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Blantyre Hotels after-tax profit up 47%

Mlusu: Chairs the board of BHL
Mlusu: Chairs the board of BHL

Blantyre Hotels Limited (BHL), the Malawi Stock Exchange (MSE)-listed hospitality group, has posted an after-tax profit of K167 million in the year ended September 30 2014, a 47 percent jump from the previous year’s K109 million.

BHL, owners of Protea Ryalls Hotel in Blantyre, in the summary of audited financial statement, has attributed the increase to the jump in average room rates, combined with improved occupancy by 22 percent compared to the same period last year.

The hotel chain’s total revenue for the year hit K2.2 billion, which grew by K586 million, representing a 37 percent increase over last year.

The financial statement shows that there was an increase in direct and operating expenses by 35 percent in both categories to K960 million from K713 million while operating expenses also increased by 35 percent to K859 million from K634 million.

This was a result of inflationary pressures and a disproportionate increase in some operating expenses such as gas, electricity and water, which was not in line with the increase in revenues.

“Net finance cost have increased from K81 million last year to K117 million this year due to interest expense on project finance loan that the company obtained mid-way through the previous financial year,” reads a statement accompanying the results signed by chairperson Felix Mlusu.

BHL said it has completed the construction of the covered patio outside the Ryalls Restaurant, which is expected to add significant value to the company’s performance.

BHL, whose assets have jumped by 87 percent to K6 billion from K3 billion the year before, paid an interim dividend of K32.3 million, representing 25 tambala per share in July and second interim dividend of K25.8 million, an equivalent of 20 tambala was paid in November.

The board has since proposed to pay a final interim dividend of K19.4 million, representing 25 tambala per share.

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