TPS Eastern Africa(Serena) recorded a 2% increase in Net profit in 2019 to KSh 181.7 Million.
The audited financial statements of TPS Eastern Africa (Serena) for the year ended 31st December 2019, show the Group realized KSh 321.9 Million in pretax profit up from KSh 243.4 Million in 2018.
TPS Group runs the Safari Lodges chain and Camps, Hotels and top notch Resorts in East Africa.
Its revenue increased to KSh 6.8 Billion from KSh 6.6 Billion in the period under review.
Total Shareholders’ Equity increased from KSh 9.1 Billion to KSh 9.2 Billion with the Balance Sheet size growing from KSh 12.7 Billion to KSh 15.1 Billion during that period.
As effects of COVID-19 continue to worry many listed firms, TPS Eastern Africa will not be paying any dividends to shareholders due to what it describes as a difficult 2020.
Closure of hotels and lodges and other entertainment spots has severely affected most businesses in the hospitality industry, including Serena properties.
The Group will hold its Annual General Meeting(AGM) electronically, subject to approvals from the Capital Markets Authority(CMA).
The Company’s diversified portfolio in East Africa recorded growth in the corporate, conference, and domestic leisure segments, particularly in the second half of 2019.
Consequently, the portfolio performance during 2019 was optimized to the extent possible for all of Serena Kenya, Serena Tanzania, and Serena Uganda.
Despite new market entrants providing increased competition, all Serena City hotels performed well and hosted high profile guests and events throughout the year.
The Board and Management said quality and timely refurbishments of the company’s facilities in Nairobi, Kampala, and Dar es Salaam clearly positions the brand for sustainable regional growth in the years ahead.
The final redevelopment phase of Nairobi Serena Hotel (NSH), primarily encompassing the remaining half of the bedroom inventory, was successfully completed on 15 December 2019.
The hotel delivered incremental revenue for the full year through the new bedrooms, ballroom, meeting rooms, Herbs & Spices restaurant, a new 7th-floor executive lounge; and, of course, the rejuvenated public areas that were part of the first phase redevelopment completed in August 2018.
Expansion of the Serena brand through the opening of Goma Serena Hotel in the Democratic Republic of Congo (under a Management Agreement) is planned to take place during the second half of 2020.
The Company and its subsidiaries contributed significantly to the revenues of the governments of Kenya, Tanzania, and Uganda in 2019.
It also contributed huge sums in royalties and rents to the revenues of counties and local authorities in the various East Africa jurisdictions.
The management at TPS Eastern Africa has introduced effective contingency plans to mitigate risks caused by the COVID19 pandemic; and to minimize the operational and financial impact on its business, while ensuring that cash is preserved across the Group.
The company expects to suffer significantly low business in 2020 due to the government directives and protocols regarding the management of the pandemic.
The Group intends to leverage this downtime to continuously review, reassess, and reinvent its business and operating models, to personalize and enrich changing ways of meeting customer needs post COVID-19.
The company owns and operates 35 hotels as well as a selection of resorts, safari guest lodges, safari camps, palaces and forts located in strategic sites in Kenya, Tanzania, Zanzibar, Rwanda, Uganda, Mozambique, Pakistan, Afghanistan and Tajikistan.
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