The switch‚ precipitated by the challenges facing the tourism sector and the growing opportunities identified in the broader property industry‚ played a pivotal role in the group reducing its headline loss from R25m to R3.7m for the year to June.
This translated into a headline loss per share of 1.26c versus a loss of 8.52c per share in the previous year.
Revenue achieved for the year under review was R13.9m‚ in comparison with the R34.2m achieved in the prior comparative period.
Prior-year revenue was made up of three segments: Hotel (R11.3m)‚ travel and tourism (R11.8m) and residential letting (R11.0m).
"Expenses have reduced substantially since the conversion of the hotels to rental apartments. However‚ due to the continuing cash-flow challenges‚ the group is still burdened with legacy costs that stem from the hotel operations‚" the group said.
"In addition‚ the disposal of the properties that were transferred during the reporting period resulted in a loss for the group of R8.4m‚ therefore inflating expenditure.
"A loss of R17.2m is reported‚ reflecting the marked decrease in overall group revenue and marked decrease in operating expenses in line with the change from hotel operations to the rental operations‚" the group said.
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