| Tue 2 Nov 2010, 9:31 | | WIL - Wilderness Holdings Limited - Wilderness maintains turnover in tough |
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WIL
WIL
WIL - Wilderness Holdings Limited - Wilderness maintains turnover in tough
market
Wilderness Holdings Limited
(formerly Wilderness Holdings (Proprietary) Limited)
(Incorporated in Botswana on 23 February 2004)
(Registration number 2004/2986)
(Registered as an external company in South Africa on 27 November 2009)
(External company registration number 2009/022894/10)
ISIN: BW0000000868
Share code: WIL
("Wilderness Holdings", "the company" or "the group")
WILDERNESS MAINTAINS TURNOVER IN TOUGH MARKET
Gaborone, Botswana, 2 November 2010 - Conservation tourism pioneer Wilderness
Holdings, listed on the Botswana Stock Exchange and the Africa Board of the
JSE Limited, increased turnover by P28 million to P574 million, for the six
months to 31 August 2010, in a challenging trading environment.
Chief executive Andy Payne said that while market conditions remain
challenging, the company has performed well. The business has experienced real
growth in bed night sales, downward pressure on yield has been well managed
and on a like for like basis the costs have increased within expected levels.
Looking ahead, market conditions are expected to remain challenging with the
bed night demand remaining tempered in the short to medium term, the exchange
rates to remain unfavourable and cost increase pressures to continue.
Payne said: "Despite these challenging conditions, significant effort will be
focused on strengthening our business model. We are confident that there is
still room for us to improve efficiency and increase market share."
"The performance against comparatives should also be viewed in light of the
negative impact resulting from currency gains (Rand and Pula against the US
Dollar and the Rand against the Pula) and the depressed 2010 World Cup trading
period."
"Given these challenges we are particularly pleased to note progress on key
imperatives, namely investments in the brand, people, scale opportunities and
product relevance. Furthermore, our infancy products have performed well,
which has partly offset reduced demand that resulted from negative market
conditions and once-off events."
"Our most significant achievement has been the strengthening of the Statement
of Financial Position, specifically the substantial increase in cash reserves
and the positive impact of the internal hedge in the business on the
translation of foreign currency denominated debt."
Gross margins remain constant relative to the comparable period resulting in
the group achieving similar levels of operating profit. Earnings before
depreciation, amortisation and goodwill impairment (EBITDA) for the six months
was P99 million, largely in line with the P100 million achieved in the
comparable period in 2009.
Compared to the comparable period, operating costs increased by 32% or P44
million, partly due to the strengthening of the Rand against the Pula, which
accounted for an estimated P10 million or 7% of this increase. In addition,
two new businesses have been consolidated into these results for the first
time and this caused fixed costs to increase by P6 million or 4%. Other
significant increases in costs were attributable to staff expenses (7%) and
repairs and maintenance (4%).
The effect of these operating cost increases was offset by P36 million in
other operating income, being the proceeds of insurance claims on damaged
aircraft as well as the Duba Plains transaction.
Operating profit was relatively the same as in the comparable period while net
profit after taxation is 32% down on prior year, due to the inclusion in prior
year of a substantial unrealised foreign exchange gain.
The group generated P97 million in cash during the period with the net result
of improving the net cash position from P64 million at March to P161 million
at 31 August. This has strengthened the statement of financial position
considerably. "The statement of financial position will be further bolstered
by the estimated P93 million from proceeds on the sale of North Island by an
associated company, which occurred after the six-month period," Payne said.
For further information contact Andy Payne, CEO Wilderness Holdings, on +27 83
309 4904
Issued by du Plessis Associates on behalf of Wilderness Holdings Limited
dPA contact Helen McKane Tel : +27 11 728 4701, Fax: +27 11 728 2547, Mobile:
082 330 2034 or e-mail: wilderness@dpapr.com
Sponsoring broker Botswana
Capital Securities (A member of the Botswana Stock Exchange)
JSE sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 02/11/2010 09:31:00 Produced by the JSE SENS Department.
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