Turnstar : UNAUDITED ABRIDGED GROUP INTERIM RESULTS FOR THE HALF YEAR ENDED 31 JULY 2023

UNAUDITED ABRIDGED GROUP INTERIM RESULTS FOR THE HALF YEAR ENDED 31 JULY 2023

9% REVENUE	27%	GROUP	8.39t SHARE HALF YEAR	10t
BEFOREPROFIT TAX
GROUP			EARNINGS PER

DISTRIBUTION PER LINKED UNIT

Directors: B D Phirie(Chaiperson), G H Abdoola (MD), S Puvimanasinghe, V T Tebele Amaresh Chetty, S S Mantswe, S Manake

Registered Office : Acumen Park, Plot 50370, Fairground Office Park, P O Box 1172. Gaborone

Transfer secretaries: Grant Thornton Business Services (Proprietary) Limited,

Auditors: Ernst & Young, 2nd Floor Plot 22, Khama Crescent. PO Box 41015, Gaborone, Botswana

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	GROUP			COMPANY
Unaudited	Unaudited	Audited	Unaudited	Unaudited	Audited

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 JULY 2023	The Board	of Directors of Turnstar Holdings Limited are pleased to present the unau-
dited Group Financial results, for the 6 month period ended 31 July 2023.
	Group

Continuing operations

Rental income

Other income

Operating expenses

Dividend income from subsidiary

Operations profit

Finance income

Finance cost

Profit before exchange difference and FV

Exchange gain

Exchange loss

Profit before FV

Impairment of investment in subsidiary

Fair value adjustments

Profit before tax

Taxation

Profit for 6 months

Other comprehensive income

Exchange difference on translating foreign operations

Total comprehensive income for the half year

31-Jul-23	31-Jul-22	31-Jan-23	31-Jul-23	31-Jul-22	31-Jan-23
Pula	Pula	Pula	Pula	Pula	Pula
155,191,425	142,652,668	291,267,868	81,325,948	80,313,748	158,318,540
1,618,102	1,438,703	3,083,810	2,162,352	2,314,486	4,734,486
(69,130,168)	(70,974,131)	(141,004,504)	(39,636,083)	(40,721,701)	(81,854,112)
-	-	-	7,378,285	6,280,224	15,865,608
87,679,359	73,117,240	153,347,174	51,230,502	48,186,757	97,064,522
1,085	14,339	16,074	10,105,478	7,020,596	17,018,901
(17,521,677)	(12,325,316)	(30,903,614)	(17,521,677)	(12,325,316)	(30,903,614)
70,158,767	60,806,263	122,459,634	43,814,303	42,882,037	83,179,809
3,926,317	12,968,818	19,455,154	3,926,317	12,968,818	19,455,154
(5,756,037)	(19,768,666)	(31,077,831)	(4,909,102)	(19,639,233)	(30,733,214)
68,329,047	54,006,415	110,836,957	42,831,519	36,211,622	71,901,749
		(29,864,906)			-
-	-	31,184,126	-	-	17,872,099
68,329,047	54,006,415	112,156,177	42,831,519	36,211,622	89,773,848
(20,320,846)	14,621,549	(4,128,002)	1,102,251	23,836,699	12,465,233
48,008,201	68,627,964	108,028,175	43,933,770	60,048,321	102,239,081
16,444,648	51,326,513	74,510,636	-	-	-
64,452,849	119,954,477	182,538,811	43,933,770	60,048,321	102,239,081

Figures in Pula

Opening balance of group at 01 February 2023

Profit for the 6 month period

Other comprehensive income for the 6 month period

Total comprehensive income for the 6 month period

Final debenture interest and dividends paid 31 January 2023

Debenture interest and dividends transferred to dividend and debenture interest reserve

Transactions with unit holders recognised in statement of changes in equity

Balance as at 31 July 2023

		Stated capital	Linked unit	Fair value	Foreign Currency		Retained	Total equity and
		translation
		debentures	surplus		earnings	reserves
			reserve	Distribution reserve
	346,420,555	286,076,802	719,809,226	251,672,304	51,493,824	158,822,119	1,814,294,830
							48,008,201	48,008,201
					16,445,645			16,445,645
	-	-	-	16,445,645	-	48,008,201	64,453,846
	-	-	-	-	(51,493,824)	-	-
						57,215,306	(57,215,306)
-	-	-	-	5,721,482	(57,215,306)	(51,493,824)
346,420,555	286,076,802	719,809,226	268,117,949	57,215,306	149,615,014	1,827,254,852

The Group consists of Turnstar Holdings Limited (Botswana), Island View (Propri- etary) Limited (Botswana), Mlimani Holdings Limited (Tanzania), Turnstar Investments Limited (UAE) and Palazzo Venezia Holdings Limited (UAE). We hereby report on the performance of the group.

BASIS OF PREPARATION AND ACCOUNTING POLICIES

The summarised financial results have been prepared in accordance with International Financial Reporting Standards ("IFRS"), and contain the information required by IAS 34, Interim Financial Reporting. In preparing the underlying financial statements from which these summarised financial results were extracted, all IFRS and International Reporting Interpretations Committee interpretations issued and effective for annual periods beginning on or after 1st of January 2023 have been applied. The Group's underlying consolidated financial statements have been prepared in accordance with IFRS. The principal accounting policies are consistent in all material aspects with those adopted in the previous year.

OVERVIEW

The rental revenues of the Group for the half-year period ended 31 July 2023 increased by 8.8% compared to the corresponding half-year period ended 31 July 2022 (P155.2million for the half-year period ended 31 July 2023 compared to P142.7million for the half-year period ended 31 July 2022). The increase in rental revenues, combined with a nominal reduction in operational expenses, resulted in an increase of P14.5million (20%) of the Group's operational profit, when compared to the corresponding half year period ending 31 July 2022 (P 87.7million for the half year period ending 31 July 2023 compared to P 73.1million for the half year ended 31 July 2022).

Basic earnings per linked unit (in thebe) Distribution per linked unit(in thebe) Debenture interest per linked unit(in thebe) Dividend per linked unit(in thebe) Number of linked units

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS

Non-Current Assets

Investment property

Plant and equipment

Goodwill

Investment in subsidiary

Loan to related compamy

Operating lease asset

Current Assets

Operating lease asset

Cash and cash equivalent

Trade and other receivables

Total Assets

EQUITY AND LIABILITIES

8.39	11.99	18.88	7.68	10.50	17.87
10.00	9.00	18.00	10.00	9.00	18.00
8.7104	7.9024	15.2270	8.7104	7.9024	15.2270
1.2896	1.0976	2.7730	1.2896	1.0976	2.7730
572,153,603	572,153,603	572,153,603	572,153,603	572,153,603	572,153,603

	GROUP			COMPANY
Unaudited	Unaudited	Audited	Unaudited	Unaudited	Audited
31-Jul-23	31-Jul-22	31-Jan-23	31-Jul-23	31-Jul-22	31-Jan-23
Pula	Pula	Pula	Pula	Pula	Pula
2,641,966,493	2,579,052,367	2,616,747,755	2,166,200,277	2,165,398,163	2,171,140,496
2,622,475,762	2,532,247,141	2,599,722,059	1,429,283,153	1,407,218,716	1,427,539,285
1,843,077	2,093,816	1,928,866	282,990	317,043	268,782
-	28,993,998	-	-	-	-
-	-	-	541,529,229	541,529,229	541,529,229
-	-	-	182,624,568	203,992,815	190,863,452
17,647,654	15,717,412	15,096,830	12,480,337	12,340,360	10,939,748
59,754,337	47,358,400	45,278,489	22,435,008	27,324,054	20,391,984
-	3,159,062	1,300,967	-	3,159,062	1,300,967
23,644,472	12,603,310	9,542,151	8,455,123	8,763,512	3,892,636
36,109,865	31,596,028	34,435,371	13,979,885	15,401,480	15,198,381
2,701,720,830	2,626,410,767	2,662,026,244	2,188,635,285	2,192,722,217	2,191,532,480

CONDENSED CONSOLIDATED STATEMENT OF CASHFLOW
FOR THE HALF YEAR ENDED 31 JULY 2023			GROUP			COMPANY
		Unaudited	Unaudited	Audited	Unaudited	Unaudited	Audited
		31-Jul-23	31-Jul-22	31-Jan-23	31-Jul-23	31-Jul-22	31-Jan-23
CASH FLOWS FROM OPERATING ACTIVITIES		Pula	Pula	Pula	Pula	Pula	Pula
Cash generated from operations		88,050,033	69,499,817	156,136,020	58,111,140	42,960,164	97,439,802
Taxation (paid) received		(837,139)	(708,734)	(3,467,744)	-	(1,925)	(1,692,556)
Net cash from operating activities		87,212,894	68,791,083	152,668,276	58,111,140	42,958,239	95,747,246
Net cash from investing activities
	(1,854,054)	(3,308,837)	(5,820,766)	17,708,942	23,504,334	50,286,948
Net cash from financing activities
	(22,579,301)	(85,244,380)	(199,380,094)	(22,580,386)	(85,244,380)	(199,396,168)
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS
	62,779,539	(19,762,134)	(52,532,584)	53,239,696	(18,781,807)	(53,361,974)
Cash and cash equivalent at the beginning of the year		(39,273,367)	14,058,183	14,058,183	(44,922,882)	9,238,058	9,238,057
Effects of exchange rate movement on cash balances		22,699	(88,442)	(798,966)	22,699	(88,442)	(798,966)
Total cash and cash equivalents at the end of the year		23,528,871	(5,792,393)	(39,273,367)	8,339,513	(9,632,191)	(44,922,883)
SEGMENT REPORT
							Figures in Pula	Figures in Pula
Primary segment - Geographical segment	31-Jul-23	31-Jul-22	31-Jul-23	31-Jul-22	31-Jul-23	31-Jul-22	31-Jul-23	31-Jul-22
	Botswana	Botswana	Tanzania	Tanzania	Dubai	Dubai	Consolidated	Consolidated
Revenues from external customers	81,325,948	80,313,749	72,921,775	61,518,009	943,703	820,910	155,191,425	142,652,668
Inter segment revenues					-	-	-	-
Total segment revenues	81,325,948	80,313,749	72,921,775	61,518,009	943,703	820,910	155,191,425	142,652,668
Segment property direct and indirect expenses	28,172,217	28,942,441	24,113,355	21,595,509	848,536	5,251,529	53,134,108	55,789,478
Segment operating profit	53,153,730	51,371,309	48,808,421	39,922,501	95,167	(4,430,620)	102,057,318	86,863,190
Segment Assets	1,464,481,488	1,447,200,173	1,151,681,774	1,157,534,901	25,803,231	21,675,693	2,641,966,493	2,626,410,767
Segment Liabilities	666,021,095	645,221,843	208,275,267	169,923,008	170,616	(1,472)	874,466,978	815,143,379
Secondary segment- Operating segment	31-Jul-23	31-Jul-22	31-Jul-23	31-Jul-22	31-Jul-23	31-Jul-22	31-Jul-23	31-Jul-22
Revenues		Retail				Commercial

High borrowing rates increased the Group's finance costs compared to the comparative prior period. The US Dollar also appreciated against the Botswana Pula, during the current half year period, resulting in foreign exchange losses recognised on the Group's borrowings denominated in US Dollar.

The Group's profit before taxation, for the half year period ended 31 July 2023, is P 14.3million (26.52%) higher than the previous period ended 31 July 2022 (P68. 3million for the half year ended 31st July 2023 compared to P54.0million for the half year ended 31st July 2022).

Stakeholders are reminded that foreign exchange translation gains are unrealized and are dependent on the US $ /BWP exchange rate at the reporting date.

Group

• Group earnings per share (EPS) is 8.39t per share
• Group Tax of P20.3million comprises wholly of a deferred tax realiza- tion, calculated in accordance with IAS 12.

INTERIM DISTRIBUTION

The dividend of 10t per linked unit will comprise of debenture interest of 8.7104t and dividend of 1.2896t per linked unit, to all registered unit holders as at the close of business on 1st December 2023.

Ex distribution date	29th November 2023
Record date for participation	1st December 2023
Date of payment of dividend	12th December 2023

In accordance with requirements of the Income Tax Act(Act), withholding tax shall be deducted by the company on the payment of interest and dividends paid to residents and non - residents holders of linked units who are not exempt from the withholdings tax provisions of the Act. Dividend is paid out of dividend received from Mlimani Holdings Limited, therefore it will be tax exempt.

		Figures in Pula	Figures in Pula
31-Jul-23	31-Jul-22	31-Jul-23	31-Jul-22

Stated Capital and Reserves

Stated capital

Linked unit debentures Fair value surplus Retained earnings

Debenture interest and dividend reserves Foreign currency translation reserve

Non- Current Liabilities

1,827,253,852	1,803,204,323	1,814,294,833	1,522,614,190	1,539,447,309	1,530,174,246
346,420,555	346,420,555	346,420,555	346,420,555	346,420,555	346,420,555
286,076,802	286,076,802	286,076,802	286,076,802	286,076,802	286,076,802
719,809,226	688,625,100	719,809,226	771,139,255	753,265,947	771,139,255
149,615,014	202,099,861	158,822,122	61,762,272	102,190,181	75,043,810
57,215,306	51,493,824	51,493,824	57,215,306	51,493,824	51,493,824
268,116,949	228,488,181	251,672,304	-	-	-
818,318,617	686,016,759	718,532,439	653,121,214	554,293,445	576,332,645

	Botswana	Botswana	Tanzania	Tanzania	Botswana	Botswana	Tanzania	Tanzania	Dubai	Dubai	Consolidated	Consolidated
Rental income from external customers	75,822,269	74,902,034	55,018,806	49,831,166	5,503,679	5,411,715	17,902,969	11,686,843	943,703	820,910	155,191,425	142,652,668
Inter segmental revenues
Total segment revenues	75,822,269	74,902,034	55,018,806	49,831,166	5,503,679	5,411,715	17,902,969	11,686,843	943,703	820,910	155,191,425	142,652,668
Segment expenses	26,556,000	27,639,902	19,338,491	18,893,715	1,616,218	1,302,539	4,774,864	2,701,794	848,536	5,251,529	53,134,108	55,789,478
Segment operating profit	49,266,269	47,262,133	35,680,316	30,937,451	3,887,461	4,109,176	13,128,105	8,985,049	95,167	-4,430,620	102,057,318	86,863,190

Borrowings

Deferred taxation

Current Liabilities

Trade and other payables Borrowings

Current tax

Unclaimed debenture interest and dividend Bank overdraft

Total Equity and Liabilities

581,459,764	492,901,210	503,568,944	581,459,764	492,901,210	503,568,944
236,858,853	193,115,549	214,963,495	71,661,450	61,392,235	72,763,701
56,148,361	137,189,685	129,198,972	12,899,881	98,981,463	85,025,589
53,634,621	44,347,163	51,585,906	10,386,141	6,138,941	7,412,523
-	70,909,337	26,546,603	-	70,909,337	26,546,603
-	1,573,372	2,250,945	-	1,573,372	2,250,945
2,398,139	1,964,110	-	2,398,139	1,964,110	-
115,601	18,395,703	48,815,518	115,601	18,395,703	48,815,518
2,701,720,830	2,626,410,767	2,662,026,244	2,188,635,285	2,192,722,217	2,191,532,480
-	-	-	-	-	-

	Figures in Pula	Figures in Pula
	31-Jul-23	31-Jul-22
Reconciliation of group net profit before tax
Total reporting segment operating profit	102,057,317	86,863,189
Salaries and wages	(8,105,936)	(7,605,670)
Loss on exchange difference	(5,756,037)	(19,768,666)
Profit on exchange differences	3,926,317	12,968,818
Finance income	1,085	14,339
Sundry income	1,618,102	1,438,703
Corporate expenses	(7,890,124)	(7,578,982)
Operating profit	85,850,724	66,331,731
Finance costs	(17,521,677)	(12,325,316)
Group profit before tax	68,329,047	54,006,415

Segment information is organised into two, georaphical and into operating segments which comprises retail and commercial. The segments are the basis on which the company reports its primary segment information. Retail segment comprises Game City, Nzano, Supa Save and Mlimani shopping centres. The commercial segment incorporates office, residential, industrial properties in Botswana,Tanzania and Dubai