Inqo Investments hails international guest bookings as profit grows
Inqo Investments Ltd on Friday posted an improvement in annual profit, and noted the growth of operations in Uganda.
The Cape Town-based investment firm owns luxury hospitality businesses, its main asset being Kuzuko Lodge in South Africa's Eastern Cape. It touts itself as a socially and environmentally responsible company.
In the year ended February 28, Inqo's revenue grew 31% to ZAR33.8 million, or £1.6 million, from ZAR25.9 million.
Pretax profit surged by 87% to ZAR26.3 million from ZAR19.4 million, with attributable profit advancing to ZAR27.9 million from ZAR20.0 million. Diluted earnings per share ticked up to ZAR1.71 from ZAR1.24. Cost of sales rose to ZAR3.5 million from ZAR2.8 million.
At Kuzuko Lodge, net profit nearly doubled to ZAR5.3 million from ZAR2.7 million, fuelled by "an upward trajectory in occupancy rates".
"These results reflect the long-term impact of our targeted marketing efforts, disciplined cost-containment measures, and sustained international guest demand," Inqo noted.
The company also said that its conservation and rural enterprise, or CARE, framework in Uganda had made progress. CARE's untutilised grant funding liability decreased by 51% to ZAR14.3 million from ZAR29.5 million a year earlier.
"Shareholders should note that as the CARE grant is progressively utilised, the associated grant income recognised will naturally reduce, and profitability is expected to normalise over time unless replaced by other sources of funding or new income generated from the CARE projects," Inqo said.
CARE includes an organic waste recycling venture and Pabidi Lodge Budongo, located in Uganda's Murchison Falls National Park, which opened in April through a partnership with Great Lakes Safari.
Inqo ended February with a cash balance of ZAR38.4 million, versus ZAR48.8 million a year prior, and total assets worth ZAR251.2 million, up from ZAR238.2 million on-year. The company reported no bad debt as of February 28, compared with ZAR7,189 a year earlier.
It claims to be "driving employment through infrastructure development and supporting our outgrower farmer model" in the Sub-Saharan African countries in which it operates.
The Eastern Cape, where Inqo's main asset is situated, is one of South Africa's poorest regions, with about 90% of children in the province's public schools relying on school meal programmes for food, according to South African government data.
Inqo shares were last quoted at 67.50 pence each on Friday afternoon on London's Aquis Exchange.
Copyright 2026 Alliance News Ltd. All Rights Reserved.