BLANTYRE HOTELS PLC
SUMMARISED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
SUMMARY STATEMENTS OF COMPREHENSIVE INCOME
Audited | Audited | Audited | Audited | ||||||||||||||
Consolidated | Consolidated | Separate | Separate | ||||||||||||||
12 months ended | 15 months ended | 12 months ended | 15 months ended | ||||||||||||||
31-Dec-22 | 31-Dec - 21 | 31-Dec-22 | 31-Dec-21 | ||||||||||||||
K'000 | K'000 | K'000 | K'000 | ||||||||||||||
Restated | |||||||||||||||||
Revenue | 3 370 851 | 1 974 975 | 3 370 851 | 1 974 975 | |||||||||||||
Cost of sales | (1 504 808) | (1 086 962) | (1 504 808) | (1 086 962) | |||||||||||||
Gross Profit | 1 866 043 | 888 013 | 1 866 043 | 888 013 | |||||||||||||
Other income | 6 672 | 6 455 | 6 672 | 6 455 | |||||||||||||
Selling and administration expenses | (1 723 898) | (1 517 972) | (1 703 372) | (1 258 515) | |||||||||||||
Impairment loss | (5 434) | (420) | (5 434) | (420) | |||||||||||||
EBITDA | 143 383 | (623 924) | 163 909 | (364 467) | |||||||||||||
Depreciation and amortization | (164 669) | (221 054) | (164 699) | (221 054) | |||||||||||||
Loss from operating activities | (21 286) | (844 978) | (790) | (585 521) | |||||||||||||
Net finance cost | (595 496) | (194 288) | (561 102) | (60 768) | |||||||||||||
Gain /(loss) on disposal of subsidiary | 323 197 | - | (46 788) | - | |||||||||||||
Share of profit in associate | 26 225 | - | 26 225 | - | |||||||||||||
Loss before taxation | (267 360) | (1 039 266) | (582 455) | (646 289) | |||||||||||||
Taxation | 131 450 | 287 427 | 116 226 | 169 212 | |||||||||||||
Loss for the period | (135 910) | (751 839) | (466 229) | (477 077) | |||||||||||||
Other comprehensive | 447 267 | 500 277 | |||||||||||||||
Income (net of tax) | 447 267 | 500 277 | |||||||||||||||
Total comprehensive income for period | 311 357 | (251 562) | (18 962) | 23 200 | |||||||||||||
Loss per share (tambala) | (16) | (90) | |||||||||||||||
SUMMARY STATEMENTS OF FINANCIAL POSITION
Audited | Audited | Audited | Audited | |||||||||||||||
Consolidated | Consolidated | Separate | Separate | |||||||||||||||
31-Dec-22 | 31-Dec-21 | 31-Dec-22 | 31-Dec-21 | |||||||||||||||
K'000 | K'000 | K'000 | K'000 | |||||||||||||||
ASSETS | ||||||||||||||||||
Non -current assets | ||||||||||||||||||
Property and equipment | 9 256 164 | 14 652 418 | 9 256 164 | 8 783 141 | ||||||||||||||
Intangible assets | 11 362 | - | 11 362 | - | ||||||||||||||
Investment in subsidiary | 3 907 671 | - | 3 907 671 | 3 686 301 | ||||||||||||||
Deferred tax asset | - | - | 143 610 | - | - | |||||||||||||
Total non-current assets | 13 175 197 | 14 796 028 | 13 175 197 | 12 469 442 | ||||||||||||||
Current assets | ||||||||||||||||||
Inventories | 381 162 | 292 216 | 381 162 | 292 216 | ||||||||||||||
Trade and other receivables | 384 962 | 381 868 | 384 962 | 406 070 | ||||||||||||||
Tax recoverable | 98 566 | 83 520 | 98 566 | 83 307 | ||||||||||||||
Cash and cash equivalents | 686 233 | 664 723 | 686 233 | 136 943 | ||||||||||||||
Total current assets | 1 550 923 | 1 422 327 | 1 550 923 | 918 536 | ||||||||||||||
Total assets | 14 726 120 | 16 218 355 | 14 726 120 | 13 387 978 | ||||||||||||||
EQUITY AND LIABILITES | ||||||||||||||||||
Equity | ||||||||||||||||||
Share capital | 41 988 | 41 988 | 41 988 | 41 988 | ||||||||||||||
Share premium | 1 340 153 | 1 340 153 | 1 340 153 | 1 340 153 | ||||||||||||||
Revaluation reserve | 5 691 059 | 5 314 507 | 5 691 059 | 5 314 507 | ||||||||||||||
(Accumulated losses)/retained | 126 549 | |||||||||||||||||
earnings | (268 965) | (203 770) | (268 965) | |||||||||||||||
Total equity | 6 804 235 | 6 492 878 | 6 804 235 | 6 823 197 | ||||||||||||||
Liabilities | ||||||||||||||||||
Non-current liabilities | ||||||||||||||||||
Deferred tax liabilities | 2 029 888 | 2 006 683 | 2 029 888 | 2 006 683 | ||||||||||||||
Loans and borrowings | 2 418 889 | 3 842 162 | 2 418 889 | 3 842 162 | ||||||||||||||
Total non -current liabilities | 4 448 777 | 5 848 845 | 4 448 777 | 5 848 845 | ||||||||||||||
Current liabilities | ||||||||||||||||||
Trade and other payables | 764 029 | 1 686 447 | 764 029 | 688 129 | ||||||||||||||
Loan and Borrowings | 2 686 432 | 2 133 253 | 2 686 432 | - | ||||||||||||||
Bank overdraft | 2 955 | 27 807 | 2 955 | 27 807 | ||||||||||||||
Amount due to related parties | 19 692 | 29 125 | 19 692 | - | ||||||||||||||
Total current liabilities | 3 473 108 | 3 876 632 | 3 473 108 | 715 936 | ||||||||||||||
Total liabilities | 7 921 885 | 9 725 477 | 7 921 885 | 6 564 781 | ||||||||||||||
Total equity and liabilities | 14 726 120 | 16 218 355 | 14 726 120 | 13 387 978 |
SUMMARY STATEMENTS OF CHANGES IN EQUITY
Audited | Audited | Audited | Audited | |||||||||
Consolidated | Consolidated | Separate | Separate | |||||||||
12 months ended | 15 months ended | 12 months ended | 12 months ended | |||||||||
31-Dec-22 | 31-Dec-21 | 31-Dec-22 | 31-Dec-21 | |||||||||
K'000 | K'000 | K'000 | K'000 | |||||||||
At the beginning of the period | ||||||||||||
6 492 878 | 6 744 440 | 6 823 197 | 6 799 997 | |||||||||
Loss for the period | (135 910) | (751 839) | (466 229) | (477 077) | ||||||||
Total other comprehensive income | 447 267 | 500 277 | 447 267 | 500 277 | ||||||||
At the end of period | 6 804 235 | 6 492 878 | 6 804 235 | 6 823 197 |
SUMMARY STATEMENTS OF CASH FLOWS
Audited | Audited | Audited | Audited | ||||||||||||||||
Consolidated | Consolidated | Separate | Separate | ||||||||||||||||
12 months ended | 15 months ended | 12 months ended | 12 months ended | ||||||||||||||||
31-Dec-22 | 31-Dec-21 | 31-Dec-22 | 31-Dec-21 | ||||||||||||||||
K'000 | K'000 | K'000 | K'000 | ||||||||||||||||
Restated | Restated | ||||||||||||||||||
Cash (used in)/ generated from | |||||||||||||||||||
operations | (322 215) | (707 851) | 191 664 | (423 791) | |||||||||||||||
Interest paid | (101 660) | (37 575) | (101 660) | (37 575) | |||||||||||||||
Taxation paid | (15 259) | (567) | (15 259) | (567) | |||||||||||||||
Net cash (used in)/ generated from | |||||||||||||||||||
operating activities | (439 134) | (745 993) | 74 745 | (461 933) | |||||||||||||||
Net Cash used in investing activities | ( 14 505) | (3 142 548) | (603) | ( 3 327 883) | |||||||||||||||
Net cash generated from financing activities | 500 000 | 3 455 523 | 500 000 | 3 500 000 | |||||||||||||||
Net increase/(decrease) in cash and cash | |||||||||||||||||||
equivalents | 46 362 | (433 018) | 574 142 | (289 816) | |||||||||||||||
Cash and cash equivalents at the beginning | |||||||||||||||||||
of the year | 636 916 | 1 069 934 | 109 136 | 398 952 | |||||||||||||||
Cash and cash equivalents at the end of the | |||||||||||||||||||
year | 683 278 | 636 916 | 683 278 | 109 136 | |||||||||||||||
Publication commentary:
This publication supersedes the earlier preliminary publication published on 30 June 2023 which was based on unaudited financial statements. The audited results differ from the preliminary unaudited results which were published. The Group loss reported in the preliminary published unaudited results was K290 million compared to the loss reported in the audited results of K136 million. This is due to the change in the accounting treatment of the company's investment in Oasis Hospitality Limited where it has been accounted for as an associate from April 2022. This has resulted in the change in the financial performance and position from that which was earlier published.
Introduction
Blantyre Hotels Plc is a company which operates in the hospitality industry in Malawi with one hotel, Protea Hotel Ryalls, based in Blantyre.
Blantyre Hotels plc had 100% of Oasis Hospitality Limited until 31 March 2022. Following the execution of the shareholders agreement, other investors have come into Oasis Hospitality Limited and as a result, Blantyre Hotels plc shareholding in the company reduced to 28% and the remaining investment in the company has been accounted for as an associate from April 2022.
Basis of preparation
The Directors have prepared the summary consolidated and separate financial statements to meet the requirements of the Malawi Stock Exchange. The Directors have considered the requirements of the Malawi Stock Exchange and believe that the summary consolidated and separate statements of comprehensive income, financial position, changes in equity and cash flows are sufficient to meet the requirements of the users of the summary financial statements.
The summary consolidated and separate financial statements have been derived from the Annual Financial Statements that are prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and were approved by the Board of Directors on 9 August 2023. The audited Financial Statements for the period ended 31st December 2022 can be accessed at the Company's registered office.
Overview of results
Group revenue for the year was K3.4 billion which was 71% higher than the revenue realized in 15 months last period. Hotel Occupancy averaged 46% in the period compared to 27% in the previous period. The increase in revenues was due to increase in occupancy in the period.
Cost of sales increased by 38% from K1.08 billion to K1.5 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 14% with notable increases in staff costs, fees to Management Company and capital raising costs.
The Group registered an EBITDA of K143 million against a negative EBITDA of K624 million in prior period. The Group incurred net finance charges of K595million for the Lilongwe project, resulting in a loss of K136 million (2021: a loss of K752 million).
Prospects*
The outlook for the next twelve months is promising with expected full recovery from the negative impact of COVID 19. We continue to drive operational excellence while personalizing the experience for our guests through the Marriott Bonvoy® rewards loyalty program which will grow our business and drive profitability. The first six months of 2023 have started off positively, as the hotel has performed better than projections.
The Lilongwe Hotel Project
The construction of the hotel building structures commenced in November 2022 and is progressing very well. The Board believes that the Lilongwe Hotel project presents the much required growth for Blantyre Hotels plc.
The funding for the project is through a special purpose vehicle (Oasis Hospitality Limited) which is owned by Blantyre Hotels plc and other investors. Blantyre Hotel's initial capital contribution to the project was funded through a bank loan. The Board had planned to raise capital for the project through a rights issue in 2021.
However, due to the adverse economic effects of the COVID 19 pandemic on the hospitality industry, which did not spare Blantyre Hotels, the planned rights issue was postponed to allow for a recovery of the company. The Board has in the meantime resolved to recommend to shareholders to approve a shareholders' loan as a bridging finance. The Board also resolved that the postponed rights issue should proceed in the second quarter of 2024 to raise funding for Blantyre Hotel's obligations towards the Lilongwe Hotel project, including the repayment of the existing loan facility.
Dividends
The Board resolved not to pay a dividend due to the current performance.
Approval of the summarized financial statements
The summarized consolidated and separate financial statements for the year ended 31 December 2022 were approved by the Board of Directors on 9 August 2023.
E Makuta | |
Chairperson | Director |
REPORT OF THE INDEPENDENT AUDITOR ON THE SUMMARY CONSOLIDATED AND SEPERATE FINANCIAL STATEMENTS
To the Shareholders of Blantyre Hotels plc
Opinion
The summary consolidated and separate financial statements, which comprise the summary and consolidated and separate statements of financial position as at 31 December 2022, and the summary consolidated and separate statements of comprehensive income, summary consolidated and separate statements of changes in equity and summary consolidated and separate statements of cash flows for the year then ended, are derived from the audited financial statements of Blantyre Hotels plc for the year ended 31 December, 2022.
In our opinion, the accompanying summary consolidated and separate financial statements are a fair summary of the audited financial statements of Blantyre Hotels plc, and in accordance with the "basis of preparation" paragraph.
Summary Consolidated and Separate Financial Statements
The summary consolidated and separate financial statements do not contain all the disclosures required by International Financial Reporting Standards. Reading the summary consolidated and separate financial statements and the auditor's report thereon, therefore, is not a substitute for reading the audited financial statements and the auditor's report thereon. The summary financial statements and the audited statements do not reflect the effects of events that occurred subsequent to the date of our report on the audited financial statements.
The Audited Consolidated and Separate Financial Statements and our Report Thereon
We expressed an unmodified audit opinion on the audited financial statements in our report dated 10 August 2023. That report also includes the communication of key audit matters. Key audit matters are those matters that in our professional judgment, were of most significance in our audit of the financial statements of the current year.
Directors' Responsibility for the Summary Consolidated and Separate Financial Statements
The Directors are responsible for the preparation of the summary consolidated and separate financial statements in accordance with the basis described on the basis of preparation paragraph.
Auditor's Responsibility
Our responsibility is to express an opinion on whether the summary consolidated and separate 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
10 August 2023
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Disclaimer
Blantyre Hotels Limited published this content on 14 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 August 2023 12:32:01 UTC.