Caudan Development Ltd’s Profit for 2023 Increases to MRs47.1m, Driven by Higher Rental Income and Operational Improvements

Published On: September 29, 2023Company: Caudan Development Ltd (CAUDAN.mu)
What were the significant factors that led to Caudan Development Ltd's increased underlying profit in 2023?
The increased underlying profit in 2023 was due to a combination of factors including higher net rental income, lower renovation costs, a reversal of expected credit losses, and improvements in the F&B department and the Caudan Arts Centre.

Summary

  • The 2023 Abridged Report for Caudan Development Ltd has been audited by Ernst & Young. The financial statements comply with the Companies Act 2001 and International Financial Reporting Standards (IFRSs).
  • The company’s profit for the year 2023 was MRs119.6m, compared to MRs169.8m in 2022. This includes unrealised fair value gains on Investment Property revaluation, which do not impact the cash flows of the business.
  • Excluding fair value gains, the underlying group profit for 2023 was MRs47.1m, significantly better than 2022’s profit of MRs18.2m.
  • This increase in profit can be attributed to higher rental income, reduced renovation expenses, the reversal of expected credit losses, and the improvement in the F&B department and Caudan Arts Centre.
  • However, the report mentions increased finance charges due to rising interest rates and higher debt levels.
  • Other forms of income pertain to the claim receivable under the company’s insurance policy in relation to rent loss until November 2022.
  • Despite the challenges, the management remains positive about future earnings due to its exceptional assets and newly renovated Barkly Wharf. The focus is on enhancing customer experience and achieving operational efficiencies.

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About Caudan Development Ltd (CAUDAN.mu)

Caudan Development Limited deals in the investment and development of real estate properties and provision of security services in Mauritius. The company also owns, promotes and develops Le Caudan Waterfront, which is a mixed commercial project on the waterfront of Port Louis. Apart from Le Caudan Waterfront, Caudan Development Limited rents out industrial buildings situated at Pailles, Riche Terre, and Albion Dock. The company also deals in the sale of alarm equipment and property protection services. Caudan Development Limited is listed on the Stock Exchange of Mauritius.

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