LETLOLE LA RONA : AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2022
(marketscreener) LETLOLE LA RONA LIMITED AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2022 ... Taxation paid Cash flows (used in)/from investing activities Additions to investment properties Acquisition of Investment in Associate Distribution From Associate Acquisition of property, plant & equipment Proceeds on sale of property, plant & equipment Proceeds on sale of investment property Cash flows used in financing activities Repayment of borrowings Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year There was a significant improvement in collection rates which exceeded 100% of the total monthly rentals billed, resulting in the credit loss allowances during the year being 35% lower than the prior year figure of P3m. The Company has historically traded at a discount to net asset value, but is now trading at net asset value. This brought the total distribution declared for the year 2021/22 financial year to P51,548,000 (being a dividend of 0.10 thebe per share and interest of 18.31 thebe per linked unit).
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STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2022 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2022 The company holds a well-diversified investment portfolio with a strong cash generating ability, resulting in the consistent delivery of solid financial and operational results. The industrial sector has proved to be resilient over the past 12 months with the demand for warehousing space continuing to be strong. On the back of the quality assets that the company holds, the portfolio has enjoyed remarkably high occupancies of 99% over the past 12 months. The ability of the company to negotiate long term leases and maintain the weighted average lease expiry at 3.2 years as well as average annual escalation rates at 6.7% in an economy which is yet to return to the robust growth of years gone by, is a testimony to the quality of LLR's assets. announcement has further been reviewed by the Company's auditors. The audit opinion will be made available for inspection at the Company's registered office. We are delighted to inform you that the Company has recently launched its newly refined "Go-To-Africa" Strategy. This strategy clearly defines the strategic direction of LLR and seeks growth in the best interest of the Company and its stakeholders. The new strategy seeks to optimize and diversify the Company's portfolio, drive growth of the balance sheet, enhance stakeholder value and sustain investor returns. With that, our revised mission was developed, being "To integrate our Basket of Wealth into the African Economy, through value
Number of linked units in issue at end of the year Earnings per linked unit is calculated based on the average number of linked units in issue and total comprehensive income for the year, adjusted by the taxation on debenture interest credited to the statement of changes in equity of: STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022 Profit on sale of property, plant & equipment Share of profit from equity accounted investment Finance Income Fair value adjustment of investment properties Movement in credit loss allowances Movements in operating lease assets Operating income before working capital changes Decrease in trade and other receivables Increase/(decrease) in trade and other payables Taxation paid Cash flows (used in)/from investing activities Additions to investment properties Acquisition of Investment in Associate Distribution From Associate Acquisition of property, plant & equipment Proceeds on sale of property, plant & equipment Proceeds on sale of investment property Cash flows used in financing activities Repayment of borrowings Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year The investment portfolio value now stands at P1.2 billion which is a 22% increase from the prior year's P1.0 billion. The growth is primarily driven by the acquisition of a 32.79% stake in JTTM Properties (Proprietary) Limited (JTTM). JTTM is the sole owner of Rail Park Mall, a 32,000sqm prime commuter mall situated in the heart of the Gaborone bus and taxi terminus. The Company continued to deliver exceptional results during the period under review. Revenue increased by 5% year- on-year to close at P108m, from the prior year's figure of P103m. This growth was on the back of average annual lease escalations of 6.7%, supported by extremely low vacancy rates of less than 1%. There was a significant improvement in collection rates which exceeded 100% of the total monthly rentals billed, resulting in the credit loss allowances during the year being 35% lower than the prior year figure of P3m. The improved rental collections and cash management led to higher cash reserves which were invested in various fixed deposits and money market instruments, hence the significant growth in finance income. The acquisition of Rail Park Mall has substantially boosted the share of profit from associates as the investment which was acquired for P152m in December 2021 showed a 13% growth in value to close at P171m by year end. The acquisition was fully financed through a long-term loan facility, hence the 41% increase in finance costs from P15m in the prior year to P21m. The improved trading conditions experienced during the year, coupled with lower vacancy rates, have seen the fair value gains of the investment property increasing significantly from P8m in the prior year to P25m for the year ended 30 June 2022, contributing to the growth in the value investment portfolio which now stands at P1.2bn. Items highlighted above have led to an impressive growth in profit before tax of P45m (71%) to close at P109m for the period under review. During the 2022 financial year, the share price performance has been pleasing. Having opened the financial year at P2.32 per share, it appreciated by 29% to close at P3.00 per share. The Company has historically traded at a discount to net asset value, but is now trading at net asset value. Net asset value as at 30 June 2022 amounted to P846m, a growth of 8% from the prior year's value of P788m. Unit holders are advised that the Board of Directors declared a final distribution of 10.03 thebe per linked unit on 23 June 2022 in respect of the financial year ended 30 June 2022, comprising of a dividend of 0.05 thebe and debenture interest of 9.98 thebe per linked unit. This brought the total distribution declared for the year 2021/22 financial year to P51,548,000 (being a dividend of 0.10 thebe per share and interest of 18.31 thebe per linked unit). enhancing Real Estate Investments which unlock superior returns for our shareholders, whilst connecting and empowering communities." The above speaks to the core of what we intend to do over our five-year strategic period, 1 July 2022 to 30 June 2027. Being a Botswana company, we remain committed and focused on optimizing and expanding our Botswana Portfolio as well as seeking opportunities to grow into the rest of Africa which, given the scale of potential transactions, has the potential to be value accretive to our stakeholders. In the short-term, we will also be embarking on environmental initiatives that will reduce our carbon footprint; these will include the implementation of solar power at our key strategic assets as well as retrofitting of lower energy consumption LED lights across the portfolio. We are extremely excited by the solid platform the Company has built over the past 12 years that has positioned it to be able to expand and diversify its Portfolio through making yield-enhancing and impact-driven investments. The Board of Directors recognize the need to conduct the business of the company with integrity and in accordance with generally accepted practices and endorses the internationally accepted principles of Corporate Governance and public responsibility. We are pleased to inform you that after year end, on the 13th of July 2022, the Company executed on its "Go-to-Africa" strategy by acquiring a 30% equity stake in an industrial property in Nairobi, Kenya through Orbit Africa Logistics ('OAL'), a special purpose vehicle incorporated in Mauritius for a consideration of USD 7m. This investment is expected to improve the fundamentals of the investment portfolio as the property is leased out to a well- established tenant on a 25-year triple net lease and will afford the company USD income. The investment is expected to be value accretive to the stakeholders. The Board is pleased to announce the appointment of Messers Khuto Balosang, Donald Borthwick, Mooketsi Maphane and Gregory Pearson to the Board, effective 14 December 2021. The Board has also been led by Mr. Oteng Keabetswe, on an interim basis, effective 14 December 2021. Mr Khuto Balosang, who was also appointed as the Company's Lead Independent Director in January 2022, is a graduate in Management Information Systems with a specialization in Information Systems and Quantitative Analysis from the University of Nebraska at Omaha. He is a business technology management professional with core competencies in Performance Management, Business Intelligence, Management Consulting, and IT Management. He has over 20 years' experience, primarily in IT Management and exclusively in delivering business solutions that improve performance. Prior to establishing a management consulting business, Mr Balosang worked in various senior positions at Debswana Diamond Company, being promoted to Group Systems Manager; a role with strategic leadership, coordination, and implementation of key solutions in the Group.
Investment in Associate Investments at fair value Operating lease asset Deferred tax The declared distribution was paid to linked unit holders registered in the books of the Company at the close of business on 15 July 2022. The ex-div date was 13 July 2022. The Transfer Secretary executed the distribution on 26 July 2022. In line with the requirements of the Botswana Income Tax Act (CAP 52.01), withholding tax at the applicable rate was deducted by the Company from interest paid to unit holders unless they were specifically exempted. Mr Donald Borthwick, is a Chartered Accountant and holds a B Comm Hons degree in Financial Management. He is the owner and a director of Hodari Africa Proprietary Limited, a company specializing in property development, property investment and project management. Hodari Africa develops industrial, commercial, retail, and residential properties in South Africa and Africa both for on-sale to institutions and to retain as investments. Mr. Mooketsi Maphane, who currently serves as Human Resources Director at The Botswana Medicines Regulatory Authority (BoMRA) holds a Master of Science in Industrial and Organizational Psychology from Springfield College in the USA, as well as a Bachelor of Arts in Psychology (Cum Laude) from the Hawaii Pacific University in the USA and is registered with the Botswana Health Professional Council. Mr Gregory Pearson holds a degree in Business Management from Kingston University in the United Kingdom and is a member of the Chartered Management Institute. He is a founding member and CEO of Gateway Real Estate Africa ("GREA"), a specialist
STATEMENT OF CHANGES IN EQUITY Fair value gain on investment property net of Fair value gain on investment property net of The summarised financial results have been prepared by applying the recognition and measurement criteria in accordance with the International Financial Reporting Standards ("IFRS") and interpretations issued by the IFRICS Interpretations Committee. In the preparation of the financial results, the Company has applied key assumptions concerning the future and other inherent uncertainties in recording various assets and liabilities. These assumptions were applied consistently to the financial results for the year ended 30 June 2022. The assumptions are subject to ongoing review and amendment Grant Thornton, Letlole La Rona Limited's independent auditors, have audited the consolidated financial statements of Letlole La Rona Limited from which the summarised consolidated financial statements have been derived, and have expressed an unmodified and unqualified audit opinion on the consolidated financial statements. This results real estate developer operating across eleven African countries, where he is responsible for the overall strategic direction and leadership of GREA to meet its profitability growth plan and commitments to shareholders by identifying sustainable development opportunities on the African continent that deliver increased returns. His experience stems from real estate development and construction, and he has completed developments in over 40 African countries as well as in most of Europe. The Board is confident that their appointments to the Board will not only accelerate the Company's strategy but will further enhance the governance and fiduciary oversight capabilities of the Board considerably. The Company bid farewell to Ms. Onthatile Tiny Ogotseng, Ms. Mmametsi Setlhare and Mr Sedireng Serumola who resigned as independent non-executive directors of the Company effective the 3rd of December 2021. Further, at the Annual General Meeting of the Company held on 14 December 2021, Mr. Frederick Selolwane, retired from the Board of Directors of the Company and elected not to offer himself for re-election. The Company is grateful for the outgoing directors for their contribution to the Board during their tenure in reinforcing good corporate governance and steadying the ship following the retirements of the founding members of the Board of Directors in 2020. The Board expresses its heartfelt appreciation to the outgoing Chairman of the Board for his stewardship and strategic contributions during his tenure. Under his leadership, the Board set the tone from the top, instilling an ethical foundation in the organization, and acting in the best interest of the Company. Ms. Kamogelo Mowaneng has been appointed the Chief Executive Officer (CEO) of the Company effective 01 February 2022, having previously served in an acting CEO position since August 2020. Ms. Mowaneng serves as the first female appointed in this position in the Company. Ms. Mowaneng is a qualified Chartered Accountant registered with the South African Institute of Chartered Accountants, CA (SA) and a Fellow Certified Professional Accountant registered with the Botswana Institute of Chartered Accountants, FCPA (BICA). She holds a Bachelor of Business Science Degree with Finance Honours from the University of Cape Town, South Africa. In April 2022, the Board further appointed Mr. Pulafela Isaacs as the Company's Chief Financial Officer. Mr Isaacs is a qualified Chartered Accountant registered with the Chartered Institute of Management Accountants, CIMA, and an Associate Certified Professional Accountant registered with the Botswana Institute of Chartered Accountants, BICA. He holds a Bachelor of Finance Degree from the University of Botswana and completed a Management Development Programme with the University of Stellenbosch. The Board is confident that under the leadership of the current Board and Management, the Company will be able to deliver on its Go-To-Africa strategy which seeks to optimize and diversify the Company's portfolio, drive growth of the balance sheet, enhance stakeholder value and sustain investor returns.