Inqo Investments Limited

Interim / Quarterly Report • Nov 27, 2025

National Storage Mechanism | Additional information

RNS Number : 1734J

Inqo Investments Limited

27 November 2025

Inqo Investments Limited

Unaudited Group Results for the half-year period ended 31 August 2025

Company Registration Number 1998/024741/06	Share Code INQO	ISIN Number ZAU 000014391

CHAIRMAN '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 R234,370,036 and minimal debt.

The results for the half-year period under review showed revenue of R11,265,293 (August 2024: R8,199,813). The hospitality and tourism industry is characterised by seasonal fluctuations, with the interim period aligning with the off-peak season, which historically results in lower occupancy rates and revenue. The Group currently generates 80% of its revenue from its holding in the Kuzuko Lodge. The Group earned a profit after tax of R10,669,092 (August 2024: R532,516).

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 period, the Group formalised an additional investment in Jakana Budongo Ventures Ltd taking the total number of its Conservation and Rural Enterprise (CARE) investments in Uganda to four. In the current period, grant funding utilised amounted to R13,159,235 (August 2024: R5,143,989).

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 unaudited group financial statements for the half-year period ended 31 August 2025.

FINANCIAL RESULTS

The unaudited financial results for the half-year period ended 31 August 2025 are as follows:

	Aug-25	Aug-24
	R'000	R'000
Revenue	11,265	8,200
Profit/(Loss) for the year	10,669	533
Earnings per share	0.66	0.03
Total Assets	234,370	234,860
Unutilised Grant Funding	14,058	41,620
Total Liabilities excl Unutilised Grant Funding	8,837	10,540
Net Assets	211,475	182,700
Profit/(Loss) from operating activities includes the following items
Grant income	13,159	5,144
Depreciation and amortisation	(1,048)	(1,102)
Personnel Costs	(3,108)	(2,524)
Directors' Fees and Salaries	(1,149)	(648)
Listing Expenses	(456)	(486)
Professional Fees	(40)	(528)
Reversal/(Raising) of impairment of loans: Four One	107	181
Re-instatement of impairment of loans: Spekboom Trading	-	(530)
Fair value adjustment of the buffalo herd	-	18

In August 2025, 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.  The only non-South African company where Inqo held investments that required assessment from a fair value adjustment perspective remains Four One Financial Services Limited. The company continues to struggle financially. Intended for this reason, the loan including interest amounting to R4,311,838 (August 2024: R4,005,264) is impaired in full.

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)

Kuzuko Lodge continued to demonstrate significant operational momentum in the first half of the current financial year, following its profit achieved at the previous year-end. Revenue experienced robust growth, rising 40% year-on-year for the interim period, reflecting continued success from targeted marketing and improved occupancy rates. However, the company reported an interim loss of R1,303,541 (August 2024: R743,774). This reported loss includes a new interest expense of R794,628 related to the restructuring of a holding company loan to Inqo, which was not reflected in the Kuzuko's mid-term results. Furthermore, the interim period falls just after the low tourism season, which is customary for this seasonal business. Given the strong underlying revenue growth, the directors remain confident that the Lodge is well-positioned to achieve another profitable outcome by the end of the financial year as the peak season approaches.

CARE Investees

·    The Group currently operates four joint ventures as part of the Uganda CARE project. Three of which were established in the previous financial year: Flybox Budongo (BSF) Farm Limited (Uganda), Pabidi Lodge Budongo Limited (Uganda) and Empower Clean Cooking Limited (Uganda). All three ventures are presently in the pre-operational phase, with site construction well underway. Commercial operations are expected to commence across all three facilities during the first quarter of 2026.

·   Jakana Budongo Ventures Limited (Uganda) (JBV) is a new joint venture between Inqo and a well-established Ugandan food processor, Jakana Foods Limited. JBV forms part of the Uganda CARE project. JBV will be managed and operated by Jakana Foods Limited. The project's core aim is to establish and operate a modern food processing facility specialising in freeze-dried and dehydrated fruits. This initiative will utilise an out-grower farmer network model and implement high-quality production techniques to ensure superior nutritional value, taste and long shelf-life preservation. The company has not commenced operations.  

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

o  60 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  Re-wilded and bred 32 adult cheetahs with diverse genetics to bolster the meta-population in southern Africa

·      Southlake Medical Centre

o  Over 98,000 patient visits including 386 HIV patients receiving care and counselling, 5,599 people receiving health education including through community outreach, 217 safe deliveries, 205 surgeries, 2,000 cervical cancer screens and 700+ HPV vaccinations

o  67 FTE staff

·      Kentegra

o  500 FTE and 26,000 contracted out-growers

·      Sanergy

o  1,000 FTE, 2,000 indirect jobs, 5,000 toilets serving 270,000 people in Nairobi, Kisumu and Eldoret

·      Spekboom Trading

o  5,185 hectares degraded land planted with 30 million spekboom; 350 fixed term jobs

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.

K.S Tan                                                                                              R.H Steyn

Chairman                                                                                            Chief Financial Officer

Issued on: 26 November 2025

Enquiries:

Inqo Investments Limited

Robyn Steyn, Chief Financial Officer                                           [email protected]

Bowsprit Partners Limited (Corporate Adviser)                  

John Treacy / Luis Brime                                                             +44 (0) 203 833 4430

Statements of Financial Position

Figures in R		Group 31 August 2025		Group 28 February 2025		Group 31 August 2024
Assets Non-current assets Property, plant and equipment		150,602,741		150,135,998		150,695,290
Intangible assets		7		7		339
Investment in joint ventures		35,507,463		23,200,480		7,867,661
Other investments		7,171,293		7,252,632		7,179,889
Total non-current assets		193,281,504		180,589,117		165,743,179
Current assets Inventories		4,101,585		4,144,227		4,179,170
Trade and other receivables		2,339,076		3,402,234		3,550,837
Current tax assets		195,227		195,227
Biological assets		1,066,000		1,066,000		995,000
Cash and cash equivalents		33,386,644		48,820,777		60,391,594
Total current assets		41,088,532		57,628,465		69,116,601
Total assets		234,370,036		238,217,582		234,859,780

Statements of Financial Position

Figures in R		Group 31 August 2025		Group 28 February 2025		Group 31 August 2024
Equity and liabilities
Equity Ordinary share capital		81,858,155		81,858,155		81,858,155
Share premium		108,296,468		108,296,468		108,296,468
Accumulated loss		(65,515,301)		(76,195,750)		(94,528,411)
Revaluation reserve		86,242,430		86,242,430		86,693,347
Total equity attributable to owners of the parent		210,881,752		200,201,303		182,319,559
Non-controlling interests		593,104		604,461		380,106
Total equity		211,474,856		200,805,764		182,699,665
Liabilities Non-current liabilities Deferred tax liabilities		2,190,836		2,947,137		4,582,035
Loans from related parties		1,629,700		1,667,163		1,614,127
Lease liabilities		1,430,234
Total non-current liabilities		5,250,770		4,614,300		6,196,162
Current liabilities Trade and other payables		3,573,975		2,949,901		4,344,165
Dividend payable		12,008		371,092
Unutilised grant funding		14,058,427		29,476,525		41,619,788
Total current liabilities		17,644,410		32,797,518		45,963,953
Total liabilities		22,895,180		37,411,818		52,160,115
Total equity and liabilities		234,370,036		238,217,582		234,859,780

Statement of Profit or Loss and other Comprehensive Income

Figures in R		Group 6-month period ended 31 August 2025	Group 12-month period ended 28 February 2025	Group 6-month period ended 31 August 2024
Revenue		11,265,293	25,864,966	8,199,813
Cost of sales		(1,418,069)	(2,834,838)	(1,074,048)
Gross profit		9,847,224	23,030,128	7,125,765
Other income		13,276,557	20,260,338	5,378,999
Personnel expenses		(4,256,675)	(8,319,350)	(3,171,797)
Depreciation and amortisation		(1,047,861)	(2,118,447)	(1,102,141)
Listing expenses		(455,597)	(996,071)	(486,185)
Professional fees		(40,001)	(311,900)	(528,209)
Bad debt			(7,189)
Provision for doubtful debts		(159,000)	(314,261)	(160,321)
Impairment		107,417	(460,880)	(348,829)
Other expenses		(8,722,812)	(12,922,424)	(5,966,543)
Profit from operating activities		8,549,252	17,839,945	740,739
Inventory write-down			(137,182)
Fair value adjustment			89,000	18,000
Finance income		1,463,474	1,580,697	568,705
Finance costs		(99,935)	(33,040)	(22,008)
Profit before tax		9,912,791	19,339,420	1,305,436
Income tax credit / (expense)		756,301	896,130	(772,920)
Profit for the period		10,669,092	20,235,550	532,516

Statements of Profit or Loss and Other Comprehensive Income

Figures in R		Group 6-month period ended 31 August 2025		Group 12-month period ended 28 February 2025	Group 6-month period ended 31 August 2024
Profit/(loss) for the period attributable to:
Owners of Parent		10,680,449		20,031,946	553,267
Non-controlling interest		(11,357)		203,604	(20,751)
		10,669,092		0,235,550	532,516
Earnings per share from continuing and discontinuing operations attributable to owners of the parent during the period
Basic earnings per share
Basic earnings per share		0.66		1.24	0.03
Diluted earnings per share
Diluted earnings per share		0.66		1.24	0.03
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)
Deferred taxation				(288,923)
Total other comprehensive income that will not be reclassified to profit or loss				(450,917)
Total comprehensive income		10,669,092		19,784,633	532,516
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent		10,680,449		19,581,029	553,267
Comprehensive income, attributable to non-controlling interests		(11,357)		203,604	(20,751)
		10,669,092		19,784,633	532,516

Statement of Cash Flows

Figures in R
			Group 6 month period ended 31 August 2025		Group 12-month period ended 28 February 2025		Group 6-month period ended 31 August 2024
Net cash flows (used in) / from operations			(242,797)		1,022,095		(1,013,582)
Dividend paid			(359,084)		(774,922)
Interest paid			(106)		(11,873)		(12,251)
Interest received			989,359		2,088,511		1,013,664
Income taxes paid					(450,000)
Net cash flows from / (used in) operating activities			387,372		1,873,811		(12,169}
Cash flows (used in) / from investing activities
Cash flows from losing control of subsidiaries					(2,668)		(2,668)
Cash payments to acquire interests in joint ventures			(13,966,632)		(21,471,197)		(7,225,997)
Proceeds from sales of property, plant and equipment					91,435
Purchase of property, plant and equipment			(65,467)		(1,424,849)		(746,289)
Loans extended by other investments					50,063
Grant funding received					17,728,014		17,728,014
Cash flows (used in) / from investing activities			(14,032,099}		(5,029,202}		9,753,060
Cash flows (used in) / from financing activities
Proceeds from issuing shares					10,197,528		10,197,528
Loans received related parties					227,105		227,105
Repayments of finance lease			(118,732)		(80,680)		(80,155)
Cash flows (used in) / from financing activities			(118,732}		10,343,953		10,344,478
Net (decrease) / increase in cash and cash equivalents before effect of exchange rate changes			(13,763,459}		7,188,562		20,085,369
Effect of exchange rate changes on cash and cash equivalents			(1,670,674)		(2,072,247)		(3,398,237)
Net (decrease) / increase in cash and cash equivalents			(15,434,133}		5,116,315		16,687,132
Cash and cash equivalents at beginning of the period			48,820,777		43,704,462		43,704,462
Cash and cash equivalents at end of the period			33,386,644		48,820,777		60,391,594

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

NEXBIBDBRDDDGUL