Business
Group Results for the year ended 28 February 2023
Group Results for the year ended 28 February 2023.
About this update from Inqo Investments Ltd
[{"type":"text","content":"\n\nInqo Investments Limited\n \nGroup Results for the year ended 28 February 2023\n \n\nCHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT\n\n \nInqo 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.\n \n\nCOMMENTARY\n\n \nThe Group remains in a strong financial position with total assets of R210,256,710 and minimal debt.\n \nSubsequent 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 1st 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.\n \nLike 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.\n \nThe 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.\n \nThe profit for the year is reported after the following income and cost items have...