Turnstar Group Holdings’ profit before tax was up 23% and revenue was up by 5% for the year ended January 2016 as the property market, particularly the commercial sector, continues to impress.
The group wrapped up what has been has been an impressive run by listed property entities in the Botswana Stock exchange with just an exception to Letlole La rona which posted lower revenues for the half year ended December 2015. Primetime Property Holdings Limited, which is yet to release its interim results, has an issued a cautionary note that profit after tax for the six months ended 29 February 2016 is expected to be significantly higher than the prior interim period to 28 February 2015.
The group’s revenues have been propelled by increased rentals which went up from P236 million to P248 million after straight-line adjustments. The group’s profit before taxation for the reporting period is at P230 million, a surge of 23% from the previous corresponding period. The balance sheet was bolstered by a 13% increase in value of Investment property value to P 2 billion including work in progress, bringing the company’s total assets to P2.4 billion up by 20% from the previous year’s P2 billion. The Net asset Value per linked unit is increased by 14% to 2.76.
The group’s subsidiary, Mlimani in Tanzania, has proven to be a good invest for the Botswana property giant as it contributed P120.8 Million to the total group revenue representing a 49% contribution. The Tanzania based subsidiary which boasts of Mlimani City-the largest mall in Tanzania which opened in 2006- now has investment Property worth over 1 billion representing 52% of the total group investment property of 2 Billion. The BSE listed Group has announced that the development of Phase 3, Mlimani City Tanzania is well in progress.
Mlimani City is being expanded to include additional retail and commercial space including basement parking, additions to the Conference Centre and a Botanical Garden. The additional space is also pre let to a large extent. The expansion is expected to cost USD 25 million. The project is financed by Barclays Bank of Botswana for USD 20.7 million and Turnstar Holdings for USD 4.3 million. The expected date of completion is November 2016.
Turnstar company, home to the local based operations, had its revenue decrease by 4% to P 126.7m due to the sale of the Fairground Office Park property. However, the company’s profitability was strengthened by additional incomes of P 26.3 million which includes interest earned from investment in debentures of Mlimani Holdings Limited of P 21.9 million as well P7.5 million profit generated from the sale of Fairgrounds property. The Fair value of investment property soared by 125% from the previous P6.4 million to 14.4 million.
The profit before taxation for the year ended 31 January 2016 lunged by 19% to P131.3 million before fair value adjustment. The company has announced that the development of Phase 4, Game City shopping centre is nearing completion. This comes after two years since the company embarked on expanding its biggest asset and also the largest mall in Botswana.
Game City is being expanded to include additional retail space including a fashion avenue, restaurant area including a food court, entertainment area and a parkade. The additional space is pre let to a large extent. The project is financed by First National Bank of Botswana for P170 million and interest rate of Prime less 2.1%. The expected date on completion is September 2016.
Turnstar says that it will be limiting its exposure to the office property sub-sector as there has been mounting concerns about oversupply of office spaces due to newly constructed buildings in the new Central Business District (CBD) which comprises mainly of office spaces.
“The sale of the Fairgrounds Office Park property is consistent with the strategic imperative to manage exposure to the office property sub-sector in Botswana which is expected to remain under pressure with increasing vacancies in the medium term. Pursuant to the above, Turnstar’s exposure to the office property sub-sector in Botswana has been strategically limited to one office property, being Turnstar House, which is fully tenanted. Turnstar will continue to maximise performance through the active management of its property portfolio,” read part of the commentary that accompanied the financial statements.
Turnstar Holdings with a market capitalization of P1.7 billion in the BSE’s main domestic counter is currently trading at P3.06, representing a decline of 0.3% since the year began. Turnstar, together with Letlole la Rona are the only property listed companies that have had their share price decline so far this year. The company’s Directors have approved a final distribution of 10.5 thebe per linked unit, split as follows; Debenture interest of 7.65 thebe and 3.85 thebe dividend per share in respect of the six months ended 31 January 2016 to all registered unit holders with the company at close of business on 13th May 2016.
Still on the BSE, the company intends to launch an offering of USD denominated senior unsecured compulsory convertible bonds to raise gross proceeds of US$ 30,000,000. It is expected that the Convertible Bonds will be issued during May 2016 for a period of 7 seven year maturing in 2023. The estimated maturity conversion rate is expected to be between P5 and P5.40.
Prices for cereals or staple foods in Botswana and other Southern African countries continue to rise at a slower pace, following trends in the global markets, according to the latest November 2022 Food Price Monitoring and Analysis by Food Agricultural Organization (FAO) of the United Nations.
Running a digital businessMTN Business Solutions Botswana, popularly known as MTN Business is an Internet Service Provider. We are a subsidiary of MTN Group Limited, a multinational telecommunications Group headquartered in South Africa, which operates in 19 markets across Africa and the Middle East.
More and more, clients are looking for ways to keep their staff productive in a dynamically changing business environment. Whether your people are working from home, the office or abroad, there is a growing recognition that digitising your operations can offer unprecedented commercial value in flexibility, productivity and growth. This new, digital reality means that it is more important than ever to stay agile – if there is anything that can slow a business down, it is being burdened by othatld technology.
Having made substantial investments in fibre technology, high-speed terrestrial and undersea networks and new frequency spectrum across the markets wherein it operates, MTN is perfectly positioned to respond to this shift in the market.
A few years ago, MTN also made the decision to build an IP capable radio network for its mobile services, giving its core network the ability to seamlessly integrate with enterprise IP networks. The mobile towers deliver services to enterprise clients absolutely anywhere it has a network, shortening the last mile and removing complexity and cost.
Now there is increasing demand from clients to connect their remote sites in all areas, including rural and semi- rural. MTN has assisted clients with overcoming this connectivity hurdle, enabling their staff to get the job done wherever they are.
For MTN, the focus has shifted from just being a core telecommunications services provider, towards also becoming a technology solutions provider. The service offering now also includes Unified Communications, Data Hosting and Cloud Solutions, Security-As-A-Service and Managed Network Services. The scope has changed to being client and industry specific, so the requirements and service portfolio vary from one client to the next. The expectation is that a company like MTN must respond to these challenges, helping clients to get business done better as they shift from old to new technologies.
As many businesses continue to grapple with a digitally dynamic world, they face new challenges that have to be solved. This environment will benefit those that are more digitally enabled and agile. It is a brave new world that will favour online over on-site, wireless over wired and fluid over formulaic. Businesses will seek out partners and suppliers that are every bit as flexible and forward-looking as they are.
Ultimately, clients need partners like MTN Business that will invest in infrastructure, deliver the services they require, have market credibility, are financially sound and have a long-term commitment to their market presence.
Botswana Institution Of Engineers (BIE), has last week hosted a gala dinner in which they appreciated engineers who worked tirelessly and with dedication for 10 years from 1983 to steer the BIE to its current status.
The event that was held at the Phakalane Golf Estate had brought together young, experienced and veteran engineers and was held under the theme “Vitalize the dignity and eminence of all professional engineers”.
Explaining the theme, the institution’s treasurer, Thanabalasingam Raveendran said that engineers were looked upon reverentially with respect as the educated but with time it seems to have deteriorated. He indicated that there is a need to change the narrative by all means.
“The BIE exists for the welfare and the betterment of us Botswana engineers, we need to recognize specialised units within our Institution. We Engineers strongly believe in Engineers make it happen” Raveendran said.
He indicated that under the theme they appeal to all engineers to energize, to attain quality of being worthy of honour and respect and to achieve recognized superiority amongst the Society.
Raveendran stated that engineers need to ensure their end product is of good quality satisfying the end users expectations and engineers must be honest in their work.
“Approximately 8000 engineers registered with Engineering Regulatory Board (ERB) are not members of the BIE, engineers need to make every effort to recruit them to BIE” he said.
He alluded that BIE being a society, it currently needs to upgrade itself at par with professional institutions elsewhere like the UK and USA.
He further stated that BIE has to have engineering units of specialised disciplines like Civil/Mechanical/electrical etc
“As President Masisi indicated in his inaugural speech, the young people, who make 60 percent of the population of this country, are the future leaders and therefore investing in them is building the bridge to the future” said Raveendran
Kandima indicated that BIE has a memorandum of Understanding with Engineers Registration Board (ERB), where BIE is a recognised provider of CPD training, mentorship programmes and more importantly IPD undertaking to upgrade the skills and know-how of our engineers.
“For us to achieve our mandate and make worthwhile changes to engineering in Botswana, we have to be totally focused and act with intent” said Kandima.
Furthermore, Stephen Williams, past president of the BIE from 1986-1988 told the engineers that the BIE provides a fertile environment where they can meet, share ideas and grow professionally.
“The BIE is also a nesting place for graduate engineers to learn from their peers and seniors, it also cater for engineering technicians and technologists and so nobody in the technology field is left out” he said.
He further indicated that Botswana Government provides a conductive environment for growth of engineering professionals.
“It must be stated that the Botswana Government recognises the existence of BIE and it can further be stated that the government enables ERB to carry out its mandate as a regulator of engineering professionals” said Williams
He plead with engineering companies to recognize and support BIE as it is the only source of engineering personnel’s for various Industries .
Furthermore, when giving his farewell speech, Michael Pinard , a past president of the institution said how they are viewed as engineers by the general public might be due to some lack of appreciation as to exactly what role they play in the development of the country.
“The BIE slogan is aptly coined-Engineers make it happen, in other words, what man dreams engineers create” Said Pinard.