| Wed 7 Sep 2005, 9:51 | | Comair Limited - Audited Group Results for the Yea |
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Comair Limited - Audited Group Results for the Year Ended 30 June 2005
Comair Limited
(Reg. No. 1967/006783/06)
Incorporated in the Republic of South Africa
ISIN Code: ZAE000029823
Share Code: COM
(Comair or `the Company`)
AUDITED GROUP RESULTS FOR THE YEAR ENDED 30 JUNE 2005
Earnings Review
The past financial year presented another year of aggressive competition in the
market for domestic air travel. Domestic yields continued to decline, making air
travel more affordable than ever, and resulting in unprecedented market volume
growth of approximately 14%. Comair was well positioned to grow its market
share further, resulting in passenger gains of 18% and an increase in turnover
of 16%. Capacity grew by 12% along with improved seat occupancy levels. The
abovementioned growth produced an operating profit of R114.1 million and
headline earnings per share of 17.3 cents (prior year operating profit of R40.7
million and headline earnings per share of 12.1cents).
Operating costs were affected by a 32% average increase in the dollar price of
crude oil, raising the fuel component of operating costs from 20% to 26%, before
taking into account the fuel surcharge on British Airways ticket sales which
contributed significantly towards the recovery of a portion of the fuel price
increase. The strong rand also mitigated the high dollar cost of fuel and
benefited other dollar based costs.
Cash generated by operations remained strong at R195.6 million (prior year
R63.3million), and after spending R107 million on aircraft and flight simulator
acquisitions, resulted in a cash balance of R216 million at year end (prior year
R210 million).
Capital commitments
The company has committed to capital expenditure of R88 million, being the
balance of payments due in respect of two Boeing B737-300 aircraft to be
acquired in July 2005 and in December 2005. The payments are to be made in US
Dollars and were fully hedged at year end at an average forward rate of
R6.09/US$.
Prospects
Comair expects to see continued improvements in its fleet efficiency as well as
reduced distribution costs.
Fuel prices have risen substantially in recent months and it is proving
difficult to recover the associated cost through fuel levies and higher ticket
prices. Performance in the new financial year will be significantly influenced
by over capacity in the market, the fluctuating rand/dollar exchange rate,
robust competition on fares and the volatile fuel price.
Dividends
The Directors have resolved to declare a dividend (Dividend number 7) of 7.0
cents per share (prior year: 2.0 cents per share) to all shareholders. The last
day to trade (cum the dividend) in order to participate in the dividend will be
Friday, 23 September 2005. The shares will commence trading `ex` dividend from
the commencement of business on Monday, 26 September 2005 and the record date is
Friday, 30 September 2005. Share certificates may not be dematerialised or
rematerialised between Monday, 26 September 2005 and Friday, 30 September 2005
both days included. The dividend payment will be made on Monday, 3 October
2005.
FINANCIAL STATEMENTS
ABRIDGED GROUP INCOME STATEMENT 2005 2004 %
R`000 R`000 change
Revenue 1,713,583 1,474,549 16%
Operating Expenses (1,599,515) (1,433,804) 12%
Operating profit before exceptional 114,068 40,745 180%
items
Aircraft deposit translation loss - (5,120)
Aircraft deposit write-off - (24,752)
Aircraft impairment - (115,106)
Aircraft forward cover exchange loss - (16,658)
Profit / (Loss) from operations before 114,068 (120,891)
taxation
Interest expense (23,713) (44,480)
Interest income 11,569 8,768
Dividend income - 20,455
Profit / (Loss) from ordinary 101,924 (136,148)
activities before taxation
Taxation (25,861) 39,448
Profit / (loss) for the year 76,063 (96,700)
ABRIDGED GROUP BALANCE SHEET 2005 2004
R`000 R`000
ASSETS
Property, plant and equipment 419,894 343,927
Deferred Taxation 5,641 31,435
Unlisted Investment 45,900 -
Current assets 335,945 316,639
807,380 692,001
EQUITY AND LIABILITIES
Capital and reserves 311,272 234,236
Non-current liabilities 177,740 190,787
Current liabilities 318,368 266,978
807,380 692,001
ABRIDGED GROUP STATEMENT OF CHANGES IN
EQUITY
Opening balance 234,236 339,050
Profit / (loss) for the year 76,063 (96,700)
Dividend paid (7,989) (7,989)
Gain from cash flow hedges 9,269 -
Shares purchased by Share Trust (1,024) (520)
Shares sold by Share trust 717 395
Closing balance 311,272 234,236
ABRIDGED GROUP CASH FLOW STATEMENT 2005 2004
R`000 R`000
Cash at the beginning of the year 210,201 168,498
Cash generated by operations 195,632 63,279
Net interest expense (12,144) (33,212)
Taxation refunded/(paid) 14 (2)
Dividends paid (7,989) (7,989)
Addition to property, plant and (107,213) (195,992)
equipment
Proceeds on disposal of property, 7,058 266
plant and equipment
Aircraft deposits (paid)/utilised (10,452) 17,724
Proceeds on disposal of unlisted - 135,490
investments
Acquisition of preference share (45,900) -
investments
Cash (utilised)/ generated by (13,535) 62,139
financing activities
Cash at the end of the year 215,672 210,201
HEADLINE EARNINGS PER SHARE
Earnings attributable to ordinary 76,063 (96,700)
shareholders
Add back Aircraft impairment - 115,106
Add back Aircraft deposit translation - 5,120
loss
Add back Aircraft deposit write-off - 24,752
Less profit on disposal of property, (7,057) -
plant and equipment
Headline earnings attributable to 69,006 48,278
ordinary shareholders
SALIENT FEATURES
Earnings per share (cents) 19.0 (24.2)
Headline earnings per share (cents) 17.3 12.1
Diluted earnings per share (cents) 18.7 (24.2)
Diluted headline earnings per share 17.0 12.1
(cents)
Dividend per share (cents) declared 7.0 2.0
Weighted ordinary shares in issue 399,441 399,431
(`000)
Diluted weighted ordinary shares in 406,655 399,431
issue (`000)
Depreciation (R`000) 31,245 32,182
These financial statements have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice. The accounting policies
used in the preparation of these results are consistent in all material respects
with those used in the annual financial statements for the year ended 30 June
2004.
These financial statements have been audited by PKF (Jhb) Inc. and their
unqualified audit report is available for inspection at the registered office of
the company.
By order of the Board
D.Novick P.van Hoven
Chairman Managing Director
5 September 2005
Company Secretary:
D. Borer
1 Marignane Drive
Bonaero Park, 1619
P.O.Box 7015, Bonaero Park, 1622
Transfer Office
Computershare Investor Services 2004 (Pty) Ltd
70 Marshall Street
Johannesburg, 2000
P.O. Box 61051, Marshalltown, 2107
Sponsor: Nedbank Capital
Date: 07/09/2005 07:30:09 AM
Produced by the JSE SENS Department
