TPS Eastern Africa Plc has reduced its net losses by more than half to KSh 632.9 Million at the end of 31st December 2021, compared to a net loss of KSh 1.2 billion in 2020.
In 2021, the Group achieved a turnover of KSh 3.3 billion compared to KSh 2.0 billion in 2020.
The improved performance was attributed to the strength and regional presence of the Serena Brand. At the same time, the Group managed to defer debt repayments to support operations under an exceptionally tough environment.
The Board of Directors of TPS say the effects of COVID-19 have not entirely disappeared, and forecasting remains challenging due to the short lead times in booking patterns.
While the Omicron variant disrupted travel in early 2022, TPS directors report that business levels during Q1 2022 have been reassuring.
TPS Financial Projections in 2022
The second half of 2022 is already indicating a market positive trajectory, based on forward bookings, and the board and management believe that the worst is over.
Barring any significant challenges, TPS said its business suppliers in traditional and emerging source markets have indicated that while the firm is still a long way off from pre-pandemic levels, there is increased interest in selling destination East Africa.
The recent exemption of Kenya, Tanzania and Uganda for travellers not fully vaccinated from the requirement of the PCR test for COVID 19 has also been well received globally.
The TPS Board of Directors does not recommend paying a dividend for the year ended 31st December 2022.
The Group said it is concentrating on ensuring a return to profitability by capitalizing on the expected business rebound and consistent implementation of cost-cutting measures.