BDC Financial Results Announcement for FY16
Half way into its 5-year strategy, Botswana Development Corporation (BDC) continues to realise sustainable growth. Progress on the Corporation’s undertakings made in alignment with BDC’s strategy was shared by Managing Director, Mr. Bashi Gaetsaloe, along with the outline of the financial results for year ended 30 June 2016 by the CFO, Mr Mbako Mbo. This was shared at a stakeholder briefing session on Tuesday 06th December 2016 at Cresta Lodge.
“The end of the 2016 financial year marks the midpoint of our current 5-year strategy. The first half, that just concluded was led by our business transformation initiative and consolidating the kind of outcomes that have realised increased growth from our portfolio,” said Mr. Bashi Gaetsaloe. “Looking ahead, our focus is now on investing into new ventures to expand and solidify our portfolio, while in turn accelerating our contribution to Botswana’s economic development and diversification. We have an extensive pipeline of earmarked investments existing which we are confident will contribute significantly to Botswana’s development agenda, whilst at the same time providing satisfactory financial returns to our main shareholder.”
Key financial highlights shared include:
- BDC Company overall profits before tax for the year ended June 2016 stood at P224 million, a significant increase of 104% from P110 million recorded in 2015.
- BDC Company total revenues increased by 24% to P384 million from P310 million in 2015.
- Company revenues from operations closed the year at P262 million, a 35% increase from the year ended June 2015.
- Company asset growth experienced a 9% rise to P212 million net growth against a P26 million reduction in total liabilities. An additional P239 million growth was realised in shareholder funds, representing a 14% year-on-year growth.
- BDC Group assets grew 6% to P4.4 billion driven, mainly by a growth in BDC (Company) net asset base, whilst group level shareholders’ funds experienced a conservative 3% growth to P3.2 billion.
Concluded Mr. Gaetsaloe, “BDC is mandated to deliver both a financial as well as a development return to the shareholder. We are pleased to report that in this current financial year we have managed to achieve both of these priorities for our shareholder. Not only have we realised profits, but we have also created 830 new jobs while sustaining 4793 net jobs across our portfolio of companies. In the year just ended BDC approved funding of P588M to new projects which contributed to diversification of the economy, generated exports and expanded the private sector.”
Continued Gaetsaloe, “We are extremely pleased to be able to declare and pay a divided to our shareholder – the last dividend pay-out having been in 2008. We are thankful to the support we have received from the shareholder as represented by the Ministries of Investment Trade and Industry and Finance and Economic Planning. We are also grateful to our Board of Directors, not only for their guidance, but also for giving us the independence to plan and execute our operations as a private commercial company.
We look forward to working with all our stakeholders to build not only a profitably BDC, but more importantly, to build a more competitive and prosperous Botswana.”