Inqo Investments Limited

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

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:

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                                           finance@inqo.co.za

Bowsprit Partners Limited (Corporate Adviser)                  

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

Statements of Financial Position

Statements of Financial Position

Statement of Profit or Loss and other Comprehensive Income

Statements of Profit or Loss and Other Comprehensive Income

Statement of Cash Flows