Inqo swings into profit

Inqo Investments swung into the black in the six months to the end of August posting a pre-tax profit of R10,609,948 against a loss of R3,035,766 a year ago.

Inqo - a South African based social impact company that acquires and invests in businesses that tackle poverty and the social needs of low income earners - said the period since October 2014 has been one of consolidation and over this period the group has negotiated loan settlements with its two institutional lenders that have resulted in a R30 million interest saving.

The final DBSA transaction was settled in April 2016 and as a result, an interest write-back of R14 million was processed to the income statement. The loan with ECDC was settled in September 2016. The results for the six month period reflected a profit after tax for the six month period of R6,989,880 (August 2015 six month period: Loss of R3,035,766) equating to R0.60 per share with revenues of R5,324,300 (2015: R3,228,177), a rise of 65%.

It said the improved group results reflected in this six month period to 31 August have come about as a result of the improved trading at Kuzuko Lodge and the finalisation of the loan restructuring package entered into.