Blantyre Hotels (BHL) plc has projected a K3.5 billion profit after-tax in the first half (H1) of 2025 after two years of posting losses due to expenses incurred through its Lilongwe hotel construction project.
The anticipated profit for six months from January to June 2025, according to a trading statement signed by company secretary Leonard Chisale, is attributed to interest earned on proceeds from its rights issue which raised K62.4 billion for the completion of the 180-room Lilongwe hotel project.
Commenting on the results, in an interview, Stockbrokers Malawi Limited equity investment analyst Kondwani Makwakwa said BHL, which posted a loss of K1.4 billion in 2024 from another loss of K793 million in 2023 due to finance charges related to the hotel project, could be benefiting from the investment it made through the rights issue.
He said the turnaround reflects not just improved cash flows, but also a stronger balance sheet and operational recovery.
In a separate interview, stock market investor and Minority Shareholders of Listed Companies in the Central Region chairperson Purity Chitalo described the BHL profit projection as inspiring, considering its performance challenges in the past years.
“The rights issue has definitely strengthened its financial position, especially towards the completion of the Lilongwe project which will boost its revenue going forward,” he said.
Following the raising of K62.5 billion through rights issue in December 2024, BHL shares have rarely traded on the stock market, leaving the share price unchanged at K14.55, a situation analysts say points to investors’ confidence on long-term gains.
BHL is 31.57 percent owned by the public, Nico Life Insurance Company Limited has 31.06 percent, Africap LLC owns 22.15 percent while Nico Holdings plc has 15.22 percent stake.
