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BHL profit slumps 5.2 percent

Blantyre Hotels Limited (BHL) profits have dropped by 5.2 percent to K90.7 million (about $266 764) from K95.77 million (about $282 000) in the year ended September 30 2012, according to audited financial results.

The Malawi Stock Exchange (MSE)-listed hospitality chain’s financial statement shows that although the company realised higher revenue, it registered a decline in its profits to K90.7 million in the year ended September 30 2012.

“Total revenue for the year increased by K174 million [about $512 000], representing 22 percent due to partially increases in average room rates as a result of the devaluation of the kwacha against major trading currencies,” says the statement accompanying the results.

BHL has explained that the increase in room rates more than compensated the drop in occupancy levels which decreased by eight percent compared to the previous year.

The financial report indicates that direct expenses increased by 36 percent to K506 million (about $1.5m) in 2012 from K375 million (about $1.1m) in 2011, while selling and administrative expenses increased by 32 percent to K345 million (about $1.01m) from K264 million (about $776 470). The report attributes the increase in costs to the impact of the devaluation of the kwacha.

In view of the company’s performance in the year, the company has declared a dividend of K38.75 million (about $114 000), representing 30 tambala per share paid on December 30 2012.

The statement adds that BHL, owners of Protea Ryalls Hotel in Blantyre is adding four executive suites and refurbishments as part of its continued effort and commitment to offer the best possible comfort to its customers.

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