Paradise Hospitality Group Limited

PARADISE HOSPITALITY GROUP LIMITED

(formerly Paradise Property Investments Ltd)
(Incorporated in the Republic of Mauritius)
(Registration number: C144808 C1/GBL)
Having its address at c/o Intercontinental Fund Services Limited,
Level 5, Alexander House,
35 Cybercity, Ebene, 72201, Mauritius
(“Paradise Hospitality” or “the Company”)

UNAUDITED ABRIDGED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

DIRECTORS’ COMMENTARY

Paradise Hospitality Group Limited presents its results for the financial period from 01 July 2021 to 31 December 2021.

NATURE OF THE BUSINESS

Paradise Hospitality was established to acquire hospitality properties with fixed leases from renowned operators within the sub-tropical region (including, amongst others, countries such as Madagascar, Seychelles, Mauritius and Senegal) thereby providing shareholders with the opportunity to benefit from the buoyant hospitality market, without taking direct hospitality operating risk. By securing long term triple net leases (i.e. leases where the tenant is responsible for all property costs), the Company will generate consistent and sustainable hard currency returns to its shareholders.

The Company’s capital structure comprises unlisted Class A Ordinary Shares (“Class A shares”) and Limited Voting Class B Preference Shares (“Class B shares”) listed on the Official Market of the Stock Exchange of Mauritius Ltd (“SEM”). The terms of the Class B shares are as follows:

• Target dividend yield of 6.25% (which rank above Class A shares);
• Hold voting rights of 1 vote for every two Class B shares held; and
• Rank equally in all other respects.

DIVIDENDS

No dividends were declared or paid during the period under review.

OVERVIEW

On 27 January 2020, Paradise Hospitality acquired the Club Med Cap Skirring Hotel located in Casamance, Senegal. The 4 trident resort consists of 205 rooms, 2 restaurants, 3 bars, 9-hole golf course, 6 tennis courts, 1 nautical center and 1 pool (the “Resort”).

EUR 6.4 million of the Provisional Purchase Price was funded through a debt facility from ABC Banking Corporation Ltd. The loan was initially availed Paradise Hospitality (100% shareholder of Casamance) and injected into Casamance through a EUR 6.4 million shareholder loan. On 19 June 2020, the debt facility was reset and made available to Casamance.

Due to the Covid-19 pandemic, the Company provided rent deferral support to Club Med for nine months (from 1 April 2020) up to 31 December 2021. Club Med fully settled the rent deferral in January 2021. Due to the prolonged impact of Covid -19 on Senegal and the hospitality sector, the Company agreed to provide Club Med with a rental concession from 1 January 2021 until the earlier of when the Resort opened or 31 December 2021. In exchange, the parties have agreed to extend the development program, as well as undertake only key refurbishment works on the property during 2021 with the bulk of the program taking place in 2022 and 2023, once the hospitality market has stabilised.

DEBT FUNDING

Casamance secured debt funding from ABC Banking Corporation Ltd to repay Paradise Hospitality’s shareholder loan, which was initially used to fund the acquisition of the Resort. The debt facility of EUR 6.4 million provided by ABC Banking Corporation Ltd to Casamance attracts interest at 3-month Euribor plus 4.25%, and is repayable over a 5-year term with a capital repayment moratorium of 1.5 years.

GOING CONCERN

Due to the Covid-19 pandemic, the Company is expecting to provide Club Med with a rental concession until December 2021.

The Company has the financial support of its current ultimate holding company (Grit Real Estate Income Group Limited) and the latter will provide financial support to the Company for the next 12 months.

Together with the above, having considered the Company’s pipeline assets, budget and cash flow, the directors believe that the Group will have adequate financial resources to continue in operation for the foreseeable future and accordingly the financial statements have been prepared on a going concern basis. The directors have satisfied themselves that the Group is in a sound financial position and that it has access to sufficient borrowing facilities to meet its foreseeable cash requirements. The directors are not aware of any new material changes that may adversely impact the Group. The directors are also not aware of any material non-compliance with statutory or regulatory requirements or of any pending changes to legislation which may affect the Group. The Group and Company have adequate financing facilities and monitors its covenants throughout the going concern period, the inherent uncertainty in future property valuations as a result of the COVID-19 pandemic are such that, in the event that property valuations across the portfolio decrease more severely or quickly than expected, then it may indicate a material uncertainty that may cast significant doubt on the Group’s and Company’s ability to continue as a going concern and are referenced in the external auditors’ Independent Audit Opinion. The Company and Group financial statements do not include the adjustments that would result if they were unable to continue as a going concern.

COMPARATIVES

The Company did not present consolidated financial statements last year as it did not consider the impact of the consolidated numbers to be materially different from the separate financial statements. Comparatives have been updated to reflect group numbers during the current year.

STATEMENT OF FINANCIAL POSITION Unaudited as at
31-Dec-2021
Unaudited as at
30-Jun-2021
Assets
Non-current asset
Amount receivable from related company
Property, plant and equipment
Investment property

.

2,566,290
11,102
18,540,237

.

2,502,425
20,498
16,618,571

Total non-current asset 21,117,629 19,141,494
Current asset
Prepayments and other receivables
Cash and cash equivalents


338,404
312,920

.
1,134,753
230,001
Total current asset 651,324 1,364,754
Total assets 21,768,953 20,506,248
Equity and liabilities
Total equity attributable to equity holders
Stated capital: Class A shares
Stated capital: Class B shares
Accumulated losses

.

10,469,705
700,000
(1,686,134)

.

10,469,705
700,000
(2,522,838)

Total equity attributable to equity holders 9,483,571 8,646,867
Non-current liabilities
Long term borrowings
Loan from related companies

.
4,786,931
4,796,912

.
1,134,753
230,001

Total current liability 9,583,843 9,262,766
Current liability
Short term borrowings
Tax payable
Trade and other payables


1,600,000

222,851
878,688

.
800,000
265,608
1,531,007

Total current liability 2,701,539 2,596,615
Total liability 12,285,382 11,859,381
Total equity and liability 21,768,953 20,506,248

Net asset value per Class A share (cents).
Net asset value per Class B share (cents)

84.90
84.90

77.41
77.41
CONDENSED STATEMENT OF COMPREHENSIVE INCOME Unaudited for the
period ended
31 December 2021
EUR
Unaudited for the
period ended
31 December 2020
EUR
Rental income 657,425 659,965
Interest income 63,348 63,348
Other income 34,212
Profit on disposal of subsidiary 5,499
Fair value on investment property 569,198 2,900,797
Administration expenses (269,635) (25,579)
Finance cost (224,115) (210,402)
Profit before taxation 835,932 3,388,129
Taxation expense 1,738
Profit for the year 835,932 3,389,867
STATEMENT OF CHANGES IN EQUITY Stated Capital: Class A EUR Stated Capital: Class B EUR Stated Capital: Class C EUR Total equity EUR
Balance 1 July 2020

10,469,705

700,000

(1,486,985) 9,682,720
Share issue: Class A1
Loss and total comprehensive income
for the year
(1,035,853) (1,035,853)
Balance at 30 June 2021 10,469,705 700,000 700,000 8,646,867
Balance 1 July 2021 10,469,705 700,000 (2,522,838) 8,646,867
Share issue: Class A1
Profit and total comprehensive income for the year 835,932 835,932
Balance at 31 December 2021 10,469,705 700,000 (1,686,906) 9,482,799

1 Issue of Class A shares: In order to finance the acquisition of Club Med Cap Skirring Hotel in Senegal, 9,169,702 Class A shares were issued to the existing Class A shareholder on 28 January 2020, at a price of EUR 1 per share.

 

CONDENSED STATEMENT OF CASH FLOWS Unaudited for the
period ended
31 December 2021
EUR
Unaudited for the
period ended
31 December 2020
EUR
Net cash from operating activities
Net cash from financing activities
Cash used in investing activities
Net movement in cash and cash equivalents

(671,223)
10,169,506
(2,883,814)
6,614,469

1,734,550
9,015,690
(17,139,591)
(6,389,351)

Cash at beginning of the year (6,384,468) 4,883
Total cash at the end of the year 230,001 6,384,468)
NOTES

The Company is required to publish its unaudited financial results for the six months ended 31 December 2021 in terms of SEM Listing Rule 12.14 and Section 88 of the Securities Act 2005. Accordingly, this announcement presents the unaudited financial results of the Company in respect of the period ended 31 December 2021, i.e. from 01 July 2021 to 31 December 2021.

The unaudited abridged financial statements for the period ended 31 December 2021 (“abridged financial statements”) have been prepared in accordance with the framework concepts and measurement and recognition requirements of International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), interpretations issued by the IFRS Interpretation Committee (“IFRS IC”), the Companies Act 2001 (as amended), the Financial Reporting Act 2004, the Securities Act 2005,and the SEM Listing Rules.

These abridged financial statements were approved by the Board on 28 February 2022. PricewaterhouseCoopers Mauritius have issued their unmodified audit opinion on the Group’s financial statements. These abridged financial statements have been derived from the Company’s audited financial statements for the year ended
30 June 2021 (“audited financial statements”). Copies of the audited financial statements, the unmodified audit opinion and the Statement of direct and indirect interests of each officer of the Company, pursuant to Rule 8(2)(m) of the Securities (Disclosure Obligations of Reporting Issuers) Rules 2007, are available free of charge, upon request at the Registered Office of the Company at c/o Intercontinental Fund Services Limited, Level 5, Alexander House, 35 Cybercity, Ebene 72201, Mauritius. Contact person: Mrs. Smitha Algoo-Bissonauth.

The Board accepts full responsibility for the accuracy of the information contained in these abridged financial statements. The directors are not aware of any matters or circumstances arising subsequent to the period ended 31 December 2021 that require any additional disclosure or adjustment to the financial statements.

By order of the Board

28 February 2022

SEM authorised representative & sponsor

perigeum_logo

+230 402 0890

Company Secretary

picture-1

+230 466 3999

Directors: David Love (Independent Chairman), Greg Pearson (Non-Executive director), Catherine Mcllraith (Non-Executive director) and Moira van der Westhuizen (Executive director)

Company secretary: Intercontinental Fund Services Limited

Registered office address: C/o Intercontinental Fund Services Limited, Level 5, Alexander House, 35 Cybercity, Ebène, 72201, Mauritius

Registrar and transfer agent (Mauritius): Intercontinental Secretarial Services Limited

SEM authorised representative & sponsor: Perigeum Capital Ltd

 

This communiqué is issued pursuant to SEM Listing Rules 11.3 and 12.14 and Section 88 of the Mauritian Securities Act 2005. The Board of Paradise Hospitality accepts full responsibility for the accuracy of the information contained in these abridged financial statements.

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