| Tue 12 May 2009, 9:22 | | QHL - Queensgate Hotels and Leisure Limited - Unaudited results for the six |
|
QHL
QHL
QHL - Queensgate Hotels and Leisure Limited - Unaudited results for the six
months ended 28 February 2009
QUEENSGATE HOTELS AND LEISURE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/013649/06)
Share code: QHL ISIN Code: ZAE000113718
("Queensgate" or "the company")
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2009
Balance Sheets
Unaudited Unaudited Audited
28 Feb 2009 29 Feb 2008 31 Aug 2008
R`000 R`000 R`000
ASSETS
Non-current assets 396 512 17 886 11 771
Property, plant and equipment 13 828 - 7
Intangible assets 275 573 15 150 7 600
Interest in subsidiaries - - -
Interest in associates 32 847 - -
Interest in joint ventures 11 709 - -
Long-term receivables 27 714 166 -
Operating lease accrual 27 341 - -
Deferred tax 7 500 2 570 4 164
Current assets 45 146 3 007 4 698
Inventories 882 - -
Accounts receivable 16 500 2 893 4 697
Short term receivables 20 762 - -
Intragroup indebtedness 4 684 - -
Cash resources 2 318 114 1
Total assets 441 658 20 893 16469
EQUITY AND LIABILITIES
Capital and reserves 321 479 20 662 15 223
Shareholders` funds 321 479 20 662 15223
Non-current liabilities 62 593 - -
Long-term liabilities 62 593 - -
Current liabilities 57 586 231 1 246
Accounts payable and provisions 29 464 231 1 246
Intra group indebtedness 107 - -
Taxation 28 015 - -
Total equity and liabilities 441 658 20 893 16 469
Net asset value per share
information
Shares in issue at period end 1 606 820 500 000 500 000
(`000)
Net asset value per share 20.01 4.18 3.04
(cents)
Net tangible asset value per 2.86 1.10 1.52
share (cents)
Segmental information
Total assets 441 658 20 893 16 469
Hospitality 328 809 20 893 16 469
Business development 112 849 - -
Income Statements
Unaudited 6 Unaudited Audited
months 6 months 12
28 Feb 2009 29 Feb 2008 months
R`000 R`000 31 Aug
2008
R`000
Revenue 76 053 2 008 4 032
Cost of sales (19 777) - -
Gross profit 56 276 2 008 4 032
Other income 59 7 10
Operating costs (34 427) (726) (2 235)
Profit from operations 21 908 1 289 1 807
Impairment of intellectual - - (7 550)
property
Interest received 2 017 1 -
Profit on disposal of non- 4 - -
current assets
Loss on disposal of non-current (28 ) - -
assets
Loss from equity accounted (565) - -
investments
Finance costs (5 546) - -
Profit/(loss) before tax 17 790 1 290 (5 743)
Taxation (6 080) (374) 1 220
Attributable earnings 11 710 916 (4 523)
Earnings per share information
Weighted average shares in 1 510 726 500 000 500 000
issue (000`s)
Attributable earnings per 0.78 0.18 (0.90)
ordinary share (cents)
Headline earnings per share 0.78 0.18 0.61
(cents)
Reconciliation of earnings
Basic earnings 11 710 916 (4 523)
Impairment of intellectual - - 7550
property
Profit on disposal of non- (4) - -
current assets
Loss on disposal of non-current 28 - -
assets
Headline earnings for the 11 734 916 3 027
period
Segmental information
Revenue 76 053 2 008 4 032
Hospitality 37 069 2 008 4032
Business development 38 984 - -
Profit from operations 21 908 1 289 1 807
Hospitality 1 687 1 289 1 807
Business development 20 221 - -
Loss from equity accounted (565) - -
investments
Hospitality (565) - -
Business development - - -
Abridged Cash Flow Statements
Unaudited Unaudited Audited
Unaudited 29 Feb 2008 31 Aug 2008
28 Feb 2009 R`000 R`000
R`000
Net cash inflow/(outflow) from 31 748 (934) (1 820)
operating activities
Net cash outflow from investing (28 008) (166) (7)
activities
Net cash (outflow)/ inflow from (1 423) - 614
financing activities
Net increase/(decrease) in cash 2 317 (1 100) (1 213)
and cash equivalents
Cash and cash equivalents at 1 1 214 1 214
beginning of period
Cash and cash equivalents at end 2 318 114 1
of period
Statement of Changes in Equity
Share Share Accumulated Total
Capital premium loss
R`000 R`000 R`000 R`000
Balance at 31 August 2007 500 34 796 (15 550) 19 746
Net loss for the year - - (4 523) (4 523)
Balance at 31 August 2008 500 34 796 (20 073) 15 223
Net profit for the period 11 710 11 710
Shares issued 1 107 293 439 294 546
Balance at 28 February 2009 1 607 328 235 (8363) 321 479
COMMENTARY
The directors of Queensgate announce the results for the 6 months ended 28
February 2009 in accordance with IAS 34 - Interim Financial Reporting. The
accounting policies adopted for purposes of this report comply, and have been
consistently applied in all material respects, with International Financial
Reporting Standards ("IFRS"). The same accounting policies and methods of
computation have been followed as compared to the prior year. The results have
not been audited or reviewed by the auditors.
Overview
During the period under review Queensgate expanded its operations within the
hospitality sector through the acquisition of Queensgate Leisure Holdings (Pty)
Ltd ("Queensgate Leisure") and Queensgate Business Development (Pty) Ltd ("QBD")
Queensgate Leisure is a services business that specialises in the hospitality
and leisure sector in South Africa with strong global alliances. Local
alliances include the partnership with Mvelaphanda.
Queensgate Leisure has an attractive portfolio of synergistic businesses and
brands. The Queensgate Leisure hospitality and wellness portfolio includes the
ultra-exclusive Tinga Private Game Lodge in the heart of the Kruger National
Park, the Cape Town Hollow, Hollow on the Square (both 4-star), Park Inn and the
five-star Radisson Hotel in Cape Town. During 2008, Queensgate successfully
launched its OneWellness brand at the Waterfront Radisson Hotel.
QBD identifies, designs and develops hospitality properties. The services of
QBD include the provision of technical assistance and marketing of the
properties to investors.
Results
The results for the period ended 28 February 2009 reflect attributable and
headline earnings of 0.78 cents per share (February 2008: 0.18 cents per share),
based on 1 510 725 986 weighted average shares in issue (2008: 5000 000 000).
The increases in the attributable and headline earnings are as a result of
acquisition of Queensgate Leisure and QBD.
QBD realised a healthy profit from its leisure property development that was
concluded during the period under review.
Taking the credit crunch that is experienced globally into account, the
hospitality sector has performed in line with the directors` expectations. The
results have however been impacted by two new hotels that have been opened
recently and are still incurring losses as a result of low occupancy levels as
is normally experienced by new operations. The directors however expect these
new operations to improve as they become more established and higher occupancy
levels are attained.
The OneWellness Radisson has performed profitably during the period under
review, where-as it is expected that the other OneWellness operations that were
opened during the period under review will become profitable within the next
twelve months.
The increases in the balance sheet reflect the two acquisitions.
Issue of shares and acquisitions
The company acquired 100% of the shares in Queensgate Leisure, a company that
operates in the leisure industry, from the controlling shareholder of Queensgate
and Mvelaphanda Holdings (Pty) Limited ("Mvelaphanda") and 100% of the shares in
QBD, a company that operates in the hospitality development industry, from the
controlling shareholder of Queensgate.
Queensgate Leisure was acquired effective 1 September 2008 for an amount of R219
545 921 which was settled through the allotment of 731 819 736 shares at 30
cents per share. QBD was acquired effective 1 November 2008 for an amount of
R75 000 000 which was settled through the allotment of 375 000 000 shares at 20
cents per share.
Transfer to the ALTX
The company was transferred from the VCM to the AltX on 12 September 2008,
following approval of the Queensgate Leisure acquisition by shareholders in
general meeting.
Director changes
The following changes in directors have taken place during the period under
review:
Mr Lidikhaya Sipoyo and Ms Tham-Tham Ndziba were appointed as non-executive
directors, with effect from 25 November 2008. Mr Norman Theodore Noland was
appointed as non-executive director with effect from 29 January 2009.
Dividends
No dividend was declared for the period ended 28 February 2009.
Post balance sheet events
As announced on SENS on the 13th of March 2009, QBD has entered into two
agreements dated 03 March 2009 ("the agreements") to acquire 70% of the total
issued share capital in XN Corporation Africa (Pty) Ltd from XN PLC, The Sun
Valley Trust, The White Heather Trust and the Ganesh Trust for a combined
purchase consideration of R26 250 000.00 which will be settled through the issue
of 87 500 000 new ordinary shares in the Company at an issue price of 30 cents
per share. XN PLC will remain as a 30% shareholder in XN Africa. This
acquisition is still subject to certain conditions precedent being finalised.
In line with the group`s policy to increase its footprint, a management contract
been concluded with the owners of a hotel in Shelley Point.
Future Prospects
Despite the global economic downturn, Queensgate is well positioned to benefit
from a number of international sporting events to be hosted in South Africa.
In addition, Queensgate expects that the expansion of its activities into
hospitality business development will contribute significantly to future revenue
generation.
By order of the Board
Colin Human
Chairman
8 May 2009
Johannesburg
Directors
JC Human Chairman*, AJ Hubbard, HGB Friedrichsen, W Voigt, MH
Weetman*, S Swana*, L Sipoyo*, TT Ndziba*, NT Noland*
(*Non-executive)
Company Secretary and Registered Office
Arcay Client Support (Pty) Ltd (Registration number
1998/025284/07)
Arcay House, Number 3 Anerley Road, Parktown, 2193
PO Box 62397, Marshalltown, 2107
Transfer Office
Computershare Investor Services (Proprietary) Limited
Sponsor
Arcay Moela Sponsors
(Proprietary) Limited
Date: 12/05/2009 09:22:03 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.
