| Fri 29 Oct 2010, 16:00 | | GDF - Gold Reef - Trading Update for the nine months ended 30 September 2010 |
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GDF
GDF
GDF - Gold Reef - Trading Update for the nine months ended 30 September 2010
("the period")
Gold Reef Resorts Limited
(Incorporated in the Republic of South Africa)
Registration number 1989/002108/06
Share Code: GDF
ISIN: ZAE000028338
("Gold Reef" or "the Company" or "the Group")
TRADING UPDATE FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2010 ("the period")
Unaudited Unaudited
for the for the
nine months nine months
ended ended
30September 30September
2010 2009
%
change
Revenue (Rm) (1,1) 1 625,0 1 642,9
EBITDAR (Rm) (13,2) 549,6 633,4
EBITDAR adjusted for non- (9,3) 561,8 619,4
recurring items (Rm)
EBITDAR margin (%) (4,7) 33,8 38,5
EBITDAR margin adjusted for non- (3,1) 34,6 37,7
recurring items (%)
EBITDAR per share (cents) (13,7) 199,0 230,5
EBITDAR per share adjusted for (9,8) 203,4 225,4
non-recurring items(cents)
Earnings per share (cents) (26,8) 63,0 86,1
Headline earnings per (26,6) 63,1 86,0
share(cents)
Headline earnings per share
adjusted for non-recurring (16,6) 67,5 81,0
items(cents)
TRADING
The difficult economic conditions and their negative impact on consumers`
disposable income continued to impact on Gold Reef`s performance for the nine
months ended 30 September 2010. Revenue declined 1,1% to R1,6 billion compared
to the same period last year. Earnings before interest, tax, depreciation,
amortisation and rentals ("EBITDAR") decreased 13,2% to R549,6 million mainly as
a result of the revenue shortfall, exacerbated by operational gearing in the
business. Headline earnings per share ("HEPS") declined by 26,6% to 63,1 cents
as a result of higher depreciation and amortisation costs following the Group`s
refurbishment programme.
Given the Company`s focus on containing costs during the previous financial
year, there has been limited scope for the Group to implement further
significant initiatives during the current period. Despite this, total operating
costs were well contained, increasing by only 5,4% from the prior comparative
period. This includes non-recurring costs of R12,2 million relating to the
proposed merger with Tsogo Sun Holdings (Proprietary) Limited. Had the effects
of non-recurring items been excluded in both the current and prior periods,
EBITDAR and HEPS would have declined by 9,3% and 16,6% respectively.
DEVELOPMENTS
The final phase of the refurbishment undertaken at Golden Horse Casino, being
the hotel rooms and exterior, has been completed.
PROSPECTS
The difficult trading conditions are expected to persist for the rest of the
financial year with consumer activity likely to remain relatively subdued.
Notwithstanding this, Gold Reef remains well positioned to benefit from an
improvement in economic conditions and strengthening of consumer confidence when
this occurs.
The financial information on which the above information is based has not been
reviewed or reported on by the Company`s auditors.
Johannesburg
29 October 2009
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 29/10/2010 16:00:01 Produced by the JSE SENS Department.
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