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MBABANE – The poor trading environment has reduced Swazi Spa Holdings Limited operating profit by 55.4 per cent.

Tibiyo TakaNgwane, which owns 39.69 per cent shareholding, has revealed that revenue in 2015 increased by only 0.6 per cent to E173 million compared to 2014 while operating profit decreased by 55.4 per cent.

This was attributed to an increase in operating costs in a poor trading environment.
“Profit before tax decreased by a staggering 67.4 per cent year on year to E1.3 million from E5.8 million the previous year. This resulted in headline earnings reducing by 68.3 per cent compared to prior year, from 4 113 to 1 305 in 2015,” disclosed Tibiyo TakaNgwane in the annual report for the year ended April 30, 2016.

Swazi Spa Holdings Limited was incorporated in December 1962 and listed on the Swaziland Stock Exchange in February 22, 1991. It is jointly owned by Tibiyo TakaNgwane and minority shareholders (10.4 per cent). The group owns and operates Sun International’s Hotels and Casino Resorts in the kingdom which comprise; Royal Swazi Spa, Country Club and Casino, Lugogo Sun Hotel and the Ezulwini Sun Hotel (currently mothballed) which are set at Swaziland’s arguably fastest developing town of Ezulwini. The company is a subsidiary of Sun International, company incorporated in South Africa.

In the report it was mentioned that continuation of the global financial crisis, the subsequent slowdown in economic activity in Swaziland, credit contraction and high volatility in material prices contributed to a difficult operating environment during the financial year. “The much needed recovery from the 2011 fiscal crisis has not materialised. Sluggish prospects in South Africa as well as persistent internal deficiencies continue to hinder economic recovery,” it was observed.

It was pointed out that the country was vulnerable to external shocks. It was stated that the economic environment continued to bear challenges to the hospitality and casino trade respectively and the situation was compounded by disposable income that remained constrained.


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