| Tue 15 Sep 2009, 16:00 | | COM - Comair Limited - Audited Abridged Group Results For The Year Ended 30 June |
|
COM
COM
COM - Comair Limited - Audited Abridged Group Results For The Year Ended 30 June
2009 And Cash Dividend Declaration
Comair Limited
(Incorporated in the Republic of South Africa)
Reg. No. 1967/006783/06
ISIN Code: ZAE000029823 Share Code: COM
("Comair" or the "Group")
AUDITED ABRIDGED GROUP RESULTS FOR THE YEAR ENDED 30 JUNE 2009 AND
CASH DIVIDEND DECLARATION
Earnings Review
The team at Comair has once again delivered operational and service excellence,
thereby achieving good financial results in difficult trading conditions.This
extends our airline industry world record to 64 consecutive years of operating
profitability. We thank our loyal staff and customers for their support
throughout the year.
During the year we experienced extreme volatility on the cost side, as well as
softer demand as a result of the recession. In the first half of the year, the
oil price reached an all time peak of $147 per barrel, thereby constraining
profits, and subsequently retreated to a low of under $40 per barrel in the
second half. Improvements in operating efficiency as well as a strong
performance from our business extensions have contributed positively to our
performance this year.
Turnover growth of 13% was driven mainly by higher ticket prices in the first
half, as a result of the high oil price at the time. Our strong brands enabled
us to keep our volumes steady even though the overall market declined by 10%.
The 27% growth in headline earnings per share is encouraging, but still short
of our own targets for the business. Our strong balance sheet and excellent
cash flow have continued to provide insulation during difficult times.
The fleet upgrade programme of the past few years has largely contained the
impact of high jet fuel costs. We anticipate that with the recovery of the
global economy, commodity prices will once again rise, and we are therefore
proceeding with the next phase of our fleet replacement programme. After year
end we announced our intention to upgrade our fleet to Next Generation Boeing
737-800 aircraft, which will contribute further to operational efficiency and
environmental sustainability.
The efforts of our front line teams helped ensure another good year for service
delivery. We achieved overall on-time performance of 82% which remains a key
area of focus for improvement. We scored well on our leading customer indicators
on both our brands -British Airways achieving an `overall satisfaction` score of
81%, and kulula scoring 89% on `smiling with overall experience`. Our customers
further recognised us during the year by voting BA best airline at all the major
airports. We were also nominated as the number 1 (BA) and 2 (kulula) airline
brands by business travelers in the Sunday Times Annual Brands Survey. While we
have delivered well to our customers and have a strong and loyal customer base,
we will continue to invest in customer service to achieve our objective of being
recognised as the leading customer service business in South Africa.
Our strategy to diversify our earnings outside of the airline operation is
progressing well and contributed to our profit for the year. The top performers
were our flight training and our on-line travel businesses, both achieving
excellent results. We will continue to invest in aligned business opportunities.
Looking ahead
Airline earnings will continue to be impacted by the volatile fuel price, anti-
competitive behavior from state-funded airlines, and the recessionary
environment. We will continue to drive our two pronged strategy of improving our
core airline efficiency and building and investing in new businesses. Our
commitment to building safe, reliable and profitable airlines in Southern Africa
remains paramount.
Dividends
The Directors have resolved to declare a cash dividend (Dividend number 10) of
5 cents per share (prior year: nil) to all shareholders. The last day to trade
(cum the dividend) in order to participate in the dividend will be Friday,
9 October 2009. The shares will commence trading "ex" dividend from the
commencement of business on Monday, 12 October 2009 and the record date is
Friday, 16 October 2009. Share certificates may not be de-materialised or
re-materialised between Monday, 12 October 2009 and Friday, 16 October 2009 both
days included. The dividend payment will be made on Monday, 19 October 2009.
Directors` resignation and appointment
(a) Mr R.R. Mehta was appointed as a director on 4 December 2008
(b) Mr A.K. Gupta was appointed as a director on 17 June 2009
(c) Mr B.J. van der Linden resigned as director on 30 June 2009
Annual General Meeting
The Annual General Meeting of shareholders of Comair will be held at the Comair
Operations Building, cnr Fortress and Whirlwind Roads, Rhodesfield, Kempton Park
on 30 October 2009 at 12h00.
Basis of preparation
In terms of the Listing Requirements of the JSE Limited, the Group has prepared
its consolidated financial statements in accordance with International Financial
Reporting Standards including IAS 34 Interim Financial Reporting and the
requirement of the Companies Act (Act 61 of 1973) as amended. The accounting
policies used in the preparation of these results are consistent in all material
aspects with those used for the prior comparative period.
Abridged Group Income Statement
Audited year Audited year
30 June 2009 30 June 2008
R `000 R `000
---------------------------
Revenue 3,048,782 2,688,488
Operating expenses (2,920,083) (2,576,364)
---------------------------
Profit from operations 128,699 112,124
Net investment income 34,033 32,392
Net investment expense (49,138) (37,668)
Share of profit/(loss) of associates 170 (350)
---------------------------
Profit before taxation 113,764 103,498
Taxation (40,715) (41,695)
---------------------------
Attributable earnings 73,049 61,803
---------------------------
Earnings per share (cents) 18.2 15.4
Headline earnings per share (cents) 19.6 15.4
Diluted earnings per share (cents) 18.0 14.9
Diluted headline earnings per share (cents) 19.4 14.9
Weighted ordinary shares in issue (`000) 400,814 400,740
Diluted weighted ordinary shares in issue (`000) 405,873 414,233
Net asset value per share (cents) 129,1 114,8
Reconciliation between earnings and headline
earnings
Attributable earnings before tax 113,764 103,498
Loss on sale of assets 5,608 -
Headline earnings before tax 119,372 103,498
Taxation (40,715) (41,695)
---------------------------
Headline earnings after tax 78,657 61,803
---------------------------
Depreciation (R `000) 105,874 102,857
Audited year Audited year
30 June 2009 30 June 2008
R `000 R `000
Abridged Group Balance Sheet
ASSETS
Property, plant and equipment 912,043 866,750
Investment in associates 73,637 56,113
Available-for-sale-investments 131,580 110,160
Current assets 583,526 409,406
---------------------------
1,700,786 1,442,429
---------------------------
EQUITY AND LIABILITIES
Share capital and reserves 517,722 459,942
Interest-bearing liabilities 360,582 360,333
Deferred taxation 68,310 44,717
Current liabilities 754,172 577,437
---------------------------
1,700,786 1,442,429
---------------------------
Audited year Audited year
30 June 2009 30 June 2008
R `000 R `000
Abridged Group Cash Flow Statement
Cash and cash equivalents at the beginning
of the period 125,004 242,024
Cash from operations and investment income 363,629 172,439
Dividends paid - (36,067)
Taxation paid (13,288) (28,180)
Cash utilised in investing activities (195,549) (358,057)
Net effect of share trust activities (504) 665
Increase in interest bearing liabilities 29,928 132,180
---------------------------
Cash and cash equivalents at the end of
the period 309,220 125,004
---------------------------
Audited year Audited year
30 June 2009 30 June 2008
R `000 R `000
Abridged Group Statement of Changes
in Equity
OPENING BALANCE 459,942 425,531
Attributable Profit 73,049 61,803
Dividends paid - (36,067)
Equity settled share-based payment
adjustment 3,428 6,856
Net effect of share trust activities (504) 665
Net change in hedging reserve (18,193) 1,154
---------------------------
CLOSING BALANCE 517,722 459,942
---------------------------
Audit Opinion
These financial statements have been audited by PKF (Jhb) Inc. and their
unqualified audit report is available for inspection at the registered office of
the company
By order of the Board
Mr.D Novick (Chairman) Mr.GS Novick (Joint CEO) Mr.ER Venter (Joint CEO)
14 September 2009
Sponsor
RAND MERCHANT BANK (A division of First Rand Bank Limited)
Date: 15/09/2009 16:00:01 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.
