Promotion and Development Ltd Reports Group Profit of MRs653 Million in 2023 with Strong Performance Improvement Driven by Recovering Local Economy

Published On: December 15, 2023Company: Promotion and Development Ltd (PAD.mu)
What was one of the key factors responsible for the performance improvement of Promotion and Development Ltd in 2023?
One of the key factors for the performance improvement was the recovering local economy which had a positive impact on their associate Medine, and to a lesser extent, their subsidiary, Caudan Development Limited.

Summary:

  • Promotion and Development Ltd (PAD) reported a group profit of MRs653 million in 2023, an increase from MRs621 million last year.
  • PAD’s gains from the revaluation of assets were smaller this year (MRs95 million) compared to the previous year’s MRs182 million.
  • There was a third successive year of performance improvement, which the report links to a recovering local economy – this recovery positively impacted associate Medine and subsidiary Caudan Development Limited (CDL) to a lesser extent.
  • The company resumed dividends from Medine and MFD Group, which significantly improved both its net profit (from MRs75 million to MRs212 million) and cash flow.
  • The group’s net asset value (NAV) per share increased from MRs345 to MRs358 over the year, while the Company NAV decreased to MRs150 from MRs162.
  • Despite implementing a policy of paying a dividend equivalent to 3% of the Company NAV, the share discount priced at MRs98 to its NAV remained significant.
  • PAD’s board expresses confidence in the ongoing positive local economic conditions, with particular reference to robust tourism, favourable sugar prices, sustained land demand, and the reestablished reputation of the regional financial centre.
  • There are ongoing concerns about the global environment on which the company will continue to focus, to grow its NAV, enhance cash flow, reduce net debt, and maintain its dividend policy.

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About Promotion and Development Ltd (PAD.mu)

Promotion and Development Limited is a company based in Mauritius which deals in the shares investment, property development, and supply and provision of services associated with such activities in Mauritius. The company has property, shares, and security segments that it operates through. Promotion and Development Limited also rents properties and provides security and property protection services, as well as sells equipment. Promotion and Development Limited is listed on the Stock Exchange of Mauritius.

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