Botswana registered Imara Holdings said its half year results have been battered by difficult trading conditions coupled by the disposal of one of its units. The group said on a note to the Botswana Stock Exchange (BSE) that it will register a loss as a result of these events.
However, the sale of Imara SP Reid Proprietary Limited (ISPR) will come in handy as it will report a profit. In a notice on the Botswana Stock Exchange (BSE) and in accordance with the listing rules the company noticed shareholders that it “encountered difficult trading conditions during the past six months.”
“In its markets Imara experienced sharp declines in currency and equity market values which have been compounded by low trading volumes. These conditions combined with an unsustainable cost base and the absence of earnings associated with Imara SP Reid Proprietary Limited (ISPR), since its sale in June 2015, mean that Imara will incur a loss in its operating businesses in the first half year ended 31 October 2015,” Imara revealed.
However, the group will however report a profit for the period as a result of the exceptional gain arising from the sale of ISPR. Imara S.P. Reid Proprietary Limited was sold to MMI Strategic Investments Proprietary Limited for a consideration of P100 million. Imara said in the past it decided to dispose the South African stockbroking unit on the back of the increase in online share trading, escalating regulatory and compliance costs, together with generally changing market dynamics that has led to growing pressure and competition for independent stockbroking companies in South Africa. The company board argued that Imara S.P. Reid Proprietary Limited, which remains an attractive investment within the stockbroking industry in South Africa, needs a parent willing and able to fund its growth needs.
The purchaser, MMI Strategic Investments core business currently comprises of long and short-term insurance, asset management, savings, investment, healthcare administration, health risk management, employee benefits, and rewards programmes.
“The new management are taking action to reduce the fixed cost base across the Group to a more sustainable level to enable Imara to endure the current difficult market conditions and emerge as a leaner and more efficient organisation.”
The half year results will be in December 2015. In the “Announcement of Un-Audited Interim Group Results” for the corresponding six months ended 31 October 2014 Imara reported a profit after tax attributable to shareholders of P9,022,109.
Imara has presence in Angola, Botswana, Kenya, Malawi, Mauritius, Namibia, Nigeria, United Kingdom, Zambia and Zimbabwe.
