Blantyre Hotels : BHL plc FY2022 Abridged Financials

BLANTYRE HOTELS PLC

SUMMARISED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

SUMMARY STATEMENT OF COMPREHENSIVE INCOME

	Unaudited	Audited	Unaudite	Audited
	Consolidated	Consolidated	Separate	Separate
	12 months	15 months	12 month	15 months
	ended	ended	ended	ended
	31-Dec-22	31-Dec-21	31-Dec-22	31-Dec-21
	K'000	K'000	K'000	K'000
Revenue	3 370 851	1 974 975	3 370 851	1 974 975
Cost of sales	(1 504 808)	(1 086 962)	(1 504 808)	(1 086 962)
Gross Profit	1 866 043	888 013	1 866 043	888 013
Other income	6 672	6 455	6 672	6 455
Selling and administration	(1 768 189)	(1 518 392)	(1 708 806)	(1 258 935)
expenses
EBITDA	104 526	(623 924)	163 909	(364 467)
Depreciation and		(221 054)	(164 699)	(221 054)
Amortisation	(164 669)
Loss from operating
activities	(60 143)	(844 978)	(790)	(585 521)
Net finance cost	(339 390)	(194 288)	(445 819)	(60 768)
Loss before taxation	(399 533)	(1 039 266)	(446 609)	(646 289)
Taxation	109 107	287 427	102 190	169 212
Loss for the period	(290 426)	(751 839)	(344 419)	(477 077)
Loss for the year attributable to:	(329 301)	(751 839)	(344 419)	(477 077)
Owners of the Company
Non-controlling interest	38 875	-	-	-
Total	(290 426)	(751 839)	(344 419)	(477 077)
Other comprehensive			447 267	500 277
income(net of tax)	447 267	500 277
Total comprehensive			102 848	23 200
income for the period	156 841	(251 562)
Shares in issue	839 750	839 750	839 750	839 750
Loss per share	(35)	(90)
(in tambala)

SUMMARY STATEMENT OF FINANCIAL POSITION

	Unaudited	Audited	Unaudited	Audited
	Consolidated	Consolidated	Separate	Separate
	12 months	15 months	12 months	15 months
	ended	ended	ended	ended
	31-Dec-22	31-Dec-21	31-Dec-22	31-Dec-21
ASSETS
Non -current assets
Property and equipment	17 838 369	14 652 418	9 256 164	8 783 141
Intangible assets	11 362	-	11 362	-
Investment in subsidiary	-	-	4 043 517	3 686 301
Deferred tax asset	150 527	143 610	-	-
Total non-current assets	18 000 258	14 796 028	13 311 043	12 469 442
Current assets
Inventories	381 162	292 216	381 162	292 216
Trade and other receivables	1 098 663	381 868	384 962	406 070
Tax recoverable	98 566	83 520	98 566	83 307
Cash and cash equivalents	3 822 221	664 723	686 233	136 943
Total current assets	5 400 612	1 422 327	1 550 923	918 536
Total assets	23 400 870	16 218 355	14 861 966	13 387 978
EQUITY AND LIABILITES
Equity
Share capital	41 988	41 988	41 988	41 988
Share premium	1 340 153	1 340 153	1 340 153	1 340 153
Revaluation reserve	5 691 059	5 314 507	5 691 059	5 314 507
(Accumulated loss)/retained
earnings	(462 356)	(203 770)	(147 155)	126 549
Total equity attributable to equity	6 610 844	6 492 878	6 926 045	6 823 197
holders of the company
Non-controlling interests	8 058 609	-	-	-
Total equity	14 669 453	6 492 878	6 926 045	6 823 197
Liabilities
Non-current liabilities
Deferred tax liabilities	2 043 924	2 006 683	2 043 924	2 006 683
Loan and Borrowings	2 418 889	3 842 162	2 418 889	3 842 162
Total non -current liabilities	4 462 813	5 848 845	4 462 813	5 848 845
Current liabilities
Trade and other payables	1 515 233	1 686 447	764 029	688 129
Loan and Borrowings	2 686 734	2 133 253	2 68 6432	-
Bank overdraft	2 955	27 807	2 955	27 807
Amount due to related
parties	63 682	29 125	19 692	-
Total current liabilities	4 268 604	3 876 632	3 473 108	715 936
Total liabilities	8 731 417	9 725 477	7 935 921	6 564 781
Total equity and liabilities	23 400 870	16 218 355	14 861 966	13 387 978

SUMMARY STATEMENT OF CHANGES IN EQUITY

	Unaudited	Audited	Unaudited	Audited
	Consolidated	Consolidated	Separate	Separate
	12 months	15 months	12 months	15 months
	ended	ended		ended	ended
	31-Dec-22	31-Dec-21	31-Dec-22	31-Dec-21
At the beginning of period	6 492 878	6 744 440	6 823 197	6 799 997
Loss for the period	(290 426)	(751 839)	(344 419)	(477 077)
Funds received for capital	8 019 734	-	-		-
Total other comprehensive						500 277
income	447 267	500 277		447 267
At the end of period	14 669 453	6 492 878	6 926 045	6 823 197

SUMMARY STATEMENT OF CASHFLOWS

	Unaudited	Audited	Unaudited	Audited
	Consolidated	Consolidated	Separate	Separate
	12 months	15 months	12 months	15 months
	ended	ended	ended	ended
	31-Dec-22	31-Dec-21	31-Dec-22	31-Dec-21
Cash generated from/
(used in) operations	(978 071)	(707 851)	191 664	(423 791)
Interest paid	(101 660)	(37 575)	(101 660)	(37 575)
Taxation paid	(15 259)	(567)	(15 259)	(567)
Net cash generated from/
(used in) operating
activities	(1 094 990)	(745 993)	74 745	(461 933)
Net cash used in investing
activities	(1 769 808)	(3 142 548)	(603)	(3 327 883)
Net cash generated from	6 047 148	3 455 523	500 000	3 500 000
financing activities
Net increase/(decrease) in
cash and cash equivalents	3 182 350	(433 018)	574 142	(289 816)
Cash and cash equivalents
at the beginning of the year	636 916	1 069 934	109 136	398 952
Cash and cash equivalents at
the end of the year	3 819 266	636 916	683 278	109 136

Publication commentary:

Delay in publication of audited nancial statements

As per the Malawi Stock Exchange Listing Requirements, we are aware of the requirement to publish the summary audited nancial statements and annual general meeting notice by 30 June 2023; and dispatch of the full set of the audited nancial statements by the same date. The audit for the FY2022 is almost complete except for one item of audit information which the company is yet to provide to the auditor before concluding the audit, ready for publication. The Board regrets the delay, but expects this matter to be resolved by mid-July 2023. The Group intends to publish the annual general meeting notice by 30 July for an annual general meeting that has been planned for 21 August 2023. The Board therefore publishes these results which have been reviewed by the auditors.

Overview of results

Group revenue for the year amounted to K3.4 billion which was 71% higher than the revenue realized in same period last year. Hotel Occupancy averaged 46% in the period compared to 23% in the previous period. The increase in revenues was due to increase in occupancy in the period.

Cost of sales increased by 38% from K1.08 billion to K1.5 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 10% with notable increases in sta costs, fees to Management Company and capital raising costs.

The Group registered an EBITDA of K105 million against an EBITDA of negative K624 million in prior period. The group incurred net nance charges of K339 million for the Lilongwe project, resulting in a loss of K290 million (2021: a loss of K751 million).

Prospects

The outlook for the next twelve months is promising with expected full recovery from the negative impact of COVID 19. We continue to drive operational excellence while personalising the experience for our guests through the Marriott Bonvoy® rewards loyalty program which will grow our business and drive protability.

The rst ve months of 2023 have started o positively, as the hotel has performed better than projections.

The Lilongwe Hotel Project

The construction of the hotel building structures commenced in November 2022 and is progressing very well.

The funding for the project is through a special purpose vehicle (Oasis Hospitality Limited) which is owned by Blantyre Hotels plc and other investors. The Board planned to raise capital for the project through a rights issue in 2020. However, due to adverse economic eects caused by the COVID 19 pandemic, the planned rights issue was postponed and a bridging loan facility was obtained for the initial construction phase. As reported above, the nance charges are weighing down the improved performance of Blantyre Ryalls Hotel. The Board therefore has resolved to resuscitate the rights issue oering by second quarter of 2024, the proceeds of which will be used for the Lilongwe Project and also settle the bridging loan facility.

Dividends

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

Approval of the nancial statements

The summarized consolidated and separate nancial statements for the year ended 31 December 2022 were approved by the Board of Directors on 29 June 2023.

E Makuta	E A Malion
Chairperson	Director