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GDN
GDN
GDN - Gooderson - Reviewed financial results for the year ended 28 February 2007
Gooderson Leisure Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1972/004241/06)
(JSE code: GDN & ISIN: ZAE000084984)
("Gooderson" or "the company")
HIGHLIGHTS
All key performance indicators ahead of forecasts
Revenue UP 39%
HEPS UP 26%
EBITDA UP 47%
REVIEWED FINANCIAL RESULTS
for the year ended 28 February 2007
CONSOLIDATED INCOME STATEMENT
Year ended Year ended
28 February 28 February
2007 2006
Reviewed Audited
R R
Turnover 88,965,973 64,021,705
Cost of sales (21,830,380) (10,707,844)
Gross profit (GP) 67,135,593 53,313,861
Other Net Operating Costs (44,723,958) (38,039,902)
EBITDA 22,411,635 15,273,959
Depreciation (3,311,675) (3,249,215)
Profit before Interest and Taxation 19,099,960 12,024,744
Net Interest Paid (186,245) (401,968)
Profit before taxation (PBT) 18,913,715 11,622,776
Taxation (4,825,678) (3,096,085)
Profit for the year 14,088,037 8,526,691
Reconciliation of headline earnings:
Profit attributable to ordinary 14,088,037 8,526,691
shareholders
Adjusted for profit on disposal of 126,907
property, plant and equipment
Headline earnings 14,214,944 9,320,966
Weighted average shares in issue on 120,990,000 100,100,000
which earnings are based
Basic earnings per share (cents) 11.64 8.53
Headline earnings per share (cents) 11.74 9.31
Dividend per share (cents) 3.5 -
CONSOLIDATED CASH FLOW STATEMENT
Year ended Year ended
28 February 28 February
2007 2006
Reviewed Audited
R R
Cash flows from operating activities 12,169,276 7,281,787
Cash generated from operations 23,440,095 10,376,180
Interest received 577,227 477,476
Interest paid (763,472) (879,444)
Dividend paid (5,000,000) -
Normal taxation paid (5,459,574) (2,692,425)
Secondary taxation on companies paid (625,000) -
Cash flows from investing activities (27,248,714) (7,454,641)
Purchase of property, plant and
equipment
- Replacements - 509,685
- Additions (23,786,553) (8,973,894)
Proceeds on disposal of property, plant 1,194,416 3,995,602
and equipment
Purchase of intangible assets (196,519) (60,170)
Increase in financial assets (818,399) -
(Increase) / decrease in timeshare (1,251,428) 627,834
development assets
Increase in investment in timeshare - 500
development
Increase in long term debtors (2,390,231) (3,554,198)
Cash Flows from Financing activities 16,609,043 4,053,173
Net proceeds from issue of share capital 16,631,805 -
Increase in deferred revenue 1,507,846 5,196,268
Payment of long term borrowings (1,530,608) (1,143,095)
Net increase in cash and cash 1,529,605 3,880,319
equivalents
Cash and cash equivalents at beginning 5,009,540 1,129,221
of year
Cash and cash equivalents at end of year 6,539,145 5,009,540
CONSOLIDATED BALANCE SHEET
28 February 28 February
2007 2006
Reviewed Audited
R R
ASSETS
Non-current assets 108,931,888 76,604,863
Property, plant and equipment 96,476,651 68,806,203
Intangible Assets 999,563 803,044
Timeshare Development 3,754,308 2,502,880
Financial asset 818,399 -
Long Term Debtors 6,882,967 4,492,736
Current Assets 21,075,838 15,867,907
Inventories 905,180 718,221
Trade and other Receivables 13,334,962 9,489,155
Short term Financial Assets 178,641 354,539
Taxation - 48,462
Cash and Cash Equivalents 6,657,055 5,257,530
Total Assets 130,007,726 92,472,770
EQUITY AND LIABILITIES
Equity Capital and Reserves 89,537,712 56,397,971
Share capital and Premium 16,632,005 200
Reserves 35,251,420 28,116,306
Retained Earnings 37,654,287 28,281,465
Non-current liabilities 22,178,866 19,454,833
Long Term borrowings 2,235,702 3,766,310
Deferred Taxation 12,875,265 10,128,470
Deferred Revenue 7,067,899 5,560,053
Current liabilities 18,291,148 16,619,966
Trade and other payables 10,807,649 6,851,112
Deferred revenue 687,042 459,823
Short term borrowings 2,400,396 4,997,654
Taxation 4,278,151 4,063,387
Bank Overdraft 117,910 247,990
Total equity and liabilities 130,007,726 92,472,770
Shares in issue 120,990,000 100,000,000
Net asset value per share (cents) 74.00 56.40
Net tangible asset value per share 73.18 55.60
(cents)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Capital Retained
capital Premium Reserves Earnings Total
R R R R R
Balance at 1 200 - 8,104,159 19,474,285 27,578,644
March 2005
Surplus on 28,581,178 - 28,581,178
revaluation of
properties
Deferred tax on (8,288,542) - (8,288,542)
revaluation
reserves
Reserve realise (280,489) 280,489 -
on depreciation
of properties
Net profit for 8,526,691 8,526,691
the year
Balance at 1 200 - 28,116,306 28,281,465 56,397,971
March 2006
Reduction in - (21,383) (21,383)
reserves arising
on sale of
subsidiary
Surplus on 10,480,678 10,480,678
revaluation of
properties
Deferred tax on (3,039,396) (3,039,396)
revaluation
reserves
Reserve realised - (306,168) 306,168 -
on depreciation
of properties
Net profit for 14,088,037 14,088,037
the year
Dividend (5,000,000) (5,000,000)
Issue of share 1,050 20,039,295 20,040,345
capital
Treasury shares (40) (3,408,500) (3,408,540)
Balance at 28 1,210 16,630,795 35,251,420 37,654,287 89,537,712
February 2007
COMMENTS
INTRODUCTION
The directors are pleased to present the annual financial results of the company
for the year ended 28 February 2007 ("the year"), which significantly exceed the
forecasts in the revised listing particulars ("revised listing forecasts"). The
successful year was marked by a number of strategic milestones. On 26 September
2006 Gooderson Leisure Corporation listed on the Alternative Exchange ("AltX")
of the JSE Limited. In September 2006 Gooderson Leisure Corporation concluded
the acquisition of Natal Spa Hot Springs Resort and Conference Centre thus
expanding its footprint in the Hotel & Leisure Industry, and purchased the
remaining 50% of the Bushlands Group.
Gooderson Leisure Corporation have declared a final dividend of 3.5 cents per
share for the year. This move further reinforces Gooderson Leisure Corporation`s
leadership as the first Hotel and Leisure company on AltX..
REVIEW OF OPERATIONS
Main business and operations.
The company continues as an investment and holding company. The group continues
to operate in the leisure time industry. Through investments in subsidiaries
the group operates Hotels, a Management Company, Game Lodges, Touring Ventures
and Timeshare Development Ventures.
The trading year showed good results compared with prior years, reflecting the
continuing results of the groups restructuring program.
Significant Capital Expenditure was made in the ongoing upgrade of the group`s
facilities.
The Drakensberg Gardens Golf and Leisure Resort is showing a profit after the
devastating fire in November 2003.
We have acquired Natal Spa Resort & Conference Centre in September 2006 and it
achieved good profits for the six month period.
The timeshare division continues to show an excellent improvement in profits.
Eleven additional units were built in 2006 at Drakensberg Gardens, and with the
conversion of Mtunzini Forest Lodge into Timeshare, we expect this division to
continue to improve our profitability.
Review of the group`s affairs and results of operations for the year.
Net profit of the group was R14,088,037 (2006 R8,526,691) after taxation of
R4,825,678 (2006 R3,096,085).
FINANCIAL RESULTS
Group revenue has increased by 39% to R88.96 million in the previous year, 3.17%
ahead of the R86.22 million in the revised listing forecasts. EBITDA increased
by 47% to R22.41 million from R15.27 million and exceeded the revised listing
forecast by R1.91 million by 9.33%.
SEGMENTAL ANALYSIS
The group is currently organized into two segments, namely Hotels and Lodges and
Timeshare.
These segments are the basis on which the group reports to management.
Principal activities are as follows:
Hotels and Lodges
The company owns and operates hotels, providing accommodation, food and beverage
sales to the middle class and conference markets.
Timeshare
The management and development of its own resorts as well as other resorts that
it manages on behalf of third parties.
Operating Headline
Rand Revenue Profit Earnings Assets Liabilities
Hotels 73,916,945 14,676,351 11,131,147 109,212,080 26,299,852
and
Lodges
Timeshare 15,049,028 4,423,609 3,083,797 20,795,646 14,170,162
Total 88,965,973 19,099,960 14,214,944 130,007,726 40,470,014
BLACK ECONOMIC EMPOWERMENT ("BEE")
As our company has several hotel accommodation contracts that are government
related, the main shareholders intend to sell an initial 15% of the total issued
share capital to a black empowered company before December 2007. Negotiations
with prospective BEE partners will then continue until the company meets the
tourism charter expectations of a 25.1% black ownership shareholding by the year
2014.
More than 87% of the group`s 457 employees are black.
PROSPECTS
The hotel and leisure industry has shown immense growth over the last few years
and we expect revenue to continue to increase in line with the growth
expectations of the economy. This upswing should continue, particularly with the
impending world cup soccer in 2010. The South African Tourism marketing
campaign that is currently taking place can only intensify international
awareness that South Africa is the perfect destination for tourists who require
a diversified and unique holiday experience.
We are currently in the process of a huge upgrade programme at the Natal Spa
Resort & Conference Centre, however the benefits are expected to be realized
only in the following two years.
Room occupancies and revpar should continue to grow at the Drakensberg Gardens
Golf & Leisure resort as a result of the many recent improvements that have been
made. We are currently building a new restaurant and wellness centre which will
enhance occupancies in the future.
Bushlands Game Lodge and DumaZulu Traditional Village & Lodge will both be
refurbished during the year and we will convert ten rooms in June at DumaZulu
into self-catering units.
DIVIDEND POLICY
It was announced in the interim results that Gooderson Leisure Corporation
intended to declare a dividend at year-end equating to one third of its after
tax profits. The directors of Gooderson Leisure Corporation have declared a
final dividend of 3.5 cents per share for the year. The dividend will be
financed out of current profits.
The salient dates for the dividend are as follows:
Last day to trade shares cum div Friday, 15 June 2007
Shares trade ex dividend Monday, 18 June 2007
Record date Friday, 22 June 2007
Payment date Monday, 25 June 2007
No share certificates may be dematerialised or rematerialised between Monday, 18
June 2007 and Friday, 22 June 2007, both dates inclusive.
BASIS OF PREPARATION
The annual financial statements have been prepared in accordance with
International Financial Reporting Standards and the Companies Act of South
Africa, 1973. The accounting policies used to prepare these annual financial
statements are consistent with those applied at the previous year-end.
AUDITORS` REVIEW OPINION
The results have been reviewed by Grant Thornton whose unmodified review report
is available for inspection at the company`s registered office.
These condensed results comply with IAS 34 Interim Financial Reporting. The
accounting policies used in the preparation of this report are consistent with
those used in the annual financial statements for the year ended 28 February
2006 which comply with International Financial Reporting Standards.
APPRECIATION
The group recognises the value of its staff, many of whom have been with the
group for more than 10 years. The directors thank them for their loyalty and
work ethic which have contributed to the successful listing on Altx and
Gooderson Leisure Corporation`s exceptional results. Gooderson Leisure
Corporation also thanks its business partners, advisors, suppliers, clients and
shareholders for their ongoing support and faith in the group.
By order of the Board
Chief Executive Officer
Financial Director
30 May 2007
DIRECTORS:
The names of the Directors in office at 28 February 2007 are listed below.
A W Gooderson, C M de Klerk, C L Gooderson,G M Castleman, G L Lello, R Nannoolal
* M A Pottier, B R Warmback
*Independent
Registered office: 4 Pencarrow Crescent, Pencarrow Park, La Lucia Ridge Office
Estate, La Lucia, 4019
(PO Box 752, Durban, 4000)
Telephone: 031 5765500
Facsimile: 031 5765555
Transfer secretaries: Computershare Investor Services 2004 (Pty) Limited, 70
Marshall Street, Johannesburg, 2001 (PO Box 61763, Marshalltown, 2107)
Designated Adviser: Exchange Sponsors (Pty) Limited
Company secretary: R. Nannoolal
www.goodersonleisure.co.za
Date: 30/05/2007 10:38:03 Produced by the JSE SENS Department.
