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 Kelly.
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.
This week Minister of Finance & Economic Development, Dr Thapelo Matsheka approached parliament seeking lawmakers approval of Government’s intention to increase bond program ceiling from the current P15 Billion to P30 billion.
“I stand to request this honorable house to authorize increase in bond issuance program from the current P15 billion to P30 billion,” Dr Matsheka said. He explained that due to the halt in economic growth occasioned by COVID-19 pandemic government had to revisit options for funding the national budget, particularly for the second half of the National Development Plan (NDP) 11.
Botswana Stock Exchange (BSE) has this week revealed a gloomy picture of diamond mining newcomer, Lucara, with its stock devaluated and its entire business affected by the COVID-19 pandemic.
A BSE survey for a period between 1st January to 31st August 2020 — recording the second half of the year, the third quarter of the year and five months of coronavirus in Botswana — shows that the Domestic Company Index (DCI) depreciated by 5.9 percent.
Botswana Diamond PLC, a diamond exploration company trading on both London Stock Exchange Alternative Investment Market (AIM) and Botswana Stock Exchange (BSE) on Monday unlocked value from its shares to raise capital for its ongoing exploration works in Botswana and South Africa.
A statement from the company this week reveals that the placing was with existing and new investors to raise £300,000 via the issue of 50,000,000 new ordinary shares at a placing price of 0.6p per Placing Share.
Each Placing Share, according to Botswana Diamond Executives has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from, 7th September 2020, being the date of the Placing Warrants issue.
In a statement Chairman of Botswana Diamonds, John Teeling explained that the funds raised will be used to fund ongoing exploration activities during the current year in Botswana and South Africa, and to provide additional working capital for the Company.
The company is currently drilling kimberlite M8 on the Marsfontein licence in South Africa and has generated further kimberlite targets which will be drilled on the adjacent Thorny River concession.
In Botswana, the funds will be focused on commercializing the KX36 project following the recent acquisition of Sekaka Diamonds from Petra Diamonds. This will include finalizing a work programme to upgrade the grades and diamond value of the kimberlite pipe as well as investigating innovative mining options.
Drilling is planned for the adjacent Sunland Minerals property and following further assessment of the comprehensive Sekaka database more drilling targets are likely. “This is a very active and exciting time for Botswana Diamonds. We are drilling the very promising M8 kimberlite at Marsfontein and further drilling is likely on targets identified on the adjacent Thorny River ground,” he said.
The company Board Chair further noted, “We have a number of active projects. The recently acquired KX36 diamond resource in the Kalahari offers great potential. While awaiting final approvals from the Botswana authorities some of the funds raised will be used to detail the works we will do to refine grade, size distribution and value per carat.”
In addition BOD said the Placing Shares will rank pari passu with the Company’s existing ordinary shares. Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that such admission will become effective on or around 23 September 2020.
Last month Botswana Diamond announced that it has entered into agreement with global miner Petra Diamonds to acquire the latter’s exploration assets in Botswana. Key to these assets, housed under Sekaka Diamonds, 100 % subsidiary of Petra is the KX36 Diamond discovery, a high grade ore Kimberlite pipe located in the CKGR, considered Botswana’s next diamond glory after the magnificent Orapa and prolific Jwaneng Mines.
The acquisition entailed two adjacent Prospecting Licences and a diamond processing plant. Sekaka has been Petra’s exploration vehicle in Botswana for year and holds three Prospecting Licenses in the Central Kalahari Game Reserve (Kalahari) PL169/2019, PL058/2007 and PL224/2007, which includes the high grade KX36 kimberlite pipe.