PrimeTime releases 2017 financial results and a pipeline full of projects
PrimeTime has recently announced its 2017 financial results which show its exponential growth over the past 10 years since the company listed on the Botswana Stock Exchange in December 2007. Over the past decade, PrimeTime has grown from an initial portfolio of 13 properties valued at P175 million to 25 properties valued at P1.12 billion with total assets of over P1.3 billion. PrimeTime Managing Director Sandy Kelly reflects on these achievements and outlines plans for the future.
“Successful implementation of our geographical diversification strategy and strategic acquisitions led to total group assets increasing by 30% to P1.3 billion at the year end. The share price has grown from P1.25 to P3.16 over the 10 years of our existence. Shareholders have received a sound investment with a rate of between 5-10% annual distribution since we listed on the BSE. Consistent with these good results and the addition of a further 64 760 484 linked units, we are pleased to report that a total distribution of 15.92 thebe per linked unit was achieved for the year, maintaining last year’s level while having laid the foundations for growth into the future. This proves the value of investing in quality stock like PrimeTime,” says PrimeTime Managing Director Sandy Kelly.
PrimeTime has achieved year-on-year increases in both revenues and operating profits before fair value adjustments. Lease revenue grew by 27% to P110 million, completed investment property by 34% to stand at P1.12 billion, and the price per linked unit ended the year at P3.16. “PrimeTime is well positioned to pursue suitable investments. We are not stopping here –whilst good investments are few, due to our positioning, there are projects and properties out there.
The reason for our consistent performance is because of the quality and diversification of our properties. No single property accounts for more than 15% of our portfolio. While our intention is growth, we will not compromise quality for the sake of growth. This ensures we are able to create long-term wealth for our shareholders while growing and diversifying our asset base. We will continue to unearth new opportunities wherever they may be,” says
PrimeTime has identified Zambia as an additional investment opportunity because it has a robust, diversified economy with a strong democracy and democratic principles that work, according to Kelly. PrimeTime’s acquisition of its largest asset by value, Centro Kabulonga in Lusaka, represents its entry in to the Zambian retail market. Kabulonga has secured Pick n Pay, Woolworths and Mr Price as anchor tenants and there is already a waiting list for space from major regional and national brands.
This acquisition has resulted in the Zambian operations contributing over 20% of the group’s annual rental income. This brings PrimeTime’s portfolio in Zambia to $30 million, representing 27% of the group’s portfolio at the year end. Two other retail centres, Munali Mall and Chirundu Mall, are under construction and will add a further $20 million in value to the portfolio in Zambia, taking the total country investment to over $50 million.
In Botswana, PrimeTime has started construction on The Design Quarter in Setlhoa which is a retail concept for the home décor and design sector. Two smaller extensions to existing centres are also underway with an extension at Sebele Centre and a fast food drive-through at Pilane Crossing where KFC will be opening in early 2018.
“After tenanting difficulties due to trading licence setbacks, Pilane Crossing is now on track to become the successful retail centre we originally envisaged. The new Design Quarter is a first for Botswana which will benefit both shoppers and retailers in terms of having one centralised home décor and lifestyle shopping destination. In terms of major refurbishments, our plans for some additional space and improvements at the Ramotswa Mall are still on the table, as are some other extensions.
“We have made good progress against our strategic objectives and see a number of future growth opportunities. Our diversified business model and risk diversification strategy place us in a strong financial position and our willingness to invest in the business means we are well placed to take advantage of these opportunities, despite the challenges faced by the industry,” says Kelly.
Trading highlights for the year ended 31 August 2017:
Total group assets increased by 30% to P1.3 billion at the year end.
Close to P300 million in new additions specifically Centro Kabulonga and Pilane Crossing
P201 million in equity capital raised from rights issue
Opening of the Pilane Crossing retail centre in September 2016
Acquisition of the group’s largest asset by value Centro Kabulonga in Lusaka for US$17.3m in January 2017
27% increase in contractual lease revenue and 17% increase in operating profits before fair value adjustments.
4% increase in per linked unit (PLU) standing at P3.16 plu up from P3.05 in 2016.
In today’s digital age, banking is no longer just about visiting a branch during business hours. It’s about putting you, the customer, in the driver’s seat of your financial journey. But what exactly is self-service banking, and how do you stand to benefit from it as a customer?
Self-service banking is all about giving you the power to manage your finances on your terms. Whether you want to check your account balance at midnight, transfer money while on vacation, or deposit cash without waiting in line, self-service banking makes it possible. It’s like having a virtual branch at your fingertips, ready to assist you 24/7.
This shift towards self-service banking was catalyzed by various factors but it became easily accessible and accepted during the COVID-19 pandemic. People of all ages found themselves turning to digital channels out of necessity, and they discovered the freedom and flexibility it offers.
Anyone with a bank account and access to the internet or a smartphone can now bank anywhere and anytime. Whether you’re a tech-savvy millennial or someone who’s less comfortable with technology, you as the customer have the opportunity to manage your finances independently through online banking portal or downloading your bank’s mobile app. These platforms are designed to be user-friendly, with features like biometric authentication to ensure your transactions are secure.
Speaking of security, you might wonder how safe self-service banking really is. Banks invest heavily in encryption and other security measures to protect your information. In addition to that, features like real-time fraud detection and AI-powered risk management add an extra layer of protection.
Now, you might be thinking, “What’s the catch? Does self-service banking come with a cost?” The good news is that for the most part, it’s free. Banks offer these digital services as part of their commitment to customer satisfaction. However, some transactions, like wire transfers or expedited bill payments, may incur a small service fee.
At Bank Gaborone, our electronic channels offer a plethora of services around the clock to cater to your banking requirements. This includes our Mobile App, which doesn’t require data access for Orange and Mascom users. We also have e-Pula Internet Banking portal, available at https://www.bankgaborone.co.bw as well as Tobetsa Mobile Banking which is accessible via *187*247#. Our ATMs also offer the flexibility of allowing you to deposit, withdraw cash, and more.
With self-service banking, you have the reins of your financial affairs, accessible from the comfort of your home, workplace, or while you’re on the move. So why wait? Take control of your finances today with self-service banking.
Duduetsang Chappelle-Molloy is Head: Marketing and Corporate Communication Services
Botswana has recently recorded a significant trade deficit of over P6 billion. This trade deficit, which occurred in November 2023, follows another deficit of P4.7 billion recorded in October of the same year. These figures, released by Statistics Botswana, highlight a decline in export revenues as the main cause of the trade deficit.
In November 2023, Botswana’s total export revenues amounted to P2.9 billion, a decrease of 24.3 percent from the previous month. Diamonds, a major contributor to Botswana’s exports, experienced a significant decline of 44.1 percent during this period. This decline in diamond exports played a significant role in the overall decrease in export revenues. However, diamonds still remained the leading export commodity group, contributing 44.2 percent to export revenues. Copper and Machinery & Electrical Equipment followed, contributing 25.8 percent and 10.1 percent, respectively.
Asia emerged as the leading export market for Botswana, receiving exports worth P1.18 billion in November 2023. The United Arab Emirates, China, and Hong Kong were the top destinations within Asia, receiving 18.6 percent, 14.2 percent, and 3.8 percent of total exports, respectively. Diamonds and Copper were the major commodity groups exported to Asia.
The Southern African Customs Union (SACU) received Botswana’s exports worth P685.7 million, with South Africa being the main recipient within SACU. The European Union (EU) received exports worth P463.2 million, primarily through Belgium. Australia received exports worth P290 million, while the United States received exports valued at P69.6 million, mostly composed of diamonds.
On the import side, Botswana imported goods worth P9.5 billion in November 2023, representing an increase of 11.2 percent from the previous month. The increase in imports was mainly driven by a rise in Diamonds and Chemicals & Rubber Products imports. Diamonds contributed 23.3 percent to total imports, followed by Fuel and Food, Beverages & Tobacco at 19.4 percent and 15.0 percent, respectively.
The SACU region was the top supplier of imports to Botswana, accounting for 77.7 percent of total imports. South Africa contributed the largest share at 57.2 percent, followed by Namibia at 20.0 percent. Imports from Asia accounted for 9.8 percent of total imports, with Diamonds, Machinery & Electrical Equipment, and Chemicals & Rubber Products being the major commodity groups imported. The EU supplied Botswana with imports worth 3.2 percent of total imports, primarily in the form of Machinery & Electrical Equipment, Diamonds, and Chemicals & Rubber Products.
Botswana’s recent trade deficit of over P6 billion highlights a decline in export revenues, particularly in the diamond sector. While Asia remains the leading export market for Botswana, the country heavily relies on imports from the SACU region, particularly South Africa. Addressing the trade deficit will require diversification of export markets and sectors, as well as efforts to promote domestic industries and reduce reliance on imports.
The business sector in Botswana is optimistic about the year 2024, according to a recent survey conducted by the Bank of Botswana (BoB). The survey collected information from businesses in various sectors, including agriculture, mining, manufacturing, construction, and finance, among others. The results of the survey indicate that businesses expect trading conditions to improve in the first quarter of 2024 and remain favorable throughout the year.
The researchers found that firms anticipate improvements in investment, profitability, and goods and services exported in the fourth quarter of 2023 compared to the previous quarter. These expectations, combined with anticipated growth in all sectors except construction and real estate, contribute to the overall confidence in business conditions. Furthermore, businesses expect further improvements in the first quarter of 2024 and throughout the entire year.
Confidence among domestic market-oriented firms may decline slightly in the first quarter of 2024, but overall optimism is expected to improve throughout the year, consistent with the anticipated domestic economic recovery. Firms in sectors such as mining, retail, accommodation, transport, manufacturing, agriculture, and finance are driving this confidence. Export-oriented firms also show increased optimism in the first quarter of 2024 and for the entire year.
All sectors, except agriculture, which remains neutral, are optimistic about the first quarter of 2024 and the year ending in December 2024. This optimism is likely supported by government interventions to support economic activity, including the two-year Transitional National Development Plan (TNDP) and reforms aimed at improving the business environment. The anticipated improvement in profitability, goods and services exported, and business investment further contributes to the positive outlook.
Firms expect lending rates and borrowing volumes to increase in the 12-month period ending in December 2024. This increase in borrowing is consistent with the expected rise in investment, inventories, and goods and services exported. Firms anticipate that domestic economic performance will improve during this period. Domestic-oriented firms perceive access to credit from commercial banks in Botswana to be relaxed, while export-oriented firms prefer to borrow from South Africa.
During the fourth quarter of 2023, firms faced high cost pressures due to increased input costs, such as materials, utilities, and transport, resulting from supply constraints related to conflicts in Ukraine-Russia and Israel-Hamas. According to the survey report, the firms noted that cost pressures during the fourth quarter of 2023 were high, mainly attributable to increase in some input costs, such as materials, utilities, and transport arising from supply constraints related to the Ukraine-Russia and Israel-Hamas wars. βHowever, firmsβ expectations about domestic inflation decreased, compared to the previous survey, and have remained within the Bankβs 3 β 6 percent objective range, averaging 5.4 percent for 2023 and 5.4 percent for 2024. This suggests that inflation expectations are well anchored, which is good for maintenance of price stability,β reads the survey report in part.
However, firms’ expectations about domestic inflation decreased compared to the previous survey, and inflation expectations remained within the Bank’s objective range of 3-6 percent. This suggests that inflation expectations are well anchored, which is beneficial for maintaining price stability.
In terms of challenges, most firms in the retail, accommodation, transport, manufacturing, construction, and finance sectors considered the exchange rate of the Pula to be unfavorable to their business operations. This is mainly because these firms import raw materials from South Africa and would prefer a stronger Pula against the South African rand. Additionally, firms in the retail, accommodation, transport, and mining sectors cited other challenges, including supply constraints from conflicts in Russia-Ukraine and Israel-Hamas, as well as new citizen economic empowerment policies that some firms considered unfavorable to foreign direct investment.
On the positive side, firms highlighted factors such as adequate water and electricity supply, a favorable political climate, an effective regulatory framework, the availability of skilled labor, and domestic and international demand as supportive to doing business in Botswana during the fourth quarter of 2023.
Overall, the business sector in Botswana is optimistic about the year 2024. The anticipated improvements in trading conditions, supported by government interventions and reforms, are expected to drive growth and profitability in various sectors. While challenges exist, businesses remain confident in the potential for economic recovery and expansion.