|
CLH
CLH
CLH - City Lodge Hotels - Reviewed Group Preliminary Results For The Year Ended
30 June 2007 and dividend declaration
CITY LODGE HOTELS LIMITED
Registration number 1986/002864/06
Share code: CLH & ISIN: ZAE000001483
Reviewed group preliminary results for the year ended 30 June 2007
Average occupancies 82%, HEPS+22%, Dividends +23%, ROE 36%
Income statement
Year Year
R 000`s ended ended
30 June % 30 June
2007 change 2006
Revenue 509,711 15 442,122
Administration and marketing (42,714) (37,406)
costs
Operating costs (185,938) (167,734)
281,059 19 236,982
Depreciation (26,672) (25,469)
Operating profit 254,387 20 211,513
Interest income 11,953 9,267
Interest expense (3,772) (5,844)
Share of profit from joint 7,611 5,347
venture
Profit before taxation 270,179 23 220,283
Taxation (92,260) (76,359)
Profit for the period 177,919 24 143,924
Headline earnings
reconciliation
Net profit 177,919 143,924
(Profit)/loss on sale of (270) 889
equipment
Taxation effect 78 (258)
Headline earnings 177,727 23 144,555
Number of shares in issue 42,482 42,368
(000`s)
Weighted average number of
shares in issue (000`s) 42,416 42,300
Basic earnings per share
(cents)
- fully diluted 413.5 23 336.5
- undiluted 419.5 23 340.2
Headline earnings per share
(cents)
- fully diluted 413.0 22 337.9
- undiluted 419.0 23 341.7
Dividends declared per share 293.0 23 238.0
(cents)
Effective tax rate (%) 34.1 34.7
Balance sheet
R000`s 30 June 30 June
2007 2006
ASSETS
Non current assets 564,545 501,862
Property, plant and equipment 517,717 456,086
Investments and loans 43,850 42,877
Deferred taxation 2,978 2,899
Current assets 109,571 105,208
Inventory 1,493 1,371
Trade receivables 23,855 24,092
Other receivables 4,831 5,903
Cash and cash equivalents 79,392 73,842
Total assets 674,116 607,070
EQUITY AND LIABILITIES
Capital and reserves 534,440 466,519
Share capital and premium 138,008 136,409
Accumulated profit 392,910 327,812
Other reserves 3,522 2,298
Non-current liabilities 97,945 105,944
Interest-bearing borrowings 40,000 55,153
Other non-current liabilities 5,859 5,360
Deferred taxation 52,086 45,431
Current liabilities 41,731 34,607
Trade and other payables 30,746 23,957
Taxation 10,985 10,650
Total equity and liabilities 674,116 607,070
Interest bearing debt to total capital and 7 12
reserves (%)
Net asset value per share (cents) 1,258 1,101
Note: The company has authorised capital
commitments of R297 million of which
approximately R92 million has been
contracted. It is anticipated that
approximately R220 million will be spent by
30 June 2008.
Cash flow statement
30 June 30 June
R000`s 2007 2006
Cash generated by operations 298,059 240,844
Net interest received 8,181 3,423
Taxation paid (85,016) (80,832)
Dividends paid (112,821) (95,619)
Cash inflow from operating activities 108,403 67,816
Cash utilised in investing activities (89,006) (50,561)
-investment to maintain operations (27,382) (9,004)
-investment to expand operations (60,651) (40,830)
-investments and loans (973) (727)
Cash flows from financing activities (13,847) 1,632
Net increase in cash 5,550 18,887
Statement of recognised gains and
losses
Year Year ended
ended
R000`s
30 June 30 June 2006
2007
Actuarial loss on defined benefit (1,150) (426)
plan
Deferred taxation thereon 333 124
Net loss recognised directly in (817) (302)
equity
Profit for the period 177,919 143,924
Total recognised income and expenses 177,102 143,622
for the period
Reconciliation of movement in capital and reserves
Share Other Accumulated
capital
R`000 and premium reserves profit Total
Balance at 30 134,777 1,378 279,507 415,662
June 2005
Issue of new 1,632 1,632
ordinary shares
Net profit for 143,924 143,924
the period
Recognised gains (302) (302)
and losses
Share 1,222 1,222
compensation
reserve
Dividends paid (95,619) (95,619)
Balance at 30 136,409 2,298 327,812 466,519
June 2006
Issue of new 1,599 1,599
ordinary shares
Net profit for 177,919 177,919
the period
Recognised gains (817) (817)
and losses
Share 2,041 2,041
compensation
reserve
Dividends paid (112,821) (112,821)
Balance at 30 138,008 3,522 392,910 534,440
June 2007
COMMENTARY
Continued strong demand for quality, value for money accommodation from both
business and leisure travellers enabled the group to record its highest ever
annual occupancy of 82% (79%) in the year to 30 June 2007.
Occupancy rates in the second half were marginally below the first half of the
financial year due to the incidence of public holidays in the second half and
the opening of two new hotels.
The number of rooms sold during the year increased due to the higher occupancies
and additional capacity brought about by the opening of new hotels and
extensions to an existing hotel. Town Lodge George made a full year`s
contribution, the 106-room Town Lodge Roodepoort opened in January, Road Lodge
Germiston was extended by 30 rooms in March, and there was a two month
contribution from the 90-room Road Lodge East London, the group`s 40th hotel.
Revenue for the year rose by 15% to R509.7 million, whilst the higher
occupancies and an increase in the achieved average room rate contributed to an
improvement in the operating profit margin by 2.2 percentage points to 50%. This
led to operating profit increasing by 20%.
Higher average cash balances and interest rates resulted in interest received
increasing by R2.7 million. Interest paid decreased however by R2.1 million
partly as a result of the repayment of a portion of the group`s long term
borrowings at the end of February.
Continued improvement in occupancies at the Courtyard brand together with higher
achieved room rates resulted in income from the Courtyard joint venture
increasing by 42% to R7.6 million.
The group`s effective tax rate declined marginally to 34.1% from 34.7% and is
above the standard corporate tax rate of 29% due to the STC charge on dividends
paid during the period.
Profit for the period increased by 24% to R177.9 million from R143.9 million,
translating into a 22% increase in fully diluted headline earnings per share to
413.0 cents from 337.9 cents previously.
OUTLOOK
The 2008 financial year will be boosted by full contributions from Road Lodge
East London, Town Lodge Roodepoort and the extension to Road Lodge Germiston. In
addition, two new hotels - Road Lodge Richards Bay and Road Lodge Centurion -
are currently under construction and expected to open at the beginning of
calendar 2008.
A comprehensive extension programme is underway: a 27-room extension to
Courtyard Port Elizabeth is due for completion in October, a 60-room extension
to City Lodge Johannesburg Airport should be completed in the first quarter of
next year, and a 56-room extension to City Lodge GrandWest will also open early
in 2008. In addition, Road Lodge Nelspruit will be extended by 30 rooms.
A site has been secured for a 90-room Road Lodge in Potchefstroom and
construction of a 204-room Town Lodge in Port Elizabeth is anticipated to
commence in the first quarter of 2008. Suitable sites to expand the group`s four
brands are constantly being sought and evaluated around the country.
Total investment in the announced new hotels, extensions of existing hotels and
refurbishments will amount to R297 million and will result in the group having
44 hotels with 5 071 rooms, an increase of 15%.
The group is well advanced with regard to the introduction of significant BEE
shareholding and it is anticipated that an announcement in this regard will be
made by the end of the calendar year.
It is expected that occupancies will remain at high levels in the new financial
year. This, together with the additional capacity, should result in satisfactory
earnings growth in the year ahead.
BASIS OF PREPARATION
These condensed annual financial statements have been prepared in accordance
with the recognition and measurement requirements of International Financial
Reporting Standards ("IFRS") and have been prepared in accordance with the
presentation and disclosure requirements of IAS 34 Interim Financial Reporting.
The accounting policies used are consistent with those used in the annual
financial statements for the year ended 30 June 2006.
AUDIT REVIEW
The group`s auditors KPMG Inc. have reviewed the preliminary results for the
year ended 30 June 2007. A copy of the unmodified review report is available for
inspection at the company`s registered office.
DECLARATION OF DIVIDEND
Notice is hereby given that ordinary dividend no. 37 of 148.0 cents per share
for the year ended 30 June 2007 has been declared.
Shareholders are advised that the last day to trade cum dividend will be Friday,
14 September 2007. The shares will trade ex dividend as from Monday, 17
September 2007 and the record date will be Friday, 21 September 2007. The
dividend is payable on Tuesday 25 September 2007.
Share certificates may not be dematerialised or rematerialised between Monday,
17 September 2007 and Friday, 21 September 2007, both days inclusive.
For and on behalf of the board
Hans R Enderle
Chairman
Clifford Ross
Chief executive
16 August 2007
Registered office
"The Lodge", Bryanston Gate Office Park,
cnr. Homestead Avenue and Main Road Bryanston
Transfer secretaries
Computershare Investor Services 2004
70 Marshall Street, Johannesburg, 2001
Directors: HR Enderle (Chairman), C Ross (Chief executive)*, FWJ Kilbourn, IN
Matthews, N Medupe, SG Morris, Dr KIM Shongwe, AC Widegger*
Company Secretary: M C van Heerden
*Executive
Sponsor: J.P.Morgan Equities Limited
Date: 16/08/2007 15:17:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
| 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 ] | |||||||||||||
|
|||||||||||||
