Letlole La Rona profits drop to P73 million
Botswana Development Corporation-owned Letlole La Rona (LLR) recently released its audited financial results for the year ended 30 June 2016 which show that its profits after tax dropped by just over P5 million, to P73.9 million from the P79.5 million recorded during the corresponding period the prior year.
The company had recorded profit before tax of P92.3 million, and it was subject to an income tax of P18.4 million. “For the year ended 30 June 2016, profit before tax stood at P92.3 million. This performance is satisfactory given the fact that the two properties mentioned above which had over the years benefited from fixed annual compound escalation clauses were affected by a drop in rental rates,” the company said in a statement.
LLR said however, post the balance sheet date, the company’s cash flow position has normalised and the net current position has reverted to positive. It highlight that it has negotiated with financial institutions to finance the acquisition of properties and expansion of business operations.
Furthermore, the P741 million company shared that LLR enjoyed capital appreciation of its portfolio, “which is reflective of the quality of its property portfolio in terms of condition and investment value. The portfolio increased in value by a factor of 7.4% from the previous year’s P622.3 million to P668.1 million. The acquisition of the P42.0 million residential estate has further increased the aggregate market value of LLR’s property portfolio to P710.1 million.”
On its future outlook, the organisation says it will continue treading the path of aggressive investment strategy, through considered acquisitions that would add value to growth of the balance sheet and diversification of its portfolio.
“The Company has a number of pipeline projects that it is considering with a view to growing the balance sheet and profits. It has concluded an agreement for purchasing one-third stake in a shopping centre in a vibrant location in Francistown. The stake commands a market value of approximately P35 million and the retail centre is anchored by one of the major and progressive grocery outlets operating in the country,” LLR explained.