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GDN
GDN
GDN - Gooderson Leisure Corporation Limited - Condensed consolidated reviewed
annual results for the year ended 28 February 2011
GOODERSON LEISURE CORPORATION LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1972/004241/06)
(JSE code: GDN ISIN: ZAE000084984)
("Gooderson" or "the company"
or "the group")
CONDENSED CONSOLIDATED REVIEWED ANNUAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY
2011
* NAV and NTAV per share up 2.22%
* Total cash on hand increased by 115%
STATEMENT OF FINANCIAL POSITION
28 February 28 February
2011 2010
Reviewed Audited
R R
ASSETS
Non-current assets 188,862,627 175,450,717
Property, plant and equipment 163,448,850 147,688,973
Goodwill 999,563 999,563
Investments in associates 217,006 -
Timeshare development 9,572,250 8,286,933
Financial asset 672,403 621,500
Long term debtors 13,952,555 17,853,748
Current assets 22,109,702 23,374,873
Inventories 1,386,483 1,617,847
Trade and other receivables 15,158,457 18,678,186
Short term financial assets 175,000 175,000
Cash and cash equivalents 5,389,762 2,903,840
Total Assets 210,972,329 198,825,590
EQUITY AND LIABILITIES
Equity capital and reserves 140,316,855 137,655,287
Share capital and premium 16,393,415 16,393,415
Reserves 56,435,998 56,328,468
Retained earnings 67,487,442 64,933,404
Non-current liabilities 45,292,851 33,788,530
Long term borrowings 27,216,013 14,427,846
Deferred revenue 4,859,204 5,430,904
Deferred tax 13,217,634 13,929,780
Current liabilities 25,362,623 27,381,733
Trade and other payables 16,891,407 17,715,690
Deferred revenue 571,694 571,694
Short term borrowings 6,664,871 7,539,729
Taxation 1,105,561 1,103,117
Bank overdraft 129,090 451,543
Total equity and liabilities 210,972,329 198,825,590
Shares in issue 120,660,000 120,990,000
Net asset value per share (cents) 116.29 113.77
Net tangible asset value per share 115.46 112.95
(cents)
STATEMENT OF COMPREHENSIVE INCOME
Year ended Year ended
28 February 28 February
2011 2010
Reviewed Audited
R R
Revenue 97,093,417 115,931,243
Cost of sales (14,545,668) (24,724,808)
Gross profit 82,547,749 91,206,435
Other net operating costs (71,703,768) (72,891,921)
EBITDA 10,843,981 18,314,514
Depreciation (6,311,924) (5,711,887)
Profit before interest and 4,532,057 12,602,627
taxation
Income from associates 217,006 -
Net interest income paid (1,809,961) (1,050,811)
Profit before taxation 2,939,102 11,551,816
Taxation (385,064) (3,606,240)
Profit for the year 2,554,038 7,945,576
Other comprehensive income - -
Total comprehensive income 2,554,038 7,945,576
Reconciliation of headline
earnings:
Profit attributable to ordinary 2,554,038 7,945,576
shareholders
Adjusted for profit on disposal (22,027) (57,033)
of property, plant and equipment
Headline earnings 2,532,011 7,888,543
Weighted average shares in issue 120,660,000 120,990,000
on which earnings are based
BASIC, HEADLINE EARNINGS Cent per Cent per
share share
Basic 2.12 6.57
Headline 2.10 6.52
Diluted earnings 2.04 6.36
Diluted headline earnings 2.02 6.31
STATEMENT OF CHANGES IN EQUITY
Share Share Capital Share Retaine Total
capita premium reserve based d
l s Payment Income
reserve
R R R R R R
Balance at 1 March 2009 1,210 16,630, 56,101, 114,225 61,645, 134,494
795 877 943 ,050
Share based payments - - - 112,366 - 112,366
reserves movements
Total comprehensive - - - - 7,945,5 7,945,5
income for the year 76 76
Dividends - - - - (4,658, (4,658,
115) 115)
Purchase of own / (3) (238,58 - - - (238,59
treasury shares 7) 0)
Total changes (3) (238,58 - 112,366 3,287,4 3,161,2
7) 61 37
Balance at 1 March 2010 1,207 16,392, 56,101, 226,591 64,933, 137,655
208 877 404 ,287
Changes in equity
Total comprehensive - - - - 2,554,0 2,554,0
income for the year 38 38
Share based payments - - - 107,530 - 107,530
reserve movements
Total changes - - - 107,530 2,554,0 2,661,5
38 68
Balance at 28 February 1,207 16,392, 56,101, 334,121 67,487, 140,316
2011 208 877 442 ,855
STATEMENT OF CASH FLOWS
Year ended Year ended
28 February 28 February
2011 2010
Reviewed Audited
R R
Cash flows from operating 10,379,867 4,155,156
activities
Cash generated from operations 13,274,820 15,174,833
Interest income 334,515 367,203
Finance costs (2,144,476) (1,418,014)
Dividends paid - (4,658,115)
Normal taxation paid (1,084,992) (5,310,751)
Cash flows from investing (19,484,801) (24,430,709)
activities
Purchase of property, plant and (22,195,471) (19,120,231)
equipment
Sale of property, plant and 145,697 312,117
equipment
Repayment / (advances) of (50,903) 285,505
financial assets
Increase in timeshare (1,285,317) (2,714,077)
development
Decrease / (Increase) in long 3,901,193 (3,194,023)
term debtors
Cash flows from financing 11,913,309 16,980,352
activities
Buy back of shares - (238,587)
Proceeds of other financial 11,913,309 17,218,939
liabilities
Total cash inflow for the year 2,808,375 (3,295,201)
Cash at beginning of year 2,452,297 5,747,498
Total cash at end of the year 5,260,672 2,452,297
COMMENTARY
The directors of Gooderson Leisure Corporation announce the reviewed annual
financial results for the year ended
28 February 2011.
The group expanded its operations into the hospitality sector during the prior
year through the acquisition of Sanrock Resort and Conference Centre and Fabz
Estate Hotel and Restaurant and upgraded and refurbished all its properties.
Occupancy levels during the Soccer World Cup (SWC) were satisfactory considering
the late cancellation of a large number of bookings by FIFA`s associate MATCH.
Partly as a result of the SWC, the hospitality sector has become grossly over-
traded. Price wars are expected to be a marketing staple for the foreseeable
future.
PERFORMANCE REVIEW
As expected the difficult trading conditions persisted into the second half of
the financial year. The committed expenditure on the refurbishment of all the
Hotels and Lodges in preparation for the SWC and the upgrade and refurbishment
of the recent acquisitions to Gooderson`s standards contributed significantly to
the decline in the group profits compared to the same period last year.
Due to the challenging economic conditions, the group saw a marked decline in
the core revenue source of accommodation and conferencing at Tropicana and Beach
Hotel in Durban.
FINANCIAL RESULTS
The group revenue fell by 16% from R115.931 million to R97.093 million,
primarily as a result of lower occupancies.
The group profits was down by 68% from R7.945 million to R2.554 million in the
most difficult trading conditions experienced in South Africa. The timeshare
division also saw a decline in profits with consumer disposable income being
impacted by high levels of household debt and increased utility and municipal
charges.
EBITDA of R10.843 million was 29% down on last year and the EBITDA margin was
five percentage points down on last year to 11%.
The net asset value (NAV) and net tangible asset value (NTAV) have both
increased by 2.22% from 113.77 to 116.29 cents per share and 112.95 to 115.46
cents per share respectively. Cash on hand was 115% up on last year. The group
achieved a tax of 13% primarily due to non taxable grants received from
government.
SEGMENTAL ANALYSIS
The group is organised into two operating segments, namely Hotels and Lodges and
Timeshare.
These segments are the basis on which the group reports to management.
2011 Profit /
Revenue (Loss) Assets Liabilit
before ies
taxation
Hotels and Lodges 85,194,53 (1,465,266 167,759,5 41,369,6
3 ) 15 21
Timeshare 11,898,88 4,404,368 42,213,25 14,962,6
4 1 57
Total segments 97,093,41 2,939,102 209,972,7 56,332,2
7 66 78
Unallocated corporate - - 999,563 14,323,1
assets and liabilities 95
Total 97,093,41 2,939,102 210,972,3 70,655,4
7 29 73
DIRECTORATE
During the period under review, Mrs Nompumelelo Hazel Radebe was appointed non-
executive director. She has a wealth of experience across a broad spectrum of
businesses and has a well established legal practice.
Subsequent to year end, Mrs Cheryl Gooderson Otto resigned due to pursuing her
other business interest and the group wishes to thank Cheryl for her valuable
contribution to the group.
SUBSEQUENT EVENTS
The board is aware that there may be legal proceedings with two of the
subsidiary companies in respect of rates and taxes and will not have a material
effect on the financial position of the company.
PROSPECTS
The recessionary trading conditions are expected to remain a big challenge in
the year ahead.
With the upgrade and refurbishment now complete on all properties, the group is
well positioned to benefit significantly from any improvements in the economy as
they arise to enhance shareholder value.
The group will focus on aggressively driving new business opportunities and
stringent cost control.
DIVIDEND POLICY
The directors consider it prudent not to declare dividends at this time due to
the tough economic trading conditions. However it remains the policy of the
group to review the dividend annually in the light of the group`s cash flow,
gearing and capital requirements for growth and development.
AUDIT OPINION
Grant Thornton, the group`s independent auditor, has reviewed the condensed
consolidated financial statements contained in this report and has expressed an
unmodified review opinion which is available for inspection at the company`s
registered office.
BASIS OF PREPARATION
The condensed consolidated financial statements for the year have been prepared
in accordance with the recognition and measurement principles of International
Financial Reporting Standards, the disclosure requirements of IAS 34: Interim
Financial Reporting, the listing requirements of the JSE limited and the
Companies Act, 2008 (Act 71 of 2008) as amended. The accounting policies and
method of measurement and recognition applied in preparation of the condensed
consolidated annual financial statements are consistent with those applied in
the group`s annual financial statements for the year ended 28 February 2011,
which comply with International Financial Reporting Standards.
APPRECIATION
The group welcomes all new employees, and thanks the directors; management and
the staff for their contributions over a difficult trading year. Our
appreciation is also extended to our valued business partners and most
importantly to our shareholders for their ongoing support.
On behalf of the Board
AW Gooderson R Nannoolal
Chairman Financial
Director
27 May 2011
CORPORATE INFORMATION
Directors : A W Gooderson, C M de Klerk, G M Castleman, *M A
Pottier,
R Nannoolal, *B R Warmback, *N H Radebe (* Non-
Executive)
Registration : 1972/004241/06
Number
Registered : 4 Pencarrow Crescent, Pencarrow Park, La Lucia Ridge
Address Office Estate, La Lucia, 4019
Postal Address : PO Box 752, Durban, 4000
Telephone : 031 5765500
Facsimile : 031 5765555
Company : R. Nannoolal
Secretary
Transfer : Computershare Investor Services (Pty) Limited
Secretaries 70 Marshall Street, Johannesburg, 2001
PO Box 61763, Marshalltown, 2107
Designated : Exchange Sponsors (2008) (Pty) Limited
Advisor
Website : www.goodersonsleisure.co.za
Date: 27/05/2011 13:20:01 Produced by the JSE SENS Department.
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