Eswatini Stock Exchange (ESE) has Okayed the delisting of Swazispa holdings from trading its shares on the bourse after the company ran into liquidation.
ESE has made the announcement in adherence to its listing requirements.
“Shareholders are referred to the suspension notice of Swazispa Holdings Limited on 24 September 2021 at the instance of the Company. In light of the fact that the Company is going through liquidation, and will soon be wound up, the ESE has accordingly taken the decision to remove the Company from its list in terms of Section 19 of the Securities Act, 2010, and paragraph 1.10 of its Listings Requirements,” ESE said in a notice.
Early this year the High Court of Eswatini issued a final order for the liquidation of five companies under Sun International Management Limited
Swazispa owns and operates leading hotels, casinos and entertainment facilities in Ezulwini Valley in Swaziland. The company operates through three wholly-owned subsidiaries; Ezulwini Properties (Proprietary) Limited, Manzane Estates Limited and Spa Financing Company Limited. Brands in its portfolio include the Royal Swazi Sun, the Lugogo Sun and Ezulwini Sun. Swazispa is a subsidiary of Sun International Limited
According to the 2018 annual report ,as at 31 December 2018 the Company had bank borrowings of E16.7 million, E3.3 million up on the previous year. Given the high level of borrowings and the depressed trading conditions at the time the directors were reviewing the Company’s funding requirements on an ongoing basis.
On the hospitality side, year on year revenues showed a decline of 4%. Whilst the overall room occupancy decreased by 6.7% points, the average room rate, which was 6.2% up on the prior year, limited the overall deficit on rooms revenue to 3.3%.
The decline in room revenues is attributed to a decrease in group and convention (39.9%), international (11.2%), local business (9.8%) and corporate (6.8%) business but was partly offset by an increase in sports and leisure (60.1%) and non-campaign (15.1%) business.
The shortfall of 4.7% recorded on food, beverage and other revenues was mainly as a result of the lower room occupancies achieved, compounded by a steep decline in conference business. Total food covers served were down on the previous year by 13.2% with conference covers served the main contributor at a steep decline of 23% compared to the prior year.
Total casino revenues were down on the prior year by 11.9%. Tables business dropped by 36.8% whilst slots business recorded a marginal increase of 0.8% on the prior year.
Swazispa was incorporated in December 1962 and was listed on the Swaziland Stock Exchange on February 22 1991.