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 |
. 2,502,425 |
| Total non-current asset | 21,117,629 | 19,141,494 |
| Current asset Prepayments and other receivables Cash and cash equivalents |
|
. 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 |
. 10,469,705 |
| Total equity attributable to equity holders | 9,483,571 | 8,646,867 |
| Non-current liabilities Long term borrowings Loan from related companies |
. |
. |
| Total current liability | 9,583,843 | 9,262,766 |
| Current liability Short term borrowings Tax payable Trade and other payables |
|
. |
| 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). |
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) |
1,734,550 |
| 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
+230 402 0890
Company Secretary
+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.
