By Benadetta Chiwanda Mia:
Blantyre Hotels Limited (BHL) has revised its expected loss-after-tax for the financial year ended December 31, 2024.
The company now anticipates a loss of between 36 percent and 48 percent, higher than the projected loss of K918 million, which was listed in the rights offer prospectus for the same period.
This adjustment was outlined in a revised trading statement published on Wednesday.
It follows BHL’s initial trading statement in December 2024, in which the company projected a significantly higher loss of between 85 percent and 102 percent above the K918 million estimates.
The earlier projection was attributed to a consolidated loss resulting from the inclusion of financial losses registered by Oasis Hospitality Limited, as well as higher- than-expected expenditure related to the rights issue offer.
However, the revised figures indicate an improved financial position compared to the initial estimates.
The company stated that the consolidated loss stems primarily from finance charges incurred on obligations related to the Lilongwe Hotel Project rather than from the operations of Ryalls Hotel in Blantyre.
BHL Board Chairperson Vizenge Kumwenda said the revised trading statement depicted an improved position as it indicated a reduced loss than had previously been projected.
“We are constantly reviewing our cashflows against the requirements of the Lilongwe Project. At the moment, as per results of the rights issue that were published in December 2024, all required capital was raised,” Kumwenda said.
Market analyst Kondwani Makwakwa noted that BHL’s expected loss was largely due to accounting adjustments related to consolidation, rather than direct cash outflows or liquidity constraints.
“Looking ahead, upon completion of the hotel construction [project], the group has the potential to generate sustainable revenue, which could enhance profitability and strengthen its asset base,” Makwakwa said.
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