| Thu 15 Aug 2002, 0:00 | | City Lodge Hotels Limited - Group Profit And Divid |
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City Lodge Hotels Limited - Group Profit And Dividend Announcement For The Year
Ended 30 June 2002
City Lodge Hotels Limited
Registration number 1986/002864/06
Share code : CLH
ISIN Code : ZAE 000001483
Group profit and dividend announcement for the year ended 30 June 2002
Income statement
Year Year
R 000`s ended ended
30 June % 30 June
2002 change 2001
Revenue 231,878 20 193,324
EBITDA 113,519 25 90,892
Depreciation & amortisation (21,659) (18,598)
Operating profit 91,860 27 72,294
Exceptional item (753) (1,640)
Interest income 3,810 3,668
Interest expense (12,430) (18,644)
Income from joint venture 949 430
Profit before taxation 83,436 49 56,108
Taxation (27,988) (18,943)
Net profit 55,448 49 37,165
Number of shares in issue (000`s) 41,910 28,274
Weighted average number of
shares in issue (000`s) 40,752 28,274
Weighted average number of
convertible debentures in
issue (000`s) 1,158 13,636
Fully diluted earnings per share
(cents)
- headline 134.1 29 103.7
- basic 132.8 31 101.0
Earnings per share (cents)
- headline 137.4 1 135.5
- basic 136.1 4 131.4
Dividends per ordinary share (cents) 78.0 25 62.5
Net interest cover (times) 10.7 4.8
Effective tax rate (%) 33.5% 33.8%
Determination of headline earnings
Net profit per income statement 55,448 37,165
Exceptional item
- pre-opening expenses 753 1,640
- taxation relief arising thereon (226) (492)
Headline earnings 55,975 46 38,313
CITY LODGE HOTELS LIMITED
Balance sheet
R000`s 30 June 30 June
2002 2001
ASSETS
Non current assets 392,077 369,550
Operating assets 352,760 330,233
Investments and loans 39,317 39,317
Current assets 38,001 18,175
Trade receivables 12,885 12,433
Cash 17,362 -
Other 7,754 5,742
Total assets 430,078 387,725
EQUITY AND LIABILITIES
Total shareholders` funds 306,086 273,032
Ordinary shareholders` funds 306,086 198,032
Convertible debenture holders` funds - 75,000
Non current liabilities 87,253 83,130
Deferred taxation 28,753 24,630
Borrowings 58,500 58,500
Current liabilities 36,739 31,563
Accounts payable and accruals 36,739 21,864
Borrowings - 9,699
Total equity and liabilities 430,078 387,725
Interest bearing debt to total
shareholders` funds (%) 19% 25%
Net asset value per share (cents) 730 651
CITY LODGE HOTELS LIMITED
Summarised cash flow statement
30 June 30 June
R000`s 2002 2001
Cash generated by operations 118,342 87,440
Net interest expense (8,620) (14,976)
Dividends paid (22,206) (16,399)
Taxation paid (16,247) (11,901)
Net cash inflow from operating
activities 71,269 44,164
Cash utilised in investing activities (44,020) (78,281)
Cash effects of financing activities (9,887) 9,699
Net cash increase/(decrease) 17,362 (24,418)
Statement of changes in equity
Share Distributable Convertible
capital reserves debentures Total
and premium
R000`s
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 - 55,448 - 55,448
Dividend paid - (22,206) - (22,206)
Balance at 30 June 2002 131,425 174,661 - 306,086
COMMENTS
The City Lodge Group increased revenue by 20% to R231.9 million in the year to
30 June 2002. Occupancy levels for the year improved by one percentage point to
72%. This, together with the inclusion of Road Lodge Port Elizabeth, Courtyard
Port Elizabeth and City Lodge GrandWest for the full year as well as Road Lodge
Kimberley and Town Lodge Polokwane for three months, resulted in an 8% increase
in room nights sold.
The occupancies during the second six months at 72% were in line with the first
six months, but were four percentage points higher than the corresponding prior
period. This indicates an encouraging upward trend after several static and
declining years.
The operating margin for the year of 39.6% was two percentage points better than
that reported in the prior year, whilst interest paid was 33% lower primarily
due to the conversion of the debentures on 1 August 2001. Net profit was up by
49% and fully diluted headline earnings per share increased by 29%.
The group`s ability to generate strong operating cash flows and maintain a
strong balance sheet, was further demonstrated. Net cash inflow from operating
activities increased by 61% to R71.3 million. The capital expenditure of R44.0
million comprised R27million in respect of new hotels and R17.0 million related
to the refurbishment and replacement of operating assets.
A dividend of 52 cents per share has been declared, an increase of 30% on the
previous final payout.
OUTLOOK
Prospects for the year ahead are enhanced by two significant international
events - the World Summit on Sustainable Development and the Cricket World Cup.
In addition, the indications are that foreign tourism levels to the country are
increasing. This is set to continue with the positive marketing efforts by SA
Tourism and many of the major airlines flying to South Africa having announced
increased frequencies in our summer months.
The 90 room Road Lodge Cape Town International Airport is scheduled to open in
September and the flagship City Lodge Victoria and Alfred Waterfront is
currently undergoing a R26 million upgrade with the addition of 44 rooms.
Full year contributions from Town Lodge Polokwane and Road Lodge Kimberley
should positively impact earnings in the year ahead.
ACCOUNTING POLICIES
These preliminary 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.
AUDIT REVIEW
The preliminary financial statements have been reviewed by the company`s
auditors , KPMG Inc. Their unqualified review opinion is available for
inspection at the company`s registered office.
DECLARATION OF DIVIDEND
Notice is hereby given that ordinary dividend no. 27 of 52.0 cents per share for
the year ended 30 June 2002 (2001 - 40.0 cents) has been declared.
Shareholders are advised that the last day to trade cum dividend will be Friday,
6 September 2002. The shares will trade ex dividend as from Monday, 9 September
2002 and the record date will be Friday, 13 September 2002 .The dividend is
payable on Monday 16 September 2002.
Share certificates may not be dematerialised or rematerialised between Monday, 9
September 2002 and Friday, 13 September 2002, both days inclusive.
For and on behalf of the board
Hans R Enderle Clifford Ross
Executive Chairman Managing Director
15 August 2002
Registered office Transfer secretaries
38 Wierda Road West Computershare Investor Services Ltd.
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,
Dr KIM Shongwe, AC Widegger.
Company Secretary: AC Widegger
Date: 15/08/2002 01:10:00 PM Produced by the JSE SENS Department
