| Fri 3 May 2002, 0:00 | | Million Air Charter Limited - Audited Financial |
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MILLION AIR CHARTER LIMITED: AUDITED FINANCIAL RESULTS
MILLION AIR CHARTER LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/000092/06)
JSE Share code: MLL
ISIN Code : ZAE000017810
("MillionAir" or "the company")
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDING 28 FEBRUARY 2002
Income statements GROUP
2002 2001
R R
Gross revenue 66 513 965 37 877 308
Other operating income 2 525 094 (407 646)
Staff costs (5 982 094) (3 056 640)
Depreciation and amortisation expense (16 325 154) (5 900 337)
Other operating expenses (43 437 892) (29 677 907)
Operating profit/(loss) 3 293 919 (1 165 222)
Interest received 277 667 133 687
Finance costs (3 155 238) (2 725 890)
Net profit/(Net loss) before taxation 416 348 (3 757 425)
Taxation (274 184) 1 047 973
Net profit/(Net loss) after taxation 142 164 (2 709 452)
Attributable to minority shareholders 536 267
Earnings attributable to
ordinary shareholders 678 431 (2 709 452)
Earnings per ordinary share (cents) 1,01 (4,03)
Headline earnings per share (cents) 1,03 (4,76)
Reconciliation
of earnings to headline earnings:
Earnings 678 431 (2 709 452)
Profit on disposal of assets (1 667) (757 472)
Loss on impairment of assets 12 746 273 999
Headline earnings 689 510 (3 192 925)
BALANCE SHEETS GROUP
2002 2001
R R
Assets
Non-current assets 63 138 064 40 018 518
Tangible assets 62 685 798 40 017 518
Intangible assets 1 000
Investment in subsidiaries
Investment in associate company 52 266
Loan receivable - associate company 400 000
Current assets 15 297 594 6 859 599
Trade and other receivables 9 709 589 4 909 346
Taxation 4 782 134 576
Cash resources 5 583 223 1 815 677
Total assets 78 435 658 46 878 117
Equity and liabilities
Capital and reserves 19 119 616 18 977 402
Share capital 9 975 248 9 975 248
Distributable reserve 9 680 585 9 002 154
Minority interest in subsidiaries (536 217)
Non-current liabilities 47 416 526 18 379 503
Shareholders' loans 7 210 739
Long-term liabilities 36 210 931 14 613 754
Deferred tax 3 994 856 3 765 749
Current liabilities 11 899 516 9 521 212
Taxation
Trade and other payables 4 590 665 3 272 039
Current portion of
long-term liabilities 7 146 520 4 163 048
Bank overdraft 2 086 125
Provision for leave pay 162 331
Total equity and liabilities 78 435 658 46 878 117
Cash flow statements GROUP
2002 2001
R R
Cash flows from operating activities 13 471 711 1 336 586
Cash receipts from customers 61 713 722 35 840 574
Cash paid to suppliers and employees (45 449 157) (31 911 785)
Cash generated by operating activities 16 264 565 3 928 789
Interest received 277 667 133 687
Interest paid (3 155 238) (2 725 890)
Taxation refunded 84 717
Cash flows from investing activities (39 409 428) 506 668
Tangible assets acquired (39 011 785) (4 123 357)
Proceeds of disposals of
tangible assets 2 382 4 630 025
Investment made (25)
Loan advanced (400 000)
Increase in investment in subsidiaries
Cash flows from financing activities 31 791 388 (4 833 551)
Share capital raised 17
Loans raised 31 791 388 3 661 785
Loans repaid (8 495 353)
Increase/(decrease) in cash
and cash equivalents 5 853 671 (2 990 297)
Cash and cash equivalents at
beginning of the year (270 448) 2 719 849
Cash and cash equivalents at
end of the year 5 583 223 (270 448)
STATEMENT OF CHANGES IN EQUITY
Non-
distri- Distri-
Share Share butable butable
capital premium reserve reserve Total
R R R R R
Balance as at
1 March 2000 336 9 974 895 12 308 564 22 283 795
Surplus on acquisition
of loan accounts of
Subsidiaries in 1999 2 021 897 2 021 897
Net loss for the year (2 709 452) (2 709 452)
Realisation of NDR
due to impairment
of loan account (2 021 897) (2 021 897)
Reversal of tax asset
of subsidiary (596 958) (596 958)
Share option costs 17 17
Balance as at
1 March 2001 336 9 974 912 9 002 154 18 977 402
Net profit for the year 678 431 678 431
Balance as at
28 February 2002 336 9 974 912 9 680 585 19 655 833
BACKGROUND
MillionAir out-sources aircraft to airlines, corporations and tour
groups, both locally and internationally. Despite a difficult year resulting
from amongst other things the upheaval in Zimbabwe the group managed to turn
a loss of R2 709 452 for year to 28 February 2001, to a profit of R678 431
this year. In addition MillionAir has undergone a major restructuring,
including new shareholders taking control of the group, and refocusing the
group into its two main businesses, namely leasing aircraft to airlines and
general aviation.
BUSINESS REVIEW
The aircraft leasing business was given a substantial boost by the
addition of three DC 9-32's. These were funded by loans from the controlling
shareholders. The loans will be redeemed out of the proceeds of the upcoming
rights offer. Two of these aircraft will initially be leased on an Aircraft,
Crew, Maintenance and Insurance or ACMI basis to Sun Air 2001 (Proprietary)
Limited ("Sun Air"), in which it holds a 50 per cent interest. Sun Air has
the exclusive rights to operate flights from Lanseria to Cape Town. It has
started with 11 return flights a week to Cape Town.
In addition to leasing aircraft to Sun Air, MillionAir also services 12
airlines in Africa. During the year MillionAir also bought a 25 per cent
interest in Aeronexus (Pty) Limited an aviation company that specialises in
large aircraft maintenance.
The general aviation division involves the brokering of twin-engine
aircraft, helicopters and jets. This division has experienced good growth
and it is expected that this will continue as customers, including
corporations and tour groups, demand this form of transport to get them to
business and holiday destinations both in South Africa and the rest of
Africa. The general aviation division currently contributes about 20 per
cent of the group's turnover.
MillionAir has been awarded the Association of South Africa Travel Agents
award for outstanding service to the travel industry for three consecutive
years.
RIGHTS OFFER
Shareholders are referred to the rights offer announcement elsewhere in
the press today which provides details of the upcoming offer. The
initiatives taken this year together with the recapitalisation of the
company through the rights offer should enable MillionAir to take advantage
of the expected growth in the aviation industry.
FINANCIAL REVIEW
The group profit on ordinary activities after taxation attributable to
ordinary shareholders for the year amounted to R678 431 (2001: Net loss R2
709 452), after deducting taxation of R274 184 (2001: R1 047 973).
SUBSEQUENT EVENTS
The company operated from a property in Rivonia, Sandton, which was owned
by a wholly owned subsidiary, Pays Investment (Pty) Ltd ("Pays"). In keeping
with the cost-saving strategy, the company has relocated to the new Lanseria
Airport. The holding company has therefore sold its share capital and loan
account in Pays for R1 800 000.
JSE SECURITIES EXCHANGE SOUTH AFRICA ("JSE") REQUIREMENTS
The directors of the company ensured compliance with the requirements of
the JSE Listings Requirements during the year under review.
BASIS OF ACCOUNTING
These consolidated, abridged annual financial statements were drawn up in
compliance with South African Statements of Generally Accepted Accounting
Practice and the company has complied with the requirements of the Companies
Act 1973 (Act 61 of 1973) as amended.
ACCOUNTING POLICIES
The accounting policies as set out in the 2001 Annual Report have been
consistently applied in producing these results.
DIVIDENDS
No dividends will be paid in the foreseeable future, as cash generated
will be retained and utilised to grow and expand the business of the Group.
For an on behalf of the board
C M R Talevi
Chairman
Johannesburg
3 May 2002
Company Secretary and Registered office
J J Botha, Main Terminal Building, Lanseria Airport
Transfer Secretaries
Computershare Services Limited
8th Floor, 11 Diagonal Street,
Johannesburg, 2001
Directors
C M R Talevi, G J R Clarke, J J Botha, M C van Buuren, S Geldenhuis
