Gulaam Abdoola’s Turnstar Holdings reports 58-percent profit increase for FY2024

Oluwatosin Racheal Alabi -

Key Points

  • Turnstar Holdings Limited reported a 58% increase in profit before tax for FY2024, driven by a 13% rise in rental revenues.
  • The group’s operational profit increased by 15%, despite higher operational expenses.
  • Finance costs rose by 26% due to loan restructuring and currency appreciation, further boosting profits.

Turnstar Holdings Limited, led by Botswana real estate mogul Gulaam Abdoola, announced impressive financial results for the fiscal year ending Jan. 31, 2024. The group reported a 58-percent increase in profit before tax, driven by a rise in rental revenues across all jurisdictions.

Factors contributing to the 58-percent increase in profit before tax

Turnstar Holdings’ profit before tax increased by 58 percent, mainly due to a 13-percent rise in rental revenues, reaching BWP328.5 million compared to BWP291.3 million the previous year.

This growth was supported by rental income across all jurisdictions. Despite higher operational expenses, the group saw a 15-percent increase in operational profit, amounting to BWP22.8 million ($1.71 million).

The restructuring of certain loan facilities also positively impacted the financial results. Additionally, the appreciation of the US Dollar against the Botswana Pula contributed to the increase in the group’s finance costs, further enhancing profits.

Summary of financial performance

The group’s rental revenues surged by 13 percent, reaching BWP328.5 million ($24.64 million) compared to BWP291.3 million ($21.85 million) in the previous year. Despite increased operational expenses, operational profit rose by around 15 percent, totaling BWP22.8 million ($1.71 million).

The group also reported a gain in the fair value of its investment property portfolio, amounting to BWP49.8 million ($3.74 million) during the financial year. Due to the restructuring of certain loan facilities and the appreciation of the US Dollar against the Botswana Pula, finance costs rose by 26 percent.

The group’s profit before tax for the year ending January 31, 2024, is projected to be 58 percent higher, reaching BWP65.4 million ($4.91 million) compared to the previous year, reflecting strong overall performance.