CHOBE HOLDINGS LIMITED CHOBE HOLDINGS LIMITED
("the Group" or "the Company")
Incorporated in the Republic of Botswana (UIN BW00001487283)
UNAUDITED ABRIDGED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2023
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||||||
6 months | 6 months | Year | |||||
ended | ended | ended | |||||
31/08/2023 | 31/08/2022 | 28/02/2023 | |||||
P'000's | P'000's | P'000's | |||||
Unaudited | Unaudited | Audited | |||||
Revenue | 329 648 | 234 816 | 410 917 | ||||
Other operating income | 12 850 | 10 729 | 17 070 | ||||
Amortisation of intangible assets | (1 662) | (2 257) | (4 015) | ||||
Depreciation | (16 259) | (17 665) | (34 048) | ||||
Other operating expenses | (166 054) | (119 494) | (250 043) | ||||
Operating profit | 158 523 | 106 129 | 139 881 | ||||
Finance income | 51 | 53 | 923 | ||||
Finance cost | (1,476) | (2,378) | (4,238) | ||||
Share of net loss of associates accounted for using equity method | - | (472) | (935) | ||||
Profit before income tax | 157 098 | 103 332 | 135 631 | ||||
Income tax expense | (42 181) | (23 413) | (31 045) | ||||
Profit for the period | 114 917 | 79 919 | 104 586 | ||||
Other comprehensive income | |||||||
Exchange difference on translation of foreign operations | 14 | (20) | (335) | ||||
Other comprehensive income for the period | 14 | (20) | (335) | ||||
Total comprehensive income for the period | 114 931 | 79 899 | 104 251 | ||||
Attributable to | |||||||
Owners of the parent | 114 959 | 79 901 | 104 278 | ||||
Non-controlling interest | (28) | (2) | (27) | ||||
114 931 | 79 899 | 104 251 | |||||
Earnings per share (thebe) - basic | 128.52 | 89.36 | 116.96 | ||||
Share price (thebe) | 147.60 | 88.50 | 76.50 | ||||
Number of bed nights sold | 40 761 | 33 595 | 57 328 | ||||
Occupancy | 67% | 55% | 47% | ||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||
As at | As at | As at | |||||
31/08/2023 | 31/08/2022 | 28/02/2023 | |||||
P'000's | P'000's | P'000's | |||||
Unaudited | Unaudited | Audited | |||||
ASSETS | |||||||
Non-current assets | |||||||
Property, plant and equipment | 268 001 | 207 015 | 216 573 | ||||
Right of use assets | 25 997 | 30 283 | 28 087 | ||||
Goodwill | 67 963 | 69 963 | 67 963 | ||||
Land lease rights | 58 276 | 61 386 | 59 778 | ||||
Other intangible assets | 772 | 1 082 | 932 | ||||
Investment in associate | - | 463 | - | ||||
Deferred income tax assets | 9 032 | 3 446 | 8 228 |
CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||||||||||||||
6 months | 6 months | Year | ||||||||||||||||||
ended | ended | ended | ||||||||||||||||||
31/08/2023 | 31/08/2022 | 28/02/2023 | ||||||||||||||||||
P'000's | P'000's | P'000's | ||||||||||||||||||
Unaudited | Unaudited | Audited | ||||||||||||||||||
Operating activities | ||||||||||||||||||||
Cash generated from operations | 168 287 | 125 456 | 179 898 | |||||||||||||||||
Interest paid | (4) | (780) | (1 041) | |||||||||||||||||
Income tax paid | (36 533) | (288) | (2 020) | |||||||||||||||||
Cash generated from operating activities | 131 750 | 124 388 | 176 837 | |||||||||||||||||
Investing activities | ||||||||||||||||||||
Purchase of property, plant and equipment | (65 579) | (4 200) | (28 179) | |||||||||||||||||
Proceeds on sale of property, plant and equipment | 1 | 1 541 | 1 434 | |||||||||||||||||
Payment for acquisition of a subsidiary | - | (14 000) | (17 770) | |||||||||||||||||
Interest received | 51 | 53 | 923 | |||||||||||||||||
Net cash used in investing activities | (65 527) | (16 606) | (43 592) | |||||||||||||||||
Financing activities | ||||||||||||||||||||
Lease rental paid | (3 599) | (3 641) | (7 442) | |||||||||||||||||
Net borrowings | - | 20 000 | 190 | |||||||||||||||||
Dividends paid | (53 664) | - | - | |||||||||||||||||
Net cash (used in) / generated from financing activities | (57 263) | 16 359 | (7 252) | |||||||||||||||||
Net increase in cash and cash equivalents | 8 960 | 124 141 | 125 993 | |||||||||||||||||
Movement in cash and cash equivalents | ||||||||||||||||||||
At beginning of period | 131 009 | 5 016 | 5 016 | |||||||||||||||||
Increase in the period | 8 960 | 124 141 | 125 993 | |||||||||||||||||
At end of period | 139 969 | 129 157 | 131 009 | |||||||||||||||||
Represented by: | ||||||||||||||||||||
Cash and cash equivalents | 139 969 | 129 157 | 131 009 | |||||||||||||||||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | ||||||||||||||||||||
Attributable to owners of the parent | ||||||||||||||||||||
Foreign | Non- | |||||||||||||||||||
Stated | Retained | currency | Other | |||||||||||||||||
translation | controlling | Total | ||||||||||||||||||
capital | earnings | reserve | reserve | interest | ||||||||||||||||
P'000's | P'000's | P'000's | P'000's | P'000s | P'000's | |||||||||||||||
Balance at 1 March 2023 | 102 899 | 259 044 | (1 441) | 7 295 | 734 | 368 531 | ||||||||||||||
Profit for the half year | - | 114 945 | - | - | ( 28) | 114 917 | ||||||||||||||
Other comprehensive income | - | - | 14 | - | - | 14 | ||||||||||||||
Dividend paid | - | (53 664) | - | - | - | (53 664) | ||||||||||||||
Balance at 31 August 2023 | 102 899 | 320 325 | (1 427) | 7 295 | 706 | 429 798 | ||||||||||||||
430 041 | 373 638 | 381 561 | |||
Current assets | |||||
Inventory | 14 133 | 11 007 | 12 168 | ||
Trade and other receivables | 38 020 | 24 473 | 23 276 | ||
Current income tax receivable | 2 037 | 3 319 | 2 747 | ||
Cash and cash equivalents | 139 969 | 129 157 | 131 009 | ||
194 159 | 167 956 | 169 200 | |||
TOTAL ASSETS | 624 200 | 541 594 | 550 761 | ||
EQUITY AND LIABILITIES | |||||
Equity | |||||
Stated capital | 102 899 | 102 899 | 102 899 | ||
Foreign currency translation reserve | (1 427) | (1 126) | (1 441) | ||
Other reserves | 7 295 | 5 486 | 7 295 | ||
Retained income | 320 325 | 236 161 | 259 044 | ||
429 092 | 3434 20 | 367 797 | |||
Non-controlling interest | 706 | 759 | 734 | ||
Total equity | 429 798 | 344 179 | 368 531 | ||
Liabilities | |||||
Non-current liabilities | |||||
Borrowings | - | 20 000 | - | ||
Deferred income tax liabilities | 18 106 | 16 930 | 18 147 | ||
Lease liability | 40 022 | 44 881 | 42 060 | ||
58 128 | 81 811 | 60 207 | |||
Current liabilities | |||||
Current income tax payable | 15 127 | 281 | 9 340 | ||
Borrowings | 190 | - | 190 | ||
Advance travel receipts | 81 871 | 60 232 | 57 813 | ||
Lease liability | 4 375 | 3 875 | 4 461 | ||
Trade and other payables | 34 711 | 51 216 | 50 219 | ||
136 274 | 115 604 | 122 023 | |||
Total liabilities | 194 409 | 197 415 | 182 230 | ||
TOTAL EQUITY AND LIABILITIES | 624 200 | 541 594 | 550 761 | ||
Directors | ||||||||||||||
M.T. Sekgororoane (Chair), J.M. Gibson (Deputy Chairman), J.K. Gibson | ||||||||||||||
(British) (CEO), L. Odumetse (Managing Director), J.A. Bescoby (British), | ||||||||||||||
S.D.S. Fernando (Sri Lankan), B.D. Flatt, K. Ledimo, J.M. Nganunu-Macharia, | ||||||||||||||
D.S. Ter Haar, A.M. Whitehouse (Australian) | ||||||||||||||
Through Tourism | ||||||||||||||
Empowering Botswana | ||||||||||||||
Registered Office | Postal Address | Transfer Secretaries | Independent Auditors | |||||||||||
Plot 28892, Twin Towers, West Wing, | PO Box 32, Kasane | DPS Consulting Services Proprietary Limited | PricewaterhouseCoopers | |||||||||||
First Floor, Fairgrounds, Gaborone | www.chobeholdings.co.bw | PO Box 1453 Gaborone | PO Box 294 Gaborone | |||||||||||
COMMENTARY
- Profit before tax increased by 52%.
- A 21% increase in number of bed nights sold.
- A 40% increase in revenue.
- Costs increase is in line with increased operations.
- BWP 168 million cash generated from operations.
- Cash and cash equivalents of BWP 140 million at the period end.
BASIS OF PREPARATION
The unaudited abridged financial statements for the half year ended 31 August 2023 have been prepared based on accounting policies which comply with International Financial Reporting Stan- dards. The accounting policies applied are consistent with those of the annual financial statements for the year ended 28 February 2023, as described in those annual financial statements, save for new standards that became effective during this financial year.
FINANCIAL RESULTS
Chobe has seen a significant improvement in financial performance throughout the first half of the financial year driven by improved occupancies, which exceeded pre-COVID-19 pandemic levels and increased net achieved rates, coupled with the relative strength of the US Dollar in which the majority of the Company's revenue is derived.
The improvement in occupancies across the Group is due to the rapid recovery of global leisure travel, our competitive pricing, and ever strengthening relationships with our suppliers. Our marketing teams have worked hard to improve both the breadth and depth of their marketing efforts in conjunction with operations delivering excellent innovative services on the ground.
Chobe continues to experience challenges within global and local supply chains across the Group which add an inflationary pressure to cost base but has sought to manage these through leveraging established relationships with suppliers, active management of procurement and other innovative cost containment solutions.
Having put in place rigorous capital expenditure controls during the COVID-19 pandemic, protecting our assets but not making significant new investments, the Group has been able to return to an expansionary posture with investments in upgrading and increasing our asset base including the purchase of an additional light aircraft and the opening of our innovative Shinde Footsteps which has been very well received by the market. A complete rebuild of Savute Safari Lodge commenced after the reporting period, which will much improve this important property. Across the Group, we continue to invest in new and improve our existing solar and other green projects.
As a Group our focus remains on our People who benefited from an above inflationary increase to their remuneration at the beginning of the year. We remain committed to providing an industry-leading employee package and have begun a salary banding exercise which will harmonize salaries and other benefits across the Group.
Chobe continues to play a significant role in the communities in which we operate and remains fully engaged with our partners.
FUTURE OUTLOOK
Bookings for the remainder of the financial year remain strong across the Group with projected occupancies for the subsequent financial year showing similar strength. These occupancies are driven by our competitive pricing and the strategic fit of camps and lodges supported by both energetic marketing and robust operations.
The Company's investment in people will continue to yield positive results with increased executive capacity coupled with additional human capacity building programmes improving internal efficiencies and creating space for successful acquisitions.
Increased global uncertainty has the potential to dampen demand for travel as well as fuel inflation both in the near and medium term, but, as this reporting period has shown, the Group has built significant resilience into the business to largely mitigate this.
The Group's strong cash position remains, providing flexibility to take advantage of opportunities across the business space.
DIVIDENDS
In keeping with the Company's dividend distribution policy no interim dividend has been declared in favour of a final year end declaration.
UNCLAIMED DIVIDENDS
TheDirectorswishtobringtothenoticeofshareholdersthatthereare certain amounts of unclaimed dividends in the Company's records. Shareholders are reminded to contact the Transfer Secretaries to claim their outstanding dividends. The Transfer Secretaries' contact information can be found on the Company's website www.chobeholdings.co.bw.
By order of the Board of Directors
John K Gibson
Chief Executive Officer
9 November 2023
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Chobe Holdings Limited published this content on 14 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 12:35:55 UTC.
