TA Holdings says it will soon embark on a $5 million refurbishment exercise at Cresta lodges beginning after it finalised financing arrangements for the exercise.
TA holdings chief executive officer Gavin Sainsbury told shareholders at analysts briefing in Harare on Wednesday that the group was on course to meets its revenue target of $57 million by year end.
“The refurbishment of Cresta lodges is expected to be completed before the end of the year,” said Sainsbury. The group recorded revenues of $12, 9 million for the year ended March 31 2011 reflecting a 19% increase over the comparable period last year.
“Zimbabwe revenues were up 48% over prior year and outside of Zimbabwe were up 4%,” said Sainsbury. He however said the group continued to be weighed down by its agro-chemicals operations and PG Industries.
Sainsbury said operations from outside the country achieved profits that were in line with set targets. Sainsbury said, premiums grew by 22% at its local insurance arm earned premiums compared to the same period last year.
He said outside Zimbabwe net earned premiums increased by 2% and while Botswana recorded growth in profits and Uganda insurance recorded a loss.
Hotel performance in Zimbabwe revenues increased by 37% compared to last year mainly driven by improved revenue per available room of 40%.
Cresta Marakanelo’s performance was negatively impacted on by reduced arrivals at the Mowana Safari Lodge.
“This unit was expected to recover during the course of the year,” Sainsbury said
He said the results from Sable Chemicals were disappointing, but future prospects for the company remained positive in the medium term.
“Overall, we are currently on course to meet our revenue target of $57 million for the year and we believe that the group will record profits,” said Sainsbury.