Malawi Stock Exchange (MSE)-listed Sunbird Tourism plc expects to post a 150 percent loss in the half-year ended June 30 2020 largely due to the impact of coronavirus (Covid-19) pandemic, according to a trading statement.
In 2019, the listed hotel chain’s after-tax profit marginally rose to K2.59 billion from K2.56 billion affected by the slowdown in business created by the political impasse following the May 21 2019 Tripartite Elections.
The group’s company secretary Allan Muhome, however, said in a trading statement that the information on which this is based has not been reviewed or reported on by Sunbird Tourism plc auditors.
“Sunbird Tourism plc results for the half-year ending 30 June 2020 are expected to be published within the time period as stipulated in the listing requirements of the MSE following their review and approval by the board of directors,” he said.
In terms of MSE listing requirements, a company is required to publish a trading statement as soon as there is reasonable degree of certainty that the financial results for the period to be reported upon next will differ by at least 20 percent from that of the corresponding period.
The tourism and hospitality sector has been the most affected with the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) projecting that the sector would shrink to -9.9 percent from a growth of 4.9 percent last year.
Sunbird Tourism plc earlier indicated that since the advent of Covid-19 which led to closure of regional hubs and sources of travellers, they have suffered a huge business loss.
In an earlier interview, Sunbird Tourism plc chief executive officer Yusuf Olela said the hotel chain is operating at 11 percent capacity.
He said: “The impact of Covid-19 pandemic is going to go beyond the period of the pandemic itself and result in a global economic recession.
“Small economies such as that of Malawi are going to be the most vulnerable; hence, our focus for this year is survival and sustainability.”