Turnstar Holdings which owns Mlimani Holdings Limited jointly with University of Dar es Salaam, posted a whooping 128 million pulas (over 27.6bn/-) during the period compared with P25.7 million (over 5.5bn/-) made in the previous year.
But despite the impressive performance, the Botswana Stock Exchange listed company said Mlimani City did not contribute much because of vacant office space and an idle Mlimani Conference hall.
“The group has posted satisfactory results, despite challenging economic conditions. The Botswana rental revenues have increased by 3 percent whilst operational expenses have been contained. The current downturn in the Tanzanian economy has affected the Mlimani commercial office and conference centre revenues,” the report stated.
The Turnstar annual results further noted that vacancies in the commercial office space affected its results but expressed hope that things will pick up this year. “However, management is confident that several office blocks will be tenanted during the current year. The conference centre has been refurbished, and is currently attracting several new bookings. The retail mall is performing to its optimum capacity,” the report added.
The finance costs relating to the additions to both Game City and Mlimani City have been fully incurred for the year under review as the buildings were completed during the 2018 financial year, and part of the finance costs for the 2018 financial year, were capitalized to the project costs, the annual report said.
Turnstar which also has a subsidiary in Dubai pointed out that its property continues to perform well hence management is on the lookout to seek more investment opportunities to expand its property portfolio.
“In its half year results for July 2018, the group recorded a total comprehensive income of P108.3 million with a profit of P55 million. Commenting on the results the group Chairman Patrick Balopi explained that rental revenue and operational expenses remain at par with the previous half year.
The Group consists of Turnstar Holdings Limited (Botswana), Island View (Proprietary) Limited (Botswana), Mlimani Holdings Limited (Tanzania), Turnstar Investments Limited (UAE) and Palazzo Venezia Holdings Limited (UAE).
The results also said appreciation of the Botswana Pula against the UD dollar during the year also contributed to the super profits. “The appreciation resulted in an exchange gain in the Turnstar and Group results for the year ended 31 January 2019. Stakeholders are reminded that, the foreign exchange translation gains and losses are unrealised and dependant on the US $ / BWP exchange rate as at year end,” the report added.
Further, the Group has ensured that, the US dollar dominated liabilities are serviced by US dollar income so that it is not exposed to actual exchange fluctuations. “The translation gain reported for the year ended 31st January 2019, occurred when translating the US dollar denominated investments and other financial assets of the Group’s Tanzanian and Dubai subsidiaries. The subsidiaries report in US dollar and UAE dirham currencies, whilst the Group’s functional currency is the Botswana Pula,” the report concluded.