|
COM
COM
Comair - Unaudited Group Results for the six months ended 31 December 2005
Comair Limited
Reg. No. 1967/006783/06
Incorporated in the Republic of South Africa
(Comair or "the Company")
ISIN Code: ZAE000029823
Share Code: COM
Unaudited Group Results for the six months ended 31 December 2005
Commentary
Earnings Review
Comair is pleased to report an operating profit of R51 million for the six
months to 31 December 2005 (comparative period restated: R47 million), resulting
in attributable earnings of R27 million (comparative period restated: R27
million) and headline earnings per share of 6.7 cents (comparative period
restated: 5.3 cents).
Turnover for the 6 months increased by 17% to R974 million. Total flights
operated increased by 12%, resulting in 18% additional seats and passenger
growth of 21% over the comparative period. Despite the substantial increase in
the fuel price, the industry experienced continued deflation in average ticket
prices as result of extreme competition in the market for domestic air travel.
The factor with the greatest impact on the profitability for the six months was
the price of jet fuel, which increased by 40% over that of the comparative
reporting period. The fuel price added R81 million, or 10%, to total operating
costs. Excluding the fuel price increase, total cost per seat declined by 9.5%
as result of efficiencies achieved through the fleet upgrade programme.
Cash generated from operations increased the cash balance to R263 million from
R216 million as at 30 June 2005.
Prospects
The directors are of the opinion that the current low average ticket prices, in
conjunction with the high fuel price and over capacity in the market will
continue for the second six months. Nevertheless, Comair will remain price
competitive, and in these circumstances profits will remain under pressure.
Dividends
No interim dividend has been declared for the period, as it is company policy to
declare one dividend annually in September.
Basis of preparation
In terms of the listing requirements of the JSE Limited, the Group is required
to prepare its consolidated financial statements in accordance with
International Financial Reporting Standards ("IFRS") as from 1 July 2005. The
interim results have been prepared in accordance with IFRS and IAS34 - Interim
Financial Reporting. Previously the group reported in terms of South African
Statements of Generally Accepted Accounting Practice.
Opening balance sheets at 1 July 2004 and 1 July 2005 have been restated
accordingly. The comparative income statement for the six months to December
2004 and the balance sheet at that date have also been restated. The effect of
the transition from South African Statements of Generally Accepted Accounting
Practice to IFRS on the group"s financial position, financial performance and
cash flows is summarised below.
IFRS 2 - Share based payments
The fair value of share options granted, as determined using the Black-Scholes
model, has been charged against income over the relevant option vesting periods.
IAS16 - Property, Plant and Equipment
Costs relating to the overhaul of aircraft components were previously expensed
as maintenance. These costs are now capitalised and subsequently expensed as
depreciation. The effect is an increase in the depreciation charge, with a
decrease in the aircraft maintenance expense.
IFRS IMPACT ON PROFIT
six months year to
31 Dec 30 June
2004 2005
R "000 R "000
As previously 27,287 76,063
reported
Effect of IAS16 and (301) (598)
IFRS2
26,986 75,465
ABRIDGED GROUP INCOME STATEMENT
Unaudited Unaudited Unaudited
six months six months year to
31 Dec 31 Dec 30 June
2005 2004 2005
R "000 R "000 R "000
Revenue 973,783 830,906 1,713,583
Operating expenses 922,989 790,464 1,600,113
Profit from operations 50,794 46,202 113,470
Net investment expense (7,641) (7,240) (12,144)
Profit before taxation 43,153 38,962 101,326
Taxation (16,385) (11,976) (25,861)
Attributable earnings 26,768 26,986 75,465
Earnings per share (cents) 6.7 6.8 18.9
Headline earnings per share (cents) 6.7 5.3 17.1
Diluted Earnings per share (cents) 6.6 6.6 18.6
Diluted Headline earnings per share 6.6 5.2 16.8
(cents)
Weighted ordinary shares in issue 399,440 399,431 399,431
("000)
Diluted weighted ordinary shares in 403,610 408,420 406,655
issue ("000)
Depreciation (R "000) 124,420 88,445 194,153
Interest expense (R "000) 15,607 12,496 23,713
Headline earnings
Earnings attributable to ordinary 26,768 26,986 75,465
shareholders
Deduct profit on sale of property, - (5,760) (7,057)
plant and equipment
Headline Earnings attributable to 26,768 21,226 68,408
Ordinary Shareholders
ABRIDGED GROUP BALANCE SHEET
Unaudited Unaudited Unaudited
31 Dec 31 Dec 30 June
2005 2004 2005
R "000 R "000 R "000
ASSETS
Property, plant and equipment 516,630 332,070 419,894
Unlisted investments 56,610 - 45,900
Deferred Taxation - 19,459 5,641
Current assets 370,909 324,701 335,945
944,149 676,230 807,380
EQUITY AND LIABILITIES
Share capital and reserves 287,028 253,534 311,272
Interest-bearing liabilities 313,042 162,370 177,740
Deferred taxation 10,744 - -
Current liabilities 333,335 260,326 318,368
944,149 676,230 807,380
ABRIDGED GROUP CASH FLOW STATEMENT
Unaudited Unaudited Unaudited
six months six months year to
31 Dec 31 Dec 30 June
2005 2004 2005
R "000 R "000 R" 000
Cash and cash equivalents at the 215,672 210,201 210,201
beginning of the period
Cash from operations and investment 187,735 106,998 346,396
income
Dividends paid (27,961) (7,989) (7,989)
Taxation (paid)/refunded (12,805) - 14
Cash utilised in investing activities (221,414) (76,588) (319,415)
Net cost of share trust purchases (14,024) - (307)
Increase/(decrease) in interest bearing 135,302 (28,417) (13,228)
liabilities
Cash and cash equivalents at the end of 262,505 204,205 215,672
the period
ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY
Share Share Hedging Retained
capital premium reserve income Total
R "000 R "000 R "000 R" 000 R" 000
Balance at 1 July 3,994 9,425 9,269 288,584 311,272
2005
Profit for six the - - - 26,768 26,768
months
Dividends paid - - - (27,961) (27,961)
during the six
months
Net cost of share - - - (14,024) (14,024)
trust purchases
Options granted by - - - 242 242
share trust
Realisation of - - (9,269) - (9,269)
hedging reserve
Balance at 31 3,994 9,425 0 273,609 287,028
December 2005
By order of the Board
D.Novick
Chairman
P.van Hoven
Managing Director
14 February 2006
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, 2002
P.O. Box 61051, Marshalltown, 2107
Sponsor: Nedbank Capital
Date: 14/02/2006 05:00:07 PM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
