Friday, March 1, 2024

Letshego expecting lower profits

Letshego Holdings Limited sounded alarms last week at the capital markets when it slashed its performance forecast for the six month interim period ended 30 June 2022.

The Botswana Stock Exchange Limited (BSE) quoted lender says it now expects its profit before tax for the six months ended 30 June 2022 to be between 15 and 20 percent lower (approximately P81.6 million to P108.8 million) than that reported for the comparative period ended 30 June 2021, which amounted to P544.1 million.

In line with BSE’s Listing Requirements, an issuer must publish a cautionary announcement as soon as they are satisfied that a reasonable degree of certainty exists that the relevant matrix for the period to be reported upon next, will differ by at least 10 percent from the most recent financial results for the previous corresponding period.

“The Board of Letshego Holdings Limited wishes to advise shareholders that the Group’s interim financial results for the six-month period ended 30 June 2022 will be announced on Monday 29 August 2022. In light of the closed period, shareholders and investors remain advised to exercise caution when dealing in the Company’s securities until formal publication of the interim results”, read part of the cautionary statement issued last week by Letshego.

The fall in profitability follows a recent change of guard at its both boardroom and executive suites. The company recently announced the appointment of Aupa Monyatsi as group chief executive.

A new board of directors was also put in place following departure by some directors in the old board on the eve of the group’s AGM. The new board is led by Philip Odera who was elevated to the position a few days before the AGM after its former board chairperson – Enos Banda and two non-executive directors – Dr Gloria Somolekae and Hannington Karuhunga called it a day. Odera had served in the previous board since 2019. Other new board members include Rose Mwaura, Ketlhalefile Motshegwa, Christopher Mokgware, Professor Emmanuel Botlhale and Jayaraman Ramesh. Other nominees who did not make the cut include Wilfred Mpai, Maleho Mothibatsela, Oteng Sebonego, and Boitumelo Molefe.

Letshego is an inclusive finance focused Group with microfinance banking and consumer lending subsidiaries across eleven countries in sub-Saharan Africa.

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