Friday, July 12, 2024

Letshego Holdings expecting growth in loans

Letshego Holdings, the pan-African listed consumer lender says its financial results for the period ended 31 December, 2014, against those for the year ended 31th January, 2014, are expected to show growth in loans and advances.

The company announced that the growth is expected to be at least 25 percent, and an increase in profit before tax of at least 20 percent.

“Earnings per share are expected to increase by at least 20 percent. Note that where applicable percentage movements are on an annualised basis given the change of year end from January to December with effect from 31 December, 2014,” reads the statement.

In line with Botswana Stock Exchange (BSE) listing requirements, the company will publish the final audited financial results for the period ended 31 December, 2014 and dividend declaration once the external audit is finalised and all internal governance processes are completed.

“This is expected to be on, or around, 27 February, 2015. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities,” says the statement.

Currently the group, which is among the top 40 African listed companies outside South Africa, is currently undertaking a diversification project, investing in people, micro finance and looking at rolling out micro banking.

Former Letshego Managing Director Chris Low in October 2014 said that customer access points increased from 11 to 12, servicing 32,000 customers, supported by 103 full time employees and 100 direct sales agents adding that net advances just under P2 billion, with PBT up 20 percent to P 215 million.

Reflecting on Letshego’s┬áunaudited financial results for the six month period ended 31st┬áJuly 2014, the┬ábalance sheet indicated at the time that┬áadvances to customers increased by┬á31 percent to P5.0 billion rising from P3.8 billion in┬á2013. Its cash available for operations is┬áP383 million┬ábut in 2013 was at P433 million.

A look at the last year financial results, Chief Financial Officer of Letshego Holdings Colm Patterson said Letshego is executing a phased diversification strategy in a bid to transform the group into a more broad based financial services provider. ??The move includes deposit taking activities in Mozambique during February with new products to be rolled out in the near future in a country still smarting from civil war. The group is also optimistic to commence deposit taking in Rwanda and it will be looking to have provisional license in Namibia become a fully fledged license after meeting certain conditions.

Late last year the company revealed its intention is to grow its revenues faster than costs, but admitted the biggest challenge is that it is on an expansion drive.


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