| Wed 21 Feb 2007, 12:16 | | TRT - Tourvest - Rising Inbound Tide Buoys up Tour |
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TRT
TRT
TRT - Tourvest - Rising Inbound Tide Buoys up Tourvest`s Results
Tourism Investment Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/008144/06)
Share code: TRT
ISIN: ZAE000012472
RISING INBOUND TIDE BUOYS UP TOURVEST`S RESULTS
Johannesburg, 21 February 2007 - Growth of some 8% in foreign tourism to South
Africa, coupled with an 11% depreciation of the rand against the US dollar,
boosted Tourvest`s inbound dependent businesses in the six months to December,
enabling the group to increase operating income by 18% to R99 million at the
interim stage. Headline earnings per share were up 14% at 6.4 cents.
Chief executive Tommy Edmond said the retail merchandising and financial
services divisions had produced particularly strong performances, with retail
growing its operating income by 31% and financial services by 34%. He also
noted that last year`s acquisitions had almost all been completed. Payment for
the acquisitions has resulted in net borrowings of R3.4 million on the balance
sheet against net cash of R78 million the previous year.
Since the reporting period, Tourvest has remained on the acquisition trail,
continuing its diversification into the lucrative accommodation and restaurant
sector through the recent purchase (still subject to regulatory approval and
conditions precedent) of four key destination restaurants in Cape Town: the
Black Marlin, Bertha`s, La Med and Quay Four.
Edmond said the group`s inbound tour operator businesses achieved volume growth
above market growth levels. The inbound products operation also produced good
results with acquisitions contributing to income for the first time.
In the outbound division, the retail travel business continued to grow with good
market share gains. Cumming Travel, acquired last year, delivered the budgeted
contribution. The division`s overall results were depressed, however, by a loss
in the outbound tour operators business. This has since been restructured and
ways of improving its profitability are being investigated.
The financial services division, which holds the American Express foreign
exchange licence, increased the dollar volume of its business by 7%. Edmond
says this indicates that, as anticipated, the previously declining use of notes
and travellers` cheques by inbound tourists had now stabilised at international
levels.
In the retail merchandising division, the jewellery business`s operating profit
grew by more than 50% on the back of higher volumes. The duty free business
increased its operating income by 36% through higher sales and tight cost
control. The business, which already serves SAA and Virgin Atlantic, has
recently added British Mediterranean Airlines, Bellview Airlines and Virgin
Nigeria to its customer base and these should start contributing to operating
income in the second half of the year. The division`s curio and craft business
also showed the positive effects of increased volumes and strict cost control.
"Our businesses are in good shape with some minor exceptions which are receiving
our attention. Our acquisitions have strengthened existing operations as well
as opening up profitable new market sectors for the group. Given our
performance capability, our expanding reach and a generally more favourable
trading environment than we`ve had in recent years, Tourvest is well set to
achieve real growth in earnings for the full year to June, provided the
exchange rate does not turn against us," Edmond said.
For further information call Tommy Edmond, CEO, on 011 728 0540
Issued by du Plessis Associates on behalf of Tourism Investment Corporation.
dPA contact Helen McKane Tel : +27 11 728 4701, Fax: +27 11 728 2547, Mobile:
082 330 2034 or e-mail: tourvest@dpapr.com
website : www.tourvest.co.za
Date: 21/02/2007 12:16:00 Produced by the JSE SENS Department.
