Imara projects loss turnaround

Published: 18 November 2013

Investment advisory firm Imara Holdings Limited (Imara) has projected a turnaround of its losses to record a profit in the half year to October 2013.

The Botswana Stock Exchange-listed group - set to publish the detailed financials for the period under review in early December - incurred a P5,1 million loss after tax in corresponding six months to October 2012 and a total comprehensive loss of P7,6 million.

"Financial information on which this trading statement is based has not been reviewed… by auditors," it told shareholders in a trading update yesterday.

Imara is focused on the African financial markets and has funds under management in excess of $390 million and assets under administration worth more than $1,77 billion.

The mid-sized company, which reported a loss after tax of P1,5 million in the year to April 2013, has offices in Angola, Botswana,

South Africa and the UK as well as associate unit in Malawi, Mauritius, Zambia and Zimbabwe.

Meanwhile, Imara announced in its 2013 annual report that Zimbabwe represents an important business centre for the group.

"Since the publication of the announcement of audited results on July 26, 2013, President Robert Mugabe has been re-elected as President of Zimbabwe for a further five years," the group said adding that "it is still too early to assess what impact future economic and investment policies in Zimbabwe may have".

It said "short term fluctuations do not overly concern the Board which continues to see positive opportunities for Imara's business in Zimbabwe over the medium to long term."

The group said its results for the year ended April 2013 were "in some ways positive but in other ways negative."

"…Positive in that the group reported a profit before tax for the year of P3,48 million; that the earnings performance in the second half of the year was strong with profit before tax of P7,66 million and positive in that total assets for the group increased by more than 26 percent.

It said the negative aspect involved a seemingly abnormally high tax charge and the resultant loss for the year and more significantly, that the earnings performance continued to be below expectations.

"Albeit that the group's earnings performance tends to be stronger in the second half of the year, up until late in the financial year, indications were that a loss higher than what was finally achieved, would be reported," said Imara.

The group said during the period, a better than expected pre-tax performance was mainly due to the outstanding performance of the asset management division in the final quarter of the year where funds under management increased significantly and performance fees were earned on certain of funds.

"Impairment charges against receivables and the carrying cost of investments in associate companies added almost P3,8 million to total expenses for the year, and costs relating to the on-going NBS arbitration process a further P2,5 million."
- dailynews

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