| Thu 12 Aug 2004, 15:17 | | Results For The Year Ended 30 June 2004 |
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City Lodge Hotels Limited - Reviewed Group Preliminary Results For The Year
Ended 30 June 2004
City Lodge Hotels Limited
Registration number 1986/002864/06
Share code: CLH
ISIN: ZAE000001483
REVIEWED GROUP PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2004
- Average occupancies 76%
- Headline earnings per share +15%
- Dividends +38%
Income statement
Year Year
ended ended
30 June % 30 June
R000`s 2004 change 2003
Revenue 335 844 15 292 910
EBITDA 174 373 14 152 511
Depreciation and amortisation (23 157) (22 351)
Operating profit 151 216 16 130 160
Interest income 7 447 7 827
Interest expense (8 012) (9 775)
Income from joint venture 2 964 3 501
Profit before taxation 153 615 17 131 713
Taxation (52 675) (44 261)
Net profit 100 940 15 87 452
Number of shares in issue (000`s) 42 125 41 962
Weighted average number of
shares in issue (000`s) 42 033 41 939
Basic and headline earnings
per share (cents)
- fully diluted 238,0 15 207,0
- undiluted 240,1 15 208,5
Dividends declared per share (cents) 168,0 38 122,0
Effective tax rate (%) 34,3 33,6
Note: Net profit equates to headline earnings.
Cash flow statement
30 June 30 June
R000`s 2004 2003
Cash generated by operations 180 299 149 529
Net interest paid (1 402) (5 798)
Dividends paid (53 787) (37 314)
Taxation paid (52 658) (34 539)
Net cash inflow from operating activities 72 452 71 878
Cash utilised in investing activities (75 856) (56 094)
- investment to maintain operations (23 765) (24 099)
- investment to expand operations (52 091) (31 995)
Cash effects of financing activities (3 921) 411
Net (decrease)/increase in cash (7 325) 16 195
Balance sheet
30 June 30 June
R000`s 2004 2003
ASSETS
Non-current assets 481 240 426 953
Property, plant and equipment 439 857 386 665
Investments and loans 37 361 36 524
Deferred taxation 4 022 3 764
Current assets 48 986 56 565
Trade receivables 16 540 15 100
Cash 26 232 33 557
Other 6 214 7 908
Total assets 530 226 483 518
EQUITY AND LIABILITIES
Shareholders` funds 394 079 345 026
Share capital and premium 133 736 131 836
Accumulated profit 260 343 213 190
Non-current liabilities 103 506 101 000
Deferred taxation 42 390 34 063
Borrowings 61 116 66 937
Current liabilities 32 641 37 492
Accounts payable and accruals 27 243 24 042
Taxation 5 398 13 450
Total equity and liabilities 530 226 483 518
Interest bearing debt to total
shareholders` funds (%) 16 19
Net asset value per share (cents) 935 822
Note: The company has authorised capital commitments of R25,3 million of which
none has been contracted for.
Statement of changes in equity
Share capital Accumulated
R000`s and premium profit Total
Balance at 30 June 2003 131 836 213 190 345 026
Issue of new ordinary shares 1 900 - 1 900
Net profit for the period - 100 940 100 940
Dividends paid - (53 787) (53 787)
Balance at 30 June 2004 133 736 260 343 394 079
RESULTS
The group achieved a satisfactory performance in the year to 30 June following
the net profit increase of 58% in the previous year. Room occupancies were
maintained at 76%, despite the fact that the year did not include the
significant one-off events of last year such as the World Summit on Sustainable
Development or the Cricket World Cup.
Continued strong demand for the group`s products led to a 15% increase in
revenue. The number of rooms sold increased by 4% as a result of a seven-month
contribution from City Lodge Umhlanga Ridge and a full year contribution from
both Road Lodge Cape Town International Airport and the additional rooms at City
Lodge V&A Waterfront.
The operating profit increased by 16%. The net interest charge of R0,6 million
was R1,4 million lower than in the previous year. As a result of lower
occupancies, the Courtyard Joint Venture earnings were R0,5 million below the
previous year`s R3,5 million.
The effective tax rate of 34,3%, compared to 33,6% last year, was due to an
increase in Secondary Tax on Companies of 44%.
The group achieved a significant milestone with its net profit exceeding R100
million. This translated into an increase in fully diluted headline earnings per
share of 15% to 238 cents.
Cash generated by operations grew by 21% to R180 million of which R76 million
was used to fund capital expenditure.
OUTLOOK
The current year will benefit from full contributions from City Lodge Umhlanga
Ridge and from Road Lodge Rustenburg which was opened in the last week of the
year under review.
There are a number of sites which the group is investigating to expand its
portfolio of hotels in South and Southern Africa.
With trading conditions anticipated to remain favourable in the year ahead, the
group expects to continue its growth in earnings.
DIVIDEND POLICY
In light of the consistently strong cash generation of the group and the low
level of gearing the board has reviewed the dividend policy.
The board has resolved to increase the dividend payout ratio to 70% of earnings
per reporting period. This increase will not impact on the group`s ability to
continue expanding its operations.
The board has consequently declared a final dividend of 125 cents per share
taking the total distribution for the year to 168 cents, an increase of 38%.
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 2003.
AUDIT REVIEW
These 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 number 31 of 125 cents per share
for the year ended 30 June 2004 (2003 - 85 cents) has been declared.
Shareholders are advised that the last day to trade cum dividend will be Friday,
10 September 2004. The shares will trade ex dividend as from Monday, 13
September 2004 and the record date will be Friday, 17 September 2004. The
dividend is payable on Monday, 20 September 2004.
Share certificates may not be dematerialised or rematerialised between Monday,
13 September 2004 and Friday, 17 September 2004, both days inclusive.
For and on behalf of the board
Hans R Enderle
Chairman
Clifford Ross
Chief executive
12 August 2004
Registered office
38 Wierda Road West
Wierda Valley, Sandton, 2196
Transfer secretaries
Computershare Investor Services 2004 (Pty) Limited
70 Marshall Street, Johannesburg, 2001
Directors
HR Enderle (Chairman), C Ross (Chief executive*), DC Coutts-Trotter, DA Hawton,
FWJ Kilbourn, IN Matthews, Dr KIM Shongwe, AC Widegger*
Company Secretary AC Widegger
*Executive
Date: 12/08/2004 03:00:11 PM
Produced by the JSE SENS Department
