21 Apr 2013

Letshego Holdings Limited Group has achieved satisfactory performance in terms of growth for the year ending January 31,  2013.

 

Giving an overview of the company's financial performance, chief financial officer, Mr Colm Patterson said despite the planned decline in Botswana assets, there was compensating growth from Mozambique and Tanzania and to a lesser extent Namibia and Uganda. 

 

He said Micro Africa Limited (MAL) contributed P146 million in the net advances to customers, which also impacted on the overall increase of 10 per cent in the 2012 advances book.

 

The quality of the advances book, Mr Patterson said, was within target levels with an impairment change of 1.3 per cent for the year as compared to 1.6 per cent in the past year. 

 

“The Group remains well capitalized and has cash resources of over P800 million which are available to further business growth,” he said.

 

Mr Patterson also said profitability was creditable with an 18 per cent increase in profit before tax and a 12 per cent increase in earnings per share. 

 

The profits before tax, he said, had increased to P841 million, as compared to P711 million in 2012.

 

However, the profit after tax increase was lower at 14 per cent than the increase in profit before tax “due to the tax credit impact of the once off scrip dividend recorded in the prior year.” 

 

Mr Patterson further said margins were consistent despite the competitive environment, adding that “our average cost of borrowings also remaining undercharged relative to prior years.”

 

He also noted that Letshego saw a significant increase in the operating and staff costs which rose by by 31 per cent to P280 million.

 

“This was mainly due to the higher cost structure and personnel levels brought about by the MAL acquisition and new regulatory fees in Botswana for a full year. If these costs were removed from the operating and staff costs, the attributable year on year increase would have been 11 per cent. ENDS