| Fri 27 Aug 2010, 15:26 | | 1TM - 1time holdings Limited - Reviewed results for the interim |
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1TM
1TM
1TM - 1time holdings Limited - Reviewed results for the interim
period ended 30 June 2010
1time holdings Limited
Incorporated in the Republic of South Africa
(Registration number: 1999/017536/06)
Share code: 1TM ISIN: ZAE000102026
("1time" or "the group")
REVIEWED RESULTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2010
HIGHLIGHTS
Revenue growth 6%
Passenger growth 4%
Cash generated from operations R46 million
Headline earnings R14.8 Million
Consolidated condensed statement of financial position
Figures in Rand Reviewed Reviewed Audited
as at as at as at
30 June2010 30 June2009 31 December
2009
Assets
Non-current assets 468 861 375 428 311 143 459 552 905
Current assets 181 303 222 193 892 368 188 999 814
Non-current assets 21 565 250 22 929 565 21 209 842
held for sale
Total assets 671 729 847 645 133 076 669 762 561
Equity and
liabilities
Capital and reserves 176 949 244 176 841 563 165 922 331
Non-current 120 392 769 128 883 575 124 084 819
liabilities
Deferred tax 37 857 262 21 565 931 36 411 483
Current liabilities 336 530 572 317 842 007 343 343 928
Total equity and 671 729 847 645 133 076 669 762 561
liabilities
Net asset value per 84.3 84.2 79.0
share (cents)
Net tangible asset 76.0 77.0 71.2
value per share
(cents)
Consolidated condensed income statement
Figures in Rand Reviewed Reviewed for Audited for
for the six the six the year
months ended months ended ended 31
30 June2010 30 June2009 December 2009
Gross revenue 648 457 498 613 860 352 1 251 061 344
Operating costs (590 449 465) (541 986 912) (1 095 645
708)
Earnings before 58 008 033 71 873 440 155 415 636
disclosable items
Depreciation (27 207 972) (19 215 908) (43 167 260)
Impairment of assets (3 173 106) (16 511 622) (50 491 031)
Negative goodwill - 19 891 361 19 891 361
Profit/(Loss) on sale 1 866 940 - (4 887 298)
of asset
Foreign exchange (852 120) 9 056 572 16 621 929
difference
Operating profit 28 641 775 65 093 843 93 383 337
Finance costs (17 636 413) (16 263 544) (32 983 935)
Interest received 2 625 951 3 100 800 4 722 355
Profit before taxation 13 631 313 51 931 099 65 121 757
Taxation (3 397 593) 2 617 161 (19 029 677)
Profit after tax 10 233 720 54 548 260 46 092 080
Non-controlling 2 989 634 (6 588 908) (5 223 757)
interest
Profit attributable to 13 223 354 47 959 352 40 868 323
owners of the parent
Reconciliation of headline earnings
Profit attributable to 13 223 354 47 959 352 40 868 323
owners of the parent
Impairment of assets 3 173 106 16 511 622 50 491 031
(Profit)/Loss on sale (1 605 568) - 4 887 298
of asset after tax
Negative goodwill - (13 612 425) (13 612 425)
Headline earnings 14 790 892 50 858 549 82 634 227
attributable to owners
of the parent
Weighted average number 210 000 000 210 000 000 210 000 000
of shares in issue
Headline earnings per 7.0 24.2 39.4
share (cents)
Earnings per share 6.3 22.8 19.5
(cents)
Consolidated condensed statement of comprehensive income
Figures in Rand Reviewed Reviewed Audited
for the six for the six for the
months ended months ended year ended
30 June2010 30 June2009 31 December
2009
Profit after tax 10 233 720 54 548 260 46 092 080
Other comprehensive
income:
Net gain/(Loss) on 793 193 (25 230 542) (27 798 502)
aircraft revaluations
Total comprehensive 11 026 913 29 317 718 18 293 578
income
Total comprehensive
(loss)/income
attributable to:
Non-controlling interest (2 989 634) 6 588 908 5 223 757
Owners of the parent 14 016 547 22 728 810 13 069 821
11 026 913 29 317 718 18 293 578
Consolidated condensed statement of changes in equity
Figures in Rand Reviewed Reviewed Audited
for the six for the six for the
months ended months ended year
30 June2010 30 June2009 ended
31
December
2009
Opening balance 165 922 331 144 619 890 144 619
890
Non-controlling interest - 2 903 955 3 008 863
at acquisition
Total comprehensive
income
- Non-controlling (2 989 634) 6 588 908 5 223 757
interest
- Owners of the parent 14 016 547 22 728 810 13 069
821
Total 176 949 244 176 841 563 165 922
331
Consolidated condensed statement of cash flows
Figures in Rand Reviewed Reviewed for Audited
for the six the six months for the
months ended ended year ended
30 June2010 30 June2009 31 December
2009
Cash and equivalents 50 328 678 6 534 243 6 534 243
at beginning of period
Cash flows from 30 348 370 15 040 363 224 204 589
operating activities
Cash generated from 46 298 530 28 203 107 232 779 534
operations
Interest received 2 625 951 3 100 800 4 722 355
Interest paid (17 636 413) (16 263 544) (13 315 589)
Taxation paid (939 698) - 18 289
Cash flows from (39 058 001) (40 590 130) (131 177 606)
investing activities
Cash flows from (12 707 586) 43 558 699 (49 232 548)
financing activities
Cash and equivalents 28 911 461 24 543 175 50 328 678
at end of period
Consolidated segment report
Figures in Rand Reviewed Reviewed Audited
for the six for the six for the
months ended months ended year ended
30 June2010 30 June2009 31 December
2009
Consolidated revenue
Airline 565 169 536 507 979 644 1 039 912 340
Charter 5 747 917 5 209 583 9 566 259
Saftech 138 931 609 108 014 103 288 859 528
Aeronexus 900 000 43 912 663 45 049 474
Inter-segment revenue (62 291 564) (51 255 641) (132 326 257)
Total 648 457 498 613 860 352 1 251 061 344
Segment result
Airline 62 210 600 65 464 197 152 759 868
Charter (497 789) 594 909 (430 876)
Saftech (3 193 953) 4 187 449 2 086 755
Aeronexus (158 114) 2 062 357 1 899 078
Eliminations (352 711) (435 472) (899 189)
Earnings before 58 008 033 71 873 440 155 415 636
disclosable items
Finance costs (17 636 413) (16 263 544) (32 983 935)
Interest received 2 625 951 3 100 800 4 722 355
Impairment of assets (3 173 106) (16 511 622) (50 491 031)
Foreign exchange (852 120) 9 056 572 16 621 929
difference
Profit/(loss) on sale 1 866 940
of asset - (4 887 298)
Negative goodwill - 19 891 361 19 891 361
Depreciation (27 207 972) (19 215 908) (43 167 260)
Taxation (3 397 593) 2 617 161 (19 029 677)
Profit after tax 10 233 720 54 548 260 46 092 080
Commentary
PERFORMANCE REVIEW
The board of directors of 1time ("the board") is pleased to present
the group interim results for the period ended 30 June 2010
("period under review"). The results of the group`s maintenance
subsidiary Safair Technical (Proprietary) Limited ("Safair
Technical") were disappointing however 1time airline (Proprietary)
Limited ("1time airline"), the group`s airline subsidiary, achieved
satisfactory results.
Group revenue increased by 6% on the back of higher passenger
volumes and improved yields in 1time airline.
Group headline earnings however, decreased from R50.8 million in
the previous comparative interim period ("prior period") to R14.8
million in the period under review largely due to:
non-recurring exceptional items relating to negative goodwill of
R13.6 million and impairment losses of R16.5 million having been
included in the prior period`s earnings;
Safair Technical incurring an attributable R7.7 million loss
compared to R2.6 million earnings in the prior period; and
a tax credit in the prior period`s income statement compared to a
normalised tax charge in the period under review.
Despite the decline in group earnings, cash generated from
operations improved from R28.2 million to R46.3 million in the
period under review.
1TIME AIRLINE
1time airline continues to perform well. Revenue increased by 11%
to R565 million supported by a 4% increase in passenger numbers,
higher yields and increased ancillary revenue. Load factors
improved from 80% to 82%, as the airline achieved further market
share gains in a flat market. 1time airline`s earnings were
however, negatively impacted in the period under review by an
average 12% fuel price increase and a 40% increase in airport
charges.
The airline currently operates over 1 300 flights per month with a
fleet of twelve standardised stage 3 MD80 type aircraft. All eight
domestic routes are performing well and the African expansion plans
are on track with the Zanzibar, Livingstone and Maputo routes all
showing good potential.
The anti-competitive agreement at Lanseria Airport expires in
February 2011 and 1time`s complaint currently lies with the
Competition Tribunal. 1time has formally requested approval from
Lanseria Airport to commence operations out of the airport during
the first half of 2011.
SAFAIR TECHNICAL
Safair Technical incurred a R7.7 million attributable after tax
loss during the period under review. The losses are attributable to
a combination of excessive staff costs, the strong Rand and lower
than expected third party maintenance revenue.
The Competition Commission imposed a condition on the approval of
the merger between 1time and Safair Technical restricting any staff
redundancies for a year. As the period to which this condition
relates has now expired, a cost reduction programme commenced in
July 2010. The headcount was reduced from 700 at the start of the
year to 582 currently while simultaneously expanding maintenance
capacity and capabilities.
Safair Technical is well positioned to grow third party maintenance
revenue domestically and into Africa and expects to restore
profitability in the second half of 2010 financial year on lower
costs and higher revenues.
1TIME CHARTERS
The group`s charter business, 1time charters, generated R5.7million
revenue during the period under review having performed
particularly well during the 2010 Soccer World Cup. A dedicated
MD80 aircraft, will become operational in the last quarter of the
year and accordingly, further revenue growth is expected.
DIVIDEND POLICY
In line with the group`s strategy to reinvest in the operations to
sustain growth, no dividend has been declared or paid during the
period under review. 1time`s dividend policy will be reviewed
annually in light of the group`s cash flow, gearing and capital
requirements.
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The accounting policies applied in the preparation of these
condensed financial statements, which are based on reasonable
judgments and estimates, are in accordance with International
Financial Reporting Standards ("IFRS") and are consistent with
those applied in the annual financial statements for the year ended
31 December 2009. These reviewed consolidated condensed interim
financial statements as set out in this report have been prepared
in terms of IAS 34 - Interim Financial Reporting, the Companies
Act, 1973 (Act 61 of 1973), as amended, and the Listings
Requirements of JSE Limited.
REVIEW OPINION
The consolidated condensed interim results for the period ended 30
June 2010 have been reviewed by the auditors of 1time, SAB-T
Chartered Accountants. Their unqualified review opinion is
available for inspection at the offices of 1time.
SUBSEQUENT EVENTS
The board is not aware of any material matter or circumstance
arising since the end of the interim financial period ended 30 June
2010 up to the date of this report other than the transfer of
1time`s listing from the Alternative Exchange to the Main Board of
the JSE Limited on 5 July 2010.
PROSPECTS
Prospects for 1time airline in the second half of the 2010
financial year remain positive, with further revenue growth
expected as a result of higher volumes, although margins will be
largely dependent on the average Rand fuel price. For the
2011financial year growth will be driven by Africa and Lanseria
expansions. An aircraft fleet review is being performed to ensure
1time can meet its growth plans and maintain its cost advantage in
the market.
Safair Technical is expected to return to profitability for the
second half of the 2010 financial year based on anticipated higher
revenue and improved margins being achieved on lower input costs.
By order of the Board
___________________ __________________
Glenn Orsmond Sipho Twala
Chief Executive Officer Chairman
27 August 2010
CORPORATE INFORMATION
Non-executive directors: S M Twala (Chairman)*; T R Matsinhe*; G L
Wishart; M L Sinclair (Alternative)
* - Independent non-executive director
Executive directors: G W Orsmond (Chief Executive Officer); R L
James; M J Kaminski; M Snyman (Financial Director)
Company secretary: M Snyman
Registered address: Unit D2, Isando Industrial Park, Hulley Road,
Isando
Postal address: PO Box 7110, Bonaero Park, 1622
Telephone: 011 928 8000
Facsimile: 0866 492 712
Web address: www.1timeholdings.co.za
Transfer secretaries: Computershare Investor Services (Proprietary)
Limited
Sponsor: Merchantec Capital
Auditors: SAB-T Chartered Accountants
Date: 27/08/2010 15:26:01 Produced by the JSE SENS Department.
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