Africa-Press – Zimbabwe. HOSPITALITY firm, African Sun Limited (ASL) overturned a loss to post a profit after tax of US$181 594 in its half-year ended June 30, 2025, largely driven by other income, including a subsidiary disposal, fair value gains, insurance and investments.
In the prior comparative period, ASL had posted a loss of US$2,06 million.
During the period under review, in March, ASL disposed of its formerly-owned Great Zimbabwe Hotel together with Laclede Investments (Private) Limited, a subsidiary company that owns the hotel property, for US$4,2 million.
From the sale, ASL realised a profit of US$717 000.
Hence, ASL recorded other income of US$1,23 million for the period under review, from a prior year loss of US$949 703.
“At US$3,41 million, the group’s EBITDA [earnings before interest, taxes, depreciation and amortisation] grew by 60% from the SPLY [same period last year],” ASL chairman Lloyd Mhishi said in a statement attached to the group’s half year report ended June 30, 2025.
“Profit before tax also improved, rising to US$0,91 million, largely due to other income, which included profit from the disposal of a subsidiary, fair value adjustments of financial assets, insurance proceeds, and investment income.”
He said cash and cash equivalents from continuing operations stood at US$13,78 million as of June.
“The increase in cash balances was driven by stronger operational cash generation and proceeds from non-core assets disposals,” Mhishi said.
At the end of the period, ASL’s liquidity had drastically shot up owing to the asset disposals, as it recorded having US$2,84 for every dollar of short-term debt.
Apart from the sale of the Great Zimbabwe Hotel together with Laclede Investments (Private) Limited, ASL is also expected to have handed over the Monomotapa Hotel to its new owners at the start of the month.
At the meeting held in May, the ASL board considered and accepted an offer from the Public Services Commission to purchase the Monomotapa Hotel and adjacent car park for a consideration of US$18 million.
“On August 21, the company successfully held an EGM [extraordinary general meeting] for the disposal of Monomotapa hotel property, business, and adjacent assets. Transfer of the business to the purchaser is anticipated for September 1, 2025,” Mhishi said.
“As I highlighted in the circular to shareholders, the proceeds from this disposal are critical to unlock the capital required to fund the refurbishment and enhancement of key strategic hotel assets within African Sun’s portfolio, including the Elephant Hills Resort, Holiday Inn Hotels, and The Victoria Falls Hotel.”
He said priority would be given to high-return assets, as the company continued to position itself for the retention and enhancement of fewer but high-yielding assets and dispose of those assets deemed non-core.
“This strategy will enable the company to have greater operational focus, scalability, and profitability,” Mhishi said.
“As highlighted in the circular to shareholders, a portion of the disposal proceeds will also be set aside for share buyback initiatives.”
Total assets stood at US$139,56 million as of June, up from US$137,7 million as of December 2024.
“Overall revenue increased marginally by 2% to US$23,53 million, driven by a 13% increase in average daily rates on hotel segment revenues and an increase in real estate segment revenues,” Mhishi said.
“The hotel revenues were subdued due to a 6-percentage-point drop in occupancy as a result of reduced NGO [non-governmental organisations] and government business.”
ASL’s operating expenses, excluding depreciation, increased by 7% to US$21,36 million from the prior year comparative, largely due to employee benefits having increased by 11% owing to more hires.
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