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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Inqo Investments Limited | AQSE:INQO | Aquis Stock Exchange | Ordinary Share | ZAU000014391 | Ordinary shares |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 66.00 | 62.00 | 67.00 | 66.00 | 64.50 | 64.50 | 0.00 | 16:29:52 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2023 to Apr 2024
TIDMINQO
RNS Number : 5632I
Inqo Investments Limited
07 August 2023
Inqo Investments Limited
Group Results for the year ended 28 February 2023
CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT
Inqo Investments Limited ("Inqo" or "the Group") is a South African based social impact company that invests in businesses that tackle poverty and environmental challenges in Sub-Saharan Africa.
COMMENTARY
The Group remains in a strong financial position with total assets of R210,256,710 and minimal debt.
Subsequent to the financial year end, Inqo received an additional investment of R17,786,900 in the form of a convertible loan note (CLN) that was made by a new investor on 1(st) of March 2023. The net proceeds of the CLN and the balance of the funds that the group has available will be used for working capital and to execute a range of new potential investments that Inqo have identified in Sub-Saharan Africa that will have a positive impact on the environment and the poor. This set of investments includes the current Conservation and Rural Enterprise (CARE) project that will invest in several joint ventures around the Budongo Forest, Uganda, with the aim of tackling the links between poverty and environmental degradation such as deforestation for wood fuel use or bushmeat poaching. The first investment for the CARE project is a luxury tented eco-lodge within the Budongo forest which will begin construction in Q3 2023.
Like businesses around the world, the Group has been heavily impacted by the Covid-19 pandemic with reduced earnings and implementation of cost saving measures. The severity of the impact and speed of recovery has varied across investee companies. Despite the challenges being faced, the directors of the Company have assessed that the Company and its subsidiaries will continue as a going concern.
The results for the year under review showed revenue of R11,730,190 (February 2022: R3,872,007) with a profit after tax of R3,774,907 (February 2022: loss of R12,614,587). The primary reason for the profit before tax position is due to the grant income recognised between 1 September 2022 and 28 February 2023 for the cost of planting Spekboom cuttings on the property through the Reforest Action carbon credit contract.
The profit for the year is reported after the following income and cost items have been accounted for:
Hot Features
Premium
February February
2023 2022
Other income
Grant received:
Included in other income is grant received
for the cost of planting Spekboom cuttings
on the property in terms of the Reforest Action
carbon credit contract between 1 September 9 090 000 -
2022 and 28 February 2023
Operating costs incurred:
Depreciation & amortisation 3 790 520 3 295 251
Listing expenses 760 765 581 917
Directors' fees and salaries 736 000 696 000
Professional fees 593 633 629 847
Impairment & fair value adjustments 107 993 2 357 326
Provision for bad & doubtful debts 286 490 529 069
------------ ------------
In February 2023, the directors of Inqo reviewed the valuation placed on all income earning assets to ensure that they reflect their fair value. Following the review, the directors are of the view that the Group assets as stated in the Balance Sheet are reflected at fair value. In the process of carrying out this review it was decided that the following value adjustments should be processed.
-- The Kuzuko Lodge operation has not yet returned to pre Covid-19 occupancies and as a result is currently operating at a loss. It was therefore decided to make further provision in the Company for doubtful debt of R1,000,000. The current provision for doubtful debts now stands at a value of R2,750,937 against the total amount due of R3,581,895.
-- The only non-South African company where Inqo held investments on 28th February 2023 that required assessment from a fair value adjustment perspective was Four One Financial Services Limited. The company has struggled financially but managed to remain operational, however in the process has defaulted on loan and interest repayments. The consequences of this are that the full loans made by Inqo with a value of R728,715 have been impaired and a provision for doubtful debts raised against interest owing of R1,057,292.
-- The drought conditions that were experienced in the Eastern Cape in the 2021/2 financial year and up to September 2022 have ended resulting in a more productive breeding season and game sale values have also recovered. The result is that the value of the buffalo herd has increased by R1,029,940 and the impairment against the cost of game has been reduced by R767,774.
-- Kuzuko Lodge has experienced a difficult trading year like so many of the other game reserves in the Eastern Cape. Kuzuko Lodge has not recovered its pre-Covid trading levels and as a result the directors have decided to further impair the company's investment in Kuzuko Lodge by an amount of R1,476,882.
The land and buildings were revalued by an independent valuer in March 2023 in accordance with Inqo's accounting policies. The fact that the Eastern Cape has recovered from the drought experienced in previous years and that there have been sales of farmland in neighbouring areas has resulted in the value of the land and buildings being increased by R19,099,877.
INVESTEE COMPANIES
-- Kuzuko Lodge (Pty) Ltd (South Africa) is a subsidiary entity that operates a Five Star game lodge designed to create jobs in an area of high unemployment and limited opportunities. The Lodge is slowly returning to pre-pandemic occupancy rates, however the tourism industry in the Eastern Cape Province has been slower to recover than in other parts of South Africa. Kuzuko management are now exploring several new avenues for marketing the lodge, in particular around the current global focus on sustainability, and expect that bookings will increase in strength over the next 12 months.
-- Inqo Africa (Pty) Ltd , is a wholly owned subsidiary formed on 27 October 2020 to facilitate with making investments in Kenya and Uganda.
-- Spekboom Trading (Pty) Ltd (South Africa) is a subsidiary, which is currently rehabilitating degraded land on the Inqo Investments Limited property through reforestation using the indigenous Spekboom shrub. Spekboom Trading also has a licence to trade carbon credits. Spekboom Trading entered into a 30-year contract with an international carbon finance specialist, Reforest Action based in Paris, France, to restore 5,185 hectares of land on Inqo's property through planting of 25 million indigenous Spekboom cuttings. The project is progressing well with planting anticipated to be complete by December 2024.
-- Four One Financial Services Limited (Uganda) is a financial services company offering specially designed products for the underserved low-income demographic in Uganda. Four One was particularly hard hit by the pandemic with its loan portfolio highly impaired resulting in a pivot towards property development. We are pessimistic about the outlook of the company due to the damage to their loan portfolio. We have provided for a full impairment of the loans payable but have not impaired the conversion loan note between the Company and Four One Financial Services.
-- Kentegra (Kenya) is a Kenyan based biotechnology firm owned by the US holding company, Kentegra Biotechnology Holdings LLC, producing pyrethrum, a natural biocide and pesticide. The company has seen significant growth over the last 12 months and has continued to refine their factory processes. We are hopeful that the business will soon achieve a positive EBITDA.
-- South Lake Medical Centre - SLMC (Kenya) i s a private healthcare provider in the Naivasha region of Kenya serving predominantly low-income flower farm workers. Since investment SLMC has progressed well developing a major and minor surgical unit and a positive EBITDA. The outlook for SLMC is positive as we expect the surgical revenue to continue to grow.
-- Sanergy Incorporated (Kenya) is a circular economy organic recycling business producing high protein animal feed from black soldier fly larvae in Nairobi, Kenya. Sanergy has continued to grow their business, refining their processes and exploring new markets for their animal feed and fertilizer. The outlook for Sanergy is positive.
STOCK EXCHANGE LISTING
The company is listed on the Aquis Exchange PLC (AIM:AQX) in London. Shares on AQSE will remain exempt from Capital Gains Tax and Inheritance Tax as they were on the NEX Exchange.
SUMMARY OF SOCIAL & ENVIRONMENTAL METRICS SINCE PROJECT COMMENCEMENT
-- 35,617 acres (14,414 hectares) of former farmland restored as a game reserve in a region of endemic poverty in the poorest province in South Africa.
-- Increased VAT and income tax paid by Kuzuko year on year.
-- All staff living at Kuzuko in standard housing with flush toilets, power, water and solar panels.
-- Conservation of 3 endangered species.
-- Kuzuko has re-wilded 14 adult cheetah and produced 10 cubs with diverse genetics to bolster the meta-population in southern Africa. Currently there are 4 orphaned cheetah cubs on the property being re-wilded.
-- Reforestation of 500 acres (200 hectares) of degraded land with Spekboom plants providing work for 100 part-time staff and sequestering carbon in prior financial periods.
-- 37 acres (15 hectares) of land between the reception area of the Lodge and the Lodge area has been replanted with various forms of vegetation to recover heavily degraded land on the property. As part of this erosion recovery process 100,000 Spekboom cuttings have been planted.
-- 2,100+ voluntary low-income savers in micro-pension and loan schemes.
-- 60,033 patient visits in the first 9 months of 2022 including 101 safe deliveries, 365 HIV patients receiving care and counselling, 644 infants immunised, and 28,762 people receiving health education including, Covid-19 education, through community outreach programs in Kenya.
-- Increased the economic livelihoods of over 17,000 farmers and their families in Zambia and Kenya.
-- 4,000 toilets serving 125,000 people daily in Nairobi.
-- The reforestation contract planting program, in terms of the contract signed on 5 August 2022 is in progress. 748 acres (303 hectares) of land have been planted with Spekboom cuttings by 28 February 2023. The project currently employs between 120 and 150 local previously unemployed individuals in the planting process.
STAFF
The directors would like to take this opportunity to thank all the operating staff in the Group for their contribution and commitment to the Group's objectives during this challenging time.
FINANCIAL INFORMATION
The financial information set out in this announcement does not constitute statutory financial statements. This financial information has been extracted from Inqo's audited group financial statements for the year ended 28 February 2023. A copy of these audited financial statements will be available on the Company website by 31 August 2023.
DIVID
The company has not declared a dividend for the year ended 28 February 2023.
K.S Tan C.J Bertie
Chairman Chief Financial Officer
Issued on: 7 August 2023
Enquiries
Inqo Investments Limited Tel: +27 (0)83 625 4069 Chris Bertie, Chief Financial Officer Email: cbertie@acland.co.za and Chief Operating Officer Hobart Capital Markets LLP AQSE Corporate Adviser and Broker Tel: +44 (0)20 7070 5665 Dr Wang Chong Email: wang.chong@hobartcapital.com
Inqo Investments Limited Group
Condensed consolidated statement of profit or loss and other comprehensive income
For the year ended 28 February 2023
Group Company
2023 2022 2023 2022
R R R R
11 730
Revenue 190 3 872 007 952 647 386 160
(1 514
Cost of sales 608) (648 136) - -
--------------
10 215
Gross profit 582 3 223 871 952 647 386 160
11 198
Other income 922 360 072 10 076 244 360 072
(5 813 (4 022
Personnel expenses 170) 886) (905 084) (826 680)
(3 790 (3 295 (2 777
Depreciation & amortisation 520) 251) (3 395 008) 934)
Listing expenses (760 765) (581 917) (760 765) (581 917)
Professional fees (593 633) (629 847) (593 633) (629 847)
Bad debt (231 385) - (231 385) -
Provision for doubtful (1 043
debts (286 490) (529 069) (1 286 490) 193)
Impairment and fair (2 357 (2 357
value adjustment 7 (107 993) 326) (1 584 875) 326)
Selling and administrative (9 339 (6 559 (1 476
expenses 646) 034) (1 938 776) 856)
-------------- ----------- --------------- --------------
(14 391 (8 947
Operating profit/(loss) 490 902 387) 332 875 521)
Inventory write-up
(down) 767 774 (186 464) 767 774 (186 464)
1 029
Fair value adjustment 940 56 933 1 029 940 56 933
Net financing income 336 967 299 547 1 046 262 783 326
-------------- ----------- --------------- --------------
Finance income 506 642 460 595 1 087 555 811 063
Finance expense (169 675) (161 048) (41 293) (27 736)
-------------- ----------- --------------- --------------
Profit/(loss) before 2 625 (14 221 (8 293
taxation 583 371) 3 176 851 726)
1 149
Taxation 324 1 606 784 1 149 324 1 606 784
-------------- ----------- --------------- --------------
Profit/(loss) for 3 774 (12 614 (6 686
the year 907 587) 4 326 175 942)
-------------- ----------- --------------- --------------
Inqo Investments Limited Group
Condensed consolidated statement of profit or loss and other comprehensive income
For the year ended 28 February 2023
Group Company
2023 2022 2023 2022
R R R R
Profit/(loss) attributable
to:
3 862 (12 380
Equity holders 532 267) 4 326 175 (6 686 942)
Non-controlling
interest (87 625) (234 320) - -
--------- ---------- ------------ ------------
3 774 (12 614
907 587) 4 326 175 (6 686 942)
--------- ---------- ------------ ------------
Other comprehensive income - Items that will not subsequently be
reclassified to profit or loss:
Revaluation of land 18 904
and buildings 001 - 18 904 001 -
Deferred tax on (4 226
revaluation 189) - (4 226 189) -
Total other comprehensive 14 677
income for the year 812 - 14 677 812 -
--------- ---------- ------------ ------------
Total comprehensive 18 452 (12 614
income for the year 719 587) 19 003 987 (6 686 942)
========= ========== ============ ============
Total comprehensive income
attributable to:
18 540 (12 380
Equity holders 344 267) 19 003 987 (6 686 942)
Non-controlling
interest (87 625) (234 320) - -
--------- ---------- ------------ ------------
18 452 (12 614
719 587) 19 003 987 (6 686 942)
========= ========== ============ ============
Earnings/(Loss)
per share (rand) 0.27 (0.85)
Diluted Earnings/(loss)
per share (rand) 0.27 (0.85)
Inqo Investments Limited Group
Condensed consolidated statement of financial position
At 28 February 2023
Group Company
2023 2022 2023 2022
R R R R
Assets
163 310 137 275 176 080 148 514
Non-current assets 393 303 324 260
-------- ---------- ---------- -----------
Property, plant and 154 054 128 440 152 888 128 088
equipment 726 653 843 946
Intangible assets 1 840 3 622 - -
Right of use asset 236 171 362 693 - -
Trade and other receivables - - 849 417 1 167 288
14 990
Loans to subsidiaries - - 626 10 979 026
9 017
Other investments 656 8 468 335 7 349 935 6 800 615
Investments in subsidiaries - - 1 503 1 478 385
-------- ---------- ---------- -----------
46 946 10 396 44 423
Current assets 317 005 723 8 303 721
-------- ---------- ---------- -----------
4 862
Inventories 236 4 058 788 4 194 454 3 426 680
3 124
Trade and other receivables 989 2 743 619 1 710 486 2 298 950
2 788
Biological assets 980 2 921 627 2 788 980 2 009 040
36 170 35 729
Cash and cash equivalents 112 671 971 803 569 051
-------- ---------- ---------- -----------
Assets held for
sale - 1 333 287 - 1 333 287
-------- ---------- ---------- -----------
Assets held for sale - 1 333 287 - 1 333 287
-------- ---------- ---------- -----------
46 946 11 729 44 423
Total current assets 317 292 723 9 637 008
-------- ---------- ---------- -----------
210 256 149 004 220 504 158 151
Total assets 710 595 047 268
======== ========== ========== ===========
Equity and liabilities
Capital and reserves
72 584 72 584 72 584
Share capital 925 925 925 72 584 925
87 585 87 585 87 585
Share premium 270 270 270 87 585 270
86 693 72 015 86 693
Revaluation reserve 347 535 347 72 015 535
(90 101 (93 964 (72 960 (77 286
Accumulated loss 796) 328) 353) 528)
-------- ---------- ---------- -----------
Equity attributable
to equity holders
of Inqo Investments 156 761 138 221 173 903 154 899
Limited 746 402 189 202
Non-controlling interest 160 218 247 844 - -
-------- ---------- ---------- -----------
156 921 138 469 173 903 154 899
Total equity 964 246 189 202
9 403
Non-current liabilities 433 2 903 675 9 178 263 2 512 847
-------- ---------- ---------- -----------
Loans from related 4 511
parties 589 902 409 4 363 278 774 735
4 814
Deferred tax liability 985 1 738 112 4 814 985 1 738 112
Lease liability 76 859 263 154 - -
-------- ---------- ---------- -----------
43 931 37 422
Current liabilities 313 7 631 674 595 739 219
-------- ---------- ---------- -----------
Bank overdraft 146 855 688 491 - -
8 503
Trade and other payables 452 6 770 068 2 355 669 739 219
Unutilised grant 35 066 35 066
funding 926 - 926 -
Lease liability 214 080 173 115 - -
-------- ---------- ---------- -----------
53 334 10 535 46 600
Total liabilities 746 349 858 3 252 066
-------- ---------- ---------- -----------
Total equity and 210 256 149 004 220 504 158 151
liabilities 710 595 047 268
======== ========== ========== ===========
Inqo Investments Limited Group
Statements of cash flows
For the year ended 28 February 2023
Group Company
2023 2022 2023 2022
R R R R
(1 449
Cash utilised by operations 747) (9 099 312) 734 120 (4 552 374)
Interest received 506 642 186 687 504 453 185 955
Interest paid (169 674) (72 467) (41 293) -
---------- ------------ ---------- ------------
Net cash flow from operating (1 112
activities 779) (8 985 092) 1 197 280 (4 366 419)
---------- ------------ ---------- ------------
Cash flows from investing
activities
(3 350
Increase in loans to subsidiary - - 470) (4 819 162)
Unrealised forex profit/(loss) - (177 121) - (177 121)
Loan (extended to)/ repaid 1 214
by other investments 514 733 980 1 136 490 733 980
Acquisition of property,
plant and equipment (269 388) (254 874) (200 904) (222 644)
Proceeds on disposal of
biological assets 150 000 186 957 150 000 186 957
33 409 33 409
Grant funding received 740 - 740 -
Proceeds on disposal of
property, plant and equipment - 5 612 447 - 5 612 447
Net cash flow from investing 34 504 31 144
activities 866 6 101 389 856 1 314 457
---------- ------------ ---------- ------------
Cash flows from financing
activities
Proceeds from shares issued - 2 066 862 - 2 066 862
Loans received from related 2 839
parties 253 - 2 818 616
Repayment of finance lease (191 564) (192 615) - - -
Net cash flow from financing 2 647
activities 689 1 874 247 2 818 616 2 066 862
---------- ------------ ---------- ------------
Net movement in cash and cash 36 039 35 160
equivalents 777 (1 009 456) 752 (985 100)
Cash and cash equivalents
at beginning of year (16 520) 992 936 569 051 1 554 151
Cash and cash equivalents 36 023 35 729
at end of year 257 (16 520) 803 569 051
========== ============ ========== ============
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END
NEXEAKPXELXDEFA
(END) Dow Jones Newswires
August 07, 2023 12:49 ET (16:49 GMT)
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