Brainworks expects turnaround in earnings

MAURITIAN diversified investment holding company Brainworks said on Friday that it expected a turnaround in earnings per share when it reports results for the year to end-December 2018.

Brett Childs, Brainworks chief executive

The company, which focuses its investment strategy exclusively on assets and services in Zimbabwe, had been warned by the JSE earlier this month to publish its results by tomorrow or have its listing suspended.

Brainworks had said it needed to delay the publication of results due to the effect on its financial reporting of currency reforms in Zimbabwe.

The company said in a trading statement on Friday that it expected to report earnings of 16.18 US cents  per share for the year, which is 30.86 US cents more than the 14.68 US cents loss reported in 2017.

The headline loss was also expected to narrow to 3.14 US cents per share, from the 14.22 US cents loss per share reported for 2017.

The positive earnings were ascribed to growth in revenues, reduced financial charges and the positive contribution to profitability as a result of exiting the financial services sector.

Revenue growth was spurred in particular by the hospitality segment.

Hotel occupancy had increased to 59 percent for the year, compared with 52 percent the previous year, while the average daily rate increased 17 percent to $109 from $93. Completion of a development project in Harare also resulted in a spurt in property sales for the group during the year. – IOL