Mmegi Online :: Turnstar records strong growth despite challenges
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Last Updated
Tuesday 28 March 2017, 06:00 am.
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Turnstar records strong growth despite challenges

Property investment company, Turnstar Holdings Limited has reported strong growth in revenue and operating profit for the 2016 financial year, despite intensified competition and volatile consumer demand.
By Isaac Pinielo Tue 20 Dec 2016, 14:32 pm (GMT +2)
Mmegi Online :: Turnstar records strong growth despite challenges








Revenue for the year ended January 31, 2016 grew by five percent from the prior year to P247.6 million, while operating profit increased by 23% from the prior year to P182.7 million in the period under review.

Commenting in the group’s annual report for 2016, managing director, Gulaam Abdoola said they continued to post pleasing results for the year, despite challenging market conditions.

“Turnstar remained the most diversified property company on the Botswana Stock Exchange (BSE) with property assets valued at over P2 billion,” he said. He added that the Tanzanian subsidiary, Mlimani Holdings is becoming more significant each year, in terms of contribution to the group, noting that the pula/dollar exchange rate is also a favourable factor.

He said at Mlimani, the bulk land has appreciated significantly and that this is reflected in fair value gains. In addition, Abdoola revealed that the construction works at Game City is nearing completion.

He however said it has been extremely difficult to construct and carry out renovations to an operating mall.

“We have and continue to do everything possible to minimise the disturbance and inconvenience and are thankful for the cooperation of tenants and customers,” he said.

He assured customers and tenants that the improvements will be well worth the wait and the inconvenience.

On the other hand, Abdoola said Mlimani City construction

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is also well underway and is scheduled to be completed by the end of 2016.

“We are currently in the process of carrying out a feasibility exercise on the hotel project at Mlimani and will reach a decision on its viability, shortly,” he said.

Meanwhile, the company’s full year distribution per linked unit increased by 8.3% from the previous year to 19.5 thebe per linked unit.

The group distributed P111.6 million for the year, up from P103 million in the previous year. Net asset value per linked unit is up 14% from prior year to P2.76 per linked unit.

Also, the group has recorded a 44.1% share price appreciation and 9.2% income return from distributions, a total return to investors of 53% for the 2016 financial year.The group has recorded a compound annual growth in share price of 26.5% over the past five years.

Abdoola said interest and loan repayments on the US dollar loan facility are made from USD rentals earned from the group’s Tanzanian properties.

He therefore noted that there is no foreign currency exposure on the loan and interest repayments.

The loan to value ratio (borrowings as a percentage of investment property) is 25% while the interest covers ratio is 12x.

The balance sheet remains well capitalised and gearing is maintained at conservative levels, said Abdoola.

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Exchange Rates
FOREIGN EXCHANGE: Tuesday, 28 Mar 2017
FOREIGN / PULA
PULA / FOREIGN
1 USD = Pula   10.3306
1 GBP = Pula   12.9702
1 EUR = Pula   11.2233
1 YEN = Pula   0.0934
1 ZAR = Pula   0.7938
1 Pula = USD   0.0968
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