BLANTYRE HOTELS PLC
SUMMARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
SUMMARY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Audited | Audited | |
31-Dec-23 | 31-Dec-22 | |
K'000 | K'000 | |
Revenue | 4 17 375 | 3 370 51 |
Cost of sales | (2 011 410) | (1 504 0) |
Gross Profit | 2 05 95 | 1 043 |
Other income | 2 01 | 72 |
Selling and administration | ||
expenses | (2 35 3) | (1 703 372) |
Impairment loss | ( 4 57) | (5 434) |
EBITDA | 242 02 | 13 909 |
Depreciation and Amortization | (254 11) | (14 99) |
Loss from operating activities | (12 75) | (790) |
Net finance cost | (929 913) | (51 102) |
Loss on disposal of subsidiary | - | (4 7) |
Share of (loss)/profit in associate | (74 594) | 2 225 |
Loss before taxation | (1 017 292) | (52 455) |
Taxation | 224 530 | 11 22 |
Loss for the year | (792 72) | (4 229) |
Other comprehensive | ||
Income (net of tax) | 73 7 | 447 27 |
Total comprehensive | ||
income for the period | 1 11 | (1 92) |
Loss per share (in tambala) | (94) | (5) |
SUMMARY STATEMENT OF FINANCIAL POSITION | ||
Audited | Audited | |
31-Dec-23 | 31-Dec-22 | |
K'000 | K'000 | |
ASSETS | ||
Non-current assets | ||
Property and equipment | 10 31 37 | 9 25 14 |
Intangible assets | 7 47 | 11 32 |
Investment in associate | 3 42 240 | 3 907 71 |
Total non-current assets | 14 211 544 | 13 175 197 |
Current assets | ||
Inventories | 399 03 | 31 12 |
Trade and other receivables | 44 000 | 34 92 |
Tax recoverable | 112 77 | 9 5 |
Amount due from related parties | 2 93 | - |
Cash and cash equivalents | 12 253 | 233 |
Total current assets | 1 1 994 | 1 550 923 |
Total assets | 15 2 53 | 14 72 120 |
EQUITY AND LIABILITES | ||
Equity | ||
Share capital | 41 9 | 41 9 |
Share premium | 1 340 153 | 1 340 153 |
Revaluation reserve | 490 204 | 5 91 059 |
Accumulated loss | (9 994) | (2 95) |
Total equity | 5 351 | 04 235 |
Liabilities | ||||||
Non-current liabilities | ||||||
Deferred tax liabilities | 2 | 07 50 | 2 | 029 | ||
Borrowings | 2 | 045 | 05 | 2 | 41 9 | |
Total non-current liabilities | 4 | 121 | 54 | 4 | 44 777 | |
Current liabilities | ||||||
Trade and other payables | 771 | 137 | 74 029 | |||
Borrowings | 4 | 050 | 4 | 2 | 432 | |
Bank overdraft | - | 2 | 955 | |||
Amount due to related | ||||||
parties | - | 19 | 92 | |||
Total current liabilities | 4 | 21 23 | 3 | 473 | 10 | |
Total liabilities | 943 17 | 7 | 921 | 5 | ||
Total equity and liabilities | 15 | 2 53 | 14 | 72 120 |
SUMMARY STATEMENT OF CHANGES IN EQUITY | ||
Audited | Audited | |
31-Dec-23 | 31-Dec-22 | |
K'000 | K'000 | |
At the beginning of year | 04 235 | 23 197 |
Loss for the period | (792 72) | (4 229) |
Total other comprehensive | ||
income | 73 7 | 447 27 |
At the end of year | 5 351 | 04 235 |
SUMMARY STATEMENT OF CASH FLOWS | ||
Audited | Audited | |
31-Dec-23 | 31-Dec-22 | |
K'000 | K'000 | |
Cash (used in) / generated from | ||
operations | (39 30) | 191 4 |
Interest paid | (1 214 423) | (101 0) |
Taxation paid | (14 201) | (15 259) |
Net cash (used in) / generated from | ||
operating activities | (1 27 94) | 74 745 |
Net cash generated/ (used) in investing | ||
activities | 194 | (03) |
Net cash generated from financing | ||
activities | 990 221 | 500 000 |
Net (decrease)/ increase in | ||
cash and cash equivalents | (19 59) | 574 142 |
Cash and cash equivalents | ||
at the beginning of the year | 3 27 | 109 13 |
Effect of changes in exchange rate | 11 544 | - |
Cash and cash equivalents at | ||
the end of the year | 12 253 | 3 27 |
Publication commentary:
Introduction
Blantyre Hotels Plc is a Company domiciled in Malawi and incorporated under the Malawi Companies Act, 2013. The main business of the Company is the provision of accommodation, conferencing and catering services. The registered address of the Company is Ryalls Hotel, 2 Hannover Avenue, P.O. Box 21, Blantyre, Malawi.
Basis of preparation
The Directors have prepared the summary financial statements to meet the listings requirements of the Malawi Stock Exchange. The Directors have considered the listings requirements of the Malawi Stock Exchange and believe that the summary statement of profit or loss and other comprehensive income, summary statement of financial position, summary statement of changes in equity and summary statement of cash flows are sufficient to meet the requirements of the users of the summary financial statements. The amounts in the summary financial statements are prepared in accordance with the framework concepts and the measurement and recognition requirements of IFRS Accounting Standards as issued by the International Accounting Standards Board. The summary financial statements have been derived from the annual audited financial statements which were approved by the Board of Directors on 26 April 2024 and can be accessed at the Company's registered office.
Overview of results
The Company revenue for the year was K4.6 billion which was 37% higher than the revenue realised in prior year. Hotel Occupancy averaged 48% in the year compared to 46% in the previous year.
Cost of sales increased by 34% from K1.5 billion to K2 billion in the period due to the increase in general price of goods coupled with the increase in volume of business. Selling and administration expenses increased by 40% with notable increases in staff costs, fees to Management Company and capital raising costs. New gym, fire, life and safety equipment was bought in the year which resulted in the increase in the depreciation charge.
The Company registered an EBITDA of K242 million against an EBITDA of K164 million in prior period. The Company incurred net finance charges of K929 million (2022: K561 million) resulting in a loss of K793 million (2022: K466 million).
Prospects*
The Company will continue with its efforts to improve guest experience and service delivery through the relationship with Marriott International. The Company will also intensify its sales and marketing activities through the various digital platforms to strengthen the domestic segment in addition to the promotion of the Marriott Bonvoy rewards loyalty program in the market.
The Lilongwe Hotel Project
Construction of Protea Hotel Lilongwe Ryalls is in progress. The physical progress is estimated at 30% as at 31 December 2023. Project completion is targeted for mid-year 2025.
The funding for the project is through a special purpose vehicle (Oasis Hospitality Limited) which is owned by Blantyre Hotels plc and other investors. BHL is funding its commitments for the project through a combination of debt and equity. At the Extraordinary General meeting held on 7 March 2024, the shareholders approved that the Company should borrow USD15 million, which will be invested in the project company for the property development. The proposed equity rights offering is on course to be executed in the year.
Dividends
The Board resolved not to pay a dividend due to the current performance.
Approval of the financial statements
The summary financial statements for the year ended 31 December 2023 were approved by the Board of Directors on 26 April 2024.
E Makuta | |
Chairperson | Director |
*Unaudited
Report of the Independent Auditor on the Summary Financial Statements
To the shareholders of Blantyre Hotels Plc
Opinion
The summary financial statements, which comprise the summary statement of financial position as at 31 December 2023, and the summary statement of profit or loss and other comprehensive income, summary statement of changes in equity and summary statement of cash flows for the year then ended and related notes, are derived from the audited financial statements of Blantyre Hotels Plc for the year ended 31 December 2023.
In our opinion, the accompanying summary financial statements are a fair summary of the audited financial statements of Blantyre Hotels Plc, and on the basis described in the basis of preparation paragraph.
Summary Financial Statements
The summary financial statements do not contain all the disclosures required by the IFRS Accounting Standards as issued by the International Accounting Standards Board. Reading the summary financial statements and the auditor's report thereon, therefore, is not a substitute for reading the audited financial statements of Blantyre Hotels Plc and the auditor's report thereon. The summary financial statements and the audited financial statements do not reflect the effects of events that occurred subsequent to the date of our report on the audited financial statements.
The Audited Financial Statements and Our Report Thereon
We expressed an unmodified audit opinion on the audited financial statements in our report dated 29 April 2024. That report also includes the communication of key audit matters. Key audit matters are those matters that in our professional judgement were of most significance in our audit of the financial statements of the current year.
Directors' Responsibility for the Summarty Financial Statements
The Directors are responsible for the preparation of the summary financial statements in accordance with the basis described in the basis of preparation paragraph.
Auditor's Responsibility
Our responsibility is to express an opinion on whether the summary financial statements are a fair summary of the audited financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing 810 (Revised) Engagements to Report on Summary Financial
Statements.
Chartered Accountants
Christopher Kapenda
Partner
30 April 2024
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Disclaimer
Blantyre Hotels Limited published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 07:58:04 UTC.