| Mon 31 Aug 2009, 15:59 | | 1TM - 1time holdings Limited - Interim Results for the Period Ended 30 June 2009 |
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1TM
1TM
1TM - 1time holdings Limited - Interim Results for the Period Ended 30 June 2009
1time holdings Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1999/017536/06)
Share Code: 1TM
ISIN Code: ZAE000102026
("1time holdings")
INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2009
HIGHLIGHTS
Headline earnings R 50.9 million
Revenue growth 35%
Passenger growth 12%
Consolidated statement of financial position
Figures in Rand Reviewed Reviewed Audited
30 June 30 June 31 December
2009 2008 2008
Assets
Non-current assets 428,311,143 297,271,798 360,994,521
Current assets 193,892,368 103,064,391 97,926,296
Non-current assets held for sale 22,929,565 28,853,000
Total assets 645,133,076 400,336,189 487,773,817
Equity and liabilities
Capital and reserves 176,841,563 100,555,570 144,619,890
Non-current liabilities 128,883,575 86,872,487 102,573,494
Deferred tax 21,565,931 12,240,319 21,084,605
Current liabilities 317,842,007 200,667,813 219,495,828
Total equity and liabilities 645,133,076 400,336,189 487,773,817
1time Holdings Limited
Consolidated statement of comprehensive income
Figures in Rand Reviewed Reviewed Audited
30 June 30 June 31 December
2009 2008 2008
Gross revenue 613,860,352 455,435,905 1,049,553,531
Operating costs (541,986,912) (449,709,932) (990,089,755)
Earnings before disclosable items 71,873,440 5,725,973 59,463,776
Depreciation (19,215,908) (11,174,395) (27,667,005)
Impairment of assets (16,511,622) - (10,837,485)
Negative goodwill 19,891,361 - -
Foreign exchange difference 9,056,572 - (17,976,080)
Operating profit/ (loss) 65,093,843 (5,448,422) 2,983,206
Finance costs (16,263,544) (9,509,966) (21,178,998)
Interest received 3,100,800 4,894,847 7,063,834
Profit/ (loss) before taxation 51,931,099 (10,063,541) (11,131,958)
Taxation 2,617,161 3,750,256 1,270,268
Profit after tax 54,548,260 (6,313,285) (9,861,690)
Other comprehensive income:
Net (loss)/ gain on aircraft (25,230,542) 4,263,313 52,876,038
revaluations
Total comprehensive income 29,317,718 (2,049,972) 43,014,348
Profit/ (loss) attributable to:
Non-controlling interest 6,588,908 - -
Owners of the parent 47,959,352 (6,313,285) (9,861,690)
54,548,260 (6,313,285) (9,861,690)
Total comprehensive income/
(loss) attributable to:
Non-controlling interest 6,588,908 - -
Owners of the parent 22,728,810 (2,049,972) 43,014,348
29,317,718 (2,049,972) 43,014,348
Headline Earnings
Profit attributable to ordinary 47,959,352 (6,313,285) (9,861,690)
shareholders
Impairment of assets 16,511,622 - 10,837,485
Negative goodwill (13,612,425) - -
Headline earnings attributable to 50,858,549 (6,313,285) 975,795
ordinary shareholders
Earnings per share
Profit attributable to ordinary 47,959,352 (6,313,285) (9,861,690)
shareholders
Earnings attributable to ordinary 47,959,352 (6,313,285) (9,861,690)
shareholders
HEPS (Cents) 24.22 (3.01) 0.46
EPS (Cents) 22.84 (3.01) 4.70
1time Holdings Limited
Consolidated statement of changes in equity
Figures in Rand Reviewed Reviewed Audited
30 June 30 June 31 December
2009 2008 2008
Opening balance 144,619,890 104,905,542 104,905,542
Non-controlling interest at 2,903,954 - -
acquisition
Total comprehensive income
- Non-controlling interest 6,588,908 - -
- Owners of the parent 22,728,811 (2,049,972) 43,014,348
Shareholders loans repaid - (2,300,000) (3,300,000)
Total 176,841,563 100,555,570 144,619,890
Consolidated statement of cash flows
Figures in Rand Reviewed Reviewed Audited
30 June 30 June 31 December
2009 2008 2008
Cash and equivalents at 6,534,243 25,889,064 25,889,064
beginning of period
Cash flows from 15,040,363 25,802,142 44,227,283
operating activities
Cash generated by 71,873,440 6,484,511 41,487,696
customers
Net movement in working (43,670,333) 23,932,750 17,384,348
capital
Interest received 3,100,800 4,894,847 7,063,834
Interest paid (16,263,544) (9,509,966) (21,178,998)
Taxation paid - (529,597)
-
Cash flows from (40,590,130) (70,956,161) (132,568,552)
investing activities
Cash flows from 43,558,699 39,970,524 68,986,448
financing activities
Cash and equivalents at 24,543,175 20,705,569 6,534,243
end of period
Consolidated segment report
Figures in Rand Reviewed Reviewed Audited
30 June 30 June 31 December
2009 2008 2008
Consolidated revenue
Airline 507,979,644 422,919,262 994,928,298
Charter 5,209,583 6,952,532 11,032,433
Saftech 108,014,103 64,143,264 191,590,369
Aeronexus 43,912,663 -
-
Inter-segment revenue (51,255,641) (38,579,153) (147,997,569)
Total 613,860,352 455,435,905 1,049,553,531
Segment result
Airline 65,464,197 (7,817,667) 37,629,540
Charter 594,909 3,331,334 3,607,633
Saftech 4,187,449 10,974,781 20,185,647
Aeronexus 2,062,357 -
-
Eliminations (435,472) (762,476) (1,959,044)
Total 71,873,440 5,725,972 59,463,776
Finance costs (16,263,544) (9,509,965) (21,178,998)
Interest received 3,100,800 4,894,847 7,063,834
Impairment of assets (16,511,622) (10,837,485)
-
Foreign exchange difference 9,056,572 (17,976,080)
-
Negative goodwill 19,891,361
-
Depreciation (19,215,908) (11,174,395) (27,667,005)
Taxation 2,617,161 3,750,256 1,270,268
Total 54,548,260 (6,313,285) (9,861,690)
PERFORMANCE REVIEW
We are pleased to announce good financial results for the 1time holdings group
for the first six months ended 30 June 2009. The group achieved R 50.9 million
attributable headline earnings compared to the R 6.3 million headline loss for
the same period in 2008. Group revenue increased by 35% from R 455.4 million
last year to R 613.9 million despite the generally difficult economic conditions
and tough trading environment.
The non-recurring R 19.9 million negative goodwill relates to the discount on
the purchased net asset value arising from the acquisition of 72% of Safair
Technical on 1 April 2009 and its subsequent merger with Aeronexus Technical.
The strengthening of the Rand against the US Dollar translated to a R 9.1
million foreign exchange gain on the write down of foreign debt which was
largely offset by the currency based R 16.5 million aircraft valuation
impairment.
The net current liability position is largely due to an increase in forward
ticket sales and the policy of replacing all off balance sheet aircraft
operating leases with on balance sheet funding.
The group has a net R 2.6 million tax credit on the income statement mainly as a
result of assessed losses arising from wear and tear allowances.
1TIME AIRLINE
1time airline performed particularly well growing revenue by 20% to R 508
million and passengers by 12%. The passenger growth was achieved despite the
overall domestic travel market declining by an estimated 10% for the period,
leading to further market share gains for the airline.
The improved margins have been underpinned by the average 37% decrease in Rand
jet fuel prices for the period and a focused successful campaign to entice
corporate travelers away from the higher priced legacy airlines.
The airline operates a fleet of ten standard stage III MD80 type aircraft
operating over 1200 flights a month to nine destinations. Additional aircraft
are planned to be introduced in the second half of the year to satisfy growth in
demand for our new route to Livingstone and demand created by 1time holidays.
We expect a decision from the Competition Commission in October 2009 regarding
our complaint against our anti-competitive exclusion from Lanseria Airport.
SAFAIR TECHNICAL
Following the acquisition of 72% of Safair Technical by 1time holdings,
Aeronexus Technical has been merged into Safair Technical since April 2009.
Aircraft maintenance revenue has increased from R 64.1 million last year to a
combined R 151.9 million for the six months ended 30 June 2009. Operating
margins for the first half have however been under pressure due to initial
merger costs and the strength of the Rand. Maintenance revenue is largely dollar
denominated. Satisfactory margins will only be achieved with a weaker Rand.
1TIME CHARTERS
Two of the four DC9 aircraft have been sold. An MD80 aircraft will be introduced
into 1time charters during the last quarter of 2009 with good charter revenue
growth expected in 2010
DIVIDEND POLICY
In line with the company`s strategy to reinvest in the group 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 AND ACCOUNTING POLICIES
The consolidated interim financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRS) and IAS 34: Interim
Financial Reporting.
The principal accounting policies applied in preparing the reviewed results for
the six months ended 30 June 2009 are consistent with those of the annual
financial statements for the year ended 31 December 2008, as described in those
annual financial statements.
The following new standards and amendments to standards have become mandatory
for the financial year beginning 1 January 2009:
- IAS 1 (revised) - Presentation of Financial Statements.
The group has elected to present one performance statement; namely a
statement of comprehensive income and to rename the balance sheet to the
statement of financial position. The interim financial statements have been
prepared under the revised disclosure requirements.
- IFRS 8 - Operating segments.
This standard requires a `management approach` under which segment
information is presented on the same basis as that used for internal
reporting purposes.
REVIEW OPINION
The auditors of 1time holdings, SAB-T Chartered Accountants Incorporated, have
reviewed the financial information in terms of rule 3.18 of the Listings
Requirements of the JSE Limited. Their unqualified review opinion is available
for inspection at the offices of 1time holdings.
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.
PROSPECTS
While trading conditions in the domestic air travel market are expected to be
tough in the second half, prospects for the airline remain positive. We expect
revenue growth for the full year on higher passenger volumes despite pressure on
yields as competitors attempt to regain lost market share. Margins will be
largely determined by Rand jet fuel prices in the second half.
For the aircraft maintenance business we expect to consolidate the merger during
the second half of the year. Revenue growth is expected to continue with high
third party demand for aircraft maintenance services. Margins will however be
largely dependent on the average Rand Dollar exchange rate achieved for the
period.
The inherent currency risk hedge between the airline and maintenance businesses
should continue.
By order of the Board
DATE: 31 August 2009
Glenn Orsmond Sipho Twala
Chief Executive Officer Chairman
CORPORATE INFORMATION
Non-executive directors: S M Twala; T Matsinhe; G L Wishart
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, 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: 31/08/2009 15:59:01 Produced by the JSE SENS Department.
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