| Mon 31 Mar 2008, 17:15 | | 1TM - 1time Holdings - Audited Results For The Year Ended 31 December 2007 |
|
1TM
1TM
1TM - 1time Holdings - Audited Results For The Year Ended 31 December 2007
1time holdings Limited
(Formerly 1time holdings (Pty) Ltd)
(Incorporated in the Republic of South Africa)
(Registration Number: 1999/017536/06)
Share Code: 1TM
ISIN Code: ZAE000102026
("1time holdings" or "group")
AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007
Highlights
Headline earnings per share increased to 15.68 cps
Revenue growth 36%
Passenger growth 34%
Abridged consolidated balance sheet
31 December 31 December
(Audited) (Audited
2007 Restated)
2006
Assets
Non-Current Assets
Property, plant and equipment 12,333,013 7,825,436
Aircraft 222,116,938 84,772,317
Other assets 3,039,166 4,289,166
237,489,117 96,886,919
Current assets
Inventories 39,378,948 11,809,445
Trade and other receivables 31,249,533 23,847,770
Cash and cash equivalents 25,889,064 33,588,240
96,517,545 69,245,455
Total assets 334,006,662 166,132,374
Equity and liabilities
Equity
Share capital 46,755,437 18,741,100
Reserves 14,334,924 4,181,122
4,181,122
Retained income 40,515,184 11,937,090
Shareholders loans 3,300,000 3,300,000
104,905,545 38,159,312
Non-Current Liabilities
Installment sale agreements 26,803,925 24,171,402
Deferred tax 22,304,710 11,350,032
49,108,635 35,521,434
Current Liabilities
Short term portion of installment sale 55,978,776 12,723,212
agreements
Trade and other payables 98,205,436 60,017,625
Unused ticket liability 25,528,737 17,880,965
Other liabilities 279,533 1,829,826
179,992,482 92,451,628
Total equity and liabilities 334,006,662 166,132,374
Number of shares in issue ay year end 210,000,000 180,000,000
Net asset value per share (cents) 49.96 21.20
Net tangible asset per share (cents) 48.98 20.06
Abridged consolidated income statement
31December 31December
(Audited) (Audited
2007 Restated)
2006
Revenue 674,606,422 496,221,067
Operating costs (623,363,242) (452,797,488)
Earnings before interest, taxation and 51,243,180 43,423,579
depreciation
Depreciation (13,220,455) (8,064,673)
Finance charges (7,359,961) (5,271,576)
Investment income 4,928,369 2,641,303
Profit before taxation 35,591,133 32,728,633
Taxation (7,013,039) (8,256,549)
Attributable earnings 28,578,094 24,472,084
Headline Earnings
Earnings attributable to ordinary shareholders 28,578,094 24,472,084
Discount on purchases - (3,107,144)
Impairment on fixed assets 1,411,251 4,918
Profit on disposal of property, plant and (4,231) (2,202,845)
equipment
Headline earnings attributable to ordinary 29,985,114 19,167,013
shareholders
Weighted average number of shares in issue 191,260,274 180,000,000
Earnings per share (cents) 14.94 13.60
Headline earnings per share (cents) 15.68 10.65
Before restatement as per prospectus
Earnings per share (cents) 14.94 11.43
Headline earnings per share (cents) 15.68 8.51
Note: See change in accounting policy below in
respect of depreciation of aircraft
Abridged statement of changes in equity
Share Share premium Shareholder
capital loans
Balance at 31 11,983 18,729,117 3,300,000
December 2006 as
per prospectus
Change in - - -
accounting
policy
Restated Equity 11,983 18,729,117 3,300,000
Profit for the - - -
year
Net revaluation - - -
of aircraft
Issue of shares 9,017 29,990,983 -
Listing costs - (1,985,663) -
Balance at 30 21,000 46,734,437 3,300,000
June 2007
Table continues:.
Non- Retained Total
distributabl earnings
e reserves
Balance at 31 5,244,605 7,839,187 35,124,892
December 2006 as
per prospectus
Change in (1,063,483) 4,097,903 3,034,420
accounting policy
Restated Equity 4,181,122 11,937,090 38,159,312
Profit for the year - 28,578,094 28,578,094
Net revaluation of 10,153,802 - 10,153,802
aircraft
Issue of shares - - 30,000,000
Listing costs - - (1,985,663)
Balance at 30 June 14,334,924 40,515,184 104,905,545
2007
Abridged consolidated cash flow statement
31 December 31 December
(Audited) (Audited
2007 restated)
2006
Cash and equivalents at beginning of year 32,318,154 19,785,024
Cash flows from operating activities 60,747,444 32,363,769
Cash generated from operations 63,664,932 35,737,491
Interest received 4,928,369 2,641,303
Interest paid (7,359,961) (5,271,576)
Taxation paid (485,896) (743,449)
Cash flows from investing activities (143,064,621) (47,568,480)
Cash flows from financing activities 75,888,087 27,737,841
Cash and cash equivalents at end of year 25,889,064 32,318,154
Abridged segment report
31 December 31 December
(Audited) (Audited
2007 restated)
2006
Gross revenue
Airline 630,539,304 466,053,701
Charter 16,203,592 16,138,320
Maintenance 122,541,738 66,021,527
Inter-segment revenue (94,678,212) (51,992,481)
Total 674,606,422 496,221,067
Earnings before interest and tax
Airline 16,453,708 12,947,350
Charter 5,754,872 6,856,656
Maintenance 17,461,185 13,161,814
Eliminations (1,647,040) (714,058)
Total 38,022,725 32,251,762
Discount on purchase - 3,107,144
38,022,725 35,358,906
It gives us great pleasure to announce our maiden results since listing during
August 2007. The financial year to 31 December 2007 was characterised by
exceptional growth and award winning performance for customer service.
FINANCIAL PERFORMANCE
The group performed well to increase revenue by 36% from R 496 million in 2006
to R 674 million for the year under review. Revenue growth was achieved in 1time
airline and Aeronexus Technical, the aircraft maintenance business.
Attributable earnings increased from R 24,5 million in 2006 to R 28,6 million in
2007 and headline earnings per share from 8.51 cents (before restated as per
prospectus) in 2006 to 15,7 cents (being an increase of 84%) for the year
under review.
Cash flow generated from operations remained strong at R 63,6 million for the
year compared to R35,7 million for 2006. Cash generated has largely been
invested to acquire four additional MD 80 aircraft.
Average fuel prices for 2007 increased by 40 cents per litre translating to a R
35 million fuel price increase for the year. These cost increases have been
recouped through revenue growth achieved on higher passenger volumes and yield
growth.
CHANGE IN ACCOUNTING POLICY
Previously the group did not provide for depreciation on aircraft and instead
provided for the aircraft value diminution through maintenance expenses. Upon
review of IAS16 Property, Plant and Equipment and in response to suggestions
made by institutional investors the group has revised its policy to provide for
a depreciation expense in accordance with the stipulations of IAS16 instead of
through a maintenance expense account.
The change in accounting policy has increased the depreciation expense for 2007
by R 9, 5 million (prior year R4,7 million) and reduced the maintenance expense
by R9, 7 million (prior year R9,0 million). The restated earning per share for
2006 has increased from 11,4 cents to 13,6 cents and headline earnings per share
from 8,5 cents to 10,7 cents.
LISTING
1time holdings Ltd successfully listed on the JSE ALtx on 14 August 2007 with
the private placement of 60 million shares well over subscribed. The listing
achieved the desired results: raising capital to fund growth, increasing
corporate awareness of the 1time brand and attracting strong institutional and
public support.
MARKET ENVIRONMENT
The domestic air travel market has continued with the average 15% growth a year
achieved for the past six years. 1time airline has achieved significant market
share growth, with passenger volumes increasing by 34% in 2007.
State subsidised Mango and SAA continue to distort the market by selling below
cost in an attempt to retain market share.
The anti competitive exclusivity agreement between Comair and Lanseria Airport
also retards fair competition.
1time commenced its first regional route with flights between Johannesburg and
Zanzibar in November 2007. Expansion into lucrative routes into Africa is still
retarded by outdated bilateral agreements designed to protect weak state
subsidised airlines instead of offering affordable air travel to stimulate
tourism and business markets in Africa.
AIRCRAFT FLEET
1time airline made significant progress in its fleet upgrade programme by
becoming the first privately owned airline in South Africa with a full stage 3
noise and emission compliant airline fleet by financial year end. The
standardised fleet of eight MD80 type aircraft contributed largely towards 1time
achieving the lowest seat kilometre costs in South Africa. The four DC9 aircraft
will be dedicated to the 1time charter fleet early in 2008. Demand for charter
services remain high.
SERVICE STANDARDS
1time airline became the first airline in South Africa to win five Feather
Awards in one year, by winning the best airline award in Cape Town, East London,
Port Elizabeth, George and Durban during 2007. These ACSA awards are based on
the results of independent passenger surveys at all airports regarding all
aspects of customer service, including on time departure, check in time, baggage
handling and friendly on board service. These awards are very encouraging in
keeping the 1time brand promise "More Nice Less Price"
ANCILLARY REVENUE
During the year 1time further strengthened its partnership relationships with
Avis Car Rental, City Lodge and Express Air Services to generate significant
ancillary revenue. The 1time website attracts over 900 000 hits a month creating
opportunities to feed additional sources of ancillary revenue in the future.
AERONEXUS TECHNICAL
Aeronexus Technical performed exceptionally well in the year under review.
Revenue generated from third party aircraft maintenance services increased to
R26 million for the year. The company successfully tendered for the lease of 12
000 m2 land adjacent to its hanger facility at OR Tambo International Airport.
This land will be used to expand the maintenance capacity during the second half
of 2008.
NATURELINK
As advised to the market on 13 November 2007 1time holdings has concluded heads
of agreement with Safair relating to the acquisition of a 60% interest in
Naturelink Aviation (Pty) Ltd. Naturelink operates a fleet of thirteen aircraft
throughout Africa and the Middle East on a contract basis and operate
maintenance and charter businesses. It is expected that a final announcement on
the proposed acquisition will be made within the next few weeks.
DIVIDEND POLICY
In line with the group`s strategy to reinvest in the group in order to sustain
growth, no dividend has been declared. The dividend policy of 1time holdings
will be reviewed annually in light of the group`s cash flow, gearing and capital
requirements.
BASIS OF PREPARATION OF AUDITED RESULTS
The abridged consolidated financial statements for the year ended 31 December
2007 have been prepared in accordance with International Financial Reporting
Standards and the South African Companies Act.
AUDITED RESULTS
The results have been audited by Nexia HBLT Chartered Accountants (East Rand)
Inc. and their unqualified audit opinion is available for inspection at the
groups registered office.
PROSPECTS
The weakening Rand will negatively impact the airline business but will have a
positive impact on the maintenance and charter businesses.
The steep increase in the price of oil during the first quarter of 2008 is of
serious concern and will have a major negative impact on first half earnings for
the airline as the market takes time to adjust to the higher Rand fuel prices
and associated higher airfares.
Prospects for revenue growth in 2008 remain positive for the airline,
maintenance and charter businesses, despite the expected slow down in GDP growth
resulting from the negative impact of higher interest rates and the electricity
crisis.
BY ORDER OF THE BOARD
Sipho Twala Glenn Orsmond
Chairman Group CEO
31 March 2008
CORPORATE INFORMATION
Non-executive directors: S M Twala; T Muradzikwa
Executive directors: G W Orsmond; R L James; M J Kaminski; G W Harrison; S J
Petersen; M Snyman (Secretary)
Registration number: 1999/017536/06
Registered address: Unit D2, Isando Industrial Park, Hulley Road, Isando
Postal address: P.O. 7110, Bonaero Park, 1622
Telephone: 011 928 8000
Facsimile: 0866 492 712
Web address: www.1timeholdings.co.za
Transfer secretaries: Computershare Investor Services 2004 (Pty) Limited
Designated Adviser: Exchange Sponsors (Pty) Limited
Date: 31/03/2008 17:15:01 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.
