| Wed 13 Feb 2002, 0:00 | | City Lodge Hotels Limited - Interim Report For The |
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December 2001
CITY LODGE HOTELS LIMITED
(Registration
number
1986/002864/06)
Share code : CLH
ISIN : ZAE000001483
Interim report for the six months ended 31 December 2001
Balance Sheet
(Unaudited) (Unaudited) (Audited)
R000's 31 December 31 December 30 June
2001 2000 2001
ASSETS
Non current assets 371,758 357,526 369,550
Operating assets 332,441 318,209 330,233
Investments and loans 39,317 39,317 39,317
Current assets 19,972 19,432 18,175
Trade receivables 13,324 11,638 12,433
Cash 127 - -
Other 6,521 7,794 5,742
Total assets 391,730 376,958 387,725
EQUITY AND LIABILITIES
Total shareholders'
funds 284,471 252,362 273,032
Ordinary shareholders'
funds 284,471 177,362 198,032
Convertible debenture
holders' funds - 75,000 75,000
Non current liabilities 85,204 80,708 83,130
Deferred taxation 26,704 22,208 24,630
Borrowings 58,500 58,500 58,500
Current liabilities 22,055 43,888 31,563
Accounts payable and
accruals 22,055 28,909 21,864
Borrowings - 14,979 9,699
Total equity and
liabilities 391,730 376,958 387,725
Interest bearing debt
to total
shareholders' funds (%) 21% 29% 25%
Net asset value per share
(cents) 679 602 651
Summarised cash flow
(Unaudited) (Unaudited) (Audited)
R000's 31 December 31 December 30 June
2001 2000 2001
Cash generated by operations 48,647 40,587 87,440
Net interest expense (4,920) (5,884) (14,976)
Dividends paid (11,310) (10,037) (16,399)
Taxation paid (8,586) (7,067) (11,901)
Net cash inflow from
operating activities 23,831 17,599 44,164
Cash utilised in investing
activities (13,817) (56,996) (78,281)
Cash effects of financing
activities (188) - 9,699
Net cash increase/(decrease) 9,826 (39,397) (24,418)
Statement of changes in equity
Share capital Distributable Convertible
R000's and premium reserves debentures Total
Balance at 30 June 2001 56,613 141,419 75,000 273,032
Conversion of convertible
debentures -
into ordinary shares 75,000 - (75,000) -
Share issue expenses (188) - - (188)
Net profit for the period - 22,937 - 22,937
Dividend paid - (11,310) - (11,310)
Balance at 31 December
2001 131,425 153,046 - 284,471
Income statement
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
R 000's ended ended ended
31 December % 31 December 30 June
2001 change 2000 2001
Turnover 112,629 23 91,483 193,324
Operating profit 51,858 26 41,270 90,892
Depreciation &
amortisation (11,609) (9,060) (18,598)
Exceptional item - (1,106) (1,640)
Interest income 1,766 2,303 3,668
Interest expense (6,686) (8,187) (18,644)
(Loss)/income from
joint venture (216) 291 430
Profit before taxation 35,113 38 25,511 56,108
Taxation (12,176) (9,015) (18,943)
Net profit 22,937 39 16,496 37,165
Number of shares in
issue (000's) 41,910 28,274 28,274
Weighted average number of
shares in issue (000's) 39,613 28,274 28,274
Weighted average number of
convertible debentures
in issue (000's) 2,297 13,636 13,636
Fully diluted earnings
per share (cents)
- headline 55.8 17 47.6 103.7
- basic 55.8 22 45.7 101.0
Earnings per share (cents)
- headline 57.9 (5) 61.1 135.5
- basic 57.9 (1) 58.3 131.4
Dividend per ordinary
share (cents) 26.0 16 22.5 62.5
Net interest cover (times) 8.2 5.5 4.8
Effective tax rate (%) 34.7% 35.3% 33.8%
Determination of headline
earnings
Net profit per income
statement 22,937 16,496 37,165
Exceptional item
- pre-opening expenses - 1,106 1,640
- taxation relief
arising thereon - (332) (492)
Headline earnings 22,937 33 17,270 38,313
ACCOUNTING POLICIES
These condensed interim financial statements have been prepared in
accordance with South African Statements of Generally Accepted Accounting
Practice. The accounting policies used are consistent with those used in the
annual financial statements for the year ended 30 June 2001.
The comparative interim figures have been restated where necessary to take
account of the changes in accounting policy adopted in the preparation of
the year ended 30 June 2001 annual financial statements.
DECLARATION OF DIVIDEND
Notice is hereby given that ordinary dividend no. 26 of 26.0 cents per share
for the six months ended 31 December 2001 (2000 - 22.5 cents) has been
declared.
Shareholders are advised that the last day to trade cum dividend will be
Friday, 1 March 2002. The shares will trade ex dividend as from Monday, 4
March 2002 and the record date will be Friday, 8 March 2002 .The dividend is
payable on Monday 11 March 2002.
Certificated shareholders may not dematerialise or rematerialise their
shares between Monday, 25 February 2002 and Friday, 8 March 2002 both days
inclusive.
For and on behalf of the board
Hans R Enderle Clifford Ross
Executive Chairman Managing Director
14 February 2002
Registered office Transfer secretaries
38 Wierda Road West Mercantile Registrars Limited
Wierda Valley 11 Diagonal Street
Sandton, 2196 Johannesburg, 2001
Directors: HR Enderle (Chairman), C Ross (Managing), AJ Balabanoff, GD
Bisset, DC Coutts-Trotter, WM Dickson (British), DA Hawton, FWJ Kilbourn,
IN Matthews, AC Widegger.
Company Secretary: AC Widegger
COMMENTS
The City Lodge group increased turnover by 23% for the six months ended 31
December 2001, despite the overall occupancy level having declined by 2%
points to 72%. The lower occupancy primarily resulted from a lesser number
of overseas tourist arrivals during the period.
The increase in turnover was achieved as a result of 8% more rooms being
sold due to the inclusion of Road Lodge Port Elizabeth, Courtyard Port
Elizabeth and City Lodge GrandWest for the full period as well as a marked
improvement in the achieved room rates. Margins improved and operating
profit increased by 26%.
Depreciation was up by 28% as a consequence of the capital expenditure on
the three new hotels and the refurbishment programmes in the prior year.
Net interest paid was 16% lower than in the prior period due to the
conversion of the debentures on 1 August 2001. Despite the additional
number of ordinary shares in issue, a 17% increase in fully diluted headline
earnings per share of 55,8 cents was achieved.
Strong operating cash flows were again a feature of the group's activities
and this further strengthened the balance sheet.
A dividend of 26,0 cents per share has been declared, an increase of 16% on
the previous interim payout.
OUTLOOK
Town Lodge Polokwane (Pietersburg) (102 rooms) and Road Lodge Kimberley (90
rooms) are nearing completion with both hotels due to open in April.
Construction of a new Road Lodge at Cape Town International Airport (90
rooms) will begin in March for completion in September 2002. The opening of
this hotel will increase the group's countrywide total number of rooms and
suites to 3748.
While the weaker trend experienced in the last three months of the year to
June continued in the first four months of the period under review, the
final two months saw the trend reverse.
Subject to no material change in the current trading conditions, fully
diluted headline earnings per share growth for the full year is likely to be
similar to that of the first six months.
