Blantyre Hotels : BHL AUDITED FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2023

BLANTYRE HOTELS PLC

SUMMARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

SUMMARY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	Audited	Audited
	31-Dec-23	31-Dec-22
	K'000	K'000
Revenue	4 17 375	3 370 51
Cost of sales	(2 011 410)	(1 504 0)
Gross Profit	2 05 95	1 043
Other income	2 01	72
Selling and administration
expenses	(2 35 3)	(1 703 372)
Impairment loss	( 4 57)	(5 434)
EBITDA	242 02	13 909
Depreciation and Amortization	(254 11)	(14 99)
Loss from operating activities	(12 75)	(790)
Net finance cost	(929 913)	(51 102)
Loss on disposal of subsidiary	-	(4 7)
Share of (loss)/profit in associate	(74 594)	2 225
Loss before taxation	(1 017 292)	(52 455)
Taxation	224 530	11 22
Loss for the year	(792 72)	(4 229)
Other comprehensive
Income (net of tax)	73 7	447 27
Total comprehensive
income for the period	1 11	(1 92)
Loss per share (in tambala)	(94)	(5)
SUMMARY STATEMENT OF FINANCIAL POSITION
	Audited	Audited
	31-Dec-23	31-Dec-22
	K'000	K'000
ASSETS
Non-current assets
Property and equipment	10 31 37	9 25 14
Intangible assets	7 47	11 32
Investment in associate	3 42 240	3 907 71
Total non-current assets	14 211 544	13 175 197
Current assets
Inventories	399 03	31 12
Trade and other receivables	44 000	34 92
Tax recoverable	112 77	9 5
Amount due from related parties	2 93	-
Cash and cash equivalents	12 253	233
Total current assets	1 1 994	1 550 923
Total assets	15 2 53	14 72 120
EQUITY AND LIABILITES
Equity
Share capital	41 9	41 9
Share premium	1 340 153	1 340 153
Revaluation reserve	490 204	5 91 059
Accumulated loss	(9 994)	(2 95)
Total equity	5 351	04 235

Liabilities
Non-current liabilities
Deferred tax liabilities	2	07 50	2	029
Borrowings	2	045	05	2	41 9
Total non-current liabilities	4	121	54	4	44 777
Current liabilities
Trade and other payables		771	137		74 029
Borrowings	4	050	4	2	432
Bank overdraft			-		2	955
Amount due to related
parties			-		19	92
Total current liabilities	4	21 23	3	473	10
Total liabilities	943 17	7	921	5
Total equity and liabilities	15	2 53	14	72 120

SUMMARY STATEMENT OF CHANGES IN EQUITY
	Audited	Audited
	31-Dec-23	31-Dec-22
	K'000	K'000
At the beginning of year	04 235	23 197
Loss for the period	(792 72)	(4 229)
Total other comprehensive
income	73 7	447 27
At the end of year	5 351	04 235
SUMMARY STATEMENT OF CASH FLOWS
	Audited	Audited
	31-Dec-23	31-Dec-22
	K'000	K'000
Cash (used in) / generated from
operations	(39 30)	191 4
Interest paid	(1 214 423)	(101 0)
Taxation paid	(14 201)	(15 259)
Net cash (used in) / generated from
operating activities	(1 27 94)	74 745
Net cash generated/ (used) in investing
activities	194	(03)
Net cash generated from financing
activities	990 221	500 000
Net (decrease)/ increase in
cash and cash equivalents	(19 59)	574 142
Cash and cash equivalents
at the beginning of the year	3 27	109 13
Effect of changes in exchange rate	11 544	-
Cash and cash equivalents at
the end of the year	12 253	3 27

Publication commentary:

Introduction

Blantyre Hotels Plc is a Company domiciled in Malawi and incorporated under the Malawi Companies Act, 2013. The main business of the Company is the provision of accommodation, conferencing and catering services. The registered address of the Company is Ryalls Hotel, 2 Hannover Avenue, P.O. Box 21, Blantyre, Malawi.

Basis of preparation

The Directors have prepared the summary financial statements to meet the listings requirements of the Malawi Stock Exchange. The Directors have considered the listings requirements of the Malawi Stock Exchange and believe that the summary statement of profit or loss and other comprehensive income, summary statement of financial position, summary statement of changes in equity and summary statement of cash flows are sufficient to meet the requirements of the users of the summary financial statements. The amounts in the summary financial statements are prepared in accordance with the framework concepts and the measurement and recognition requirements of IFRS Accounting Standards as issued by the International Accounting Standards Board. The summary financial statements have been derived from the annual audited financial statements which were approved by the Board of Directors on 26 April 2024 and can be accessed at the Company's registered office.

Overview of results

The Company revenue for the year was K4.6 billion which was 37% higher than the revenue realised in prior year. Hotel Occupancy averaged 48% in the year compared to 46% in the previous year.

Cost of sales increased by 34% from K1.5 billion to K2 billion in the period due to the increase in general price of goods coupled with the increase in volume of business. Selling and administration expenses increased by 40% with notable increases in staff costs, fees to Management Company and capital raising costs. New gym, fire, life and safety equipment was bought in the year which resulted in the increase in the depreciation charge.

The Company registered an EBITDA of K242 million against an EBITDA of K164 million in prior period. The Company incurred net finance charges of K929 million (2022: K561 million) resulting in a loss of K793 million (2022: K466 million).

Prospects*

The Company will continue with its efforts to improve guest experience and service delivery through the relationship with Marriott International. The Company will also intensify its sales and marketing activities through the various digital platforms to strengthen the domestic segment in addition to the promotion of the Marriott Bonvoy rewards loyalty program in the market.

The Lilongwe Hotel Project

Construction of Protea Hotel Lilongwe Ryalls is in progress. The physical progress is estimated at 30% as at 31 December 2023. Project completion is targeted for mid-year 2025.

The funding for the project is through a special purpose vehicle (Oasis Hospitality Limited) which is owned by Blantyre Hotels plc and other investors. BHL is funding its commitments for the project through a combination of debt and equity. At the Extraordinary General meeting held on 7 March 2024, the shareholders approved that the Company should borrow USD15 million, which will be invested in the project company for the property development. The proposed equity rights offering is on course to be executed in the year.

Dividends

The Board resolved not to pay a dividend due to the current performance.

Approval of the financial statements

The summary financial statements for the year ended 31 December 2023 were approved by the Board of Directors on 26 April 2024.

E Makuta
Chairperson	Director

*Unaudited

Report of the Independent Auditor on the Summary Financial Statements

To the shareholders of Blantyre Hotels Plc

Opinion

The summary financial statements, which comprise the summary statement of financial position as at 31 December 2023, and the summary statement of profit or loss and other comprehensive income, summary statement of changes in equity and summary statement of cash flows for the year then ended and related notes, are derived from the audited financial statements of Blantyre Hotels Plc for the year ended 31 December 2023.

In our opinion, the accompanying summary financial statements are a fair summary of the audited financial statements of Blantyre Hotels Plc, and on the basis described in the basis of preparation paragraph.

Summary Financial Statements

The summary financial statements do not contain all the disclosures required by the IFRS Accounting Standards as issued by the International Accounting Standards Board. Reading the summary financial statements and the auditor's report thereon, therefore, is not a substitute for reading the audited financial statements of Blantyre Hotels Plc and the auditor's report thereon. The summary financial statements and the audited financial statements do not reflect the effects of events that occurred subsequent to the date of our report on the audited financial statements.

The Audited Financial Statements and Our Report Thereon

We expressed an unmodified audit opinion on the audited financial statements in our report dated 29 April 2024. That report also includes the communication of key audit matters. Key audit matters are those matters that in our professional judgement were of most significance in our audit of the financial statements of the current year.

Directors' Responsibility for the Summarty Financial Statements

The Directors are responsible for the preparation of the summary financial statements in accordance with the basis described in the basis of preparation paragraph.

Auditor's Responsibility

Our responsibility is to express an opinion on whether the summary financial statements are a fair summary of the audited financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing 810 (Revised) Engagements to Report on Summary Financial

Statements.

Chartered Accountants

Christopher Kapenda

Partner

30 April 2024