|
IFH
IFH
IFH - IFA - Trading statement
IFA HOTELS & RESORTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1919/001318/06)
Share code: IFH & ISIN: ZAE000075669
("IFA" or "the company")
TRADING STATEMENT
In terms of the JSE Limited Listings Requirements, companies are required to
publish a trading statement as soon as they become reasonably certain that
the financial results for the period to be reported on will differ by more
than 20% from that of the previous corresponding period. IFA is currently
finalising its annual results for the year ended 30 June 2007. Shareholders
are accordingly advised that earnings per share and headline earnings per
share will be between 45% and 52% less than the previous corresponding
period. The annual results are due for release in the near future.
The decline in revenue is largely attributable to the expected decrease in
land inventory normally associated with the conclusion of a development
phase - in this instance Zimbali South and West of Zimbali Coastal Resort.
The decline in net profit is also attributable to the fact that a number of
subsidiary companies have been established recently and their relevant
underlying projects are still in the planning phase. In addition, the
company has incurred the set-up costs for a head office structure in South
Africa for its African and Indian Ocean operations.
The board is, however, of the view that the initiatives launched and
developed in the past year by the company will contribute to its long term
sustainable growth. These are discussed below:
a) Namibia
In March 2007, IFA formed a joint venture with the Olthaver & List Group to
redevelop three hotels and develop a fourth site in Windhoek into a five
star hotel. IFA also introduced five star international hotelier, Kempinski
Hotels, to operate these hotels going forward.
b) Zimbali Lakes
The company expects planning approvals for the 300 hectare extension of the
Zimbali Coastal Resort - "Zimbali Lakes" - to be obtained in the fourth
quarter of 2007. This should generate in excess of R800 million in sales
beginning in the 2008 financial year. Through the Mifaz joint venture, IFA
stands to benefit from 50% of the sales revenue and attributable profits.
c) Boschendal
The 2 400 hectare Boschendal development, in which IFA increased its stake
in the current period to 26,57% from 19,25%, is still in the planning phase.
It is expected to generate in excess of R1,7 billion in sales, of which
approximately R660 million in reservations have been secured.
d) Estate agency
During the year, IFA established an in-house estate agency which has the
sole mandate to market and sell the R1,1 billion Fairmont Resort development
within Zimbali Coastal Resort. Approximately R176,5 million of sales in the
Fairmont Zimbali project have already been reserved.
The board believes that, following capital expenditure on set-up and
development costs, the operations discussed above should begin to yield
benefit for the group in the year ahead.
The financial information on which this trading statement is based has not
been reviewed or reported on by the company`s auditors.
7 August 2007
Zimbali
Sponsor
BDO QuestCo
Date: 07/08/2007 09:04:01 Produced by the JSE SENS Department.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
