Sunday, June 23, 2024

Turnstar expects higher PBT

BSE quoted property outfit, Turnstar Holdings has said that it expects a positive growth in its Profit before Tax for the year ended January 2023. In a cautionary statement released to the market last week, Turnstar said that it expects the group’s profit before taxation, for the period under review to be higher by approximately 24 percent (P 27.7 million) from P 114.4 million for the year ended 31 January 2022 to approximately P 142 million for the year ended 31 January 2023. 

The group’s financial results for the year ended 31 January 2023 which will be published before 30 April 2023 are also expected to reflect an increase in the company’s finance costs. 

“Due to the increase in the interest rates and the appreciation of the US Dollar over the Botswana Pula, the finance costs of the Group increased to P 30.9 million, for the year ended 31 January 2023, compared to P 21.3 million for the corresponding year ended 31 January 2022”, reads part of the cautionary statement from Turnstar. 

To tame the spiraling inflation and bring it down to Bank of Botswana’s tolerable range of 3-6 percent, the central bank in 2022 effected sharp interest rate increases, rising the monetary policy rate three times, from 1.14 percent rate to the current 2.65 percent. 

Earlier this year, Kabo Thutwe, Investment Analyst at Kgori Capital said that the local asset management firm does not expect any bank rate hikes in the near term as the central bank continues to monitor improving inflation levels. 

The domestic inflation rate was at 9.9 percent during March 2023 according to Statistics Botswana’s latest Consumer Price Index (CPI) data. Kgori Capital said on Monday that the Inflation rate is expected to rise again in April 2023 mainly due to the increase in administered prices that came into effect on 1st April 2023. This includes the reversion of the Value Added Tax (VAT) rate back to 14 percent from 12 percent. 

Meanwhile Turnstar said that the fair value appreciation of its Botswana, Tanzania and Dubai properties for the year ended 31 January 2023 is expected to be approximately P31.2 million.  Locally Turnstar’s property portfolio include amongst other Game City shopping Centre in the capital Gaborone, Nzano Shopping Centre, in Francistown, Fairgrounds Office Park, Mogoditshane, Supa Save Mall, Turnstar House, Main Mall, offices in Commerce Park, Mogoditshane Flats, Hyundai Warehouse, Tapologo Estates. 

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