RNS Number : 0804T
Inqo Investments Limited
30 July 2025
Inqo Investments Limited
Press release at 30 July 2025
Audited Group Results for the year ended 28 February 2025
Company Registration Number 1998/024741/06
Share Code INQO
ISIN Number ZAU 000014391
CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT
Inqo Investments Limited ("Inqo" or "the Group") is a South African based social impact company that invests in businesses that tackle poverty and environmental challenges in Sub-Saharan Africa.
COMMENTARY
The Group remains in a strong financial position with total assets of R238 million including cash and cash equivalents of R48.8 million and minimal debt.
For the year end under review, the Group returned to profitability, marking a significant financial turnaround from the previous year reporting a profit of R20,235,550 (2024: Loss of R5,303,571).
In 2023, Inqo was awarded a US$4 million grant over three years to fund its Conservation and Rural Enterprise (CARE) project in Uganda. To date, Inqo has received US$3 million of this grant. During the current year, the Group formalised three CARE investments in Uganda, namely Flybox Budongo (BSF) Farm Limited, Pabidi Lodge Budongo Limited and Empower Clean Cooking Limited. The grant income is recognised in the income statement as and when funds are spent on approved project activities. Until then, the funds received are recorded as a deferred liability. As a result, the grant has positively impacted profitability during the current period, with R19,771,009 (2024: R1,697,069) recognised in income. The remaining balance of the grant will continue to support Inqo's activities for approximately two more financial years. Shareholders should note, once fully utilised, this income stream will end and profitability is expected to normalise unless replaced by other sources of funding or new income from our CARE project in Uganda.
In April 2024, the company issued 1,854,646 new ordinary shares, raising gross capital of R 29,984,428. This includes the conversion of two credit loan notes of USD 1,000,000 and R 2,000,000 respectively into equity by the lenders exercising their conversion rights.
In December 2024, the company issued a dividend for the first time since incorporation of R0.07 per share amounting to R1,146,014.
FINANCIAL INFORMATION
The financial information set out in this announcement does not constitute statutory financial statements. This financial information has been extracted from Inqo's audited group financial statements for the year ended 28 February 2025.
FINANCIAL RESULTS
The audited financial results for the year ended 28 February 2025 are as follows:
Feb-25
Feb-24
R'000
R'000
Revenue
25,865
20,611
Profit/(Loss) for the year
20,236
(5,304)
Earnings per share
1.24
(0.36)
Total Assets
238,218
214,460
Unutilised Grant Funding
29,477
32,847
Total Liabilities excl Unutilised Grant Funding
7,935
29,995
Net Assets
200,806
151,618
Profit/(Loss) from operating activities includes the following items
Grant income
19,771
1,697
Depreciation and amortisation
(2,118)
(2,937)
Personnel Costs
(6,608)
(5,386)
Directors' Fees and Salaries
(1,711)
(1,610)
Listing Expenses
(996)
(933)
Professional Fees
(312)
(370)
Reversal/(Raising) of impairment of loans: Four One
69
(1,921)
Re-instatement of impairment of loans: Spekboom Trading
(530)
-
Fair value adjustment of the buffalo herd
89
(1,812)
The directors of Inqo reviewed the valuation placed on all income earning assets to ensure that they reflect their fair value. Following the reviews, the directors are of the view that Group assets as stated in the Statement of Financial Position are reflected at fair value.
INVESTEE COMPANIES: FINANCIAL, ENVIRONMENTAL AND SOCIAL PERFORMANCE COMMENTARY
Beyond the specific changes outlined below, there have been no other material developments or significant events impacting the investee companies during the period.
Kuzuko Lodge (Pty) Limited (South Africa)
For the year ended 28 February 2025, Kuzuko Lodge generated a profit, marking a significant financial turnaround from the previous year. Kuzuko Lodge reported a profit of R2,702,737 in the current financial year, a substantial improvement from the R2,882,391 loss recorded in 2024. This was driven by a 40% increase in revenue and a continued year-on-year upward trend in occupancy rates. The success is primarily attributed to targeted marketing efforts and disciplined cost containment strategies.
CARE Investees
· Flybox Budongo (BSF) Farm Limited (Uganda) forms part of the Uganda CARE project. lnqo has partnered with Mana Biosystems Limited (United Kingdom) (FlyBox UK) to implement the Black Soldier Fly project in Uganda. The purpose of insect farming is to upcycle organic waste into animal protein and compost. The business will initially sell larvae and eggs to farmers to grow to maturity by feeding on market and organic waste. These larvae can then be harvested for use as protein substitute in animal feed. At reporting date, Flybox UK had built the modular insect farms, however due to shipping and clearance delays, delivery only took place in July 2025. Trading is expected in the 2025/26 financial year.
· Pabidi Lodge Budongo Limited (Uganda) forms part of the Uganda CARE project. Pabidi Lodge is currently under construction and a soft opening is expected in September/October 2025. The lodge will be the only luxury accommodation offering sustainable ecotourism to guests in the Budongo Forest. The lodge will be operated by our joint-venture partner, Great Lakes Safaris, one of the leading tour operators in Uganda. Great Lakes Safaris hold the sole conservancy in the Budongo Forest, an 825 sq km forest that is home to more than 600 chimpanzees. The site clearance and construction of the lodge commenced during the reporting period.
· Empower Clean Cooking Limited (Uganda) forms part of the Uganda CARE project. Empower Clean Cooking Limited is a joint venture between Inqo and East African Power Limited. Empower Clean Cooking Limited will be managed and operated by East Africa Power, a highly experienced renewable energy developer and operator with hydro and solar plants in Rwanda, Uganda, DRC, Zambia, Zimbabwe and Kenya. The objective of the company is to safeguard the environment through providing clean cooking solutions to local environments. The joint venture will manufacture biomass pellets for cooking fuel as an alternative to wood and charcoal and to explore clean cooking solutions for the local community. The site clearance and preparation for the factory construction commenced during the reporting period.
SUMMARY OF SOCIAL & ENVIRONMENTAL METRICS SINCE PROJECT COMMENCEMENT
· Kuzuko Lodge
o 35,617 acres (14,414 hectares) of former farmland restored and protected as a game reserve
o 70 km of game fencing erected, including internal fencing
o 50 FTE staff at Kuzuko in standard housing with flush toilets, power, water and solar panels
o 120 fixed term jobs
o Conservation of 2 endangered species, 8 endangered species protected, 23 species introduced
o 32 cheetahs have been rewilded and/or translocated to other reserves through a conservation program aimed at restoring cheetah populations to their native habitats
· South Lake Medical Centre
o 119,214 patient visits including 1,498 HIV patients receiving care and/or counselling, 65,164 through community outreach, 147 safe deliveries, 205 surgeries and 622 antenatal care
o Expanded to 5 Health Posts (micro-clinics) for easier patient access
· Kentegra
o Payments of over US$2.6M to approximately 20,000 out-growers/farmers
o Digitised its Village Savings and Loans Associations program, which has seen significant savings and loans among farmers
· Sanergy
o 1,000 FTE, 2,000 indirect jobs, 5,000 toilets serving 270,000 people daily in Nairobi, Kisumu and Eldoret
· Spekboom Trading
o 5,185 hectares degraded land planted with 30 million spekboom; 350 fixed term jobs
· CARE Projects
o A baseline study was performed and the success of the projects will be measured against the outcomes of this study
STAFF
The directors would like to take this opportunity to thank all the operating staff in the Group for their contribution and commitment to the Group's objectives during this challenging time.
Dr K.S Tan R.H Steyn
Chairman Chief Financial Officer
Issued on: 29 July 2025
Enquiries:
Inqo Investments Limited
Robyn Steyn, Chief Financial Officer finance@inqo.co.za
Bowsprit Partners Limited (Corporate Adviser)
John Treacy / Luis Brime +44 (0) 203 833 4430
lnqo Investments Limited
(Registration Number 1998/024741/06)
Consolidated and Separate Annual Financial Statements for the year ended 28 February 2025
Statements of Financial Position
Group
Group
Company
Company
Figures inR
2025
2024
2025
2024
Assets
Non-current assets
Property,plantandequipment
150,135,998
151,980,926
148,852,935
150,894,907
Right-of-use assets
-
68,147
Intangible assets
7
840
Investments in joint ventures
23,200,480
-
23,200,480
-
Investments in subsidiaries
4,175,418
1,503
Trade and other receivables
-
-
-
238,570
Other investments
7,252,632
7,306,227
5,584,912
5,638,507
Loans to subsidiaries
18,164,287
22,059,056
Total non-current assets
180,589,117
159,356,140
199,978,032
178,832,543
Current assets
Inventories
4,144,227
4,295,937
3,565,400
3,702,582
Trade and other receivables
3,402,234
6,059,424
1,463,607
4,306,972
Current tax assets
195,227
-
200,000
-
Biological assets
1,066,000
977,000
1,066,000
977,000
Cashandcashequivalents
48,820,777
43,771,590
44,450,832
41,873,765
Total current assets
57,628,465
55,103,951
50,745,839
50,860,319
Total assets
238,217,582
214,460,091
250,723,871
229,692,862
lnqo Investments Limited
(Registration Number 1998/024741/06)
Consolidated and Separate Annual Financial Statements for the year ended 28 February 2025
Statements of Financial Position
Group
Group
Company
Company
Figures inR
2025
2024
2025
2024
Equity and liabilities
Equity
Ordinary share capital
81,858,155
72,584,925
81,858,155
72,584,925
Sharepremium
108,296,468
87,585,270
108,296,468
87,585,270
Accumulated loss
(76,195,750)
(95,364,654)
(60,793,487)
(77,755,359)
Revaluation reserve
86,242,430
86,693,347
86,242,430
86,693,347
Total equity attributable to owners of the parent
200,201,303
151,498,888
215,603,566
169,108,183
Non-controllinginterests
604,461
119,507
Total equity
200,805,764
151,618,395
215,603,566
169,108,183
Liabilities
Non-current liabilities
Deferredtaxliabilities
2,947,137
3,809,116
2,947,137
3,809,116
Loans from related parties
1,667,163
3,423,672
1,667,163
3,423,672
Other loans
-
18,931,500
-
18,931,500
Total non-current liabilities
4,614,300
26,164,288
4,614,300
26,164,288
Current liabilities
Trade and other payables
2,949,901
3,683,554
658,388
1,573,820
Leaseliabilities
-
80,155
-
-
Dividend payable
371,092
-
371,092
-
Unutilisedgrantfunding
29,476,525
32,846,571
29,476,525
32,846,571
Bank overdraft
-
67,128
-
-
Total current liabilities
32,797,518
36,677,408
30,506,005
34,420,391
Total liabilities
37,411,818
62,841,696
35,120,305
60,584,679
Total equity and liabilities
238,217,582
214,460,091
250,723,871
229,692,862
lnqo Investments Limited
(Registration Number 1998/024741/06)
Consolidated and Separate Annual Financial Statements for the year ended 28 February 2025
Statements of Profit or Loss and Other Comprehensive Income
Group
Group
Company
Company
Figures inR
2025
2024
2025
2024
Revenue
25,864,966
20,610,801
3,387,242
5,159,563
Cost of sales
(2,834,838)
(2,421,823)
-
-
Grossprofit
23,030,128
18,188,978
3,387,242
5,159,563
Other income
20,260,338
3,630,200
19,822,854
1,944,872
Personnelexpenses
(8,319,350)
(6,996,171)
(1,396,273)
(1,498,067)
Depreciation and amortisation
(2,118,447)
(2,936,964)
(1,927,194)
(2,617,434)
Listing expenses
(996,071)
(933,451)
(996,071)
(933,451)
Professionalfees
(311,900)
(369,556)
(311,900)
(369,556)
Baddebt
(7,189)
-
(7,189)
-
Provision for doubtful debts
(314,261)
(319,841)
(314,261)
(2,429,904)
Impairment
(460,880)
(1,920,552)
69,406
(1,920,552)
Other expenses
(12,922,423)
(12,836,487)
(4,178,725)
(2,236,734)
Profit/ (loss) from operating activities
17,839,945
(4,493,844)
14,147,889
(4,901,263)
Inventory write (down)/up
(137,182)
(832,272)
(137,182)
(832,272)
Fair value adjustment
89,000
(1,811,980)
89,000
(1,811,980)
Financeincome
1,580,697
995,676
2,877,218
1,807,315
Financecosts
(33,040)
(167,020)
(19,942)
(62,675)
Profit/ (loss) before tax
19,339,420
(6,309,440)
16,956,983
(5,800,875)
Income tax credit
896,130
1,005,869
1,150,903
1,005,869
Profit/ (loss) for the year
20,235,550
(5,303,571)
18,107,886
(4,795,006)
lnqo Investments Limited
(Registration Number 1998/024741/06)
Consolidated and Separate Annual Financial Statements for the year ended 28 February 2025
Statements of Profit or Loss and Other Comprehensive Income
Group
Group
Company
Company
Figures inR
2025
2024
2025
2024
Profit/ (loss) for the year attributable to:
Owners of Parent
20,031,946
(5,262,858)
18,107,886
(4,795,006)
Non-controllinginterest
203,604
(40,713)
-
-
20,235,550
(5,303,571)
18,107,886
(4,795,006)
Earnings per share from continuing and discontinuing operations attributable to owners of the parent during the year
Basic earnings per share
Basic earnings/ (loss) per share
1.24
(0.36)
1.12
(0.33)
Diluted earnings per share
Diluted earnings/ (loss) per share
1.24
(0.36)
1.12
(0.33)
Other comprehensive income net of tax
Components of other comprehensive income that
will not be reclassified to profit or loss
Revaluation of land and buildings
(161,994)
-
(161,994)
-
Deferred taxation
(288,923)
-
(288,923)
-
Total other comprehensive income that will not be reclassified to profit or loss
(450,917)
-
(450,917)
-
Total comprehensive income
19,784,633
(5,303,571)
17,656,969
(4,795,006)
Comprehensive income attributable to:
Comprehensive income, attributable to owners of
Parent
19,581,029
(5,262,858)
17,656,969
(4,795,006)
Comprehensive income, attributable to non-
controlling interests
203,604
(40,713)
19,784,633
(5,303,571)
17,656,969
(4,795,006)
Statements of Changes in Equity - Group
Figures in R
Ordinary share capital
Share premium
Revaluation Reserve
Accumulated loss
Attributable to owner of the parent
Non-controlling interest
Total
Balance at 1 March 2023
72,584,925
87,585,270
86,693,347
(90,101,796)
156,761,746
160,220
156,921,966
Changesinequity
Loss for the year
(5,262,858)
(5,262,858)
(40,713)
(5,303,571)
Total comprehensive income for the year
(5,262,858)
(5,262,858)
(40,713)
(5,303,571)
Balance at 29 February 2024
72,584,925
87,585,270
86,693,347
(95,364,654)
151,498,888
119,507
151,618,395
Balance at 1 March 2024
72,584,925
87,585,270
86,693,347
(95,364,654)
151,498,888
119,507
151,618,395
Changesinequity
Profit for the year
20,031,946
20,031,946
203,604
20,235,550
Other comprehensive income
(450,917)
(450,917)
(450,917)
Total comprehensive income for the year
(450,917)
20,031,946
19,581,029
203,604
19,784,633
Dividend
(1,146,014)
(1,146,014)
(1,146,014)
Issue of equity
9,273,230
20,711,198
29,984,428
29,984,428
Transfer from NCI due to change in control from subsidiary to joint venture
282,972
282,972
281,350
564,322
Balance at 28 February 2025
81,858,155
108,296,468
86,242,430
(76,195,750)
200,201,303
604,461
200,805,764
Revaluation reserve is made up as follows:
Cumulative revaluation reserve
111,545,532
Cumulative deferred taxation
(25,303,102)
86,242,430
Statements of Changes in Equity - Company
Figures inR
Ordinary share capital
Share premium
Revaluation surplus
Accumulatedloss
Total
Balance at 1 March 2023
72,584,925
87,585,270
86,693,347
(72,960,353)
173,903,189
Changesinequity
Loss for the year
(4,795,006)
(4,795,006)
Total comprehensive income
(4,795,006)
(4,795,006)
Balance at 29 February 2024
72,584,925
87,585,270
86,693,347
(77,755,359)
169,108,183
Balance at 1 March 2024
72,584,925
87,585,270
86,693,347
(77,755,359)
169,108,183
Changesinequity
Profit for the year
18,107,886
18,107,886
Other comprehensive income
(450,917)
(450,917)
Total comprehensive income
(450,917)
18,107,886
17,656,969
Dividend
(1,146,014)
(1,146,014)
Issue of equity
9,273,230
20,711,198
29,984,428
Balance at 28 February 2025
81,858,155
108,296,468
86,242,430
(60,793,487)
215,603,566
Revaluation reserve is made up as follows:
Cumulative revaluation reserve
111,545,532
Cumulative deferred taxation
(25,303,102)
86,242,430
lnqo Investments Limited
(Registration Number 1998/024741/06)
Consolidated and Separate Annual Financial Statements for the year ended 28 February 2025
Statements of Cash Flows
Group
Group
Company
Company
Figures inR
2025
2024
2025
2024
Net cash flows from/ (used in) operations
1,022,095
(11,800,817)
(3,131,557)
(7,620,425)
Dividend paid
(774,922)
-
(774,922)
-
Interest paid
(11,873)
(143,656)
(633)
(62,675)
Interest received
2,088,511
995,676
1,897,679
952,982
Income taxes paid
(450,000)
-
(200,000)
-
Net cash flows from/ (used in) operating
activities
1,873,811
(10,948,797)
(2,209,433)
(6,730,118)
Cashflows(usedin)/frominvestingactivities
Cash flows from loss of control of subsidiary
(2,668)
-
-
-
Cash payments to acquire interests in joint ventures
(21,471,197)
-
(21,470,696)
-
Proceedsfromsalesofproperty,plantand equipment
91,435
(17,103)
69,563
(17,011)
Purchase of property,plant and equipment
(1,424,849)
(677,038)
(104,934)
(606,486)
Loans (extended to)/repaid by subsidiary
392,248
(6,214,097)
Loans (extended to)/repaid by other investments
50,063
-
50,063
-
Grant funding received
17,728,014
1,397,799
17,728,014
1,397,799
Cashflows(usedin)/frominvesting activities
(5,029,202)
703,658
(3,335,742)
(5,439,795)
Cash flows from financing activities
Proceeds from issuing shares
10,197,528
-
10,197,528
-
Payments to related parties
-
(1,087,917)
-
(939,606)
Loans received related parties
227,105
17,786,900
-
17,786,900
Repayments of finance lease
(80,680)
(234,148)
-
-
Cash flows from financing activities
10,343,953
16,464,835
10,197,528
16,847,294
Net increase in cash and cash equivalents before effect of exchange rate changes
7,188,562
6,219,696
4,652,353
4,677,381
Effect of exchange rate changes on cash and cash equivalents
(2,072,247)
1,461,509
(2,075,286)
1,466,581
Net increase in cash and cash equivalents
5,116,315
7,681,205
2,577,067
6,143,962
Cash and cash equivalents at beginning of the year
43,704,462
36,023,257
41,873,765
35,729,803
Cash and cash equivalents at end of the year
48,820,777
43,704,462
44,450,832
41,873,765
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