| Tue 17 Feb 2009, 10:30 | | COM - Comair - Unaudited Interim Results For The Six Months Ended |
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COM
COM
COM - Comair - Unaudited Interim Results For The Six Months Ended
31 December 2008
Comair Limited
Incorporated in the Republic of South Africa
Registration number 1967/006783/06
Share code: COM
ISIN: ZAE000029823
("the Company" or "the Group")
Unaudited Interim Results for the six months ended 31 December 2008
Performance review
Our interim results for the 2009 financial year were severely affected by the
record-high fuel price experienced in the first quarter. Attributable earnings
declined by 47% to R32 million (comparative period: R60 million) resulting in
headline earnings per share of 7.9 cents relative to 14.8 cents in the
comparative period. The cash balance grew by R 105 million from 30 June 2008.
Passenger numbers remained stable while turnover grew by 28% as result of fare
increases required to partially recover the escalating fuel price. The fuel bill
increased from R 427 million to R 682 million despite our new fleet of 737
aircraft using 26% less fuel per seat than the old MD82 aircraft that they
replaced. Performance was also hampered by aggressive price competition from
loss-making, taxpayer-funded state competitors SAA and Mango. Losses on fuel
hedging were offset by gains on hedging the rand against the US dollar.
Prospects
The recovery of the fuel price since October 2008 has had a substantial effect
on restoring our cost base to improved levels, although the weaker rand has put
further pressure on costs. The global economic crisis has resulted in declining
passenger volumes from international markets. The domestic market has shrunk
by 5% year to date and we anticipate a further decline in the second half of our
financial year, but with some respite offered by events like the British Lions`
tour and the Confederations Cup as well as the build up to the 2010 World Cup.
Cash management will remain a priority in anticipation of opportunities that
might arise in the current economic climate. We also continue to focus on
diversifying our business, thereby reducing the influence of the oil price and
exchange rate on profits. Currently our key diversification project is the
development of our on-line travel business which is already marketing a wide
range of travel packages and hotel rooms as well as car rental. During the
period we acquired two small on-line travel businesses. We are also developing
our outsourcing business where we provide a range of services to other airlines,
including flight training and passenger handling. In addition, route development
and customer-centric core product enhancements receive continued attention. We
anticipate growth from our new business ventures.
We will continue to rely on the strength of our people and their commitment to
world-class customer service to see us through a challenging year ahead.
Dividends
No interim dividends have been declared as it is Company policy to consider one
dividend annually.
Director`s appointment
Mr Rajesh R Mehta was appointed to the Board as a non-executive director on
4 December 2008.
Basis of preparation
In terms of the listing requirements of the JSE Limited, the Group has prepared
the consolidated financial statements in accordance with International Financial
Reporting Standards ("IFRS") and IAS34 and in terms of the Companies Act. The
accounting policies used in the preparation of these results are consistent in
material respects with those used in the financial statements for the year ended
30 June 2008.
Abridged Group Income Statement
Unaudited Unaudited Audited
six months six months year
31 Dec 31 Dec 30 June
2008 2007 2008
R`000 R`000 R`000
----------------------------------------
Revenue 1,606,846 1,258,153 2,688,488
Operating expenses (1,552,672) (1,166,008) (2,576,364)
----------------------------------------
Profit from operations 54,174 92,145 112,124
Net investment expense (14,452) (1,303) (8,276)
Share of profit (loss) of associates 2,210 500 (350)
----------------------------------------
Profit before taxation 41,932 91,342 103,498
Taxation (10,172) (31,833) (41,695)
----------------------------------------
Attributable earnings 31,760 59,509 61,803
----------------------------------------
Headline earnings attributable
to Ordinary Shareholders 31,760 59,509 61,803
Earnings per share (cents) 7.9 14.8 15.4
Headline earnings per share (cents) 7.9 14.8 15.4
Diluted earnings per share (cents) 7.9 13.4 14.9
Diluted headline earnings per
share (cents) 7.9 13.4 14.9
Weighted ordinary shares in
issue (`000) 400,805 400,740 400,740
Diluted weighted ordinary shares in
issue (`000) 404,211 442,701 414,233
Depreciation (R`000) 53,653 47,213 102,857
Interest expense (R`000) 26,403 16,391 37,668
Abridged Group Balance Sheet
ASSETS
Property, plant and equipment 893,714 736,851 866,750
Investment in associates 65,186 16,413 56,113
Available-for-sale-investments 120,870 99,450 110,160
Current assets 472,007 506,806 409,406
----------------------------------------
1,551,777 1,359,520 1,442,429
----------------------------------------
EQUITY AND LIABILITIES
Share capital and reserves 511,278 450,293 459,942
Interest-bearing liabilities 353,342 310,514 360,333
Deferred taxation 27,687 33,716 44,717
Current liabilities 659,470 564,997 577,437
----------------------------------------
1,551,777 1,359,520 1,442,429
----------------------------------------
Net asset value per share (cents) 128 112 102
----------------------------------------
Abridged Group Cash Flow Statement
Cash and cash equivalents at the
beginning of the period 125,004 242,024 242,024
Cash from operations and
investment income 223,373 201,467 172,439
Dividends paid - (36,065) (36,067)
Taxation paid (13,351) (23,176) (28,180)
Cash utilised in investing activities (98,184) (121,254) (358,057)
Net effect of share trust activities - 1,000 665
(Decrease) / increase in interest
bearing liabilities (6,991) 65,466 132,180
----------------------------------------
Cash and cash equivalents at the end
of the period 229,851 329,462 125,004
----------------------------------------
Share Share BEE Hedging Retained
Capital Premium Reserve Reserve Income Total
Abridged Group Statement
of Changes in Equity R`000 R`000 R`000 R`000 R`000 R`000
----------------------------------------------------
Balance at 1 July 2007 4,736 8,042 - (485) 413,238 425,531
BEE Equity Adjustment
incorrectly reported
as creditor in 2007 - - 3,428 - - 3,428
Profit for six months - - - - 59,509 59,509
Dividends paid during the
six months - - - - (36,065) (36,065)
Equity settled share based
payment adjustment - - 1,714 - - 1,714
Net effect of share trust
activities - - - - 1,000 1,000
Net change in hedging
reserve - - - (4,824) - (4,824)
----------------------------------------------------
Balance at 31 December 2007 4,736 8,042 5,142 (5,309) 437,682 450,293
----------------------------------------------------
Balance at 1 July 2008 4,749 8,070 6,856 669 439,598 459,942
Attributable profit - - - - 31,760 31,760
Equity settled share-based
payment adjustment - - 1,714 - - 1,714
Net change in hedging
reserve - - - 17,862 - 17,862
----------------------------------------------------
Balance at 31 December 2008 4,749 8,070 8,570 18,531 471,358 511,278
----------------------------------------------------
For and behalf of the board
D Novick GS Novick ER Venter
Chairman Joint CEO Joint CEO
17 February 2009
Company Secretary
D Borer
1 Marignane Drive
Bonaero Park 1619
PO Box 7015
Bonaero Park 1622
Transfer Office
Computershare Investor Services (Pty) Ltd
70 Marshall Street
Johannesburg 2001
PO Box 61051
Marshalltown 2107
Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited)
Date: 17/02/2009 10:30:17 Produced by the JSE SENS Department.
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