HARARE, October 23 (The Source) – Zimbabwe investment group, Brainworks Capital’s loss after tax widened to $5,2 million in the six months to June, from $1,6 million in the comparable period last year on increased expenses despite a 23 percent rise in revenue.
The company, which listed on the Johannesburg Stock Exchange (JSE) this month, said it plans to have a secondary listing on the Zimbabwe Stock Exchange by end of next year. Its associate, Getbucks listed on the ZSE in January last year.
“The directors are now working towards a secondary listing of the Company on the Zimbabwe Stock Exchange and this is expected to have been completed by 31 December 2018,” company chief executive Brett Childs said in a statement accompanying the company’s financial results.
Revenue increased by 23 percent to $24,22 million from $19,67 million in the same period last year.
The Mauritius-registered Brainworks has a diversified portfolio of assets in the micro financing, insurance, mobile payments, real estate and hospitality sectors.
Revenue growth was recorded across all the Group’s three main operating segments, with major growth being recorded by the hospitality segment, which contributed 87 percent of the total group revenues for the period under review.
The hospitality segment recorded revenue amounting to $21,01 million, 17 percent up from the $17,99 million recorded during the same period last year on increased occupancy after the company reviews its prices to affordable rates.
“In response to market development, the tactical downward review of the hotel room rates yielded the desired outcome as occupancy increased by 8 percent points from 37 percent reported last year to 45 percent. As a result, revenue per available room (‘RevPAR’) increased by 14 percent to $40 from $35 achieved last year,” said Childs said. .
Occupancy growth was driven by strong performance from the group’s markets, with local, international and regional rooms sold increasing by 21 percent, 33 percent and 2 percent respectively.
Operating expenses increased by 23 percent to $19,98 million from $16,28 million in the comparable period last year.
“The growth was mainly driven by non-recurring expenses of $520,000 , $1,26 million listing costs and $1 million increase in operating expenses recorded by the hospitality segment whose variable costs increased in response to revenue increase,” Childs said.
Additionally, operating expenses also include an impairment allowance of $920,0000 recognised on the group’s receivable from its associate investment, Coporeti Support Services (Private) Limited, trading as GetCash.
Net finance costs remained flat at $1,91 million notwithstanding an increase in total borrowings to $37,32 million from $27,33 million in the comparable period last attributable to a decrease in the effective borrowing cost.
The company expects the upcoming holiday season/peak season to drive performance , particularly at its Victoria Falls based hotels where foreign arrivals have been on an increase following the commissioning of the upgraded Victoria Falls International Airport.
The company also expects its real estate segment to contribute to revenue growth following the completion of the maiden residential development project which will result in 58 residential units being on the market.