By Alois Vinga
TOP hospitality and leisure company, Rainbow Tourism Group (RTG) has released a debt free balance sheet with the latest reports showing that the value of company’s assets has been above debt levels for the last five years.
This is amid its lucrative performance on the back of easing Covid-19 restrictions.
Presenting the hotelier’s performance this week, RTG chief executive officer (CEO), Tendai Madziwanyika said the company’s debt levels have significantly declined from a high US$24,5 million in 2012 against the company’s equity which stood at US$11,2 million at the time, to the current US$225 000 which is well below equity of US$44,1 million.
The company has managed to sustain equity above debt levels since 2017 with latest data showing a sustained downward trajectory of total debt.
Apart from a debt free balance sheet, the hotelier managed a record 282% increase in revenue on the back of a 110% increase in occupancy levels in the five months of 2022 up to the end of May.
“We have managed to achieve such a good performance because of the realization that it is profitable to do the right thing. RTG was the first responder to the Covid-19 pandemic. Exactly two years ago today, we received our first quarantine group of 300 guests.
“We played our part as a corporate citizen of our country and we experienced zero infections in our staff in 2020,” he said.
He said despite the challenges, RTG did not retrench any of its workers but managed to innovate the way towards preserving jobs, making the employees a source of strategic advantage.
The low debt levels resonate with the government’s current thrust encouraging companies to borrow sustainably while in the process contributing towards capital creation in the country.
“Going forward, the company will sustainably grow its revenue on the back of a high revenue recovery trajectory driven by Hotels, Gateway Stream and the Tour Operation arm, Heritage Expeditions Africa.
“Foreign revenue for 2022 Likely to match pre-pandemic levels as the Group’s regional and international markets are already showing increased performance with Gateway Stream expected to contribute 10% of the Group’s foreign revenues,” added Madziwanyika.