Letlole anticipating around 60 % growth in profits for its Half year ended 31st December 2021

The Projects | Real Estate

Botswana Stock Exchange listed real estate group Letlole La Rona is projecting massive profit growth for its half year ended 30 December 2021.

In a market update on Monday Letlole
advised its Unitholders that the Company is currently finalising its unaudited results for the half year ended 31 December 2021.

In line with section 5.4 (c) of the of the Botswana Stock Exchange Limited (BSE) Equity Listing Requirements, an issuer must publish a cautionary announcement as soon as they are satisfied that a reasonable degree of certainty exists that the expected profit or loss (before tax) for the period to be reported upon next will differ by at least 10% from the most recent financial results for the previous corresponding period.

The Board of Directors of Letlole La Rona Limited (LLR) announced that the Company is expecting profit before tax (from continuing operations) for the half year ended 31 December 2021 to be between 55% and 65% (P18.0 million and P21.3 million) above the prior year’s profit of P32.8 million.

The main reasons for the significant increase in the Company’s profitability is the maintenance of the weighted average annual lease escalations of 7%, high occupancy rates achieved during the period and tight cost control measures that have been implemented.

The above, coupled with the impact of the economic recovery, have had a positive effect on the valuations of the investment properties, leading to a net fair value gain of P12.1 million in the current period compared to the P8.4 million fair value gain from the prior year.

Effective December 2021, the Company acquired a 32.79% shareholding in JTTM Properties (Proprietary) Limited, a company that owns one of the prime retail malls in Gaborone, Rail park Mall, for a purchase consideration of P152 million. As at 31 December 2021, LLR’s value in Rail park Mall had increased by P4.5million, contributing to the substantial improvement in the financial results of the Company.

The Company will be publishing its unaudited financial results for the half year ended 31 December 2021 on or before 31 March 2022.

Accordingly, unitholders and investors are advised to exercise caution when trading in the Company’s securities until the results are announced.

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