Blantyre Hotels : 2022 Annual Report

BLANTYRE HOTELS PLC

Consolidated and Separate Financial Statements for the

year ended 31 December 2022

BLANTYRE HOTELS PLC

FINANCIAL STATEMENTS

For the year ended 31 December 2022

TABLE OF CONTENTS	PAGE
Directors' report	1 - 4
Statement of Directors' responsibilities	5
Independent auditor's report	6 - 9
Statements of financial position	10
Statements of comprehensive income	11
Statements of changes in equity	12 - 13
Statements of cash flows	14
Notes to the financial statements	15 - 58

BLANTYRE HOTELS PLC

DIRECTORS' REPORT

For the year ended 31 December 2022

The Directors have pleasure in presenting their report and annual consolidated and separate financial statements of Blantyre Hotels Plc For the year ended 31 December 2022.

INCORPORATION AND REGISTERED OFFICE

Blantyre Hotels Plc is a company incorporated in Malawi under the Companies Act of Malawi and is domiciled in Malawi.

The registered office of the Group is situated at:

Ryalls Hotel

P O Box 21

2 Hannover Avenue,

Blantyre, Malawi.

NATURE OF BUSINESS

Blantyre Hotels Plc is a company which operates in the hospitality industry in Malawi with one hotel, Protea Hotel Ryalls, based in Blantyre.

Until end of March 2022, Blantyre Hotels Plc (BHL) had 100% ownership of Oasis Hospitality Limited, an entity registered with an aim to build a four star hotel in Lilongwe. Oasis Hospitality Limited (Oasis) is in the process of constructing a hotel on a piece of land purchased from Lilongwe Golf Club. The construction is at the foundation level. Following a shareholders agreement executed in March 2022, other investors have come into Oasis and capital contributions are being made into Oasis in phases in line with capital calls made by the project administrative management. As a consequence, BHL shareholding in Oasis reduced to 28% and the investment has been accounted for as an associate from April 2022.

Eris Properties Malawi Limited are development managers of the Oasis Hospitality Limited - Lilongwe hotel construction who are responsible for identifying the project services, management and supervision of all the works on the project as well as financial management services for Oasis Hospitality Limited.

NICO Asset Managers Limited, on the other hand, are the administrative managers responsible for administrative management and company secretarial services.

FINANCIAL PERFORMANCE

The results and state of affairs of the Group and Company are set out in the accompanying consolidated and separate statements of financial position, comprehensive income, changes in equity, and cash flows and notes to the financial statements.

The Group and Company have incurred a net loss in the year which is due to the finance charges accruing from the loan obtained for the Lilongwe project and the Company's current liabilities exceeds the current assets due to the loan repayment instalment due subsequent to year end. However, the financial statements have been prepared on a going concern basis as the Directors believe that the Group and Company are a going concern because, as detailed in note 29 to the financial statements, the shareholders have committed to provide a shareholders' loan to the Company.

The revenue and net loss attributed to owners are as follows:

			Group	Company
	2022	2021	2022	2021
	K'000		K'000	K'000	K'000
Revenue	3 370 851	1 974 975	3 370 851	1 974 975
Loss for the year	(135 910)	(751 839)	(466 229)	(477 077)

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BLANTYRE HOTELS PLC

DIRECTORS' REPORT (Continued)

For the year ended 31 December 2022

DIVIDENDS

No dividend was declared in the year ended 31 December 2022 (2021: Nil).

STAFFING

Staff complement for the Group stands at 105 as at 31 December 2022 (2021: 107). Human resource remains a major and key factor to the success of the Group. The Group, therefore, remains committed to professionalism by developing staff to their full potential. The Group has maintained staff development programmes through training and mentoring.

BOARD OF DIRECTORS AND SECRETARY

The following served as Directors and Secretary of the Company during the year:

Mrs E. Makuta	-	Chairperson and Non-executive Director
Mr. A. Katimba	-	Independent and Non-Executive Director
Ms. C. Ng'ombe	-	Independent and Non-Executive Director
Mr. E. A. Malion	-	Non-executive Director
Mr. R. Scharar	-	Non-executive Director
NICO Asset Managers	-	Company Secretary

SHAREHOLDING STRUCTURE

The authorised share capital of the Company is K250 million divided into 5 billion ordinary shares of 5 tambala each (2021: K250 million divided into 5 billion ordinary shares of 5 tambala each).

The shareholders and their respective holdings in the Company are as follows:

	2022	2021
NICO Life Insurance Company Limited	34.3%	34.3%
Africap LLC	32.2%	32.2%
Press Trust	26.3%	26.3%
The Public	7.2%		7.2%
	100%		100%

The Company is listed on the Malawi Stock Exchange and the share price at the year-end was K10.97 (2021: K11.01) per share.

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BLANTYRE HOTELS PLC

DIRECTORS' REPORT (Continued)

For the year ended 31 December 2022

DIRECTORS' REMUNERATION

The Directors' fees and remuneration for the Group and its subsidiary was as follows:

	Non-executive	Executive
	Directors fees and		Directors
		expenses	remuneration	Total
		K'000		K'000	K'000
For the year ended 31 December 2022		10 649		-	10 649
For the year ended 31 December 2021		10 649		-	10 649

BOARD MEETINGS

The Board meets quarterly. Ad-hoc meetings are held when necessary. The Directors are provided with comprehensive board documentation at least seven days prior to each of the scheduled meetings. During the year, there were five board meetings and the attendance was as follows:

Member	Meetings Attended
Ms. Chikondi Ng'ombe	5/5
Mr. Elias Azele Malion	5/5
Mr. Andrew Katimba	5/5
Mr. Rob Scharar	5/5
Mrs. Emily Makuta	5/5

FINANCE AND AUDIT COMMITTEE

The Finance and Audit Committee is responsible for reviewing annual reports and annual financial statements. This Committee also monitors the adequacy of accounting and internal control systems. Both external and internal auditors report to the Board of Directors through the Finance and Audit Committee. The Committee consists of two non-executive Directors. The management of the Company, internal and external auditors attend by invitation. The Committee meets four times in a year. The members of the Finance and Audit Committee were as follows:-

•	Mr. Elias Azele Malion	-	(Chairperson)
•	Mr. Andrew Katimba	-	Member

During the year, there were seven Finance and Audit Committee meetings and the attendance was as follows:

Member	Meetings Attended
Mr. Elias Azele Malion	7/7
Mr. Andrew Katimba	7/7

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