RAINBOW TOURISM GROUP LIMITED Refreshing Hotels, Amazing Experiences...
www.rtgafrica.com
Follow us: @rainbowtourismgroup
REVIEWED ABRIDGED CONSOLIDATED GROUP FINANCIAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SHORT FORM FINANCIAL ANNOUNCEMENT ISSUED IN TERMS OF
PRACTICE NOTE 13 OF THE ZIMBABWE STOCK EXCHANGE
This short form financial announcement is the responsibility of the Board of Directors which is issued in terms of the Zimbabwe Stock Exchange (ZSE) practice note 13. Its only a summary of information contained in the full announcement and does not contain full or complete details. Any investment decision by Investors and /or shareholders should be based on consideration of the full announcement published on the Zimbabwe Stock Exchange data portal www.zse.co.zwand the Company's website www.rtgafrica.com
A copy of the abridged consolidated financial statements for the year ended 31 December 2023 is upon request, available for inspection at no charge at the registered offices of Rainbow Tourism Group at the office of the Company.
Financial performance
INFLATION ADJUSTED | % CHANGE | HISTORICAL COST | % CHANGE | |||
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 | |||
ZWL 000 | ZWL 000 | ZWL 000 | ZWL 000 | |||
Revenues | 266,327,860 | 117,704,733 | 126% | 172,388,381 | 17,283,888 | 897% |
EBITDA | 36,873,001 | 9,495,521 | 288% | 4,218,166 | 750,520 | 462% |
PROfiT AFTER TAX | 27,880,431 | 4,506,027 | 519% | 8,731,070 | 225,107 | 3779% |
Cash generated from | 61,236,078 | 18,715,396 | 227% | 33,974,641 | 1,980,153 | 1616% |
operations | ||||||
Net outflow from investing | (36,120,664) | (7,124,031) | 407% | (19,297,958) | (816,237) | 2264% |
activities | ||||||
Net assets | 211,318,726 | 105,607,766 | 100% | 189,331,470 | 18,837,238 | 905% |
TOTAL ASSETS | 329,426,566 | 157,451,718 | 109% | 304,931,935 | 29,841,883 | 922% |
Basic earnings per share | 1,133.56 | 183.21 | 519% | 354.99 | 9.15 | 3780% |
Diluted earnings per share | 1,133.56 | 183.21 | 519% | 354.99 | 9.15 | 3780% |
Basic headline earning per | 1,133.56 | 183.21 | 519% | 354.99 | 9.15 | 3780% |
share | ||||||
Diluted headline earning per | 1,133.56 | 183.21 | 519% | 354.99 | 9.15 | 3780% |
share | ||||||
Dividend
At the meeting held on 25 March 2024, the Board resolved to declare the second and final dividend for the year ended 31 December 2023. The dividend is payable to all ordinary shareholders registered in the books of the company. The dividend declared is a blend of Zimbabwe Dollars (ZW$) and United State Dollars (USD). The Zimbabwe Dollars amount is now payable in the new currency Zimbabwe Gold (ZiG). The second and final dividend amounts are US$260,000.00 (US$0.000104 per share) and ZiG1,761,331.57 (ZiG0,00071 per share). A separate dividend announcement will be made regarding the payment of the dividend.
Independent Auditors opinion
The abridged audited financial results should be read in conjunction with the complete set of audited consolidated financial statements of Rainbow Tourism Group Limited and its subsidiary for the year ended 31 December 2023 which have been audited by BDO Zimbabwe Chartered Accountants in accordance with International Standards on Auditing. The audit report carries an unmodified opinion and we have included a key audit matter on the valuation of property and equipment. The auditor's report on the consolidated financial statements, which forms the basis of these abridged financial results, is available for inspection at the Group's registered office. The Engagement Partner responsible for the audit is Mr. Martin Makaya (PAAB 0407).
Douglas Hoto
Chairman
25 April 2024
Directors: D.Hoto (Chairman), T. Madziwanyika (CEO), A. Bvumbe, K. Chibota, L. Mabhanga, C. Malaba, D. Mavhembu, N. Mtukwa (FD), G. Taputaira
Rainbow Tourism Group, 1 Pennefather Avenue, Harare, Zimbabwe
Tel: +263 (242) 754507/8 Website: www.rtgafrica.com
Refreshing Hotels, Amazing Experiences...
www.rtgafrica.com
Follow us: @rainbowtourismgroup
RAINBOW TOURISM GROUP LIMITED
AUDITED ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PERFORMANCE HIGHLIGHTS
126% | 2% | 173% | 288% | 519% |
REVENUE | OCCUPANCY | RevPAR | EBITDA | PROFIT AFTER TAX |
ZWL266.3 billion | 52% | ZWL551,277 | ZWL36.9 billion | ZWL27.9 billion |
INFLATION ADJUSTED | INFLATION ADJUSTED | INFLATION ADJUSTED | INFLATION ADJUSTED |
CHAIRMAN'S STATEMENT
1. INTRODUCTION
The Group achieved strong results in the financial year ended 2023, marked by 126% revenue growth. This was driven by conferencing business across the city hotels during the second half of the year. Travel demand remains robust, with Revenue PerAvailable Room (RevPAR) showing a year- on-year improvement surpassing the pre-Covid pandemic period. The overall occupancy for the year reached 52%, a 2% increase from the 51% reported in 2022. The Group's flagship, the Rainbow Towers Hotel and Conference Centre hosted several large events in 2023 such as the Harmonised National Elections and the International Conference on Aids and STIs in Africa (ICASA).
The operating environment over the past years has cast a shadow on both consumerexpenditure and the entire supply chain. The Group remained committed to strengthening the brand and expanding its market presence despite the challenging operating environment.
2. OPERATING ENVIRONMENT
The operating landscape has been persistently challenged by inflation, power cuts and shortage of foreign currency. Our ability to adapt swiftly to these conditions has been pivotal. We have remained agile, continuously refining our business model and leveraging technology to boost operational eciency and deepen our engagement with customers.
The outlook remains positive. We draw encouragement from the Government of Zimbabwe's focus on infrastructural development, which is fundamental in fostering tourism and enhancing inter-city travel.
3. PERFORMANCE REVIEW
The Group achieved total revenues for the year ended 31 December 2023 of ZWL266.3 billion, a 126% growth on revenue generated in the prior comparative period of ZWL117.7 billion. This performance comprises of:
- rooms revenue growth of 281% to ZWL106.4 billion (2022: ZWL27.9 billion),
- food and beverage revenue growth of 81% to ZWL139.2 billion (2022: ZWL 76.9 billion) and,
- other revenues income growth of 61% to ZWL20.7 billion (2022: ZWL12.9 billion).
During the period under review, the Group witnessed substantial increase in foreign currency business. The increase was driven by regional and international business which together grew by 129%. Resort hotels experienced a notable performance improvement, with occupancy increasing by 44% to 52% in 2023 from 36% in 2022. City hotels, despite recording increased revenues, posted lower occupancy, primarily due to the reduced amount of business activity during the first half of the year.
The Group maintained its gross profit margin at 72% over the past two years which is within the industry benchmarks. The gross margins were achieved despite a year-on-year inflation rate of 314% as of 31 December 2023. The gross margins were sustained through rigorous cost reduction initiatives aimed at mitigating the eects of escalating market prices and unstable foreign currency exchange rates.
During the year under review, the Group achieved an Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of ZWL36.9 billion, marking a 288% increase from the ZWL9.5 billion recorded in 2022. This growth in EBITDA was primarily fueled by cost- saving initiatives and an increase in revenues.
The Group's financial position remains strong, with the current ratio improving to 1.19 from 1.01 in 2022. This improvement is attributable to prudent cash flow management, reflecting the Group's commitment to maintaining a strong financial footing.
4. SUSTAINABILITY AND CORPORATE SOCIAL INVESTMENT
I am delighted to share our continued commitment to responsible business practices. RTG, as a major player in the hospitality industry, recognizes that it has a responsibility to protect the environment and contribute positively to the communities it serves.
The company launched an aorestation and reforestation program under the theme "A tree for every room" where a total of 6,000 trees were planted at ten schools in Kadoma. This was in partnership with the Forestry Commission of Zimbabwe. This initiative goes beyond o-setting direct carbon footprint; as it builds a culture of environmental mindfulness, provides protection of infrastructure through the creation of wind breaks, actively restores natural habitats, supports biodiversity and empowers communities. The program will be rolled out in schools and communities in all the regions where RTG operates.
I am pleased to report that the 300kva solar plant at Kadoma Hotel and Conference Centre has reduced the overall hydro generated electricity consumption by an average of 40%. This marks a significant milestone towards greening the hotel and is also proof of concept for future similar projects.
RTG hosted the annual environmental reporter of the year awards to promote the coverage of climate change and human impact on the environment to create awareness and behavioural change. A total of ten journalists received awards for various story categories and media channels. RTG has been hosting these awards for the past 24 years.
5. DIVIDEND
At the meeting held on 25 March 2024, the Board resolved to declare the second and final dividend for the year ended 31 December 2023. The dividend is payable to all ordinary shareholders registered in the books of the Company. The dividend declared is a blend of Zimbabwe Dollars (ZWL) and United State Dollars (USD). The Zimbabwe Dollars amount is now payable in the new currency Zimbabwe Gold (ZiG). The second and final dividend amounts are US$260,000.00 (US$0.000104 pershare) and ZiG1,761,331.57 (ZiG0,00071 per share). A separate dividend announcement will be made regarding the payment of the dividend.
6. OUTLOOK
Forecasts for 2024 indicate a robust revenue performance driven by the recovery of regional and international business. Domestic business has proved to be consistent post-Covid 19 pandemic and is anticipated to grow driven by the national infrastructure development projects being rolled out by the Government of Zimbabwe. The Group can reap significant benefits from the growth of leisure tourism in the Victoria Falls market and from national conferencing activities. Volumes are projected to improve for city hotels accommodation and conferencing activities.
The Company will explore collaborations with partners to unlock shareholder value, leveraging strategic alliances and innovative partnerships to drive sustainable growth and enhance its competitive position in the market.
7. ACKNOWLEDGEMENTS
On behalf of the Board, I would like to thank all RTG customers and business partners for their invaluable support. I also extend my gratitude to my fellow members of the Board of Directors and members of sta for their dedication, professionalism, and determination to succeed.
Together, we will continue to innovate and seize the opportunities available to us to create sustainable value for all stakeholders.
..…………………………………………
- HOTO CHAIRMAN 25 April 2024
AUDITED ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023
INFLATION ADJUSTED | HISTORICAL COST | ||||||||||||
31 December | 31 December | 1 January 2022 | 31 December | 31 December | 1 January 2022 | ||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
RESTATED | RESTATED | RESTATED | RESTATED | ||||||||||
Notes | ZWL | ZWL | ZWL | ZWL | ZWL | ZWL | |||||||
ASSETS | |||||||||||||
Non current assets | |||||||||||||
Property and equipment | 4 | 268 351 971 022 | 129 200 868 515 | 60 417 786 416 | 256 199 325 709 | 24 661 271 045 | 3 661 578 815 | ||||||
Intangible assets | 5 | 548 723 210 | 830 073 648 | 323 281 727 | 548 723 210 | 172 932 010 | 19 592 269 | ||||||
Right of use assets | 7 | 1 135 615 904 | 1 135 841 134 | 1 136 610 416 | 1 323 701 | 1 411 948 | 1 500 195 | ||||||
270 036 310 136 | 131 166 783 297 | 61 877 678 559 | 256 749 372 620 | 24 835 615 003 | 3 682 671 279 | ||||||||
Current assets | |||||||||||||
Inventories | 9 | 18 428 076 530 | 5 017 817 110 | 1 464 504 842 | 7 220 383 649 | 575 618 852 | 88 755 319 | ||||||
Trade and other receivables | 10 | 19 330 853 741 | 18 829 231 177 | 10 673 407 974 | 19 330 853 741 | 3 922 756 496 | 646 854 624 | ||||||
Financial assets | 8 581 932 697 | 2 625 812 | 2 598 917 | 8 581 932 697 | 547 044 | 157 505 | |||||||
Cash and bank balances | 11 | 13 049 392 681 | 2 435 260 316 | 3 646 656 276 | 13 049 392 681 | 507 345 899 | 221 003 121 | ||||||
59 390 255 649 | 26 284 934 415 | 15 787 168 009 | 48 182 562 768 | 5 006 268 291 | 956 770 569 | ||||||||
Total assets | 329 426 565 785 | 157 451 717 712 | 77 664 846 568 | 304 931 935 388 | 29 841 883 294 | 4 639 441 848 | |||||||
EQUITY AND LIABILITIES | |||||||||||||
Capital and reserves | |||||||||||||
Share capital | 276 050 556 | 276 050 556 | 276 050 556 | 249 550 | 249 550 | 249 550 | |||||||
Share premium | 10 229 546 429 | 10 229 546 429 | 10 229 546 429 | 10 227 505 | 10 227 505 | 10 227 505 | |||||||
Revaluation reserve | 181 071 386 355 | 91 959 937 435 | 52 333 596 113 | 185 720 754 719 | 19 537 568 662 | 3 171 641 965 | |||||||
Retained earnings | 19 741 743 408 | 3 142 231 087 | 3 114 919 130 | 3600 237 810 | (710 807 393) | (386 859 919) | |||||||
Total equity | 211 318 726 748 | 105 607 765 507 | 65 954 112 228 | 189 331 469 584 | 18 837 238 324 | 2 795 259 101 | |||||||
Non Current liabilities | |||||||||||||
Lease obligation | 7 | 8 290 561 235 | 4 639 249 349 | 2 624 013 981 | 8 290 561 235 | 966 494 865 | 159 024 044 | ||||||
Borrowings | 12 | 2 312 138 626 | - | - | 2 312 138 626 | - | - | ||||||
Deferred tax liability | 6 | 56 429 066 830 | 21 060 239 404 | 2 674 137 176 | 53 921 693 597 | 4 329 407 266 | 313 355 212 | ||||||
67 031 766 731 | 25 699 488 753 | 5 298 151 157 | 64 524 393 458 | 5 295 902 131 | 472 379 256 | ||||||||
Current liabilities | |||||||||||||
Borrowings | 1 156 069 313 | - | 29 190 861 | 1 156 069 313 | - | 1 769 092 | |||||||
Trade and other payables | 13 | 46 242 011 101 | 24 201 264 055 | 4 655 981 565 | 46 242 011 101 | 5 303 912 019 | 1 224 644 601 | ||||||
Tax payable | 1 409 843 243 | 443 691 890 | 752 189 620 | 1 409 843 240 | 92 434 895 | 86 287 427 | |||||||
Lease liabilities | 7 | 791 826 654 | 443 091 991 | 250 618 040 | 791 826 654 | 92 309 359 | 15 188 294 | ||||||
Bank overdraft | 1 476 322 035 | 1 056 415 516 | 724 603 097 | 1 476 322 035 | 220 086 566 | 43 914 077 | |||||||
51 076 072 346 | 26 144 463 452 | 6 412 583 183 | 51 076 072 346 | 5 708 742 839 | 1 371 803 491 | ||||||||
Total liabilities | 118 107 839 037 | 51 843 952 205 | 11 710 734 340 | 115 600 465 807 | 11 004 644 970 | 1 844 182 747 | |||||||
Total equity and liabilities | 329 426 565 785 | 157 451 717 712 | 77 664 846 568 | 304 931 935 388 | 29 841 883 294 | 4 639 441 848 | |||||||
INDEPENDENT AUDITORS' REPORT
The abridged audited financial results should be read in conjunction with the complete set of audited consolidated financial statements of Rainbow Tourism Group Limited and its subsidiary for the year ended 31 December 2023 which have been audited by BDO Zimbabwe Chartered Accountants in accordance with International Standards on Auditing. The audit report carries an unmodified opinion and we have included a key audit matter on the valuation of property and equipment. The auditor's report on the consolidated financial statements, which forms the basis of these abridged financial results, is available for inspection at the Group's registered oce. The Engagement Partner responsible for the audit is Mr. Martin Makaya (PAAB 0407).
……………………………………………
BDO Zimbabwe Chartered Accountants
Per: Martin Makaya CA (Z)
Partner
Registered Public Auditor (PAAB Certificate No: 0407)
Directors: D.Hoto (Chairman), T. Madziwanyika (CEO), A. Bvumbe, K. Chibota, L. Mabhanga, C. Malaba, D. Mavhembu, N. Mtukwa (FD), G. Taputaira | | PAGE 1 |
www.gatewaystream.com | Follow us: | @gatewaystream | |
AUDITED ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
AUDITED ABRIDGED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2023
AUDITED ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023
Revenue
Cost of sales
Gross profit
Other income
Operating expenses
Earnings before interest, tax, depreciation and amortization
Depreciation and amortization
Profit from operations
Finance expense
Net monetary gain/(loss)
Profit before tax
Income tax (charge)/credit
Profit after tax
Other comprehensive income:
Subsequently to profit or loss Gain on property revaluation, net of tax
Other comprehensive income, net of tax
Total comprehensive income for the year
Earnings per share (cents) Basic earnings per share Headline Earnings per share
INFLATION ADJUSTED | HISTORICAL COST | ||||||
31 December | 31 December | 31 December | 31 December | ||||
2023 | 2022 | 2023 | 2022 | ||||
RESTATED | RESTATED | ||||||
Notes | ZWL | ZWL | ZWL | ZWL | |||
14 | 266 327 859 840 | 117 704 732 982 | 172 388 381 332 | 17 283 887 935 | |||
(80 503 373 979) | (35 908 645 612) | (51 506 101 215) | (5 489 903 320) | ||||
185 824 485 861 | 81 796 087 370 | 120 882 280 117 | 11 793 984 615 | ||||
15 | 8 222 497 144 | 1 960 453 731 | 4 766 764 823 | 349 915 960 | |||
16 | (157 173 981 626) | (74 261 020 273) | (121 430 878 480) | (11 393 380 796) | |||
36 873 001 379 | 9 495 520 828 | 4 218 166 460 | 750 519 779 | ||||
(3 056 635 244) | (1 864 998 784) | (1 197 633 354) | (207 346 258) | ||||
33 816 366 135 | 7 630 522 044 | 3 020 533 106 | 543 173 521 | ||||
( 687 280 364) | ( 52 334 745) | (441 058 674) | (37 826 984) | ||||
2 368 741 310 | (1 223 221 316) | - | - | ||||
35 497 827 081 | 6 354 965 983 | 2 579 474 432 | 505 346 537 | ||||
(7 617 396 537) | (1 848 938 906) | 6 151 595 690 | (280 239 325) | ||||
27 880 430 544 | 4 506 027 077 | 8 731 070 122 | 225 107 212 |
89 111 448 920 | 78 557 226 584 | 166 183 186 057 | 16 365 926 697 | ||||
89 111 448 920 | 78 557 226 584 | 166 183 186 057 | 16 365 926 697 | ||||
116 991 879 464 | 83 063 253 661 | 174 914 256 179 | 16 591 033 909 | ||||
17 | |||||||
1 133.56 | 183.21 | 354.99 | 9.15 | ||||
1 133.56 | 183.21 | 354.99 | 9.15 |
Share | Share | Revaluation | Retained | Total | |||||||
Note | capital | premium | reserve | earnings | equity | ||||||
INFLATION ADJUSTED | ZWL | ZWL | ZWL | ZWL | ZWL | ||||||
Balance at 1 January 2022 as | 276 050 556 | 10 229 546 429 | 52 333 596 113 | 5 173 656 365 | 68 012 849 463 | ||||||
previously reported | |||||||||||
Prior period adjustment | 8 | - | - | - ( 2 058 737 235) | ( 2 058 737 235) | ||||||
Restated balance at 1 January | |||||||||||
276 050 556 | 10 229 546 429 | 52 333 596 113 | 3 114 919 130 | 65 954 112 228 | |||||||
2022 | |||||||||||
Total comprehensive income for | - | - | 39 626 341 322 | 4 506 027 077 | 44 132 368 399 | ||||||
the year | |||||||||||
Dividend | - | - | - (4 478 715 120) | (4 478 715 120) | |||||||
Balance at 31 December 2022 | |||||||||||
276 050 556 | 10 229 546 429 | 91 959 937 435 | 3 142 231 087 | 105 607 765 507 | |||||||
Total comprehensive income for | - | - | 89 111 448 920 | 27 880 430 544 | 116 991 879 464 | ||||||
the year | |||||||||||
Dividend | - | - | - (11 280 918 223) | (11 280 918 223) | |||||||
Balance at 31 December 2023 | |||||||||||
276 050 556 | 10 229 546 429 | 181 071 386 355 | 19 741 743 408 | 211 318 726 748 | |||||||
HISTORICAL COST | |||||||||||
Balance at 1 January 2022, as | 249 550 | 10 227 505 | 3 171 641 965 | 429 659 873 | 3 611 778 893 | ||||||
previously reported | |||||||||||
Prior period adjustment | 8 | - | - | - | (816 519 792) | (816 519 792) | |||||
Restated balance at 1 January | 249 550 | 10 227 505 | 3 171 641 965 | (386 859 919) | 2 795 259 101 | ||||||
2022 | |||||||||||
Total comprehensive income | - | - | 16 365 926 697 | 225 107 212 | 16 591 033 909 | ||||||
for the year | |||||||||||
Dividend | - | - | (549 054 686) | ( 549 054 686) | |||||||
Balance at 31 December 2022 | 249 550 | 10 227 505 | 19 537 568 662 | (710 807 393) | 18 837 238 324 | ||||||
Total comprehensive income | - | - | 166 183 186 057 | 8 731 070 122 | 174 914 256 179 | ||||||
for the year | |||||||||||
Dividend | - | - | - (4 420 024 919) | (4 420 024 919) | |||||||
Balance at 31 December 2023 | 249 550 | 10 227 505 | 185 720 754 719 | 3 600 237 810 | 189 331 469 584 | ||||||
AUDITED ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023
NOTES TO THE AUDITED ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
Note
CASH FLOWS FROM OPERATING ACTIVITIES
INFLATION ADJUSTED | HISTORICAL COST | |||||
31 December | 31 December | 31 December | 31 December | |||
2023 | 2022 | 2023 | 2022 | |||
RESTATED | RESTATED | |||||
ZWL | ZWL | ZWL | ZWL |
1. General information
Rainbow Tourism Group Limited is a company incorporated and domiciled in Zimbabwe. The Group is in tourism services industry as hoteliers and providers of conference facilities. Its registration number is 4880/91. The Group is listed on the Zimbabwe Stock Exchange (ZSE).
Currency of reference
These financial statements are presented in Zimbabwean Dollars (ZWL) being the functional and reporting currency of the primary economic environment in which the Group operates.
Profit before tax
Adjusted for:
Depreciation of property and equipment, intangibles assets and right of use assets De-recognition of property and equipment
Fair value adjustment on investments Exchange loss on borrowings Exchange loss on lease liability Loss on disposal of property & equipment
Net finance costs
Operating profit before working capital changes
Working capital changes: Increase in inventories Increase in trade and other receivables
Increase in trade and other payables
Cash generated from operations Finance costs
Income tax paid
Net cash inflows generated from operations
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment Development of intangible assets Proceeds from sale of property and equipment
35 497 827 081
3 056 635 244
2 221 273 149
1 592 692 817
1 757 370 855
8 294 132 948
-
687 280 364
53 107 212 458
(13 410 259 420)
(501 622 564)
22 040 747 046
61 236 077 520
(105 293 706)
(369 739 879)
60 761 043 935
(25 782 574 414)
(166 089 777)
-
6 354 965 983 | 2 579 474 432 | 505 346 537 | ||
1 864 998 784 | 1 197 633 354 | 207 346 258 | ||
- | 870 326 553 | - | ||
- | (2 185 398) | - | ||
- | 1 757 370 855 | - | ||
846 250 194 | 8 245 725 853 | 157 276 091 | ||
554 778 830 | - | 64 210 513 | ||
52 334 745 | 441 058 674 | 37 826 984 | ||
9 673 328 536 | 15 089 404 323 | 972 006 383 | ||
(4 550 577 563) | (6 644 764 797) | (486 478 352) | ||
(9 656 150 256) | (15 408 097 245) | (3 384 358 470) | ||
23 248 795 585 | 40 938 099 082 | 4 878 984 156 | ||
18 715 396 302 | 33 974 641 363 | 1 980 153 717 | ||
(52 334 745) | (105 293 706) | (37 826 984) | ||
(3 494 375 779) | (18 482 883) | (404 441 641) | ||
15 168 685 778 | 33 850 864 774 | 1 537 885 092 | ||
(6 822 914 399) | (10 631 860 470) | (782 690 574) | ||
(317 230 927) | (86 897 741) | (36 391 143) | ||
16 114 768 | - | 2 845 121 |
2. New accounting standards
At the date of authorisation of these consolidated financial statements, several new Accounting Standards and amendments to existing Standards were published by the IASB. None of these Standards or amendments to existing Standards have been adopted by the Group as they are not applicable to the Group and to the industry (e.g. changes to IFRS 17 pertaining to Insurance Contracts)
Eects of inflation adjustments
IAS 29 requires that the financial statements prepared in the currency of a hyperinflationary economy be stated in terms of the measuring unit current at the reporting date and that the corresponding figures for the comparative periods be stated in the same terms. On the 3rd of March 2023, the Government of Zimbabwe through the Minister of Finance and Economic Development (''MoFED'') promulgated Statutory Instrument (''S.I'') 27 of 2023. Through S.I 27, the old benchmark headline Consumer Price Index ("CPI'') that was being published month on month since the promulgation of Statutory Instrument 33 of 2019 and tracking ZWL inflation was discontinued, with the last publication of this old benchmark being January 2023. Consequently, this left the Group with no ocial ZWL inflation index to use for its statutory reporting for the year ended December 2023.
Indices used were therefore obtained from the Reserve Bank of Zimbabwe website www.rbz.co.zw for the period October 2022 to January 2023. The Group estimated indices for February 2023 to December 2023. IAS 29 paragraph 17 permits the use of an estimate-based price index in circumstances where the rate is not available. In the absence of the ocial ZWL Indices the Group opted to use the Total Consumption Poverty Line to estimate the CPIs as recommended by The Institute of Chartered Accountants Zimbabwe (ICAZ) given its strong correlation with inflation rate.
The current and prior year financial statements have been inflation adjusted for changes in the general purchasing power of the ZWL. The conversion factors used are as follows:
Date | Index | Factor |
Dec-22 | 13,672.91 | 4.8000 |
Jun-23 | 43,086.20 | 1.5232 |
Dec-23 | 65,630.60 | 1.0000 |
3. Statement of compliance
These financial statements has been prepared under the assumption that the Group operates on a going concern basis.
The financial statements for the year ended 31 December 2023 (including comparatives) were approved and authorised for issue by the Board of Directors on 25 April 2024. Amendments to the financial statements are not
Purchase of gold-backed digital coins
Net cashflows utilised in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Lease principal repayment
Increase in borrowings
Loan repayment
Dividend paid
Net cashflows utilised in financing activities
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT | |
BEGINNING OF YEAR | |
CASH AND CASH EQUIVALENTS AT | |
END OF YEAR | 10 |
(10 171 999 703) | - (8 579 200 255) | - | |||||
(36 120 663 894) | (7 124 030 558) (19 297 958 466) | (816 236 596) | |||||
(4 876 073 056) | (5 109 148 479) | (557 907 160) | (62 423 520) | ||||
1 989 396 311 | - | 1 989 396 311 | - | ||||
(278 559 227) | - | (278 559 227) | - | ||||
(11 280 918 223) | (4 478 715 120) | (4 420 024 919) | (549 054 686) | ||||
(14 446 154 195) | (9 587 863 599) | (3 267 094 995) | (611 478 206) | ||||
10 194 225 846 | (1 543 208 379) | 11 285 811 313 | 110 170 290 | ||||
1 378 844 800 | 2 922 053 179 | 287 259 333 | 177 089 043 | ||||
11 573 070 646 | 1 378 844 800 | 11 573 070 646 | 287 259 333 |
permitted after approval.
4. Property and equipment | INFLATION ADJUSTED | HISTORICAL COST | |||||
31 December | 31 December | 31 December | 31 December | ||||
2023 | 2022 | 2023 | 2022 | ||||
ZWL | ZWL | ZWL | ZWL | ||||
Opening carrying amount | 129 200 868 515 | 60 417 786 416 | 24 661 271 045 | 3 661 578 815 | |||
Additions to property and equipment | 25 782 574 414 | 6 822 914 397 | 10 631 860 470 | 782 690 574 | |||
Revaluation | 118 621 744 883 | 64 351 430 076 | 222 964 479 580 | 20 491 315 301 | |||
Depreciation charge | (3 031 943 641) | (1 806 721 228) | (1 187 958 833) | (207 258 011) | |||
Carrying amounts of disposed assets | (2 221 273 149) | (584 541 146) | (870 326 553) | (67 055 634) | |||
Closing carrying amount | 268 351 971 022 | 129 200 868 515 | 256 199 325 709 | 24 661 271 045 | |||
All categories of the Group's assets were revalued by an independent valuer as at 31 December 2023 using the market values to determine fair values.
Directors: D.Hoto (Chairman), T. Madziwanyika (CEO), A. Bvumbe, K. Chibota, L. Mabhanga, C. Malaba, D. Mavhembu, N. Mtukwa (FD), G. Taputaira | | PAGE 2 |
EXPEDITIONS AFRICA
AUDITED ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
NOTES TO THE AUDITED ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)
INFLATION ADJUSTED | HISTORICAL COST | ||||||||
31 December | 31 December | 31 December | 31 December | ||||||
2023 | 2022 | 2023 | 2022 | ||||||
ZWL | ZWL | ZWL | ZWL | ||||||
5. Intangible assets | |||||||||
Opening carrying amount | 830 073 648 | 323 281 729 | 172 932 010 | 19 592 269 | |||||
Additions | 166 089 777 | 317 230 925 | 86 897 741 | 36 391 143 | |||||
Revaluations | (422 973 842) | 205 953 627 | 298 479 733 | 118 829 079 | |||||
Amortization charge | (24 466 373) | (16 392 633) | (9 586 274) | (1 880 481) | |||||
Closing carrying amount | 548 723 210 | 830 073 648 | 548 723 210 | 172 932 010 | |||||
6. Deferred tax reconciliation
INFLATION ADJUSTED | HISTORICAL COST | |||||||||||
31 December | 31 December | 1 January | 31 December | 31 December | 1 January | |||||||
2023 | 2022 | 2022 | 2023 | 2022 | 2022 | |||||||
ZWL | ZWL | ZWL | ZWL | ZWL | ZWL | |||||||
Restated | Restated | Restated | Restated | |||||||||
Balance at the | ||||||||||||
beginning of | 21 060 239 404 | 2 674 137 176 | 2 315 608 494 | 4 329 407 266 | 313 355 212 | 265 635 011 | ||||||
the year | ||||||||||||
Movement | ||||||||||||
through profit | 6 281 505 305 | (230 202 372) | 358 528 682 | (7 487 486 922) | (152 915 108) | 47 720 201 | ||||||
or loss | ||||||||||||
Movement | ||||||||||||
through other | 29 087 322 121 | 18 616 304 600 | - | 57 079 773 253 | 4 168 967 162 | - | ||||||
comprehensive | ||||||||||||
income | ||||||||||||
Balance at the | ||||||||||||
56 429 066 830 | 21 060 239 404 | 2 674 137 176 | 53 921 693 597 | 4 329 407 266 | 313 355 212 | |||||||
end of the year | ||||||||||||
All deferred tax assets (including tax losses and other tax credits) have been recognised in the statement of financial position.
7. Right-of-use assets | |||||||||||
Cost | 1 177 726 057 | 1 177 726 057 | 1 177 726 057 | 1 764 935 | 1 764 935 | 1 764 935 | |||||
Accummulated | (42 110 153) | (41 884 923) | (41 115 641) | (441 234) | (352 987) | (264 740) | |||||
depreciation | |||||||||||
Closing balance | 1 135 615 904 | 1 135 841 134 | 1 136 610 416 | 1 323 701 | 1 411 948 | 1 500 195 | |||||
Lease liabilities | |||||||||||
Current liability | 791 826 654 | 443 091 991 | 250 618 040 | 791 826 654 | 92 309 359 | 15 188 294 | |||||
Non-current | 8 290 561 235 | 4 639 249 349 | 2 624 013 981 | 8 290 561 235 | 966 494 865 | 159 024 044 | |||||
liability | |||||||||||
9 082 387 889 | 5 082 341 340 | 2 874 632 021 | 9 082 387 889 | 1 058 804 224 | 174 212 338 | ||||||
Right of use assets relate to the Company's leased property.
The table below describes the nature of the Group's leasing activities by type of right-of-use asset recognised on the balance sheet.
Hotel | Lease Term | Remaining term | Option for an |
extension | |||
Kadoma Hotel & Conference Centre | 20-25 | 14 years | Yes |
8. Prior period adjustment
The prior period adjustment relates to the derecognition of the right of use assets and lease liabilities for the two units of the Group: Rainbow Towers Hotel and New Ambassador Hotel. The derecognition is in respect of the need to comply with International Financial Reporting Standard 16, Leases and has been eected by restating each of the aected financial statement line items for prior periods.
INFLATION ADJUSTED | HISTORICAL COST | ||||||
31 December | 31 December | 31 December | 31 December | ||||
2023 | 2022 | 2023 | 2022 | ||||
ZWL | ZWL | ZWL | ZWL | ||||
9. Inventories | |||||||
Food and beverage | 9 142 140 530 | 2 489 331 367 | 3 582 021 265 | 285 563 631 | |||
Service stocks | 4 862 457 895 | 1 324 008 218 | 1 905 180 468 | 151 883 591 | |||
Other stocks | 4 423 478 106 | 1 204 477 525 | 1 733 181 916 | 138 171 631 | |||
18 428 076 531 | 5 017 817 110 | 7 220 383 649 | 575 618 852 | ||||
10. Trade and other receivables
Trade receivables | 18 783 911 714 | 16 814 287 143 | 18 783 911 714 | 3 502 976 488 | |||
Prepayments and other | 546 942 027 | 2 014 944 033 | 546 942 027 | 419 780 008 | |||
19 330 853 741 | 18 829 231 177 | 19 330 853 741 | 3 922 756 496 | ||||
NOTES TO THE AUDITED ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)
INFLATION ADJUSTED | HISTORICAL COST | ||
31 December | 31 December | 31 December | 31 December |
2023 | 2022 | 2023 | 2022 |
ZWL | ZWL | ZWL | ZWL |
11. Cash and cash equivalents
For the purpose of the statement of cash flows, cash and cash equivalents comprise the following:
Cash and bank balances | 13 049 392 681 | 2 435 260 316 | 13 049 392 681 | 507 345 899 | |||
Bank overdraft | (1 476 322 035) | (1 056 415 516) | (1 476 322 035) | (220 086 566) | |||
11 573 070 646 | 1 378 844 800 | 11 573 070 646 | 287 259 333 | ||||
The bank overdraft is unsecured and is denominated in US$. The interest rate is pegged at 9% per annum.
12. Borrowings
Bank loan | 3 468 207 939 | - | 3 468 207 939 | - | |||
3 468 207 939 | - | 3 468 207 939 | - | ||||
The bank loan is related to an asset financing facility secured by motor vehicles (assets). The interest rate is pegged at 12%. The loan is denominated in US dollars.
13. Trade and other payables | ||||||||||||||||||||||
INFLATION ADJUSTED | HISTORICAL COST | |||||||||||||||||||||
31 December | 31 December | 1 January | 31 December | 31 December | 1 January | |||||||||||||||||
2023 | 2022 | 2022 | 2023 | 2022 | 2022 | |||||||||||||||||
ZWL | ZWL | ZWL | ZWL | ZWL | ZWL | |||||||||||||||||
Restated | Restated | Restated | Restated | |||||||||||||||||||
Trade payables | 24 152 168 926 | 13 958 964 426 | 3 194 376 844 | 24 152 168 926 | 4 044 548 440 | 1 148 961 579 | ||||||||||||||||
Accruals and | ||||||||||||||||||||||
other payables | 22 089 842 175 | 10 242 299 629 | 1 461 604 721 | 22 089 842 175 | 1 259 363 579 | 75 683 022 | ||||||||||||||||
46 242 011 101 | 24 201 264 055 | 4 655 981 565 | 46 242 011 101 | 5 303 912 019 | 1 224 644 601 | |||||||||||||||||
INFLATION ADJUSTED | HISTORICAL COST | |||||||||||||||||||||
31 December | 31 December | 31 December | 31 December | |||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
ZWL | ZWL | ZWL | ZWL | |||||||||||||||||||
14. | Revenue | |||||||||||||||||||||
Rooms revenue | 106 347 204 837 | 27 914 169 576 | 68 836 292 651 | 6 983 564 125 | ||||||||||||||||||
Food, beverages and conferencing | 139 252 322 209 | 76 913 289 478 | 90 135 078 008 | 8 823 107 428 | ||||||||||||||||||
Other operating activities | 20 728 332 794 | 12877 273 928 | 13 417 010 673 | 1477 216 382 | ||||||||||||||||||
266 327 859 840 | 117 704 732 982 | 172 388 381 332 | 17 283 887 935 | |||||||||||||||||||
15. | Other Income | |||||||||||||||||||||
Rental Income | 2 540 447 087 | 41 341 904 | 2 540 456 437 | 4 742 536 | ||||||||||||||||||
Sundry income | 5 682 050 057 | 1 919 111 827 | 2 226 308 386 | 345 173 424 | ||||||||||||||||||
8 222 497 144 | 1 960 453 731 | 4 766 764 823 | 349 915 960 | |||||||||||||||||||
16. | Operating expenses | |||||||||||||||||||||
Administrative expenses | (95 086 133 218) | (43 414 413 656) | (69 739 514 878) | (7 059 267 712) | ||||||||||||||||||
Distribution expenses | (24 735 532 928) | (14 052 528 901) | (14 977 873 392) | (2 267 251 212) | ||||||||||||||||||
Other operating expenses | (37 352 315 480) | (16 794 077 716) | (36 713 490 210) | (2 066 861 872) | ||||||||||||||||||
(157 173 981 626) | (74 261 020 273) | (121 430 878 480) | (11 393 380 796) | |||||||||||||||||||
17. Earnings per share
Number of shares (000s) | 2 500 000 | 2 500 000 | 2 500 000 | 2 500 000 | |
Authorized shares of 0.01 cents | 2 500 000 | 2 500 000 | 2 500 000 | 2 500 000 | |
each | |||||
Issued and fully paid shares of 0.01 | 2 459 537 | 2 459 537 | 2 459 537 | 2 459 537 | |
cents each | |||||
17.1 | Basic earnings per share | ||||
Profit attributable to shareholders | 2 788 043 054 419 | 450 602 707 664 | 873 107 012 245 | 22 510 721 191 | |
Weighted average number of | 2 459 537 | 2 459 537 | 2 459 537 | 2 459 537 | |
shares in issue (000s) | |||||
Basic earnings per share (ZWL | 1 133.56 | 183.21 | 354.99 | 9.15 | |
cents) | |||||
17.2 | Headline earnings per share | ||||
Profit attributable to shareholders | 2 788 043 054 419 | 450 602 707 664 | 873 107 012 245 | 22 510 721 191 | |
Weighted average number of | 2 459 537 000 | 2 459 537 000 | 2 459 537 000 | 2 459 537 000 | |
shares in issue (000s) | |||||
Headline earnings per share (ZWL | 1 133.56 | 183.21 | 354.99 | 9.15 | |
cents) |
18. Events after the reporting date
-
Introduction of the new currency
Subsequent to the Company's reporting period ended 31 December 2023, the Government of Zimbabwe, on 5 April 2024, introduced a new currency called Zimbabwe Gold (ZiG) to replace the Zimbabwe Dollar (ZWL) through Statutory Instrument (S.I) 60 of 2024. The Board of Directors have concluded that the introduction of the new currency is a non-adjusting event, as it does not reflect conditions that existed at the reporting date. - Approval of the financial statements
The financial statements were approved by the Board for issue on 25 April 2024.
Directors: D.Hoto (Chairman), T. Madziwanyika (CEO), A. Bvumbe, K. Chibota, L. Mabhanga, C. Malaba, D. Mavhembu, N. Mtukwa (FD), G. Taputaira | | PAGE 3 |
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Rainbow Tourism Group Ltd. published this content on 26 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 07:07:03 UTC.
