Despite the tough trading environment Letlole La Rona (LLR) has made a modest profit before tax according to its half-year results for the period ended December 31, 2020.
The Botswana Stock Exchange (BSE) listed local property group said in the interim results it recorded a P35. 7 million profit before tax, which is an increase from P33. 3 million registered on the prior year.
LLR’s acting CEO, Kamogelo Mowaneng said due to the contraction of the economy as a result of COVID-19 pandemic, the group has seen its debtors’ book rising significantly. Hence LLR has focused efforts on the collection of arrears in order to improve its cash flows and thus enhance its distributions.
“The Company still remains able to meet its short-term and long-term obligations, with improved cash generated from operations in comparison to the prior year,” she said.
Mowaneng added Letlole has worked and continues to work tirelessly to grow its portfolio and this has borne fruit as six additional properties were acquired during the months of June and July 2020. The new additions have, in addition to the lease escalations, greatly contributed to the increase in
Last year, the property investment group expanded its portfolio through the acquisition of six prime industrial properties at a purchase consideration of P174.4 million.
The acquisition was wholly funded by cash reserves from the sale of the leisure portfolio to Cresta Marakanelo Limited, which was concluded at the tail end of prior financial year. The investment portfolio, which consists of investment property and other investments, remains solid, now standing at over P1 billion .
“With the economy on its way to recovery, the Company is excited about the opportunities that lie ahead. LLR is embarking on strategic partnerships that will unlock value for its Unitholders; with close to P1 billion worth of yield-accretive investments in the pipeline,” Mowaneng said. “The Company’s relatively low loan to value of 23% enables us to leverage our existing portfolio to fund the upcoming acquisitions, after which, we will be approaching Unitholders for an equity raise,” she added.