NSE listed TPS Serena on Tuesday reported half year numbers posting an improved loss of Ksh 57.63Million compared to a loss of Ksh 97.28Million reported in the same period in 2015.
Sales were unchanged at Ksh 2.6 Billion while interest cost and depreciation spotted at high levels as Earnings Before Interest depreciation and taxation dropped by 7% to Ksh 170 Million.
The hotelier also noted that repairs and maintenance costs were relatively above the 2015 levels as management took advantage of reduced business activities to carry out various overhauls in some Tanzanian units. During the same period, the company also began the refurbishment of Nairobi Serena and Serena Kampala with a target of increasing its market share of the hospitality industry.
In the second half of the year, the company anticipates positive performance given the seasonal nature of the tourism industry in East africa as the peak of travel kicks-in from July to October. Serena Uganda and Tanzania are expected to post satisfactory performance on both leisure and corporate market segments. Overall, the East African region tourism industry is expected to be positivein the second half of the year.
Share Price Performance & Dividends
The board did not recommend payment of an interim dividend as this is in line with the company’s policy. The share price at the Nairobi Securities Exchange remained unchanged at a three day flat of Ksh 20.00 Per Share.––