DIVERSIFIED hotel and insurance group TA Holdings Ltd has secured a management contract for Cresta Crossroads, a hotel based in Malawi. However this will only become effective in June
TA this week released its set of results for the 12 months ended December 31 in which group turn-over grew by 335% to $51,5 billion.
This turnover also includes $12 billion from external operations.
Locally Cresta and Zimnat Lion contributed 75% to turnover while the remainder came from foreign insurance operations of Botswana Insurance Company.
Osborne Majuru the executive director for operations on Wednesday confirmed the group had secured the contract in Malawi.
“We have secured a management contract for Cresta Crossroads in Malawi. This does not mean that we now own the hotel but it is just a management contract only,” Majuru said.
“Our Botswana operations did manage to contribute to our profits but the Marakanelo business has also been affected by the negative publicity which has affected other areas in Victoria Falls.”
He said the problems of “negative publicity” had been caused by the “fact that we cannot market Marakanelo alone but it is marketed with Victoria Falls and Chobe.”
Majuru said the group would continue to pursue its safari operations within the continent in which it would be scouting for other management contracts.
Last year TA offloaded Blue Ribbon during the first half of the year and the proceeds were partially used to liquidate the group’s foreign debt.
The group’s profits also came from its other associates namely Sable Chemicals and ZFC which improved during the course of last year largely due to the lifting of price controls.
Last year government took a political decision to put price controls on fertiliser which resulted in the company reducing its production.
The other subsidiaries Aon and United Refineries also performed well following the lifting of price controls during the first half of last year.