HomeBusinessAfrican Sun narrows loss to $2,3m

African Sun narrows loss to $2,3m

AFRICAN Sun Limited (ASL) reduced its loss to $2,3 million for the year ended September 30 2014 driven by an increase in earnings before Interest Depreciation Tax and Amortisation (EBIDTA), thanks to cost saving methods.

BY VICTORIA MTOMBA

In 2013 the group recorded a loss after tax of $8,8 million. EBIDTA increased by 70% to $6,95 million from $4 million due to savings that the company made during the year. The company saved $1,8 million in 2014.

Speaking at the company’s analyst briefing last week, ASL group finance director Nigel Mangwiro said finance costs were up 15% as a result of additional finance costs for Ghana.

Revenue for the group was 1% up to $56,7 million compared to the same period in 2013 when it was $56 million on the back of an introduction of a new hotel.

The new hotel contributed 4% to revenue while Zimbabwe’s contribution dropped by 2,5%.

ASL reduced its debt by 22% to close at $17,4 million from September 2013 following repayments amounting to $6,8 million.
The group expects to raise $4 million through the disposal of staff houses and it raised $5,8 million after the disposal of 16,54% investment in Dawn Properties.

Mangwiro said the group recorded a 2% decline in Average Daily Rate and Revenue Per Available Room for the 2014 to $98 and $47 respectively.

ASL chief executive officer Shingi Munyeza said all its hotels were generating cash except, Beitbridge hotel which has been affected by the Rand which has been weakening against the United States dollar.

Munyeza said for the first quarter of this financial year, January has been better than last year.

“Revenue for the quarter increased by 12% as a result of additional revenue from Ghana which contributed 10% to the topline,” he said.

Revenue stood at $15,7 million for the first quarter of this year compared to the same period last year.

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