- International and local tourist arrivals up
- Group made P21.3m from hotel lease extension
- Group cash balances up by P26.4m
With the negative effects of the COVID-19 pandemic on the wane and economic recovery gaining momentum across sectors in 2022, tourism and leisure Group Cresta Marakanelo Limited returned to profitability during the six months to 30 June 2022.
“International tour operator arrivals continue to rise steadily at our key tourism properties while local travel has also been steadily rising both for corporates and individuals, resulting in a significant increase in occupancies across all the company’s hotels,” says Cresta’s Cresta Chairman Moatlhodi Lekaukau and Managing Director Mokwena Morulane in the latest financials of Botswana’s leading hotel services provider.
Lekaukau and Morulane state that Cresta’s total assets increased by 8 percent compared to the half-year ended 30 June 2021.
Right of use extension
“The increase in assets was primarily due to a P21.3 million increase in right of use assets for a hotel lease extension signed in December 2021 as well as a P26.4 million increase in cash balances,” they wrote in the results.
“The Group had cash resources of P54.0 million (2021: P27.6 million) at the end of the period under review.”
The two say during the half year under review, P20.3 million was generated in operating activities while P11.7 million was utilised in operations in 2021. “Net cash utilised in investing activities amounted to P3.1 million (2021: P2.5 million),” they state in the results.
“The increase in cash outflow on investing activities was as a result of the additional capital expenditure incurred. With regards to financing activities, P16.4 million (2021: P15.2 million) was utilised with bank loan repayments, being P6.1 million (2021: P2.1 million), and the costs of leasing hotel properties, being P10.3 million (2021: P11.5 million).”
For the future, Lekaukau and Morulane say execution of expansion projects is a critical path to success and a top priority for the year ahead, together with the refurbishment of the existing properties in the portfolio.
“The focus on cash generation continues as this will be key in funding the various projects in the pipeline,” they wrote.
“The Group will continue to implement its yielding strategy to ensure it remains competitive, while also leveraging on technology and digitalisation in order to optimise operations, service provision and cost effectiveness.”