The acquisition of Mlimani Holdings Limited by Turnstar Holdings Limited has turned to be big investment for the Botswana Stock Exchange (BSE) quoted property outfit.
Turnstar’s abridged group financial results for the year ended 31, January, 2013 showed that the subsidiary contributed P75.9 million to the total group revenue of P192.2million, representing 39 percent contribution.
The company acquired last year all the shares in Island View Ltd, an IFSC registered company duly registered in Botswana, which owns 100 percent of Mlimani Holdings Limited in Tanzania, which in turn owns Mlimani City– an investment property.
“The property comprises of: Mlimani Shopping Complex with a ground lease area (GLA) of 18 794m2, four storey office building with a GLA of 11308m2, conference Centre with a GLA of 4403m2 and 50 residential houses,” reads the statement.
The net profit after tax of P 24.48 million to total group net profit before tax of P131.5 million represents 18.62 percent increase. The group’s investment property went up from P623.49 million, representing 44 percent of the total group investment property of P1.4 billion. There was also an increase in cash by P13.5 million to leave the group cash at P82.9 million.
Signed by both the Turnstar Chairman Moses Lekaukau and Managing Director Jacob Motlhabani, the statement indicated that the company’s revenue increased by 12.89 percent from P103 million (2012) to P116.3 million. The other income increased from P18.2 million to P52 million, mainly because of the foreign exchange gain on debentures invested in Mlimani Holdings Limited.
Also indicated is the finance income of P 20.6 million, constituting interest earned from investment in debentures of Mlimani Holdings while the dividend income of P 6.1 million constitutes dividend received from subsidiary company.
“The finance costs have gone up from P10.4 million to P 15.9 million. This is due to the additional facility taken to acquire Island View and subscribe for debentures in Mlimani Holdings. There is fair value adjustment of P 29.26 million,” reads the statement.
The company’s profit for the year before taxation ended 31 January 2013 was up by 3.7 percent.
Also indicated on the statement is that the group’s earnings per share (EPS) for the group was up at 22.98 thebe per linked unit on the back of the just ended acquisition of Island View and Mlimani Holdings Limited in Tanzania, which has contributed significantly to the group performance.
“Group Net Asset Value (NAV) of P1.083 billion, the positive increase is due to the acquisition of Mlimani and revaluation of Botswana properties,” reads the statement.
The statement also shows that the Board of Directors approved a final distribution of 8.16 thebe the split with the debenture interest of 6.28 thebe and 1.88 thebe dividend per share in respect of the six months ending 31 January 2013 to all registered unit holders with the company at close of the business on 21 June 2013. Also cheques in payment of the distribution will be dispatched by the transfer secretaries on or about 22 July 2013.