http://www.proactiveinvestors.co.uk Proactiveinvestors RSS feed en Wed, 26 Sep 2018 15:12:09 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Brainworks wants to build hotels again in Zimbabwe, says CEO Childs ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/10514/brainworks-wants-to-build-hotels-again-in-zimbabwe-says-ceo-childs-10514.html Tue, 18 Sep 2018 16:18:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/10514/brainworks-wants-to-build-hotels-again-in-zimbabwe-says-ceo-childs-10514.html <![CDATA[News - Brainworks revenues boosted by higher hotel occupancy in Zimbabwe ]]> http://www.proactiveinvestors.co.uk/companies/news/204657/brainworks-revenues-boosted-by-higher-hotel-occupancy-in-zimbabwe-204657.html Mauritius–based leisure and property firm Brainworks Limited (JSE:BRA) posted a profit in its latest half year as it disposed of its financial services interests.

Brainworks is listed in Johannesburg, but most of its assets are in the Victoria Falls areas of Zimbabwe.

Watch: Restructure sees Brainworks Ltd dispose of financial services assets

Brett Childs, chief executive, said revenue rose in the half year to June due to an exceptional occupancy rate in its hotels as recent changes to politial background in Zimbabwe sparked a rise in the number of visitors.

Interim turnover was 28% higher at US$31mln compared to US$24mln a year ago, while there was a profit of US$7.3mln against a US$5.2mln loss and US$8m loss for the previous financial year.

Childs added: “It has been extremely gratifying to see the group’s strategy begin to deliver.

"Our other investments also performed well. The sale of our financial services businesses was an integral part of our strategy as we can now focus on implementing our value chain integration”.

The second half of 2018 is the peak trading season for the group, Childs said, and performance is expected to improve further due to the new Victoria Falls airport.

In Harare, a refurbishment of the Robert Gabriel Mugabe International Airport in Harare will lead to further improvement in occupation and rates.

Brainworks has completed its maiden residential project, which should help revenues and profitability for the year.

Group debt dropped 36% to US$24.5mln and that also should help the second half.

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Tue, 11 Sep 2018 15:48:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/204657/brainworks-revenues-boosted-by-higher-hotel-occupancy-in-zimbabwe-204657.html
<![CDATA[News - Brainworks trims stake in fintech GetBucks ]]> http://www.proactiveinvestors.co.uk/companies/news/201935/brainworks-trims-stake-in-fintech-getbucks-201935.html Brainworks Limited (JSE:BRA) has cut its stake in Zimbabwe fintech group GetBucks to reduce its short-term debt.

The Johannesburg-listed group raised US$565,000 from the disposal, which comprised sales of shares to Stodaflo and related company Fodnort.

WATCH: Restructure sees Brainworks Ltd dispose of financial services assets

Brainworks had said previously it wants to exit financial services and focus on hospitality, which include hotels near to Victoria Falls in Zimbabwe, and real estate.

GetBucks reported net profit after tax of US$2.58mln for the six months ending December 2017 and had total net assets of US$15.5mln.

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Tue, 31 Jul 2018 10:13:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/201935/brainworks-trims-stake-in-fintech-getbucks-201935.html
<![CDATA[News - Brainworks to test investors' appetite for Zimbabwe with fund raise ]]> http://www.proactiveinvestors.co.uk/companies/news/197106/brainworks-to-test-investors-appetite-for-zimbabwe-with-fund-raise-197106.html Brainworks Limited (JSE:BRA) is refocusing its attention on its core assets of real estate and hospitality as it plans to dispose of its financial services arm as part of a restructuring.

Brett Childs, chief executive of the Zimbabwe-focused group, said financial services had already returned around twenty-times its initial investment and the group had decided to “take the money off the table”.

WATCH: Restructure sees Brainworks Ltd dispose of financial services assets

Following the November 2017 coup in which President Robert Mugabe was ousted by the Zimbabwe military and replaced with former first vice-president Emmerson Mnangagwa, Childs believes the country is primed as a key investment and tourist destination, which has driven the decision to regroup around hospitality.

The firm’s initial fundraising plans when it floated on the Johannesburg exchange in October 2017 were scuppered by investor scepticism, given political uncertainty in the country, but given the recent changes, this attitude could be on the turn.

“I think the President is saying the right things, that the country is open for business, and after the inauguration there was an immediate reaction from the investment community” Childs told Proactive.

“We’ve seen the interest pick up tremendously. If the next set of elections are verified by the EU, IMF and other global organisations, we will see Zimbabwe take off as an investment destination.”

Childs added that trading had already improved: “The last quarter at the end of March, which is generally our low season has been our best quarter for a number of years” says Childs.

“In Victoria Falls we have 3 hotels, around 750 beds, and over the Easter weeks we had 94% occupancy, so it is an exciting time to be involved in tourism” he adds.

The company is eyeing up a fund raise

Childs said: “We are looking to bring in US$15mln into the market, as sort of a test to see how investors are viewing Zimbabwe following the changes.”

The fund raise will also allow Brainworks to pay down some debt and give a small war chest to go after some opportunities that are here in Zimbabwe, he added.

The capital raise is expected to close around mid-June of this year.

Acquisitions might include third-party providers of guest activities at its hotels, such as tours and safaris.

“We have already picked out a couple of the best opportunities in our supply chain and we would like to go after those,” says Childs.

“We pick up a commission of about 20% for each guest that books with them, so we think why not pick up 100%?” he adds.

At last close, shares in Johannesburg-listed Brainworks stood at R7.5, with a market cap of around R647mln.

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Wed, 16 May 2018 12:10:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/197106/brainworks-to-test-investors-appetite-for-zimbabwe-with-fund-raise-197106.html
<![CDATA[Media files - Restructure sees Brainworks Ltd dispose of financial services assets ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/9259/restructure-sees-brainworks-ltd-dispose-of-financial-services-assets-9259.html Thu, 10 May 2018 11:13:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/9259/restructure-sees-brainworks-ltd-dispose-of-financial-services-assets-9259.html <![CDATA[News - Brainworks to exit financial services as part of restructuring ]]> http://www.proactiveinvestors.co.uk/companies/news/196579/brainworks-to-exit-financial-services-as-part-of-restructuring-196579.html Zimbabwe-focused Brainworks Ltd (JSE:BRA) is planning to dispose of its financial services assets, according to reports in Africa.

The Johannesburg Stock Exchange listed company is to focus on its hospitality, leisure and real estate as part of a proposed restructuring.

WATCH: Brainworks to exit financial services as part of restructuring

"It is expected that these market segments will continue to benefit from the recent political changes in Zimbabwe,” the company is quoted saying.

Brett Childs, company’s chief executive, said: “Considering the recent positive developments in Zimbabwe’s economic environment, the board has resolved to focus efforts on hospitality, leisure and real estate.

"We aim to continue building a portfolio that will deliver capital growth and offer exposure to prominent Zimbabwe based assets."

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Tue, 08 May 2018 16:37:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/196579/brainworks-to-exit-financial-services-as-part-of-restructuring-196579.html
<![CDATA[News - Brainworks raises US$8mln through treasury share issue ]]> http://www.proactiveinvestors.co.uk/companies/news/186480/brainworks-raises-us8mln-through-treasury-share-issue-186480.html Zimbabwe –based hospitality and property group Brainworks Limited (JSE:BWZ) has raised US$8.2mln following the placement of just over nine million treasury shares at R11.50 per share (US$90c).

The relevant shares will be transferred to investors on receipt of the necessary approval from the Reserve Bank of Zimbabwe, while the funds will be used to strengthen the balance sheet. 

Brainworks listed on the Johannesburg Stock Exchange through an introduction earlier in October.

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Fri, 27 Oct 2017 09:11:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/186480/brainworks-raises-us8mln-through-treasury-share-issue-186480.html
<![CDATA[News - Brainworks expects foreign visitor boost in second half ]]> http://www.proactiveinvestors.co.uk/companies/news/186179/brainworks-expects-foreign-visitor-boost-in-second-half-186179.html Brainworks Limited (JSE:BWZ) reported an uptick in occupancy at its hotels in Zimbabwe, boosted by lower room rates and a pick up in international visitor numbers after an upgrade to the airport at Victoria Falls.

The hospitality-to-finance conglomerate has all of its businesses in Zimbabwe and overall reported a 23% rise in revenues to US$24.3mln in the six months to June.

READ: Brainworks Ltd lists in Johannesburg

Hotel occupancy increased to 45% from 37% with revenue per available room or RevPAR, the industry benchmark, rising by 14% to US$40.

Losses, though, rose to US$4.87mln from US$2.2mln due to US$3.3mln of one-off and other expenses as the company spent heavily ahead of its listing on the Johannesburg Stock Exchange (JSE) earlier this month.

Brainworks added will seek a secondary listing on the Zimbabwe Stock Exchange by the end of next year to follow associate Getbucks, which listed on that exchange in January last year.

READ: Brainworks rethinks finance plans after float shortfall

Traditionally, the group makes as loss in the period as the tourist season occurs in the second half and said the outlook was promising especially at the Victoria Falls-based hotels where foreign arrivals are rising following the improvements to the International Airport.

A maiden residential project of 58 units will also start to be sold.

 

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Wed, 25 Oct 2017 10:25:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/186179/brainworks-expects-foreign-visitor-boost-in-second-half-186179.html
<![CDATA[News - Brainworks Ltd lists in Johannesburg ]]> http://www.proactiveinvestors.co.uk/companies/news/186174/brainworks-ltd-lists-in-johannesburg-186174.html Brainworks Ltd (JSE:BWZ) has gone ahead with its listing on the Johannesburg Stock Exchange even though it has had to redraw its financing plans.

The hospitality and finance conglomerate is the first Zimbabwe-focused company listed under the JSE’s Equity Investment Instruments (EII) sector.

Brett Childs, chief executive of Brainworks, said that the company would now look to market a convertible loan note.

The intention was to raise US$25mln in the listing but a combination of the political uncertainty in Zimbabwe (with elections next year) and a ‘wait and see’ attitude among investors scuppered the plan, said Childs.

Mauritius-domiciled and structured as a holding company, Brainworks’ stakes currently include 57.7% in hotel and casino group African Sun, which is listed on the Zimbabwe Stock Exchange (ZSE).

The group also owns 66.8% of property group Dawn Properties; a 31.1% stake Zimbabwe microfinance provider GetBucks; 49% of GetCash, a mobile money transfer platform and all of life insurance group GetSure.

Revenues in 2016 were US$48mln and underlying earnings US$ 7mln.

“We aim to be the major player in Zimbabwe in the markets we have selected and hospitality in particular,” said Childs.

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Mon, 16 Oct 2017 09:23:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/186174/brainworks-ltd-lists-in-johannesburg-186174.html
<![CDATA[Media files - Brainworks rethinks finance plans after float shortfall ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/8232/brainworks-rethinks-finance-plans-after-float-shortfall-8232.html Thu, 12 Oct 2017 15:40:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/8232/brainworks-rethinks-finance-plans-after-float-shortfall-8232.html <![CDATA[Media files - Brainworks looking to raise US$25mln in Johannesburg IPO ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/8162/brainworks-looking-to-raise-us25mln-in-johannesburg-ipo-8162.html Thu, 28 Sep 2017 16:02:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/8162/brainworks-looking-to-raise-us25mln-in-johannesburg-ipo-8162.html <![CDATA[Media files - Brainworks Ltd looking to corner the hospitality & real estate sectors in Zimbabwe ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/7864/brainworks-ltd-looking-to-corner-the-hospitality-real-estate-sectors-in-zimbabwe-7864.html Tue, 01 Aug 2017 14:18:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/7864/brainworks-ltd-looking-to-corner-the-hospitality-real-estate-sectors-in-zimbabwe-7864.html