Cresta Hotels says that they have experienced a growth over their financial period that dates to December 2011.
The Botswana hospitality group announced the state of their revenues at a recently-hosted investors briefing. Updating the stakeholders, the Managing Director, Tawanda Makaya, said that in total the revenues grew from P171 million to 290 million, which means there was an increase by P119 million.
Makaya also said that the total profit grew from P18 million to P20 million as well as the basic and diluted earnings per share (thebe), which experienced a growth from 10.13 to 11.28.
Cresta also managed to generate P65 million from operations and a profit after tax of P20.9 million.
Makaya said that they, however, experienced a decrease in operating margin which was mainly due to the additional rental charges arising from using and complying with the International Standard Number 17 (IAS 17). He said that although the group had a profit after tax of P20.9 million additional lease charges of 13.7 was taken into account. He included the costs associated with listing the company on the Botswana Stock Exchange (BSE) and an increase in the depreciation as a result of capitalizing refurbishments on some of their hotels as other contributing factors to their decrease in the operating margin.
Apart from the growth in the revenues and the challenges on the revenues, Makaya talked about exploring new markets, both locally and regionally, to ensure growth. He talked about Cresta’s latest developments for 2012, which include their acquisition in February of the Cresta Golf View Hotel in Lusaka, Zambia, which has 78 rooms. He added that Cresta is looking at Zambia because, as a dollar-based country, it has fast growing economy that includes future expansions that were considered. He also gave an update on the hotel that is currently being built in Mahalapye.
The hotel, which will have 65 rooms, is expected to be completed in the third quarter of 2012, which is around a period running from July and September.
Cresta will inject over P10 million as its share.