TPS Eastern Africa Records HY Loss Before Tax of KES 74.2 Mn

Listed hospitality company TPS Eastern Africa, which is a Kenya-based company that owns and operates hotel and lodge facilities in Eastern Africa, serving the business and tourist markets has recorded a loss of KES 74.2Mn in its Half Year results compared to KES 139.5Mn in 2015.

The management is optimistic that their long term strategy will pay off.

“Given the seasonal nature of the tourism industry in East Africa, the results for the first half of 2016 are not a basis for forecasting a full year’s results. The business outlook for the peak season (July to October 2016) and the rest of the year is expected to be positive,” said the board in a statement through the Company’s Secretary Dominic Ng’ang’a.

Read: Kenyan Hospitality Industry to Grow at 6.1pc to 2020

The company which owns and operates hotel and lodge facilities in Eastern Africa saw its net loss drop from KES 97Mn in the first six months of 2015 to KES 57Mn in the same period this year.

The Company’s sales dropped to KES 2.66 billion compared to KES 2.67 billion a year ago citing a slow recovery of the tourism sector in Kenya due to travel advisories.

“However, the Kenyan coastal region will continue to record low occupancies, although improvement is forecasted from November 2016. Destination Mombasa needs a strong, efficient and competitive air transport sector. The general lack of charters and international scheduled direct flights into Mombasa from source market countries is unfortunately, making it difficult to market the destination,” the board states.

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The board has not declared any interim dividend for its shareholders.