| Wed 7 Feb 2001, 0:00 | | Comair Limited - Unaudited Group Results |
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Comair Limited
Operating as British Airways
Comair Limited (Registration number 1967/006783/06)
UNAUDITED GROUP RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2000
ABRIDGED GROUP INCOME STATEMENT
Unaudited Unaudited Audited
six months six months 12 months
31 December 31 December 30 June
2000 1999 % 2000
R'000 R'000 change R'000
Turnover 547 560 458 389 19 977 036
Operating profit before
exceptional item 19 969 77 501 (74) 138 100
Profit on disposal of
aircraft 34 529 - 1 970
Operating profit after
exceptional item 54 498 77 501 (30) 140 070
Net investment income 6 154 6 792 (9) 12 863
Net income before taxation 60 652 84 293 (28) 152 933
Taxation (8 737) (24 000) (64) (42 624)
Net income after taxation 51 915 60 293 (14) 110 309
Outside shareholders'
interest - 607 8
Earnings attributable to
ordinary shareholders 51 915 60 900 (15) 110 317
ABRIDGED GROUP BALANCE SHEET
Assets
Fixed assets 197 312 134 590 129 417
Loan to share incentive
trust 15 120 15 120 15 120
Unlisted investments 73 608 61 581 67 331
Current assets 322 978 303 354 383 834
609 018 514 645 595 702
Equity and liabilities
Share capital and reserves 321 145 249 212 269 230
Long-term liability 135 490 137 036 135 490
Deferred taxation 11 130 7 378 11 130
Current liabilities 141 253 121 019 179 852
609 018 514 645 595 702
ABRIDGED GROUP CASH FLOW STATEMENT
Cash and cash equivalents at the
beginning of the period 315 854 210 132 210 132
Cash from operations
and investment income 37 985 94 930 164 832
Dividends paid (29 400) (21 000) (21 000)
Taxation paid (18 085) (16 746) (34 007)
Cash generated/(utilised)
by changes in working capital (17 587) 15 213 3 988
Cash utilised in investing
activities (53 077) (3 853) (10 321)
Cash generated by
financing activities - - 2 230
Cash and cash equivalents
at the end of the period 235 690 278 676 315 854
SALIENT FEATURES
Earnings per share
(cents) 12,4 14,5 (15) 26,3
After tax profit on
disposal of aircraft (cents) 6,9 0,5
Headline earnings per
share (cents) 5,5 14,5 (62) 25,8
Operating margin 3,6% 16,9% 14,1%
Weighted ordinary
shares issued ('000) 420 000 420 000 420 000
Depreciation (R'000) 13 435 11 769 25 132
Interest expense (R'000) 12 979 10 460 24 550
Comments
REVIEW
The concerns noted in our annual report for June 2000 unfortunately all
materialised during the period with unprecedented fuel price increases, a
significantly weaker rand, the effects of the disruptions in Zimbabwe,
passenger resistance to fuel induced pricing increases and market overcapacity
which impacted negatively on yields.
The full effect of the fuel price increase compared to the same period last
year was R56 million.
While the overall domestic market reflected little growth over the period,
Comair achieved a 9% passenger increase contributing towards the 19% turnover
growth. The passenger growth was achieved on existing and expanded operations.
The inclusion of preference dividend income and the capital profit earned on
the sale of an aircraft contributed towards the lower effective tax rate. The
aircraft was sold and replaced to improve the overall aircraft fleet
standardisation.
PROSPECTS
Costs are expected to decline with lower US dollar jet fuel costs, but this
benefit could be reduced by cost increases resulting from a weaker rand.
The general market overcapacity and passenger resistance to higher airfares
will continue to place load factors, yields and margins under pressure. While
headline earnings are expected to improve in the second half compared to the
period under review, we anticipate reduced headline earnings for the full year
compared to the previous financial year.
Longer term prospects remain positive. The strength of the British Airways
brand and focus on customer service and product innovation place Comair in good
stead to profitably grow revenue and restore historical margins.
DIVIDEND
No interim dividend has been declared for the period as it is Company policy to
declare one dividend annually in September.
By order of the board
D Novick P van Hoven
Chairman Managing Director
6 February 2001
Company secretary: D Borer, 2nd Floor, FHS House, 15 Girton Road, Parktown,
2193, PO Box 1370, Johannesburg, 2000
Transfer office: Mercantile Registrars Limited, 11 Diagonal Street,
Johannesburg, 2001, PO Box 1053, Johannesburg, 2000
