An Analyses of the Business and Financial Performance of Chobe Holdings

PROJECT TITLE:

AN ANALYSIS OF THE BUSINESS AND FINANCIAL

PERFORMANCE OF CHOBE HOLDINGS LIMITED FOR

THE THREE YEARS BETWEEN 1MARCH

2007 AND 28 FEBRUARY 2010

PREPARED BY: FRANCIS UJU OGBENNA

WORD COUNT: 5335 Words

TABLE OF CONTENTS

CONTENTS PAGE

PART1. PROJECT OBJECTIVES AND OVERALL RESEARCH APPROACH

Introduction---------------------------------------------------------------------------------------------------3

Project Objectives-------------------------------------------------------------------------------------------4

Background information on Chobe holdings limited------------------------------------------------5

A general overview of Botswana tourism industry--------------------------------------------------6

Reasons for the project title and company chosen-------------------------------------------------7

Overall research approach--------------------------------------------------------------------------------8

PART2. INFORMATION GATHERING AND ACCOUNTING / BUSINESS TECHNIQUES

Information gathering---------------------------------------------------------------------------------------9

Accounting and business techniques-----------------------------------------------------------------10

PART3. RESULTS, ANALYSIS, CONCLUSIONS AND RECOMMENDATIONS

Profitability and return------------------------------------------------------------------------------------11

Short term solvency/ liquidity---------------------------------------------------------------------------13

Efficiency (turn over) -------------------------------------------------------------------------------------14

Gearing and long term solvency-----------------------------------------------------------------------15

Share holder's return-------------------------------------------------------------------------------------16

Business development and growth-------------------------------------------------------------------18

Economic influences on business---------------------------------------------------------------------20

Social influences on business--------------------------------------------------------------------------22

Political influence on business-------------------------------------------------------------------------23

Conclusion --------------------------------------------------------------------------------------------------24

LIST OF REFERENCES--------------------------------------------------------------------------------25

APPENDICE------------------------------------------------------------------------------------------------27

INTRODUCTION

The aim of this project is to find out the business and financial performance of Chobe Holdings Limited, a Botswana listed company in the tourism industry, for three consecutive years (1 January 2007 to 28 Feb 2010). This shall be determined by gathering an adequate amount of business and financial information about Chobe and its industry for the above time period. These shall be critically analyzed from which a conclusion would be drawn. This project can be of great benefit to current investors as well as future investors who would be interested in the performance of the company.

PROJECT OBJECTIVES / RESEARCH QUESTIONS

* How did Chobe Holdings Limited perform in terms of profitability and return between March 2007 and February 2010 with comparison to its major competitors.

* How did Chobe Holdings Limited performed in terms of short terms solvency, efficiency and liquidity management with comparison to its major competitors.

* How was Chobe Holdings Limited gearing and long term solvency between March 2007 and February 2010 in comparison to its major competitors?

* How was the business growth of Chobe Holdings Limited between March 2007 and February 2010 and what implications did the expansions have on business.

* What environmental factors (political, social, economical etc) affected the business of Chobe Holding limited between March 2007 and February 2010 and how did the company's response to these factors.

* To come up with a sound conclusion on the business and financial performance of Chobe Holdings Limited between March 2007 and February 2010 based on the critical analysis of the above findings.

BACKGROUD INFORMATION ON CHOBE HOLDINGS LIMITED

Chobe Holdings limited is a tourism company that operates in Botswana. It is a group company with a spread of assets in Botswana (at Chobe National Park, the largest and most tourist attractive national park in Botswana) and Namibia. Chobe Holdings is famous for its vast ownership of companies in the tourism and hospitality industry (mostly lodges and safari camps). Its ownership and control among others include 100% of Desert and Delta Safaris (comprising of Tau Lodge and Safari lodge) and Chobe savanna lodge. The Group also operates tourist transfers to its own lodges and third party sites using its own fleet of aircraft and its property near Maun Airport as an operational