Business
Group Results for the year ended 29 February 2024
Group Results for the year ended 29 February 2024.
About this update from Inqo Investments Ltd
[{"type":"text","content":"\n\nInqo Investments Limited\nGroup Results for the year ended 29 February 2024\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 R214 million including cash and cash equivalents of R43.77 million and minimal debt.\n \nThe results for the year under review showed revenue of R20.6 million (2023: R11.7 million) with a loss after tax of R5.31 million (2023: Profit of R3.77 million). The Group incurred a loss during the current year, largely due to its Kuzuko subsidiary as the tourism sector in South Africa is still recovering post-Covid. However, trading has significantly improved by 51.24% from 2023. The fair value of the buffalo herd has been marked down due to a drop in the published auction prices for the year.\n \nKuzuko completed the planting of 30 million spekboom plants on 5,185 hectares (~12,800 acres) of land during this financial year. The total cost of planting the spekboom on the reserve through the Reforest Action carbon credit contract was R118 million. This has not been recognised in the accounts because its long-term value has not been crystallised.\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 corresponding speed of recovery has varied across investee companies. Despite the challenges being faced, the directors of the Company have assessed the Company and its subsidiaries and agree that the operating units will continue as a going concern.\n \nInqo had been given grant funding of US$4 million over a three-year period for its Conservation and Rural Enterprise (CARE) project in Uganda. The first tranche of US$2 million was received in January 2023. The purpose of the CARE project is to address the interrelated issues of poverty and environmental degradation by infusing private capital into the economy of vulnerable rural communities through investments in sustainable small and medium-sized enterprises (SMEs).\nSubsequent to year-end, Inqo h...