Masawara posts US$16,1m profit

10 May, 2015 - 00:05 0 Views
Masawara posts US$16,1m profit Occupancies in Joina City are now expected to increase significantly

The Sunday Mail

Occupancies in Joina City are now expected to increase significantly

Occupancies in Joina City are now expected to increase significantly

MASAWARA Plc’s net profit rose to US$16,1 million for the year ended December 31, 2014 driven by the bargain purchase on the acquisition of TA Holdings of US$10 million and the disposal of the group’s interest in Masawara Energy (Mauritius) Limited.

The profit comes after a loss after tax of US$10,8 million reported in the prior year.

The group’s performance was weighed down by a US$2,5 million impairment loss recorded on Telerix Communications (Private) Limited loan notes.

Masawara is an investment company focused on acquiring interests in companies in Southern Africa.

Currently, its Zimbabwe interests include Joina City – a premium, multi-purpose property located in central Harare; Telerix Communications (Private) Limited, which provides broadband internet service; iWayAfrica Zimbabwe (Private) Limited; and Minerva Risk Advisors (Private) Limited.

Masawara chair Mr David Suratgar said following a period of consolidation and implementation of key strategic objectives, the group had begun a process of “transformation that will have a long term positive effect on the group’s financial position and performance”.

Key to the group’s strategic objectives was to dispose of Masawara Energy Mauritius Limited at the start of 2014 and acquisition of an additional 34,7 percent shareholding in TA Holdings Limited towards that year-end.

The group has concluded the takeover of TA Holdings and owns the entity 100 percent.

TA Holdings is a diversified investment company with stakes in insurance, agro-chemical and hospitality businesses across Sub-Saharan Africa.

TA Holdings Limited achieved a profit after tax of US$9,2 million for the year, an increase from the loss incurred in the prior year of US$5,7 million.

On the other hand, overall occupancy at Joina City increased by one percent to 72 percent in December 2014.

The group’s share of profit for the year, excluding fair value gain on investment property, was US$239 000, representing a 137 percent jump from US$101 000 achieved in the prior year.

The improvement from the previous year was driven by the 11 percent increase in revenue from US$1,8 million last year to US$2 million in the current year, while other property expenses remained at prior year levels.

Masawara’s share of the fair value gain on the investment property was US$860 000 compared to a US$2 million loss in 2013.

The total cash paid out to the co-owners of Joina City during the year was US$970 000, a 113 percent increase from the US$455 000 cash paid in the prior year.

The group also launched a blitz on non-performing tenants.

Going forward, Masawara director Mr Julian Vezey expects the businesses to achieve strong growth through to December 2015.

“Following the acquisition of 100 percent of TA, the group has embarked on an in-depth strategic review and restructure of the entire group portfolio. This review will result in the streamlining of activities, consolidation of duplicated functions and, where appropriate, the engagement of strategic technical partners to improve revenues and optimise the operations,” said Mr Vezey.

Joina City occupancies are not expected to increase significantly in 2015 and focus will be on retaining good tenants, finding suitable tenants for the vacant office space and on debtors’ collections.

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