Inqo Investments Ltd

Half Yearly Report

RNS Number : 2922H
Inqo Investments Limited
30 November 2015
 

INQO INVESTMENTS LIMITED

INTERIM STATEMENT FOR THE SIX MONTHS ENDED 31 AUGUST 2015

 

Inqo Investments Limited (Inqo or the Company) is a South Africa-based social impact company that acquires businesses that tackle poverty and the social needs of the poor and low income people at the base of the pyramid in Sub-Saharan Africa.

 

Inqo announces its interim financial results for the six month period ended 31 August 2015. While the results are unaudited, our auditors KPMG have performed a review of the financial information disclosed in this announcement.

 

CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT

 

We are pleased to present the interim results for the half year ended 31 August 2015. Revenues for the half year period were R3 223 177 (R11 249 300 for the 12 months ended 28 February 2015). Trading in the six months being reported on is primarily from Inqo's main subsidiary, the Kuzuko Lodge for the low season winter months. Revenues in the second half of the year are expected to be substantially better.

 

Tourism to Africa has been adversely affected by the Ebola crisis. There are however signs of recovery as this crisis has subsided. The results for the six months reported on at Kuzuko Lodge were further affected by the decision of the South African Government to require all children travelling to and from South Africa to be in possession of unabridged birth certificates. The impact of this change in legislation was to reduce tourist inflows into South Africa by 12%. We are pleased to report that this legislation was revised effective 1 November 2015. While the new legislation remains demanding, it is proving to be more acceptable to tourists visiting South Africa as is evidenced by the very strong forward occupancies that we have at the lodge for the second half of the year.

 

In preparation for its ISDX Growth Market listing, Inqo has re-negotiated its financial arrangements with its banking sector funders, loan note and convertible loan note holders. We are pleased to report that as a result Inqo has further strengthened its financial position. In the six months ended 31 August 2015 write backs of R1.02 million were secured and in the full year ended 28 February 2015 write backs to the value of R14.97 million. These recoveries are reported as "Other Income" in the interim results below.

 

Through its subsidiary company, Spekboom Trading (Pty) Ltd, the Company is in negotiation with the Department of Environmental Affairs to obtain a re-forestation grant to extend the planting of spekboom on the Kuzuko Game Reserve beyond the current 500 acres and in the process create around 100 new jobs in the local community.

 

The directors would like to take this opportunity to thank all the operating staff in the group for their contribution and commitment to the group's aims.

 

KS Tan

Chairman

 

C J Bertie

Chief Financial Officer

 

FOR FURTHER INFORMATION PLEASE CONTACT

 

Inqo Investments Ltd

 

Chris Bertie, Chief Financial Officer

Tel: +27 (0)83 625 4069

 

 

Shard Capital Partners LLP

 

ISDX Corporate Adviser and Broker

 

Dr Wang Chong

Tel: +44 (0)20 7186 9948  

 

 

Statements of comprehensive income

for the six months ended 31 August 2015

 

 

 

Group

 

Company

 

 

 

 

 

 

Half year ended 31 Aug 2015

 

Full year ended 28 February 2015

 

 

 

 

 

 

R

 

R

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

234 890

 

688 417

 

Cost of Sales

 

 

 

 

-

 

(133 000)

 

Gross profit

 

 

2 624 182

 

9 450 510

 

234 890

 

555 417

 

Other income

 

2 058 205

 

14 976 888

 

1 034 288

 

14 976 888

 

Selling and administrative expenses

 

(8 107 915)

 

(15 808 808)

 

(2 327 341)

 

(6 371 601)

 

Operating (loss) / profit

 

 

(3 425 528)

 

8 618 590

 

(1 058 163)

 

9 160 704

 

Net financing income / (costs)

 

 

389 762

 

355 680

 

(458 147)

 

533 040

 

Finance income

 

 

1 242 660

 

1 386 403

 

394 751

 

1 382 515

 

Finance expense

 

 

(852 898)

 

(1 030 723)

 

(852 898)

 

(849 475)

 

 

 

 

 

 

 

 

 

 

 

 

(Loss )/ profit before taxation

 

 

(3 035 766)

 

8 974 270

 

(1 516 310)

 

9 693 744

 

Taxation

 

 

-

 

-

 

-

 

-

 

(Loss) / profit for the period

 

 

(3 035 766)

 

8 974 270

 

(1 516 310)

 

9 693 744

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

Revaluation of land and buildings

 

 

-

 

4 580 877

 

-

 

4 580 877

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

(3 035 766)

 

13 825 147

 

(1 516 310)

 

14 544 621

 

Statements of financial position

at 31 August 2015

 

 

 

Group

 

Company

 

 

 

31 August 2015

 

28 February 2015

 

31 August 2015

 

28 February 2015

 

 

 

R

 

R

 

R

 

R

Assets

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

118 007 481

 

118 714 105

 

119 837 177

 

117 675 782

Property, plant and equipment

 

 

117 975 185

 

118 687 393

 

116 923 903

 

117 675 213

Intangible assets

 

 

32 296

 

26 712

 

-

 

-

Loan to subsidiary

 

 

-

 

-

 

2 912 705

 

-

Investments in subsidiaries

 

 

-

 

-

 

569

 

569

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

17 974 452

 

23 078 208

 

16 501 687

 

20 793 967

Trade and other receivables

 

 

2 109 548

 

2 828 475

 

1 223 671

 

1 357 383

Biological assets

 

 

2 683 000

 

2 683 000

 

2 683 000

 

2 683 000

Cash and cash equivalents

 

 

12 456 866

 

16 824 672

 

12 253 520

 

16 412 088

Inventories

 

 

725 038

 

742 061

 

341 496

 

341 496

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

135 981 933

 

141 792 313

 

136 338 864

 

138 469 749

 

 

 

 

 

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

 

 

 

Capital and reserves

 

 

 

 

 

 

 

 

 

Ordinary share capital

 

 

28 813 042

 

28 813 042

 

28 813 042

 

28 813 042

Share premium

 

 

13 265 727

 

13 265 727

 

13 265 727

 

13 265 727

Revaluation reserve

 

 

77 576 871

 

77 576 871

 

77 576 871

 

77 576 871

Accumulated loss

 

 

(79 062 022)

 

(76 026 256)

 

(74 942 993)

 

(73 426 683)

Non-controlling interest

 

 

531

 

531

 

-

 

-

Capital and reserves

 

 

40 594 149

 

43 629 915

 

44 712 647

 

46 228 957

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

81 076 217

 

82 950 688

 

80 829 014

 

81 548 838

Loans from related parties

 

 

27 960 525

 

28 153 221

 

27 713 322

 

27 761 233

Other long term loans

 

 

33 945 348

 

34 617 261

 

33 945 348

 

34 617 261

Interest bearing loans and borrowings

 

 

18 976 887

 

19 986 749

 

18 976 887

 

18 976 887

Debentures

 

 

193 457

 

193 457

 

193 457

 

193 457

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

14 311 567

 

15 211 710

 

10 797 203

 

10 691 954

Trade and other payables

 

 

2 956 799

 

3 849 305

 

444 660

 

339 411

Provisions

 

 

  352 543

 

352 543

 

352 543

 

352 543

Interest bearing loans and borrowings - current portion

 

 

11 002 225

 

11 009 862

 

10 000 000

 

10 000 000

 

 

 

 

 

 

 

 

 

 

Total equity and liabilities

 

 

135 981 933

 

141 792 313

 

136 338 864

 

138 469 749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summarised Statements of cash flows

for the six months ended 31 August 2015

 

 

Group

 

Company

 

 

Half year ended 31 Aug 2015

 

Full year ended 28 February 2015

 

Half year ended 31 Aug 2015

 

Full year ended 28 February 2015

 

 

R

 

R

 

R

 

R

 

 

 

 

 

 

 

 

 

Cash (utilised)/generated by operations

 

(2 603 515)

 

9 388 341

 

111 465

 

10 570 655

Interest income

 

1 242 660

 

1 386 403

 

394 751

 

1 382 515

Interest expense

 

(852 898)

 

(1 030 723)

 

(852 898)

 

(849 475)

Net cash (outflow)/inflow from operating activities

(2 213 753)

 

9 744 021

 

(346 682)

 

11 103 695

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Increase in loans to subsidiary

 

-

 

-

 

(2 912 705)

 

(1 496 881)

Acquisition of biological assets

 

-

 

(107 000)

 

-

 

(107 000)

Acquisition of property, plant and equipment and intangible asset

 

(271 945)

 

(1 423 902)

 

(179 357)

 

(879 613)

Net cash outflow from investing activities

(271 945)

 

(1 530 902)

 

(3 092 062)

 

(2 843 494)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Loans and borrowings repaid

 

(1 689 412)

 

(19 916 243)

 

(671 913)

 

(20 092 945)

Loans from related parties repaid

 

(192 696)

 

(2 738 015)

 

(47 911)

 

(3 079 503)

Net cash outflow from financing activities

 

(1 882 108)

 

(22 654 258)

 

(719 824)

 

(23 172 448)

Net movement in cash and cash equivalents

 

 

(4 367 806)

 

(14 441 139)

 

(4 158 568)

 

(14 552 247)

Cash and cash equivalents at beginning of period

 

16 824 672

 

31 265 811

 

16 412 088

 

30 964 335

Cash and cash equivalents at end of period

 

12 456 866

 

16 824 672

 

12 253 520

 

16 412 088

BASIS OF PREPARATION

The condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting Standard, IAS 34. The accounting policies applied in the preparation of these financial statements are in terms of International Financial Reporting Standards and are consistent with those applied in previous financial statements.

 

These condensed financial statements were prepared under the supervision of Mr C.J Bertie in his capacity as chief financial officer.

 

ISSUED BY

 

These unaudited financial statements were issued on behalf of the board of Inqo Investments Limited on 27 November 2015.

 

Kim Tan                                                                Chris Bertie

Chairman                                            Chief Financial officer

 


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