| Thu 14 Feb 2002, 0:00 | | Comair Limited - Interim Results |
|
COMAIR LIMITED
(Registration No. 1967/006783/06)
Share Code : COM
ISIN Code : ZAE000029823
Interim Results for the six months ended 31 December 2001
Earnings review
The 56% decline in attributable earnings from R49,2 million to R21,5 million
and headline earnings per share from 11,7 cents to 5,1 cents was largely
caused by the exceptional R25,4 million profit earned on the sale of an
aircraft included in last year's earnings. The company achieved a pleasing
R24 million operating profit for the first half of the financial year
compared to the R25,1 million (before exceptional items) earned in the same
period last year.
The second quarter was characterised by unprecedented uncertainty after the
11 September terror attack which impacted on the worldwide airline industry.
Operating costs were severely impacted by the collapse of the rand while
revenue suffered from a fall in passenger demand coupled with lower yields
as a result of market overcapacity.
The encouraging 15% turnover growth compared to the same period last year is
largely attributable to the successful and profitable introduction of the
"no frills" kulula.com branded air service in August 2001.
Events subsequent to balance sheet date
The company has commenced with its fleet upgrade programme with the first
leased Boeing 737-400 aircraft being introduced into service on 21 January
2002, and a second Boeing 737-400 aircraft planned for 1 April 2002. The two
aircraft have been acquired under rand-based operating leases held with
Safair (Pty) Limited. The modern Stage III noise compliant Boeing 737-400
aircraft are not expected to have a material impact on costs in the short
term but will achieve longer-term savings by reducing the company's exposure
to fuel price and exchange rate volatility, as well as complementing the
premium British Airways brand.
Prospects
Prospects for the second half remain uncertain with losses expected in the
third quarter of the financial year as the full cost impact of the weaker
rand is absorbed. Revenue growth is expected to be constrained by continued
market overcapacity. We accordingly expect a significant decline in headline
earnings or possibly a marginal loss for the full financial year.
Stability in the rand and oil prices combined with a possible market
capacity correction provide scope for a return to profitability in the
medium term.
Accounting policies
The financial statements are prepared on the historical-cost basis which
complies in all material respects with South African Generally Accepted
Accounting Practice. The accounting policies are consistent with those of
the previous year.
Dividends
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
13 February 2002
Company secretary
D Borer, 1 Marignane Drive, Bonaero Park, 1619
PO Box 7015, Bonaero Park, 1622
Transfer office
Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg, 2001
PO Box 1053, Johannesburg, 2000
Abridged group income statement
Unaudited Unaudited Audited
six months six months 12 months
31 December 31 December 30 June
2001 2000 % 2001
R'000 R'000 change R'000
Turnover 627 385 547 560 15 1 160 000
Operating profit
before exceptional
item 23 951 25 072 (4) 73 843
Profit on disposal
of aircraft - 25 444 25 483
Operating profit
after exceptional
item 23 951 50 516 (53) 99 326
Net investment
Income 545 6 154 (91) 8 706
Net income before
Taxation 24 496 56 670 (57) 108 032
Taxation (2 961) (7 440) (60) (15 070)
Earnings
attributable
to ordinary
shareholders 21 535 49 230 (56) 92 962
Abridged group balance sheet
Assets
Fixed assets 334 171 250 512 309 989
Loan to share
incentive trust 14 000 15 120 14 000
Unlisted
Investments 89 253 73 608 80 493
Current assets 375 844 322 978 372 881
813 268 662 218 777 363
Equity and liabilities
Share capital
and reserves 390 156 358 488 368 621
Long-term
Liability 178 065 135 490 181 237
Deferred
Taxation 30 385 26 987 31 168
Current
Liabilities 214 662 141 253 196 337
813 268 662 218 777 363
Abridged cash flow statement
Cash and cash equivalents
at the beginning
of the period 267 228 315 854 315 854
Cash from
operations
and investment
income 37 363 20 398 71 880
Dividends paid (33 600) (29 400) (29 400)
Taxation paid (2 348) (18 085) (25 363)
Cash utilised
in investing
activities (32 461) (53 077) (112 610)
Cash generated
by/(applied)
in financing
activities (3 172) - 46 867
Cash and cash
equivalents
at the end of
the period 233 010 235 690 267 228
Salient features
Earnings per
share (cents) 5,1 11,7 (56) 22,1
Headline earnings
per
share (cents) 5,1 11,7 (56) 22,1
Weighted ordinary
shares
issued ('000) 420 000 420 000 420 000
Depreciation
(R'000) 9 575 8 332 14 702
Interest
expense (R'000) 16 053 12 979 28 408
Statement of changes in equity
Share Share Retained
Capital premium income Total
Balance at
30 June 2000 4 200 8 456 296 603 309 259
Net profit for
the year 92 962 92 962
Dividend paid (33 600) (33 600)
Net profit for
the six months 21 535 21 535
Balance at
31 December 2001 4 200 8 456 377 500 390 156
