23 Sep 2013

Letshego expects a seven per cent growth on its profits before tax for the financial year ending in July this year.

A statement released by the company on  September 20, states that growth emanates from a declining interest rate environment coupled with a large equity base and fixed cost of funding. Profit after tax is expected to increase by eight per cent for the same period.

The statement also says the Botswana Stock Exchange (BSE) listed company’s loans and advances to customers have increased by 22 per cent from the previous financial period with strong growth recorded in Botswana, Namibia and Mozambique, the three largest markets of the Letshego Group.

Letshego, which provides unsecured loans and other financial services has subsidiaries operating in 11 African countries in Southern and Eastern Africa. Basic earnings per share are expected to be two per cent higher than the previous financial period as a result of the successful conversion of convertible loan during April this year.

The company states that it is considering raising additional debt funding by way of maiden offering of notes to be issued under the Letshego Medium Term Note Programme which is expected to be completed in November and is subjected to all necessary regulatory approvals and compliances. ENDS