TA release an improved set of results

Published: 12 September 2013

TA released an improved set of results showing a 12.5% growth in revenue to $39m from $34.6m. The insurance division continues to anchor performance after contributing $21.9m in net earned premium down 2.6% compared to prior year.

This was followed by Hotel which contributed $7.3m slightly up from $6.6m in the prior year. The balance was contributed from investment income, fair value adjustments and fees, commissions and other income. Operating profit was up 36.3% to $4.9m from $3.6m. Insurance outside of Zimbabwe contributed more to operating profit at $4.4m while local insurance contributed $1.4m.

Local hotels reported an operating loss of $0.1m due to refurbishments at Cresta lodge Harare while the regional operation reported a profit of $0.5m. The Agrochemicals division continues to bleed after posting a loss of $1.8m compared to slightly bigger loss of $2.5m in the prior period.

Investments income of $2.3m was up from $0.8m mainly as a result of fair value adjustments on equities both in Zimbabwe and in the region. Overall the group reported an attributable profit of $1.3m up 919% from a lower base of $0.1m. No interim dividend was declared.

Total assets grew by 7% to close the half year at $164.9m from $153.9m in December final numbers. Current assets grew 10% on the back of increases in insurance and reinsurance receivables as well as other accounts receivables. Cash and bank balances increased by 17.7% to close the period at $15.9m.

Cash flow operations declined by 1% to $6.4 due to increase in tax settlements after the business reported higher profits than previously. Significant cash flow was deployed towards refurbishments of Cresta Lodge Harare and the completion of Cresta Sprayview in Victoria Falls amounting to $4m compared to just $0.2m last year same period. The group received $1m in finance activities to close the period with a cash and cash equivalent of $15.9m 13% lower than in the prior period.
- businessdaily