments to IFRS 3, IFRS 4, IFRS 17, IAS 1, IAS 8, IAS 12.
M K Lekaukau | M Morulane |
Chairman | Managing Director |
29 September 2023 | |
Sponsoring Broker: | Independent Auditors |
Deloite & Touche | |
Plot 113, Unit 30, Kgale Mews. | Deloitte House, Fairgrounds, |
Gaborone, Botswana | |
Private Bag 00223, | |
P O Box 778, Gaborone, Botswana | |
Gaborone, Botswana | |
Tel: +267 395 1611, Fax: +267 397 3137 | |
COMPANY REGISTRATION NO: BW00001308618 | |
2nd Floor, Marula House, Prime Plaza, | |
New CBD, Gaborone, Botswana | |
Phone: +267 391 2222 Fax: +267 397 4321 | |
Website: www.crestamarakanelo.com |
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Cresta Marakanelo Limited published this content on 29 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 October 2023 06:37:13 UTC.