Listed hospitality firm TPS East Africa
narrowed her losses by 41 per cent in the six months through June 2016
compared to the same period last year, but sales remained subdued.
The
company which owns and operates hotel and lodge facilities in Eastern
Africa saw its net loss drop from Sh97m in the first six months of 2015
to Sh57 million in the same period this year.
Sales
dropped slightly to Sh2.65 billion from Sh2.67 billion the previous
period on what the company attributed to slow recovery after travel
advisories were lifted in 2015 adding that the second half of the year
looks encouraging.
“Given the seasonal nature of
tourism in East Africa, the results for the first half cannot be used
as basis for forecasting full-year earnings,” TPS said in a statement to
the bourse.
Interest costs dropped sharply from Sh108 million to Sh54.7 million in the period under review.
The
management noted low occupancies in the coastal region due to
difficulties in marketing the region with lack of direct flights to
Mombasa from source markets.
TPS
said that it had commenced the refurbishment of its city hotel circuit.
"The move comes on account of increased competition within the city
hotel portfolio from the new international chains that have set up shop
in the last two years, all targeting the corporate and business
traveller segment," Standard Investment Bank noted.
Kenya’s
security sentiment has improved significantly with the capital city
hosting major global events on trade and investment and hosting key
global figures.
The board did not recommend declaration of an interim dividend for period.
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