|
TRT
TRT
TRT - Tourvest - Group Results for the six months ended 25 December 2006
Tourism Investment Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/008144/06)
Share code: TRT
ISIN: ZAE000012472
TOURVEST GROUP RESULTS FOR THE SIX MONTHS ENDED 25 DECEMBER 2006
* Operating income grows by 18%
* Headline earnings increase by 14%
GROUP BALANCE SHEET at 25 December
25 Dec 06 25 Dec 05 25 Jun 06
R000 Unaudited Unaudited Audited
ASSETS
Non-current assets
Property, plant and
equipment 206 715 109 709 108 639
Goodwill 138 342 81 785 127 734
Trademarks 5 242 6 181 6 032
Deferred taxation 17 546 24 432 17 921
Financial assets 30 223 26 481 34 484
Current assets
Inventories 223 070 202 062 205 832
Trade and other
receivables 283 917 242 531 294 082
Cash and bank balances - 77 960 90 115
Taxation paid in advance 1 973 - 1 305
Foreign notes held 45 741 53 059 41 899
Total current assets 554 701 575 612 633 233
Total assets 952 769 824 200 928 043
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 85 662 85 662 85 662
Share repurchases
and consolidated shares (71 104) (67 459) (71 907)
Other reserves 25 045 20 234 27 062
Accumulated profits 321 334 293 535 319 962
Attributable to Tourvest
shareholders 360 937 331 972 360 779
Minority interest 45 784 33 275 37 662
Total equity 406 721 365 247 398 441
Non-current liabilities
Interest-bearing
borrowings 15 527 9 083 14 831
Deferred taxation 3 687 - 4 065
Current liabilities
- Non interest bearing
Trade and other payables 430 614 355 346 391 285
Provisions 13 601 22 327 14 407
Taxation payable 28 024 13 153 57 124
Dividends payable 654 647 321
- Interest bearing
Current portion of
interest-bearing borrowings 2 560 470 2 792
Bank borrowings 3 404 - -
Loans relating to
foreign notes held 47 977 57 927 44 777
Total current liabilities 526 834 449 870 510 706
Total liabilities 546 049 458 953 529 602
Total equity and
liabilities 952 769 824 200 928 043
GROUP INCOME STATEMENT for the six months ended 25 December
% 25 Dec 06 25 Dec 05 25 Jun 06
R000 change Unaudited Restated Audited
Revenue 21% 789 741 652 672 1 315 044
Operating income 18% 98 951 84 020 186 868
Net interest paid 41% (3 853) (2 734) (8 389)
Profit before
taxation 17% 95 098 81 286 178 479
Taxation 10% (34 307) (31 200) (63 023)
Profit after
taxation 21% 60 791 50 086 115 456
Attributable to:
Equity shareholders
of Tourvest 18% 49 900 42 288 97 597
Minority
shareholders 40% 10 891 7 798 17 859
Attributable income 21% 60 791 50 086 115 456
Reconciliation of
attributable income
to headline earnings
Capital (profit)/loss (421) 272 479
Impairment of
intangibles 830
Headline earnings 49 479 42 560 98 906
Earnings per
share (cents) 14% 6.4 5.6 12.8
Diluted earnings
per share (cents) 15% 6.3 5.5 12.6
Headline earnings
per share (cents) 14% 6.4 5.6 12.9
Weighted average
shares (000) 774 343 758 293 764 426
Closing number of
shares (000) 830 350 830 350 830 350
Net asset value per
share (cents) 48.98 43.99 47.98
Dividend per share
(cents) 6.40 5.75 5.75
Capital Commitments 114 655 64 272 74 030
- Authorised and
contracted 99 082 39 900 2 076
- Authorised but not
yet contracted 15 573 24 372 71 954
GROUP SEGMENTAL REPORT for the six months ended 25 December
% 25 Dec 25 Dec
R000 change 2006 2005
Revenue
Inbound Tourism Services 14% 131 334 114 778
Outbound Travel Services 16% 123 589 106 320
Financial Services 10% 58 319 52 842
Retail Merchandising 26% 476 499 378 732
21% 789 741 652 672
Operating income
Inbound Tourism Services (5%) 11 950 12 557
Outbound Travel Services (4%) 19 645 20 368
Financial Services 34% 16 587 12 382
Retail Merchandising 31% 50 769 38 713
18% 98 951 84 020
Net operating assets
Inbound Tourism Services 215% 127 764 40 509
Outbound Travel Services 33% 61 353 46 256
Financial Services 19% 47 443 39 916
Retail Merchandising 6% 164 465 155 636
42% 401 025 282 317
GROUP CASH FLOW STATEMENT for the six months ended 25 December
25 Dec 06 25 Dec 05 25 Jun 06
R000 Unaudited Unaudited Audited
Cash flows from operating
activities 21 956 33 654 102 979
Cash flow from investing
activities (113 046) (31 872) (94 625)
Cash flow from financing
activities (2 684) (18 065) (17 670)
Net movement in cash and
cash equivalents (93 774) (16 283) (9 317)
Cash and cash equivalents
at beginning of year 90 115 96 347 96 347
Foreign currency translation
reserve 255 (2 104) 3 084
Cash and cash equivalents
at end of period (3 404) 77 960 90 115
GROUP STATEMENT OF CHANGES IN EQUITY at 25 December
Share
repurchases
Share and con-
capital colidated Other
R000 premium shares reserves
IFRS restated balance at
25 June 2005 85 662 (75 069) 26 180
Opening retained earnings
adjustment resulting from
the reversal of foreign
currency embedded
derivatives
Attributable twelve months
income to 25 June 2006 459
Dividend paid
Dividend accruing to
treasury stock
Deferred tax reversing on
trademark 25 676
Deferred tax released on
trademark (36 429)
Purchase of minority
interest
Purchase of treasury
shares (17 498)
Sale of treasury shares 18 699 6 249
Exercise of shares in
share trust 1 961
Foreign exchange
transaction differences 4 927
Balance at 25 June 2006 85 662 (71 907) 27 062
Attributable six months
income to 25 December 2006 142
Dividend paid
Dividend accruing to
treasury stock
Deferred tax reversing
on trademark (972)
Purchase of minority
interest
Foreign exchange
transaction differences (1 187)
Exercise of shares in share
trust 803
Balance at 25 December 2006 85 662 (71 104) 25 045
GROUP STATEMENT OF CHANGES IN EQUITY at 25 December (continued)
Attri-
butable to
Accu- Tourvest
mulated share- Minority Total
R000 profit holders interest equity
IFRS restated balance
at 25 June 2005 292 877 329 650 27 254 356 904
Opening retained
earnings adjustment
resulting from the
reversal of foreign
currency embedded
derivatives (1 140) (1 140) (1 140)
Attributable twelve
months income to
25 June 2006 97 597 98 056 17 859 115 915
Dividend paid (47 745) (47 745) (7 952) (55 697)
Dividend accruing
to treasury stock 4 049 4 049 4 049
Deferred tax
reversing on
trademark (25 676) - -
Deferred tax
released on
trademark (36 429) (36 429)
Purchase of minority
interest 2 058 2 058
Purchase of
treasury shares (17 498) (17 498)
Sale of treasury
shares 24 948 24 948
Exercise of shares in
share trust 1 961 1 961
Foreign exchange
transaction
differences 4 927 (1 557) 3 370
Balance at
25 June 2006 319 962 360 779 37 662 398 441
Attributable six
months income to
25 December 2006 49 900 50 042 10 891 60 933
Dividend paid (53 142) (53 142) (3 361) (56 503)
Dividend accruing
to treasury stock 3 642 3 642 3 642
Deferred tax
reversing
on trademark 972 - -
Purchase of minority
interest 922 922
Foreign exchange
transaction
differences (1 187) (330) (1 517)
Exercise of shares
in share trust 803 803
Balance at
25 December 2006 321 334 360 937 45 784 406 721
COMMENTS
The overseas inbound tourist market rose by an estimated 8% in the period under
review and the rand depreciated 11% against the US$. These changes resulted in
volume growth for our inbound related businesses.
Operating income and attributable income to ordinary shareholders grew by 18%
for the period with particularly good results from the Retail Merchandising and
Financial Services divisions.
All the acquisitions listed in the 2006 year-end results have been successfully
concluded with all the conditions precedent being fulfilled, with the exception
of the Ganzee stores in the Caribbean and Vintage Africa Inbound Tour Operator
in Kenya, where regulatory approval or other conditions precedent were still
pending.
The balance sheet shows net borrowings of R3.4 million (2005 net cash R78.0
million) as a result of the payments for the acquisitions.
REVIEW OF OPERATIONS
Inbound Tourism Services
The Inbound Tour Operator businesses had volume growth above the market growth.
Our Japanese business was deliberately reduced due to unfavourable terms and is
now being restructured. The conferencing business benefited from managing the
World Petroleum Conference in the six months period ended 25 December 2005.
The Inbound Products division produced good results with the acquisitions
contributing to income for the first time. The results of the Shongololo
operation were disappointing as bookings were taken at last year`s exchange
rates. Various new opportunities are being investigated at present.
Inbound net operating assets increased by 215% due to the acquisition of
properties during the period ended 25 December 2006.
Outbound Travel Services
The Outbound Travel Services division results were depressed by a loss in the
Outbound Tour Operator business. This business has been restructured and ways
of improving profitability are being investigated.
The Retail Travel business continues to grow with good market share gains.
Cumming Travel, purchased last year, produced budgeted results.
The African operations produced a loss for the period but are expected to at
least break even for the second six months.
Financial Services
The Financial Services division performed well during the period with operating
income increasing by 34%. As anticipated in the 2006 year-end results, the
level of use of notes and travellers` cheques by inbound tourists has now
stabilised. The dollar volume of business increased by 7%. Costs and risks
were well controlled.
Retail Merchandising
The division produced excellent results with growth in operating income of 31%.
The Jewellery division`s operating profit has grown in excess of 50% during the
review period from higher volumes.
The Duty Free business grew operating income by 36% due to higher sales and
tight controls over costs. This business has added the British Mediterranean
Airlines, Bellview Airlines and Virgin Nigeria concessions to its customer base.
These should start contributing to operating income in the second half of the
year.
The curio and craft business produced excellent results due to higher volumes
and tight controls over costs.
PROSPECTS
At the present exchange rate, real growth in earnings should be achieved for the
full year.
ORDINARY DIVIDENDS
An ordinary dividend of 6.4 cents per share was paid on 18 September 2006.
BOARD OF DIRECTORS
On 13 November 2006, the Tourvest board was restructured to ensure compliance
with best corporate practice and accordingly, Tourvest appointed three black
independent non-executive directors to its board. Jan Roesch, the CFO, resigned
from the board to assume responsibility for Tourvest Inbound Products and
Luvhengo Neswiswi joined the board as CFO. At the same time, Bill Lynch, the
chief executive of Imperial, resigned in line with his objective of reducing his
operational responsibilities at the Imperial Group. Manny de Canha was
appointed in his place.
The three new independent board members are Blacky Komani, Tanya Abrahamse and
Thembi Kunene.
SUBSEQUENT EVENTS
An agreement for the purchase of The Black Marlin, La Med, Bertha`s and Quay
Four restaurants from the Kristensen Group has been concluded subject to
regulatory approval and other conditions precedent.
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The interim financial statements have been prepared in accordance with IAS 34
Interim Financial Reporting and Schedule 4 of the South African Companies Act,
1973, as amended.
RESTATEMENTS
The revenue reported in December 2005 has been restated to account for revenue
and purchases net of rebates received, in line with accounting developments.
This had no effect on the profit for the period or balance sheet. The impact of
the restatement of revenue is set out below:
25 Dec 25 Dec
R000 2006 2005
Revenue as previously reported 789 741 647 709
Revenue restated 789 741 652 672
CONTINGENT LIABILITY
We provided R28.9 million in the prior financial year relating to the tax
disallowance of previously claimed trademark write-offs. The total revised
liability amounted to R34.7 million resulting in a R5.9 million contingent
liability. Tourvest objected to the tax disallowance. This matter has not been
resolved and has no effect on earnings.
For and on behalf of the board
CE SCOTT RT EDMOND
Chairperson Chief executive
21 February 2007
Johannesburg
Registered Office: 33 West Street, Houghton, Johannesburg, 2198
Transfer Secretaries: Computershare Investor Services 2004 (Proprietary)
Limited, 70 Marshall Street, Johannesburg, 2001, PO Box 61051, Marshalltown,
2107
Sponsor: Investec Securities Limited
Directors: CE Scott (Chairperson), T Hiemstra (Deputy Chairperson), RT Edmond
(Chief Executive)*+, T Abrahamse, M de Canha, E de Jager*, B Komani, T Kunene, P
Maisel and L Neswiswi* (*Executive, +British)
Company Secretary: CG Mortimer
Our website is regularly updated to supply you with the latest information on
the company.
For further information contact:
Investor and media relations Helen McKane on Tel 011 728-4701, Fax 011 728-2547,
e-mail: tourvest@dpapr.com
www.tourvest.co.za
Date: 21/02/2007 12:15:01 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 ] | |||||||||||||
|
|||||||||||||
