- Rental revenues surge by 8.8% for Turnstar Holdings Limited.
- Operational profit increases by 20% for H1 2023.
Turnstar Holdings Limited, a prominent player in the property sector of Botswana, has announced its trading statement for the half-year period ended July 31, 2023. The company experienced a notable increase in rental revenues, along with improved operational profitability. Despite challenges such as high borrowing rates and currency fluctuations, Turnstar Holdings Limited demonstrated resilience and achieved impressive financial results.
During the first half of 2023, Turnstar Holdings Limited witnessed a remarkable growth in rental revenues. Comparing the period ended July 31, 2023, with the corresponding period in 2022, the rental revenues surged by approximately 8.8%. Specifically, the company reported P155.2 million in rental revenues for H1 2023, compared to P142.7 million for H1 2022. This upswing can be attributed to various factors, including the company's strong property portfolio and effective management strategies.
Turnstar Holdings Limited also achieved improved operational profitability during the reported period. By combining the increase in rental revenues with a nominal reduction in operational expenses, the company experienced a substantial boost of approximately P14.5 million (20%) in its operational profit. Comparing H1 2023 with H1 2022, the operational profit amounted to P87.68 million, whereas it was P73.12 million for the previous year's corresponding period. This growth reflects the company's ability to optimize its resources and enhance cost efficiency.
Despite the positive financial performance, Turnstar Holdings Limited faced certain challenges during the first half of 2023. High borrowing rates impacted the company's finance costs, leading to increased expenses compared to the comparative prior period. Additionally, the US Dollar appreciated against the Botswana Pula, affecting foreign exchange rates. However, the company managed to mitigate these challenges effectively, resulting in a significantly reduced exchange loss compared to the previous year's period ended July 31, 2022.
Looking ahead, Turnstar Holdings Limited remains optimistic about its financial prospects. The company expects its profit before taxation for H1 2023 to be approximately P14.3 million (26.5%) higher compared to H1 2022. This projected growth highlights the company's resilience and its ability to adapt to market conditions.
Respect Gwenzi, a senior analyst at Equity Axis, stated, "Turnstar Holdings Limited's strong financial performance in the property sector is a testament to Botswana's robust economy. Despite challenges such as high borrowing rates and currency fluctuations, the company has demonstrated its ability to generate solid rental revenues and improve operational profitability. This reflects the overall strength of the property sector in Botswana, which continues to attract investor interest and contribute to the country's economic growth."
Turnstar Holdings Limited's trading statement for the half-year period ended July 31, 2023, reveals a significant increase in rental revenues and operational profitability. Despite challenges, the company has managed to navigate through the market conditions and achieve positive financial results. With its strong performance and optimistic outlook, Turnstar Holdings Limited remains well-positioned to capitalize on opportunities in Botswana's thriving property sector.
-Equity Axis News