| Wed 25 Mar 2009, 12:55 | | 1TM - 1time Holdings Limited - Condensed audited results for the year ended |
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1TM
1TM
1TM - 1time Holdings Limited - Condensed audited results for the year ended
31 December 2008
1time Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1999/017536/06)
Share Code: 1TM
ISIN Code: ZAE000102026
("1time Holdings" or "the group")
CONDENSED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2008
Highlights
- Revenue growth 56%
- Group revenue over R1billion
- Passenger growth 18%
- EBITDA growth 11%
- Cash generated from operations of R76.8 million
Condensed consolidated balance sheet
Year ended Year ended
31 December 31 December
2008 2007
(Audited) (Audited)
Non-Current Assets
Aircraft 340 614 044 222 116 938
Other non-current assets 20 380 477 15 372 179
Current Assets
Assets held for sale 28 853 000 -
Other current assets 99 019 502 96 113 389
Total assets 488 867 023 333 602 506
Equity and liabilities
Capital and reserves 144 619 890 104 905 542
Non-current liabilities 102 573 494 26 803 925
Deferred tax 22 177 811 22 304 710
Current liabilities 219 495 828 179 588 329
Total equity and liabilities 488 867 023 333 602 506
Number of shares in issue 210 000 000 210 000 000
Net asset value per share 68.87 49.96
(cents)
Net tangible asset per share 67.51 48.73
(cents)
Condensed consolidated income statement
Year ended 31 Year ended
December 31 December
2008 2007
(Audited) (Audited)
Revenue 1049 553 531 674 622 824
Operating costs (990 089 755) (621 930
425)
Earnings before interest, tax 59 463 776 52 692 399
and depreciation
Depreciation (27 667 005) (13 242 017)
Impairment on assets held for (10 837 485) (1 411 252)
sale
Foreign exchange difference (17 976 080) (16 403)
Operating profit 2 983 206 38 022 727
Net finance charges (21 178 998) (7 359 961)
Investment Income 7 063 834 4 928 369
(Loss)/profit before taxation (11 131 958) 35 591 135
Taxation 1 270 268 (7 013 039)
Attributable (loss)/earnings (9 861 690) 28 578 096
Headline Earnings
(Loss)/earnings attributable (9 861 690) 28 578 096
to ordinary shareholders
Impairment of assets 10 837 485 1 411 251
Profit on disposal of - (4 231)
property, plant and equipment
Headline earnings attributable 975 795 29 985 116
to ordinary shareholders
Weighted average number of 210 000 000 191 260 274
shares in issue
(Loss)/ earnings per share (4.70) 14.94
(cents)
Headline earnings per share 0.46 15.68
(cents)
Condensed statement of changes in equity
31 December 31 December
2008 2007
(Audited) (Audited)
Opening balance shareholders 104 905 542 38 159 307
funds
Share issue - 30 000 000
Costs relating to listing - (1 985 663)
Revaluation 57 200 502 14 301 129
Deferred tax on revaluation (4 324 464) (4 147 327)
(Loss)/profit before taxation (9 861 690) 28 578 096
Shareholders loans repaid (3 300 000) -
Total shareholders` funds 144 619 890 104 905 542
Condensed consolidated cash flow statement
31 December 31 December
2008 2007
(Audited) (Audited)
Cash and equivalents at 25 889 064 32 318 154
beginning of year
Cash flows from operating 62 203 363 60 763 848
activities
Cash generated from 76 848 124 63 681 336
operations
Interest received 7 063 834 4 928 369
Interest paid (21 178 998) (7 359 961)
Taxation paid (529 598) (485 896)
Cash flows from investing (149 786 416) (143 081
activities 024)
Cash flows from financing 68 228 232 75 888 088
activities
Cash and equivalents at end 6 534 243 25 889 064
of year
Condensed segment report
31 December 31 December
2008 2007
(Audited) (Audited)
Gross revenue
Airline 994 928 298 630 555 706
Charter 11 032 433 16 203 592
Technical 191 590 369 122 541 738
Inter-segment revenue (147 997 569) (94 678 212)
Total 1049 553 531 674 622 824
Earnings before interest and
tax
Airline 37 629 540 26 345 444
Charter 3 607 633 9 428 439
Technical 20 185 647 18 565 556
Eliminations (1 959 044) (1 647 040)
Total 59 463 776 52 692 399
Investment income 7 063 834 4 928 369
Finance costs (21 178 998) (7 359 961)
Taxation 1 270 268 (7 013 039)
Depreciation (27 667 005) (13 242 017)
Impairment on aircraft held (10 837 485) (1 411 252)
for sale
Foreign exchange difference (17 976 080) (16 403)
(9 861 690) 28 578 096
PERFORMANCE REVIEW
The Group achieved satisfactory results for 2008 in the most turbulent year
in aviation history. The year was characterised by exceptional revenue
growth, unprecedented fuel price increases, currency volatility and the
global credit crunch. We are particularly pleased at the improved performance
in the second half of the financial year with EBITDA increasing from R5.7
million in the first half of the year to R53.8 million in the second half of
the year.
Group revenue increased by 56% from R674,6 million, in 2007, to break the
billion Rand level at R1050 million for 2008. Revenue growth was underpinned
by an 18% increase in passenger numbers and a 34% increase in average yields.
Revenue growth was however largely offset by the R230 million increase in
fuel costs attributed to the 65% increase in average Rand fuel prices for
2008.
The fall in headline earnings from R29,9 million last year to R0.97 million
for the year is largely due to the R17,9 million foreign currency translation
charge caused by the dramatic weakening of the Rand in the last quarter of
2008 and a R10,8 million impairment loss on the four DC9 aircraft held for
sale. The weakening of the Rand however also contributed to the R57 million
increase in non-distributable reserves relating to aircraft valuations.
Cash flow generated from operations for the year remained strong at R76,8
million compared to R63,7 million for 2007. Cash generated by operations has
largely been applied towards the cost of acquiring additional aircraft.
AIRLINE MARKET ENVIRONMENT
The domestic air travel market as measured by passenger departures at all
ACSA airports decreased by 6% from 13,1 million passengers in 2007 to 12,3
million in 2008. This is the first contraction in the domestic market after
an average 15% increase per year for the previous five years. The decline in
the overall market demand is attributed to a combination of fuel induced
higher airfares, lower GDP growth and the credit crunch. The contraction was
particularly severe in the second half of 2008. Despite the market
contractions, 1time airline grew its passenger numbers by 18% to 1,6 million
for 2008.
These market share gains by 1time have been achieved largely due to a focused
strategy to entice business travelers from the higher airfare legacy
carriers.
Our first regional route to Zanzibar is performing well and we have an
application pending to expand to Livingstone as well. We await a ruling from
the Competition Commission regarding our objection to 1time`s exclusion from
operating air services from Lanseria Airport.
AIRCRAFT FLEET
1time airline has made further progress in its ongoing fleet upgrade program
with the acquisition of a further three MD80 type aircraft during the year.
The standardised fleet of ten MD80 type aircraft are fully stage 3 noise and
emission compliant
four 157 seater MD82 aircraft
three 157 seater MD83 aircraft
three 130 seater MD87 aircraft
The fleet of four older DC9 aircraft has been sold subsequent to the
financial year end.
Further aircraft acquisitions are planned for 2009 to support the airlines
growth plans for Africa and Lanseria. The standardised MD80 fleet continues
to provide the lowest operating costs per seat enabling 1time to consistently
offer the lowest airfares in the market.
AERONEXUS TECHNICAL
Aeronexus Technical performed well in 2008 increasing revenue by 56% to
R191,6 million. Third party aircraft maintenance increased from R39,5 million
in 2007 to R49.9 million in 2008. The business operated at close to full
capacity for the year. The planned capacity expansion advised to shareholders
last year on the land adjacent to our facility at OR Tambo was not
implemented due to the acquisition of Safair Technical.
SAFAIR TECHNICAL
1time holdings acquired a 72% shareholding in Safair Technical (Pty) Ltd with
effect 1 January 2009 for R20 million. The remaining 28% is held by Aergo SA
Three Limited, a global aircraft leasing company based in Ireland.
It is planned to merge Aeronexus Technical and Safair Technical during the
second quarter of 2009. The merged business is well positioned to become the
premier aircraft maintenance provider on the African continent.
It is well positioned with a seven bay hanger facility at OR Tambo
International Airport.
It holds all necessary AMO approvals, including the American FAA, the
European EASA and the South African CAA.
It will employ approximately 600 highly skilled aircraft maintenance
personnel.
Major contracted customers will include 1time airline, Safair Operations and
Aergo Capital.
1TIME CHARTERS
1time charters performed below expectations largely due to 1time airline
utilising charter aircraft capacity for growth and pursuant to the decision
to sell the four DC9 aircraft earmarked for the charter business. Charter
demand remains high particularly ahead of the British Lions Tour and 2010
World Cup. Capacity expansion is expected for the 2009 financial year.
DIVIDEND POLICY
In line with the Group`s strategy to reinvest in the Group to sustain growth,
no dividend has been declared. The dividend policy of the Group will be
reviewed annually in light of the Group`s cash flow, gearing and capital
requirements.
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The consolidated financial statements for the year ended 31 December 2008
have been prepared in accordance with International Financial Reporting
Standards and the South African Companies Act.
AUDITED RESULTS
The results have been audited by SAB&T Chartered Accountants incorporated and
their unqualified audit report is available for inspection at the Group`s
registered offices.
PROSPECTS
The Board expects strong profit performance for the first half of the year
and for the full year assuming the current market conditions continue and
that currency levels and oil prices stabilise around current levels.
The airline expects to achieve further revenue growth supported by higher
passenger numbers and improved operating margins achieved on stable yields
and lower oil prices.
The Aeronexus -Safair Technical merger is planned for the second quarter of
2009. The full merger benefits and targeted profit margins are only expected
to be achieved in the final quarter of 2009.
APPRECIATION
We thank our loyal staff for their commitment and also thank our business
partners, advisors, passengers, and most importantly our shareholders, for
their ongoing support and faith in the group.
Glenn Orsmond Sipho Twala
Chief Executive Officer Chairman
25 March 2009 25 March 2009
CORPORATE INFORMATION
Non-executive directors: S M Twala; T Matsinhe
Executive directors: G W Orsmond; R L James; M J Kaminski; G W Harrison; S J
Petersen; M Snyman (Company 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 (Pty) Limited
Designated Adviser: Exchange Sponsors (2008) (Pty) Limited
Date: 25/03/2009 12:55:01 Produced by the JSE SENS Department.
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