Press release at 30 July 2025
Audited Group Results for the year ended 28 February 2025
|
Company Registration Number 1998/024741/06 |
Share Code INQO |
ISIN Number ZAU 000014391 |
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 R238 million including cash and cash equivalents of R48.8 million and minimal debt.
For the year end under review, the Group returned to profitability, marking a significant financial turnaround from the previous year reporting a profit of R20,235,550 (2024: Loss of R5,303,571).
In 2023, Inqo was awarded a US$4 million grant over three years to fund its Conservation and Rural Enterprise (CARE) project in Uganda. To date, Inqo has received US$3 million of this grant. During the current year, the Group formalised three CARE investments in Uganda, namely Flybox Budongo (BSF) Farm Limited, Pabidi Lodge Budongo Limited and Empower Clean Cooking Limited. The grant income is recognised in the income statement as and when funds are spent on approved project activities. Until then, the funds received are recorded as a deferred liability. As a result, the grant has positively impacted profitability during the current period, with R19,771,009 (2024: R1,697,069) recognised in income. The remaining balance of the grant will continue to support Inqo's activities for approximately two more financial years. Shareholders should note, once fully utilised, this income stream will end and profitability is expected to normalise unless replaced by other sources of funding or new income from our CARE project in Uganda.
In April 2024, the company issued 1,854,646 new ordinary shares, raising gross capital of R 29,984,428. This includes the conversion of two credit loan notes of USD 1,000,000 and R 2,000,000 respectively into equity by the lenders exercising their conversion rights.
In December 2024, the company issued a dividend for the first time since incorporation of R0.07 per share amounting to R1,146,014.
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 2025.
FINANCIAL RESULTS
The audited financial results for the year ended 28 February 2025 are as follows:
|
Feb-25 |
Feb-24 |
|
|
R'000 |
R'000 |
|
|
Revenue |
25,865 |
20,611 |
|
Profit/(Loss) for the year |
20,236 |
(5,304) |
|
Earnings per share |
1.24 |
(0.36) |
|
Total Assets |
238,218 |
214,460 |
|
Unutilised Grant Funding |
29,477 |
32,847 |
|
Total Liabilities excl Unutilised Grant Funding |
7,935 |
29,995 |
|
Net Assets |
200,806 |
151,618 |
|
Profit/(Loss) from operating activities includes the following items |
||
|
Grant income |
19,771 |
1,697 |
|
Depreciation and amortisation |
(2,118) |
(2,937) |
|
Personnel Costs |
(6,608) |
(5,386) |
|
Directors' Fees and Salaries |
(1,711) |
(1,610) |
|
Listing Expenses |
(996) |
(933) |
|
Professional Fees |
(312) |
(370) |
|
Reversal/(Raising) of impairment of loans: Four One |
69 |
(1,921) |
|
Re-instatement of impairment of loans: Spekboom Trading |
(530) |
- |
|
Fair value adjustment of the buffalo herd |
89 |
(1,812) |
The directors of Inqo reviewed the valuation placed on all income earning assets to ensure that they reflect their fair value. Following the reviews, the directors are of the view that Group assets as stated in the Statement of Financial Position are reflected at fair value.
INVESTEE COMPANIES: FINANCIAL, ENVIRONMENTAL AND SOCIAL PERFORMANCE COMMENTARY
Beyond the specific changes outlined below, there have been no other material developments or significant events impacting the investee companies during the period.
Kuzuko Lodge (Pty) Limited (South Africa)
For the year ended 28 February 2025, Kuzuko Lodge generated a profit, marking a significant financial turnaround from the previous year. Kuzuko Lodge reported a profit of R2,702,737 in the current financial year, a substantial improvement from the R2,882,391 loss recorded in 2024. This was driven by a 40% increase in revenue and a continued year-on-year upward trend in occupancy rates. The success is primarily attributed to targeted marketing efforts and disciplined cost containment strategies.
CARE Investees
· Flybox Budongo (BSF) Farm Limited (Uganda) forms part of the Uganda CARE project. lnqo has partnered with Mana Biosystems Limited (United Kingdom) (FlyBox UK) to implement the Black Soldier Fly project in Uganda. The purpose of insect farming is to upcycle organic waste into animal protein and compost. The business will initially sell larvae and eggs to farmers to grow to maturity by feeding on market and organic waste. These larvae can then be harvested for use as protein substitute in animal feed. At reporting date, Flybox UK had built the modular insect farms, however due to shipping and clearance delays, delivery only took place in July 2025. Trading is expected in the 2025/26 financial year.
· Pabidi Lodge Budongo Limited (Uganda) forms part of the Uganda CARE project. Pabidi Lodge is currently under construction and a soft opening is expected in September/October 2025. The lodge will be the only luxury accommodation offering sustainable ecotourism to guests in the Budongo Forest. The lodge will be operated by our joint-venture partner, Great Lakes Safaris, one of the leading tour operators in Uganda. Great Lakes Safaris hold the sole conservancy in the Budongo Forest, an 825 sq km forest that is home to more than 600 chimpanzees. The site clearance and construction of the lodge commenced during the reporting period.
· Empower Clean Cooking Limited (Uganda) forms part of the Uganda CARE project. Empower Clean Cooking Limited is a joint venture between Inqo and East African Power Limited. Empower Clean Cooking Limited will be managed and operated by East Africa Power, a highly experienced renewable energy developer and operator with hydro and solar plants in Rwanda, Uganda, DRC, Zambia, Zimbabwe and Kenya. The objective of the company is to safeguard the environment through providing clean cooking solutions to local environments. The joint venture will manufacture biomass pellets for cooking fuel as an alternative to wood and charcoal and to explore clean cooking solutions for the local community. The site clearance and preparation for the factory construction commenced during the reporting period.
SUMMARY OF SOCIAL & ENVIRONMENTAL METRICS SINCE PROJECT COMMENCEMENT
· Kuzuko Lodge
o 35,617 acres (14,414 hectares) of former farmland restored and protected as a game reserve
o 70 km of game fencing erected, including internal fencing
o 50 FTE staff at Kuzuko in standard housing with flush toilets, power, water and solar panels
o 120 fixed term jobs
o Conservation of 2 endangered species, 8 endangered species protected, 23 species introduced
o 32 cheetahs have been rewilded and/or translocated to other reserves through a conservation program aimed at restoring cheetah populations to their native habitats
· South Lake Medical Centre
o 119,214 patient visits including 1,498 HIV patients receiving care and/or counselling, 65,164 through community outreach, 147 safe deliveries, 205 surgeries and 622 antenatal care
o Expanded to 5 Health Posts (micro-clinics) for easier patient access
· Kentegra
o Payments of over US$2.6M to approximately 20,000 out-growers/farmers
o Digitised its Village Savings and Loans Associations program, which has seen significant savings and loans among farmers
· Sanergy
o 1,000 FTE, 2,000 indirect jobs, 5,000 toilets serving 270,000 people daily in Nairobi, Kisumu and Eldoret
· Spekboom Trading
o 5,185 hectares degraded land planted with 30 million spekboom; 350 fixed term jobs
· CARE Projects
o A baseline study was performed and the success of the projects will be measured against the outcomes of this study
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.
Dr K.S Tan R.H Steyn
Chairman Chief Financial Officer
Issued on: 29 July 2025
Enquiries:
Inqo Investments Limited
Robyn Steyn, Chief Financial Officer finance@inqo.co.za
Bowsprit Partners Limited (Corporate Adviser)
John Treacy / Luis Brime +44 (0) 203 833 4430
lnqo Investments Limited
(Registration Number 1998/024741/06)
Consolidated and Separate Annual Financial Statements for the year ended 28 February 2025
Statements of Financial Position
|
Group |
Group |
Company |
Company |
||||
|
Figures in R |
2025 |
2024 |
2025 |
2024 |
|||
|
Assets |
|||||||
|
Non-current assets |
|||||||
|
Property, plant and equipment |
150,135,998 |
151,980,926 |
148,852,935 |
150,894,907 |
|||
|
Right-of-use assets |
- |
68,147 |
|||||
|
Intangible assets |
7 |
840 |
|||||
|
Investments in joint ventures |
23,200,480 |
- |
23,200,480 |
- |
|||
|
Investments in subsidiaries |
4,175,418 |
1,503 |
|||||
|
Trade and other receivables |
- |
- |
- |
238,570 |
|||
|
Other investments |
7,252,632 |
7,306,227 |
5,584,912 |
5,638,507 |
|||
|
Loans to subsidiaries |
18,164,287 |
22,059,056 |
|||||
|
Total non-current assets |
180,589,117 |
159,356,140 |
199,978,032 |
178,832,543 |
|||
|
Current assets |
|||||||
|
Inventories |
4,144,227 |
4,295,937 |
3,565,400 |
3,702,582 |
|||
|
Trade and other receivables |
3,402,234 |
6,059,424 |
1,463,607 |
4,306,972 |
|||
|
Current tax assets |
195,227 |
- |
200,000 |
- |
|||
|
Biological assets |
1,066,000 |
977,000 |
1,066,000 |
977,000 |
|||
|
Cash and cash equivalents |
48,820,777 |
43,771,590 |
44,450,832 |
41,873,765 |
|||
|
Total current assets |
57,628,465 |
55,103,951 |
50,745,839 |
50,860,319 |
|||
|
Total assets |
238,217,582 |
214,460,091 |
250,723,871 |
229,692,862 |
|||
lnqo Investments Limited
(Registration Number 1998/024741/06)
Consolidated and Separate Annual Financial Statements for the year ended 28 February 2025
Statements of Financial Position
|
Group |
Group |
Company |
Company |
||||
|
Figures in R |
2025 |
2024 |
2025 |
2024 |
|||
|
Equity and liabilities |
|||||||
|
Equity |
|||||||
|
Ordinary share capital |
81,858,155 |
72,584,925 |
81,858,155 |
72,584,925 |
|||
|
Share premium |
108,296,468 |
87,585,270 |
108,296,468 |
87,585,270 |
|||
|
Accumulated loss |
(76,195,750) |
(95,364,654) |
(60,793,487) |
(77,755,359) |
|||
|
Revaluation reserve |
86,242,430 |
86,693,347 |
86,242,430 |
86,693,347 |
|||
|
Total equity attributable to owners of the parent |
200,201,303 |
151,498,888 |
215,603,566 |
169,108,183 |
|||
|
Non-controlling interests |
604,461 |
119,507 |
|||||
|
Total equity |
200,805,764 |
151,618,395 |
215,603,566 |
169,108,183 |
|||
|
Liabilities |
|||||||
|
Non-current liabilities |
|||||||
|
Deferred tax liabilities |
2,947,137 |
3,809,116 |
2,947,137 |
3,809,116 |
|||
|
Loans from related parties |
1,667,163 |
3,423,672 |
1,667,163 |
3,423,672 |
|||
|
Other loans |
- |
18,931,500 |
- |
18,931,500 |
|||
|
Total non-current liabilities |
4,614,300 |
26,164,288 |
4,614,300 |
26,164,288 |
|||
|
Current liabilities |
|||||||
|
Trade and other payables |
2,949,901 |
3,683,554 |
658,388 |
1,573,820 |
|||
|
Lease liabilities |
- |
80,155 |
- |
- |
|||
|
Dividend payable |
371,092 |
- |
371,092 |
- |
|||
|
Unutilised grant funding |
29,476,525 |
32,846,571 |
29,476,525 |
32,846,571 |
|||
|
Bank overdraft |
- |
67,128 |
- |
- |
|||
|
Total current liabilities |
32,797,518 |
36,677,408 |
30,506,005 |
34,420,391 |
|||
|
Total liabilities |
37,411,818 |
62,841,696 |
35,120,305 |
60,584,679 |
|||
|
Total equity and liabilities |
238,217,582 |
214,460,091 |
250,723,871 |
229,692,862 |
|||
lnqo Investments Limited
(Registration Number 1998/024741/06)
Consolidated and Separate Annual Financial Statements for the year ended 28 February 2025
Statements of Profit or Loss and Other Comprehensive Income
|
Group |
Group |
Company |
Company |
||
|
Figures in R |
2025 |
2024 |
2025 |
2024 |
|
|
Revenue |
25,864,966 |
20,610,801 |
3,387,242 |
5,159,563 |
|
|
Cost of sales |
(2,834,838) |
(2,421,823) |
- |
- |
|
|
Gross profit |
23,030,128 |
18,188,978 |
3,387,242 |
5,159,563 |
|
|
Other income |
20,260,338 |
3,630,200 |
19,822,854 |
1,944,872 |
|
|
Personnel expenses |
(8,319,350) |
(6,996,171) |
(1,396,273) |
(1,498,067) |
|
|
Depreciation and amortisation |
(2,118,447) |
(2,936,964) |
(1,927,194) |
(2,617,434) |
|
|
Listing expenses |
(996,071) |
(933,451) |
(996,071) |
(933,451) |
|
|
Professional fees |
(311,900) |
(369,556) |
(311,900) |
(369,556) |
|
|
Bad debt |
(7,189) |
- |
(7,189) |
- |
|
|
Provision for doubtful debts |
(314,261) |
(319,841) |
(314,261) |
(2,429,904) |
|
|
Impairment |
(460,880) |
(1,920,552) |
69,406 |
(1,920,552) |
|
|
Other expenses |
(12,922,423) |
(12,836,487) |
(4,178,725) |
(2,236,734) |
|
|
Profit/ (loss) from operating activities |
17,839,945 |
(4,493,844) |
14,147,889 |
(4,901,263) |
|
|
Inventory write (down)/up |
(137,182) |
(832,272) |
(137,182) |
(832,272) |
|
|
Fair value adjustment |
89,000 |
(1,811,980) |
89,000 |
(1,811,980) |
|
|
Finance income |
1,580,697 |
995,676 |
2,877,218 |
1,807,315 |
|
|
Finance costs |
(33,040) |
(167,020) |
(19,942) |
(62,675) |
|
|
Profit/ (loss) before tax |
19,339,420 |
(6,309,440) |
16,956,983 |
(5,800,875) |
|
|
Income tax credit |
896,130 |
1,005,869 |
1,150,903 |
1,005,869 |
|
|
Profit/ (loss) for the year |
20,235,550 |
(5,303,571) |
18,107,886 |
(4,795,006) |
|
lnqo Investments Limited
(Registration Number 1998/024741/06)
Consolidated and Separate Annual Financial Statements for the year ended 28 February 2025
Statements of Profit or Loss and Other Comprehensive Income
|
Group |
Group |
Company |
Company |
|
|
Figures in R |
2025 |
2024 |
2025 |
2024 |
|
Profit/ (loss) for the year attributable to: |
||||
|
Owners of Parent |
20,031,946 |
(5,262,858) |
18,107,886 |
(4,795,006) |
|
Non-controlling interest |
203,604 |
(40,713) |
- |
- |
|
20,235,550 |
(5,303,571) |
18,107,886 |
(4,795,006) |
|
|
Earnings per share from continuing and discontinuing operations attributable to owners of the parent during the year |
||||
|
Basic earnings per share |
||||
|
Basic earnings/ (loss) per share |
1.24 |
(0.36) |
1.12 |
(0.33) |
|
Diluted earnings per share |
||||
|
Diluted earnings/ (loss) per share |
1.24 |
(0.36) |
1.12 |
(0.33) |
|
Other comprehensive income net of tax |
||||
|
Components of other comprehensive income that |
||||
|
will not be reclassified to profit or loss |
||||
|
Revaluation of land and buildings |
(161,994) |
- |
(161,994) |
- |
|
Deferred taxation |
(288,923) |
- |
(288,923) |
- |
|
Total other comprehensive income that will not be reclassified to profit or loss |
(450,917) |
- |
(450,917) |
- |
|
Total comprehensive income |
19,784,633 |
(5,303,571) |
17,656,969 |
(4,795,006) |
|
Comprehensive income attributable to: |
||||
|
Comprehensive income, attributable to owners of |
||||
|
Parent |
19,581,029 |
(5,262,858) |
17,656,969 |
(4,795,006) |
|
Comprehensive income, attributable to non- |
||||
|
controlling interests |
203,604 |
(40,713) |
||
|
19,784,633 |
(5,303,571) |
17,656,969 |
(4,795,006) |
Statements of Changes in Equity - Group
|
Figures in R |
Ordinary share capital |
Share premium |
Revaluation Reserve |
Accumulated loss |
Attributable to owner of the parent |
Non-controlling interest |
Total |
|
Balance at 1 March 2023 |
72,584,925 |
87,585,270 |
86,693,347 |
(90,101,796) |
156,761,746 |
160,220 |
156,921,966 |
|
Changes in equity |
|||||||
|
Loss for the year |
(5,262,858) |
(5,262,858) |
(40,713) |
(5,303,571) |
|||
|
Total comprehensive income for the year |
(5,262,858) |
(5,262,858) |
(40,713) |
(5,303,571) |
|||
|
Balance at 29 February 2024 |
72,584,925 |
87,585,270 |
86,693,347 |
(95,364,654) |
151,498,888 |
119,507 |
151,618,395 |
|
Balance at 1 March 2024 |
72,584,925 |
87,585,270 |
86,693,347 |
(95,364,654) |
151,498,888 |
119,507 |
151,618,395 |
|
Changes in equity |
|||||||
|
Profit for the year |
20,031,946 |
20,031,946 |
203,604 |
20,235,550 |
|||
|
Other comprehensive income |
(450,917) |
(450,917) |
(450,917) |
||||
|
Total comprehensive income for the year |
(450,917) |
20,031,946 |
19,581,029 |
203,604 |
19,784,633 |
||
|
Dividend |
(1,146,014) |
(1,146,014) |
(1,146,014) |
||||
|
Issue of equity |
9,273,230 |
20,711,198 |
29,984,428 |
29,984,428 |
|||
|
Transfer from NCI due to change in control from subsidiary to joint venture |
282,972 |
282,972 |
281,350 |
564,322 |
|||
|
Balance at 28 February 2025 |
81,858,155 |
108,296,468 |
86,242,430 |
(76,195,750) |
200,201,303 |
604,461 |
200,805,764 |
|
Revaluation reserve is made up as follows: |
|||||||
|
Cumulative revaluation reserve |
111,545,532 |
||||||
|
Cumulative deferred taxation |
(25,303,102) |
||||||
|
86,242,430 |
Statements of Changes in Equity - Company
|
Figures in R |
Ordinary share capital |
Share premium |
Revaluation surplus |
Accumulated loss |
Total |
|
|
Balance at 1 March 2023 |
72,584,925 |
87,585,270 |
86,693,347 |
(72,960,353) |
173,903,189 |
|
|
Changes in equity |
||||||
|
Loss for the year |
(4,795,006) |
(4,795,006) |
||||
|
Total comprehensive income |
(4,795,006) |
(4,795,006) |
||||
|
Balance at 29 February 2024 |
72,584,925 |
87,585,270 |
86,693,347 |
(77,755,359) |
169,108,183 |
|
|
Balance at 1 March 2024 |
72,584,925 |
87,585,270 |
86,693,347 |
(77,755,359) |
169,108,183 |
|
|
Changes in equity |
||||||
|
Profit for the year |
18,107,886 |
18,107,886 |
||||
|
Other comprehensive income |
(450,917) |
(450,917) |
||||
|
Total comprehensive income |
(450,917) |
18,107,886 |
17,656,969 |
|||
|
Dividend |
(1,146,014) |
(1,146,014) |
||||
|
Issue of equity |
9,273,230 |
20,711,198 |
29,984,428 |
|||
|
Balance at 28 February 2025 |
81,858,155 |
108,296,468 |
86,242,430 |
(60,793,487) |
215,603,566 |
|
|
Revaluation reserve is made up as follows: |
||||||
|
Cumulative revaluation reserve |
111,545,532 |
|||||
|
Cumulative deferred taxation |
(25,303,102) |
|||||
|
86,242,430 |
lnqo Investments Limited
(Registration Number 1998/024741/06)
Consolidated and Separate Annual Financial Statements for the year ended 28 February 2025
Statements of Cash Flows
|
Group |
Group |
Company |
Company |
||
|
Figures in R |
2025 |
2024 |
2025 |
2024 |
|
|
Net cash flows from/ (used in) operations |
1,022,095 |
(11,800,817) |
(3,131,557) |
(7,620,425) |
|
|
Dividend paid |
(774,922) |
- |
(774,922) |
- |
|
|
Interest paid |
(11,873) |
(143,656) |
(633) |
(62,675) |
|
|
Interest received |
2,088,511 |
995,676 |
1,897,679 |
952,982 |
|
|
Income taxes paid |
(450,000) |
- |
(200,000) |
- |
|
|
Net cash flows from/ (used in) operating |
|||||
|
activities |
1,873,811 |
(10,948,797) |
(2,209,433) |
(6,730,118) |
|
|
Cash flows (used in)/ from investing activities |
|||||
|
Cash flows from loss of control of subsidiary |
(2,668) |
- |
- |
- |
|
|
Cash payments to acquire interests in joint ventures |
(21,471,197) |
- |
(21,470,696) |
- |
|
|
Proceeds from sales of property, plant and equipment |
91,435 |
(17,103) |
69,563 |
(17,011) |
|
|
Purchase of property, plant and equipment |
(1,424,849) |
(677,038) |
(104,934) |
(606,486) |
|
|
Loans (extended to)/repaid by subsidiary |
392,248 |
(6,214,097) |
|||
|
Loans (extended to)/repaid by other investments |
50,063 |
- |
50,063 |
- |
|
|
Grant funding received |
17,728,014 |
1,397,799 |
17,728,014 |
1,397,799 |
|
|
Cash flows (used in)/ from investing activities |
(5,029,202) |
703,658 |
(3,335,742) |
(5,439,795) |
|
|
Cash flows from financing activities |
|||||
|
Proceeds from issuing shares |
10,197,528 |
- |
10,197,528 |
- |
|
|
Payments to related parties |
- |
(1,087,917) |
- |
(939,606) |
|
|
Loans received related parties |
227,105 |
17,786,900 |
- |
17,786,900 |
|
|
Repayments of finance lease |
(80,680) |
(234,148) |
- |
- |
|
|
Cash flows from financing activities |
10,343,953 |
16,464,835 |
10,197,528 |
16,847,294 |
|
|
Net increase in cash and cash equivalents before effect of exchange rate changes |
7,188,562 |
6,219,696 |
4,652,353 |
4,677,381 |
|
|
Effect of exchange rate changes on cash and cash equivalents |
(2,072,247) |
1,461,509 |
(2,075,286) |
1,466,581 |
|
|
Net increase in cash and cash equivalents |
5,116,315 |
7,681,205 |
2,577,067 |
6,143,962 |
|
|
Cash and cash equivalents at beginning of the year |
43,704,462 |
36,023,257 |
41,873,765 |
35,729,803 |
|
|
Cash and cash equivalents at end of the year |
48,820,777 |
43,704,462 |
44,450,832 |
41,873,765 |
|