Harare – Investment holding company, Brainworks Capital revenue for the six months ended June 30 2018 increased by 28 percent to close at US$31million relative to US$24million achieved during the 2017 comparable period.

Revenue growth was recorded across all the Group’s three main operating segments, with major growth being recorded by the hospitality segment.

“In line with the prior year, the hospitality segment remains the major contributor to Group total revenue, with contribution of 87 percent (US$27million) in line with same period in the prior year.

“Post elimination of intersegment revenues, the other business segments contributed US$4 million to the current period interim total revenues, up from US$3.2million recorded during the comparative period,” said the company.

In the period under review hospitality business segment’s revenue increased by 29 percent to close at US$27million compared to US$21million recorded over the same period in 2017.

Both domestic and foreign revenue registered growth, achieving 26 percent and 32 percent respectively.

Brainworks attributed the revenue growth to a 10 percentage points increase in occupancy rate from 45 percent reported last year to 55 percent.

“Occupancy growth was supported by strong performance from all the source markets, with local, international and regional rooms sold increasing by 16, 26 and 22 percent respectively.

“The Group witnessed an exceptional increase in both local and foreign arrivals during what would have traditionally been rough periods.”

Resultantly, improved hotel occupancy ensued in the average daily rate (“ADR”) improving to US$97 from US$89 reported during the comparative period.

As a result, revenue per available room (“RevPAR”) firmed by 33 percent to US$53 from US$40 achieved last year.

During the period under review the Group’s operating expenses at $20 million were relatively flat when compared to those recorded over the prior comparable period.

Total net finance charges for the period amounted to US$2.1 million, 5 percent up from the US$2 million recorded during the period ended 30 June 2017.

The impact of the US$13.8 million which is a 36 percent reduction in the Group debt from US$38.3 million at the beginning of the year to US$24.5 million as at the end of the period under review did not yield a notable impact on the finance costs as the majority of this debt reduction was achieved towards the end of the period under review.

The Group said it expects the impact to be more notable during the second half of the 2018 financial year.

Brainworks recorded profit after tax of US$7.3 million during the period under review, compared to losses of US$5.2 million and US$8 million for the interim period ended 30 June 2017 and year ended 31 December 2017 respectively.

Growth in revenues against relatively flat operating expenses and other income of US$4.5 million drove this strong performance.

Other income in particular includes profit realised from the disposal of the Group’s equity investment in GetBucks Microfinance Bank Limited of US$3 million, whilst the fair value gain from financial assets at fair value through profit or loss is largely driven by US$4.1 million fair value gain recognised on reclassification of residual equity investment from investment in associate to financial assets at fair value through profit or loss.

Brainworks Limited is a Mauritian diversified investment holding company, listed on the Johannesburg Stock Exchange, with an exclusive focus on Zimbabwe.

 Brainworks invests in assets that are consumer-facing and cash-generative, and aims to build a portfolio that will deliver capital growth.

The substantial existing investment portfolio currently offers exposure to prominent Zimbabwe-based assets in hospitality, real estate, and financial services logistics.

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