Letshego to report 8 percent increase in profit after tax

Letshego Holdings, the pan-African listed consumer lender said its results for the six month period ended 31 July 2013 are expected to be higher than corresponding period owing to low interest environment. In a note through its sponsoring brokers, Stockbrokers Botswana, the company said there has been strong growth in three key markets.
“……In this regard, they advise that loans and advances to customers have increased by 22 percent from the previous financial period with strong growth recorded in Botswana, Namibia and Mozambique, the three largest markets of the Letshego Group,” the company said.
“The quality of the loans and advances to customers has remained consistent with previous financial periods.”
Letshego added that in a declining interest rate environment where it operates, coupled with a large equity base and fixed cost of funding, the profit before tax for the interim financial period ended 31 July 2013 is expected to be 7 percent higher than the previous financial period.
Profit after tax is expected to increase by 8 percent for the same period. Basic earnings per share are expected to be 2 percent higher than the previous financial period as a result of the successful conversion of a convertible loan during April 2013.
The basic earnings per share are expected to be 2 percent higher than the previous financial period as a result of the successful conversion of a convertible loan during April 2013.
The company says it will publish the Letshego Group unaudited financial results and dividend declaration for the six month period ended 31 July 2013 once the external review has been finalized and all internal governance processes have been completed. This is expected to be on or about the 17th of October 2013.
Letshego is mulling raising additional debt funding by way of a maiden offering of Notes to be issued under the Letshego Medium Term Note Programme. This is expected to be completed by November 2013 and is subject to all necessary regulatory approvals and compliances being completed.
Letshego is a leading provider of unsecured consumer loans and offers other financial services to consumers in sub-Saharan Africa and it is a holding company with subsidiaries operating in 11 African countries in Southern and Eastern Africa.