Africa-Press – Botswana. In a recent announcement, the Board of Directors of PrimeTime revealed optimistic projections for the group’s financial performance, indicating a substantial boost in consolidated profit before tax for the fiscal year ending August 31, 2023. The anticipated figures are poised to surpass the prior year’s results by an impressive 20 percent, amounting to approximately P17 million.
The group’s consolidated profit before tax for the preceding fiscal year, ending on August 31, 2022, stood at P87 million. The forthcoming surge in profitability is attributed primarily to the positive impact of year-end market values of investment properties. Notably, these values are expected to surpass those of the preceding year, contributing significantly to the overall financial uplift.
Investors and stakeholders are keenly awaiting the detailed financial results for the fiscal year ending August 31, 2023, which are slated for publication by November 30, 2023. The forthcoming financials are anticipated to provide a comprehensive insight into the various factors influencing the group’s financial performance, including a breakdown of revenue streams and key contributors to the heightened profitability.
As economic landscapes continue to evolve, the Botswana Stock Exchange listed group’s proactive approach to leveraging market opportunities appears to be yielding tangible results. Any positive development will not only underscore the group’s financial resilience but also positions it favorably in the market, potentially attracting increased investor confidence.
Meanwhile the country’s residential rental market showed signs of deterioration in the first quarter of 2023 compared to the fourth quarter of 2022, indicating a decline in rental of upper end properties, according to the latest Ribbery report for the first quarter of 2023.
The rental market for low-end properties continued to enjoy reasonable demand, while mid-level houses for rent experienced weaker demand and increased supply, according to the Ribbery report. The average price for residential properties sold in the first quarter of 2023 increased by 0.6 percent to P834 973, compared to the previous quarter, reflecting an increase in the number of high-valued properties traded in the quarter under review
However, the market for office space remained weak due to increasing supply from completed construction developments, such as the Innovation Hub, Pinnacle Park and Botswana Accountancy College North campus. In addition, demand remains reasonable and slightly improved as government took up some vacant properties.
“However, the merging of some parastatals is likely to curtail the growth of demand for office space by Government. In addition, there is a possible likelihood for a slowdown in uptake at the Central Business District (CBD) should Government institutions remain in their current premises and location. Furthermore, the supply of office space is projected to increase, given the ongoing construction projects and planned office buildings at the Gaborone CBD, such as by the Botswana Stock Exchange and Botswana Building Society Limited,” said the report.
The Ribbery real estate valuers said this will further exert downward pressure on rentals, especially in the decentralised office locations. Similar to the previous quarter, the demand for retail space remained fair across all market segments, while the supply is expected to increase, as two malls are proposed for Mogoditshane. In addition, other centres with good demand for retail space are Jwaneng, Selibe Phikwe, Maun, Letlhakane, Francistown, Mahalapye and Lobatse.
“Most of these locations have a few retail schemes, to be anchored by reputable supermarkets, at planning or construction stage. Regarding industrial property, the supply of unoccupied big warehouse space has decreased, while the demand has improved. Meanwhile, the demand for industrial space in prime locations is expected to improve going forward,” according to the Ribbery report.
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