How we create value
Financial capital
We deploy our Financial Capital in a way that maintains a solid balance between growth, profitability and liquidity. We also utilise a number of sources of funding, including debt, equity and grants to support the delivery of our value generation strategy.
As outlined in our Horizon 2022 strategy, funds will next be deployed towards implementing Villas A’loes, L’Ofis, O’Pa - tio and Freedom Hill as well as the 3-hectare riverside park. There are also ongoingnegotiationswith strategic real estate partners for selected developments at Cap Tamarin Smart & Happy Village. The Hospitality cluster is going through a re-engineering process. Major investment is beingmade inpartnershipwith Compagnie Valome Limitée for the landmark renovation of Mourouk Ebony Hotel in Rodrigues, which will consist of a rebranding and the introduction of a whole new business concept. Funds have also been earmarked for renovation of Be Cosy Apart’ Hotel. Moreover, negotiations are underway with financial insti - tutions to close the best debt facility for the relocation and expansionof thepoultry farm, whichwill requireup toRs 90m. What comes out Trimetys has built a strong pool of Financial Capital over time, which has allowed the Group to remain steady against a backdrop of increasing uncertainty. We have a well-craft- ed strategy to deploy funds across the Group, with a view to optimise the funding structure, cost controls, cash flow and debt management. Notwithstanding existing financial engagements, our gearing level also remains relatively low in comparison with other similar enterprises. While in Real Estate, Cap Tamarin Smart & Happy Village is ready tomove on to its next development stage, the strategy for theHospitality cluster has been togear financial resources towards renovating Tekoma Boutik Hotel and doubling its room capacity. The investment has paid off with a surge in demand for travel toRodrigues fromthe thirdquarter of FY20. TheAgribusiness cluster is alsoundergoingmajor reinvention with the allocation of Financial Capital in 2021 to broaden the product range and cater to the increasing need for self-suf- ficiency in the current context. Value created Through its commitment to dynamismand rapid expansion across various sectors, Trimetys has developed a recognised and respected brand, and built distinctive intangible assets over time. This has earned us the trust of the SIC, the invest- ment arm of the Government of Mauritius, as a recently onboarded equity investor. Responsible and effective finan - cial resource allocation has also enhanced our shareholder value and asset base.
Highlights
What we use The diverse sources of funding we utilised in 2020 helped spread financial risk and reduce associated costs. These included a $10m mezzanine loan secured in the previous year for the development of Cap Tamarin Smart & Happy Village and a Rs 80m bank loan from Agence Française de Développement’s (AFD) SUNREF II Programme to promote green and inclusive growth. The sale of land intended for the construction of a commercial centre also generated signifi - cant cash flow for the smart city. In the face of current COVID-19 challenges, we focused on restructuring existing loans worth Rs 481m earmarked for the hospitality sector. We managed to secure moratoriums with banking partners to extend repayments. With the State Investment Corporation (SIC) Limited taking an equity stake in the Group, funds amounting to Rs 150m will beprovided in tranches in thehospitality segment. Nego- tiations have also reached an advanced stage for the partial sale of La Place Cap Tamarin. In theAgribusiness cluster, discussions havebeenprogressing well withdifferent bankingpartners for the fundingof expan- sionplans. Trimetys Grouphas also provided equity injection to the poultry farm project in Henrietta in the form of land. Our strategy Our strategy consists inmaintaining thephaseddevelopment of Cap Tamarin Smart &Happy Village. The Smart City’s land- scape is unfolding as planned with new road infrastructure, C-Care Clinic Cap Tamarin and the Coeur Cap Tamarin shop- ping centre now fully operational. We have also partnered with reputable key players to increase the development’s target market reach. l The Group’s revenue for the year was Rs 148m l The Group’s total assets increased from Rs 3.5bn in 2019 to Rs 3.9bn in 2020 l Our capital gearing ratiowas 55%as at 31 December 2020
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