- The group’s effective tax rate increased from 30% in the prior year to 38% in the current year.
- The effective tax rate is higher than the group’s nominal rate of 22%.
Botswana Stock Exchange-listed Wilderness Holdings reported a 3% decrease in profit after tax, with its profits decreasing to P74 million during the financial year ending 29 February, 2016 from the P76 million profit after tax realized the prior year.
The group attributed the decline to increased taxation charge.“The Group’s effective tax rate increased from 30% in the prior year to 38% in the current year. The effective tax rate is higher than the group’s nominal rate of 22%. This is largely due to increased dividend payments by subsidiary companies to the holding company in the current year, resulting in additional withholding and dividend taxes, higher tax rates in other jurisdictions, expenses not claimable for tax purposes, and losses incurred by entities where deferred tax assets could not be recognized,” the group said in its financial report.
The group, with a turnover of P935 million (decreased from P945 million) for the year, had made profit before tax of P120 million, up from P109 million achieved in the prior year.
Though addition of more camps led to increase in available bed nights from 233 108 (restated) to 240 748, the group indicated that demand was weak during the first half of the year because of the Ebola outbreak and the strength of the US Dollar against other destination currencies. “The effect of these factors was most notable in the Tour Series category (lowest yield) out of the United States and these bed night sales declined by 23%,” it said.
It noted that excluding the Tour Series category, bed nights sold were up 1%. “Overall, bed nights sold decreased by 5% from 147 136 (restated) to 140 162. The favourable exchange rate, coupled with favourable changes in the product mix, cushioned the fall in revenue to just 1%,” it explained.
Wilderness further said reversals of impairment amounted to P800 000. It said these arose mainly from the P3.4 million reversal of previous impairments of their Zambian assets as a result of lease renewals, offset by P2.5 million impairment due to damage to two aircraft, noting that the remaining balance is attributable to impairment of loans receivable and property, plant and equipment.
Wilderness Holdings Board Chairman, Parks Tafa, in his report, said; “The year past was a meaningful one that saw the beginnings of the eventual emergence of the African ecotourism industry from the after effects of west Africa’s Ebola pandemic, and a steady generating of momentum within Wilderness Holdings that included significant progress in both internal brand and strategic clarity and associated growth into new territories.”
He said they were well poised and excitedly expectant for the year ahead which they believe will be a landmark one for their organization, “one that entrenches our purpose and defines our future direction.”