TA Holdings Limited recorded a 177 percent increase in after tax profit for the half-year ended June 30, 2013 to US$2,76 million owing to a surge in revenue mainly from the hotel business and an increase in fair value adjustments.
The diversified conglomerate, however, suffered a US$3 million comprehensive loss during the interim weighed down by exchange losses on translating foreign operations.
In a statement accompanying its results, TA said revenue had gone up while operational and administrative expenses also increased due to hotel refurbishments.
“Total group revenue rose by 12 percent to US$39 million from prior year’s US$34,6 million while the group’s hotel business registered a 3 percent increase in revenue due to improved revenue per available rooms,” the group said.
“However, the results for the period under review were negatively impacted by US$126 000 initial operating costs incurred at Cresta Spray View Hotel in Victoria Falls which we acquired last year and was closed to make way for refurbishments ”.
Basic earnings per share rose by more than 700 percent from US9 cents in the interim period last year last year to US78 cents in the period under review.
Liabilities of the group rose by 13,5 percent from US$84,6 million the same period last year to US$96 million the period under review owing to an increase in general insurance liability and life assurance policy holder liabilities. In terms of liquidity, the group’s cash outflow went done by about 13 percent from US$18,3 million to US$15,9 million due to a decline in net increase in cash borrowings and an increase in the loss on foreign currency translation.
Shareholders’ equity in the interim period was US$56 million down from US$57 million in December last year also due to loss on the foreign currency factor.
“The decrease in shareholders’ equity was largely due to the translation losses emanating from the 11 percent depreciation of the Botswana pula against the US dollar, while property, plant and equipment increased to US$28 million as a result of capitalisation of refurbishment costs at Cresta Zimbabwe.
AON Insurance, in which Zimbabwe Stock Exchange-listed TA Holdings owns a 30,3 percent stake, managed to recover after the insurance firm struggled earlier this year following the suspension of its trading licence before its subsequent renewal in April by the Insurance and Pensions Commission.
TA said Aon Holdings Limited will soon rebrand to Minerva Holdings following the successful acquisition of the company by Masawara Mauritius Limited.
Masawara Mauritius bought 69,75 percent from Minerva Holdings, Aon’s parent company, in line with the country’s indigenisation and empowerment laws that compel foreign-owned companies to sell controlling stakes to locals.