Two listed firms post good results
Shareholders of two of the 13 Malawi Stock Exchange (MSE)-listed companies are expected to reap benefits on dividends, thanks to better than expected profits they have posted, an analyst has said.
This follows published financial statements for three companies, namely TNM plc and Sunbird Tourism Limited plc, whose profits have more than doubled.
In an interview yesterday, a Blantyre-based analyst said the performance means good news to shareholders and improved service delivery from the companies.
“Since these are listed companies, the benefit goes to shareholders as they could receive better dividends and their share price may go up.
“Again, because the results are better, it is easier for the companies to obtain loans even at cheaper interest rates because of their positive performance,” he said.
According to published financial results, TNM plc has posted a 60 percent profit increase to K13.1 billion in the year ended December 31 2017 from K8.2 billion the year before while the hotel chain’s profit has gone up to K2.4 billion from K1.3 billion, a rise of 82 percent.
On the other hand, Standard Bank plc posted a profit of K12.1 billion, a drop from the previous year’s K19.4 billion.
The profits have resulted improved dividends expected to paid to shareholders.
TNM dividend has doubled to 60 tambala per share or K6 billion in the year under review from 33 tambala per share the previous year.
Sunbird has seen its dividend for the year rising to K238 million or 92 tambala per share from K105 million or 40 tambala per share the previous year.
While National Investment Trust Limited (Nitl), which has posted a loss after-tax of K2.2 billion from the previous year’s K1.1 billion, will pay a final dividend of 78 tambala per share from 70 tambala the previous year.
In the year under review, the country’s economic environment remained largely stable with inflation and interest rate on the downward spiral and kwacha exchange rate remaining stable.
In a statement accompanying the results, Sunbird board chairperson Phillip Madinga said they expect the economy to remain relatively stable and there is optimism that over the next three to five years, tourism may pick up.
“Directors are confident that the performance trajectory of the group will be maintained for the year 2018,” he said in the statement.
On the contrary, TNM board chairperson George Partridge said the macroeconomic environment is expected to remain challenging, putting pressure on margins and service revenue.
In an earlier interview, African Alliance Securities chief executive officer Armstrong Kamphoni said the MSE is largely driven by the performance of listed companies, stressing that the current environment helps companies to perform better.
