- Turnstar Holdings reports 8.8% increase in rental revenues.
- Operational profit rises by 20% compared to the previous year.
- Profit before taxation grows by 26.52% year-on-year.
Turnstar Holdings Limited, a diversified group with subsidiaries in Botswana, Tanzania, and the UAE, has announced its unaudited group financial results for the six-month period ending July 31, 2023. The company's rental revenues during this period showed a notable increase of 8.8% compared to the corresponding period in 2022, reaching P155.2 million. This growth in rental revenues, coupled with a slight reduction in operational expenses, resulted in a significant operational profit increase of P14.5 million, representing a 20% rise from the previous year.
Despite the positive financial performance, the group faced challenges in the form of high borrowing rates, which led to increased finance costs compared to the prior period. Additionally, the appreciation of the US Dollar against the Botswana Pula resulted in foreign exchange losses on the group's borrowings denominated in US Dollars. These factors impacted the overall financial position of the company but did not undermine its profitability.
Turnstar Holdings recorded a profit before taxation of P68.3 million for the half-year period ending July 31, 2023, reflecting a substantial growth of 26.52% compared to the same period in 2022, which stood at P54.0 million. The company's stakeholders should note that foreign exchange translation gains are unrealized and are subject to the US Dollar/Botswana Pula exchange rate at the reporting date.
Furthermore, the group reported earnings per share (EPS) of 8.39t per share, and the total tax expense of P20.3 million consisted entirely of a deferred tax realization calculated in accordance with IAS 12. These figures highlight the company's strong financial performance and its ability to generate returns for its shareholders.
In light of the positive results, Turnstar Holdings has announced a dividend of 10t per linked unit. This dividend will comprise debenture interest of 8.7104t and a dividend of 1.2896t per linked unit. The dividend will be distributed to all registered unit holders as of December 1, 2023.
The impressive financial results of Turnstar Holdings reflect the company's effective management of its rental properties and commitment to optimizing operational efficiency. The substantial increase in rental revenues demonstrates the company's ability to capitalize on its real estate portfolio and generate sustainable growth. Despite the challenges posed by borrowing rates and foreign exchange fluctuations, the company has managed to maintain a strong financial position and deliver value to its stakeholders.
Equity Axis Nuggets:
Turnstar Holdings' unaudited financial results for the six-month period ending July 31, 2023, reflect a positive performance, driven by the significant increase in rental revenues. The 8.8% growth in rental revenues demonstrates the company's ability to effectively leverage its real estate portfolio and capitalize on market demand. Despite challenges such as high borrowing rates and foreign exchange losses, Turnstar Holdings managed to achieve a 20% increase in operational profit, indicating successful cost management. The company's profit before taxation also saw a notable improvement of 26.52% compared to the previous year. These results indicate the company's resilience and strategic decision-making in navigating a competitive market. With a diversified portfolio and a commitment to delivering value to shareholders, Turnstar Holdings is well-positioned for continued growth in the real estate sector.
Looking ahead, Turnstar Holdings is well-positioned to capitalize on further opportunities in its target markets and continue its growth trajectory. With a diversified portfolio and a track record of solid performance, the company remains a key player in the real estate sector and a reliable investment option for shareholders.
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