Staff Writer
City Lodge Hotels Limited says its results for the six months ended 31 December 2025 show solid performance compared to the same period in 2024.
In a voluntary trading statement, the group provided guidance on earnings per share for the period.
Basic earnings per share for the first half of the 2026 financial year are expected to be between 20.7 cents and 22 cents.
This compares with 21.6 cents reported in the same period a year earlier. The range reflects a change of between a 4% decrease and a 2% increase.
Headline earnings per share are also expected to be between 20.7 cents and 22 cents, compared with 21.6 cents in the prior period. This reflects a similar variance of between negative 4% and positive 2%.
Adjusted headline earnings per share show a stronger increase. The group expects adjusted headline EPS of between 25.3 cents and 26.6 cents, compared with 19.6 cents in the first half of the 2025 financial year. This reflects growth of between 29% and 36%.
City Lodge uses adjusted headline earnings to measure underlying operational performance.
The measure excludes exceptional items beyond those already excluded in headline earnings, in line with Circular 1/2023 on Headline Earnings. The only extra adjustment is the reversal of unrealised foreign exchange gains or losses recorded during the period.
The company said basic and headline earnings per share do not differ by at least 20% from the previous period. However, adjusted headline earnings per share, which it uses to reflect day-to-day operations, show a variance above 20%.
City Lodge expects to publish its full results for the six-month period on or about 19 February 2026.
In September last year, the group wrote down N$13.5 million in Namibia after new tax rules limited how companies can carry forward assessed losses.
The Namibia Revenue Agency announced the changes in September 2024. From 1 July 2024, losses can only be set off against taxable income up to N$1 million or 80% of taxable income, whichever is higher.
Losses may not be carried forward for more than five years.
“In light of these changes, a N$13.5 million impairment has been recognised,” the group said in its financial statements for the year ended 30 June.
In the previous year, City Lodge reversed a N$20 million impairment in its Namibian subsidiary.
The group cited improved performance and the capitalisation of an intercompany loan by its holding company, City Lodge Hotels (Africa) Proprietary Limited.
“It was estimated, prior to new tax legislation in September 2024, that there would be sufficient taxable income in the medium term against which the deductible temporary differences could be used,” the group explained.
