Inqo Investments Ltd - Inqo Investments Ltd Audited Group Results FY2017 London Stock Exchange
RNS Number : 5113I
Inqo Investments Limited
20 June 2017







Inqo Investments Limited ('Inqo' or 'the Company') is a South African based social impact company that acquires and invests in businesses that tackle poverty and the social needs of  low income earners at the base of the economic pyramid in Sub-Saharan Africa.




The group started a process of consolidating its financial position in 2014 and we are pleased to report that the various negotiations entered into with lender institutions have been concluded resulting in a R14m write-back and a stronger balance sheet with no debt.


The results for the year reflect a profit before tax of R10,259,510 (2016: Loss of R4,718,271) equating to R0.61 cents per share. Revenues increased by 59% from R10,650,195 in 2016 to R17,026,098  in 2017.


The Selling & Administration expenses for the group amounted to R19,456,853 in 2016/7, the Kuzuko costs amounted to R13,837,149 while those of Inqo amounted to R5,869,837. The Kuzuko costs are traditional costs incurred by an operating unit in the game lodge hospitality industry. The material cost contributors for Inqo were depreciation R2,082,399, listing costs R572,019, directors emoluments R636,000, audit & professional fees R642,169 and impairments R629,169.


Investee companies


Kuzuko Lodge (South Africa)

The improved profitability of the group is mainly attributable to the Kuzuko Lodge operation, Inqo's main trading subsidiary which earned a profit before tax for the year of R783,706 (2016:  Loss of R950,638).


The profit turnaround has come about from the business being able to achieve both improved occupancies and improved average room rates.  As Kuzuko enters its ninth season of trading we expect this profit turnaround achieved in 2016/7 to continue into the future.


Conservation costs remain high as Kuzuko continues to rehabilitate the game reserve as well as the gradual introduction of more animals.


Spekboom Trading (South Africa)

The contract entered into with the Department of Environmental Affairs (DEA) to fund the planting of Spekboom on the Kuzuko Game Reserve to achieve reforestation of the Reserve and to create jobs in the local community has come to an end.  During the term of the contract some 500 acres of degraded land were replanted with Spekboom and in the process 100 job opportunities were created.


We are currently investigating other opportunities to continue the reforestation program.


Bee Sweet Honey (Zambia)

We concluded negotiations in the first quarter with Bee Sweet Honey Limited a Zambian commercial producer of honey. The number of beehives placed by the company increased by 50% taking the total to 90,000 beehives with 13,000 farmers in its programme. Output for 2016 was around 220 tons of honey for export.  Inqo invested an initial tranche of US$60,000 in this venture to allow Bee Sweet to acquire and supply an additional 3,000 hives and recruit 500 new farmers to the honey production programme. The bee hives are harvested twice a year and Inqo expects to earn its first revenues in the next financial year.


Four One Financial Services Limited (Uganda)

In April 2017, we made an investment in Four-One Financial Services Limited, a Ugandan based company which manages the Mazima Voluntary Individual Retirement Benefits Scheme.

The Mazima Retirement Plan is the trading name of Mazima Voluntary Individual Retirement Benefits Scheme (MVIRBS). It is a retirement savings scheme for low income earners in the informal sector of the economy. The poor and informal workers do not currently have any formal retirement savings schemes. The Uganda government has licensed Mazima to provide a voluntary savings scheme for such low income earners. Mazima is supervised by a group of trustees and is licensed and regulated by the Uganda Retirements Benefits Regulatory Authority (URBRA), the government body that regulates all pension and retirement benefits schemes. Four-One Financial Services is the management company responsible for marketing and administration of the Mazima retirement scheme. 


Savers register online and pay through mobile banking or e-banking through the bank. No cash is used. Each saver has his/her own account managed by the custodian bank, Housing Finance Bank. The investments are managed by AA Financial, a regulated advisor.




Inqo expects to benefit from the improved trading from the Kuzuko Lodge operation and the first revenues from each of the Bee Sweet Honey and Four One Financial Services Investment.


The improved room rates that have been achieved and the increased occupancies experienced at Kuzuko Lodge in the latter part of the 2016/7 year and the first quarter of 2017/8 are expected to continue on the back of the fact that the Rand remains weak against other currencies  making South Africa an attractive destination of travel.




·      39,000 acres 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 year on year, currently 55 fulltime and 12 part-time and contracted staff employed.

·      All staff living at Kuzuko in standard housing with flush toilets, power, water and solar panels.

·      Conservation of 3 endangered species.

·      Reforestation of 500 acres of degraded land with spekboom providing work for 100 part time staff.

·      90,000 beehives in the field providing 13,000 farmers with increased income.




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.




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 2017. A copy of these audited financial statements will be available on the company website by 21 June 2017.




The company has not declared a dividend for the year ended 28 February 2017.


K.S Tan                                                                       C.J Bertie

Chairman                                                                     Chief Financial Officer


19 June 2017





Inqo Investments Limited


Mr Chris Bertie, Chief Financial Officer


and Chief Operating Officer

Tel: +27 (0)83 625 4069



Shard Capital Partners LLP


NEX Exchange Corporate Adviser and Broker


Dr Wang Chong

Tel: +44 (0)20 7186 9948



Inqo Investments Limited Group 


Statements of profit or loss and other comprehensive income

for the year ended 28 February 2017









Finance income


















Profit/(loss) before taxation





10 259


(4 718)


Profit/(loss) for the year





7 391


(4 459)



Profit/(loss) attributable to:














7 391


(4 459)


Other comprehensive income











Statements of financial position

for the year ended 28 February 2017




















Biological assets




3 512


2 950



Total assets




143 525


150 913












Total equity




128 587


110 622






Statements of changes in equity

for the year ended 28 February 2017




Share capital

Share premium

Revaluation reserve

Accumulated loss

Non-controlling interest










Balance at 28 February 2016


58 198

58 228

60 200

(65 871)


110 622

Profit for the year




10 574

7 085


17 965

Balance at 28 February 2017


58 198

58 228

70 774

(58 786)


128 587










Restated balance at 28 February 2015


28 813

13 266

63 096

(61 545)


43 630

Share issue


29 385

44 962




74 347

Loss for the year




(2 896)

(4 326)


(7 355)



58 198 075

58 227 703

60 199 652

(65 871 034)

(132 561)

110 621 835

Restated balance at 29 February 2016


58 198

58 228

60 200

(65 871)


110 622



Statements of cash flows

for the year ended 28 February 2017
















28 Feb 17


29 Feb 16
















Cash utilised by operations





(4 004)


Net cash outflow from operating activities




(4 004)









Cash flows from investing activities







Increase in loans to subsidiary







Acquisition of other investments







Acquisition of property, plant and equipment and intangible assets



(2 288)


(1 757)


Disposal of property, plant and equipment







Net cash outflow from investing activities


(3 176)


(1 757)









Cash flows from financing activities







Loans and borrowings (repaid)/ received



(15 976)




Shares issued to new shareholder for cash





12 500


Loans from related parties received







Net cash (outflow)/inflow from financing activities



(15 954)


12 594


Net movement in cash and cash equivalents




(20 116)


6 833


Cash and cash equivalents at beginning of year



23 658


16 825


Cash and cash equivalents at end of year



3 542


23 658



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