| Mon 19 Mar 2007, 8:48 | | PTG - Peermont Global Limited - Reviewed Condensed |
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PTG
PTG
PTG - Peermont Global Limited - Reviewed Condensed Final Group Results
PEERMONT GLOBAL LIMITED
Registration number 1995/004449/06
("Peermont Global" or "the Company")
Share code: PTG & ISIN code: ZAE000058053
PEERMONT GLOBAL - REVIEWED CONDENSED FINAL GROUP RESULTS
- Revenue up 32,0% to R1 632,8 million (2005: R1 236,8 million)
- Operating profit up 37,8% to R553,9 million (2005: R402,0 million)
- Adjusted headline earnings per share ("HEPS") up 38,7% to 81,5 cents (2005:
58,7 cents)
- HEPS up 24,6% to 83,0 cents (2005: 66,6 cents)
Ernie Joubert, MD said:
"We are delighted with this strong set of results including the full effects of
a further 20.7% interest in Emperors Palace acquired in April 2005. Tusk was
brought to book for four months and the performance of these units was ahead of
our initial expectations. In addition, Emperors Palace produced a strong set of
results, particularly in the second half of the year. The business as a whole is
on a sound footing to enter the next phase of its growth cycle."
Enquiries:
Peermont Global 011 267 9200
Ernie Joubert, Managing Director 011 267 9207
Anthony Puttergill, Deputy Managing Director 011 267 9209
College Hill 011 447 3030
Johannes van Niekerk 082 921 9110
REVIEWED CONDENSED GROUP RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006
Group Income Statement
Reviewed Change Audited
Year ended % Year ended
31 Dec 06 31 Dec 05
R`m R`m
Revenue 1 632,8 32,0 1 236,8
Gaming 1 302,3 985,7
Rooms 125,0 92,6
Food and beverage 138,8 119,1
Other 66,7 39,4
Other income 2,1 0,4
1 634,9 1 237,2
Operating costs (1 081,0) 29,4 (835,2)
Employee costs (328,4) (260,0)
VAT and gaming levies on gross gaming (255,6) (191,8)
revenues
Promotions and marketing costs (101,9) (81,0)
Depreciation and amortisation (78,2) (65,6)
Property and equipment rentals (23,7) (15,6)
Other operational costs (293,2) (221,2)
Operating profit 553,9 37,8 402,0
Net financial (expenses)/income (121,6) 117,1 (56,0)
Financial income 8,6 45,3
Financial expenses (130,2) (101,3)
Profit before taxation 432,3 24,9 346,0
Taxation (143,3) 20,8 (118,6)
Profit for the year 289,0 27,1 227,4
Attributable to:
Equityholders of Peermont 275,4 25,2 220,0
Minority shareholders 13,6 7,4
289,0 27,1 227,4
Number of shares (million)
Issued ordinary shares 330,0 330,0
For fully diluted calculations 331,0 331,0
Earnings per share (cents)
- basic 83,5 25,2 66,7
- diluted 83,2 25,1 66,5
Dividends declared per ordinary share 28,6 (11,7) 32,4
(cents)
Headline earnings reconciliation
Profit attributable to equityholders 275,4 25,2 220,0
of Peermont
Headline earnings adjustment (1,5) (0,3)
Profit on sale of assets (2,1) (0,4)
Taxation effect on the above 0,6 0,1
adjustment
Headline earnings 273,9 24,6 219,7
Reversal of the effect of non- 5,9 -
recurring pre-opening costs
Reversal of the effect of non- (1,4) -
recurring profit on acquisition of
loans
Taxation effect of the above (1,5) -
adjustments
Reversal of the effect of the non- - (36,5)
recurring option profit
(Adjustment to)/taxation effect on the (8,1) 0,6
option profit
Adjusted headline earnings 268,8 38,7 193,8
Headline earnings per share (cents)
- basic 83,0 24,6 66,6
- diluted 82,7 24,6 66,4
- adjusted 81,5 38,7 58,7
Reconciliation of operating profit to
EBITDAR
Operating profit 553,9 37,8 402,0
Depreciation and amortisation 78,2 65,6
Property and equipment rentals 23,7 15,6
EBITDAR 655,8 35,7 483,2
Group Balance Sheet
Reviewed Audited
31 Dec 06 31 Dec 05
R`m R`m
Assets
Total non-current assets 3 369,5 2 511,0
Property, plant and equipment 2 199,3 1 808,3
Intangible assets 1 153,4 691,1
Amount due by joint venture partner 3,9 4,4
Derivative instruments 4,1 4,0
Deferred taxation assets 8,8 3,2
Total current assets 264,2 136,9
Inventories 29,5 23,4
Accounts receivable 51,5 31,5
Amounts due by joint venture partners 1,8 1,3
Current portion of derivative instruments 7,0 14,1
Taxation 4,4 6,6
Cash and cash equivalents 170,0 60,0
Total assets 3 633,7 2 647,9
Equity and liabilities
Equity
Attributable to equityholders of Peermont Global
Capital and reserves 1 322,6 1 158,5
Minority interests 164,2 22,2
Total equity 1 486,8 1 180,7
Total non-current liabilities 1 628,8 1 023,5
Interest-bearing long-term borrowings 449,1 259,0
Preference share liabilities 959,1 583,0
Derivative instruments - 4,3
Deferred taxation liabilities 220,6 177,2
Total current liabilities 518,1 443,7
Accounts and other payables 178,9 132,6
Provisions 68,5 32,1
Amounts due to related parties 4,1 2,8
Current portion of long-term borrowings 147,0 146,1
Current portion of derivative instruments 2,6 13,3
Taxation liabilities 49,4 28,0
Bank overdraft 67,6 88,8
Total equity and liabilities 3 633,7 2 647,9
Group Cash Flow Statement
Reviewed Audited
Year ended Year ended
31 Dec 06 31 Dec 05
R`m R`m
Cash flows from operating activities 665,2 477,0
Financial income 6,2 7,2
Financial expenses (126,6) (104,6)
Taxation paid (144,2) (112,2)
Net cash from operating activities 400,6 267,4
Cash flows from investing activities (544,3) (940,3)
Replacement of property, plant and equipment to (65,5) (54,2)
maintain operations
Acquisition of property, plant and equipment to (82,2) (115,0)
expand operations
Replacement of intangible assets to maintain (3,1) -
operations
Acquisition of intangible assets to expand (1,5) (183,4)
operations
Increased interest in joint venture - (532,2)
Proceeds on disposal of property, plant and 3,2 1,2
equipment
Acquisition of businesses (395,7) (58,3)
Disposal of interest in joint venture - (0,2)
Decrease in investments - 1,5
Repayment of shareholders` loan by joint 0,5 0,3
venture
Cash flows from financing activities 274,9 614,7
Cash settlement in respect of derivative 2,6 6,7
instruments
Repayment of shareholders` loans (3,2) -
Interest-bearing long-term borrowings raised 348,8 242,0
Proceeds on issue of preference shares 375,0 589,0
Preference share issue costs (0,2) (1,5)
Interest-bearing long-term borrowings repaid (324,3) (117,8)
Dividends paid (123,8) (103,7)
Net increase/(decrease) in cash and cash 131,2 (58,2)
equivalents
Cash and cash equivalents at the beginning of (28,8) 30,2
the year
Effect of exchange rate fluctuations on cash - (0,8)
held
Cash and cash equivalents net of overdrafts at 102,4 (28,8)
the end of the year
Group Statement of Changes in Equity
Ordinary Minority Total
shareholders` interest R`m
equity R`m
R`m
Audited balance at 31 December 1 045,0 20,1 1 065,1
2004
Profit for the 2005 year 220,0 7,4 227,4
Foreign exchange translation (4,0) (2,6) (6,6)
loss
Recognised hedging expense (2,8) - (2,8)
Total income and expense for the 213,2 4,8 218,0
year
Dividends paid (101,0) (2,7) (103,7)
Share-based payment charge 1,3 - 1,3
Total movement for the year 113,5 2,1 115,6
Audited balance at 31 December 1 158,5 22,2 1 180,7
2005
Profit for the 2006 year 275,4 13,6 289,0
Foreign exchange translation (0,2) (0,1) (0,3)
loss
Recognised hedging gain 7,7 - 7,7
Total income and expense for the 282,9 13,5 296,4
year
Dividends paid (120,1) (3,7) (123,8)
Minority interest on acquisition - 132,2 132,2
of the Tusk Group
Share-based payment charge 1,3 - 1,3
Total movement for the year 164,1 142,0 306,1
Reviewed balance at 31 December 1 322,6 164,2 1 486,8
2006
Net borrowings
Reviewed Audited
31 Dec 06 31 Dec 05
R`m R`m
Interest-bearing debt
Non-current 1 408,2 842,0
Current 147,0 146,1
1 555,2 988,1
(Cash balances)/overdraft (102,4) 28,8
Net borrowings 1 452,8 1 016,9
% %
Net debt/book value of ordinary shareholders` 110 88
equity
Segmental analysis
Segment revenue EBITDAR Segment operating
profit/(loss)
Reviewed Audited Reviewed Audited Reviewed Audited
31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
2006 2005 2006 2005 2006 2005
R`m R`m R`m R`m R`m R`m
Emperors Palace - 1 464,8 1 250,4 586,7 483,9 506,2 410,7
100%
Less share not (249,6) (273,9) (100,0) (106,7) (86,2) (91,1)
proportionately
consolidated
Emperors Palace - 1 215,2 976,5 486,7 377,2 420,0 319,6
proportionately
consolidated
share
Graceland - 100% 122,4 110,5 28,6 25,6 20,8 19,9
Less share not (3,6) (2,3) (0,9) (0,5) (0,6) (0,4)
proportionately
consolidated
Graceland - 118,8 108,2 27,7 25,1 20,2 19,5
proportionately
consolidated
share
Botswana # 144,6 144,2 42,2 43,8 28,8 31,1
Mondazur 16,4 7,5 4,1 (0,5) 2,9 (1,3)
Bethlehem 4,0 - (5,8) - (6,3) -
Head office 108,0 80,8 34,1 38,4 32,3 34,3
Intercompany (92,5) (80,4) 10,0 (0,8) 9,5 (1,2)
Tusk Group* 118,3 - 56,8 - 46,5 -
Tusk Mmabatho* 23,6 - 7,1 - 5,2 -
Tusk Taung* 2,1 - (0,5) - (1,0) -
Tusk Rio* 42,6 - 19,4 - 16,5 -
Tusk Venda* 17,0 - 5,4 - 4,6 -
Tusk Umfolozi* 35,1 - 14,2 - 10,8 -
TCHM* 8,2 - 5,8 - 5,6 -
TCHM B* 2,9 - 1,9 - 1,9 -
Other* 5,6 - 5,4 - 5,4 -
Intercompany* (18,8) - (1,9) - (2,5) -
Peermont Group 1 632,8 1 236,8 655,8 483,2 553,9 402,0
total
Segmental analysis (continued)
Net financial Profit/(loss) Taxation
(expenses)/income before taxation
Reviewed Audited Reviewed Audited Reviewed Audited
31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
2006 2005 2006 2005 2006 2005
R`m R`m R`m R`m R`m R`m
Emperors Palace - (95,7) (57,4) 410,5 353,3 (129,0) (117,9)
100%
Less share not 16,3 12,5 (69,9) (78,6) 22,0 24,7
proportionately
consolidated
Emperors Palace - (79,4) (44,9) 340,6 274,7 (107,0) (93,2)
proportionately
consolidated share
Graceland - 100% 0,6 (0,2) 21,4 19,7 (6,3) (5,7)
Less share not - - (0,6) (0,4) 0,2 0,1
proportionately
consolidated
Graceland - 0,6 (0,2) 20,8 19,3 (6,1) (5,6)
proportionately
consolidated share
Botswana # (8,0) (7,4) 20,8 23,7 (4,4) (5,1)
Mondazur - - 2,9 (1,3) (1,0) 0,4
Bethlehem (6,1) - (12,4) - (0,5) -
Head office (25,0) (3,5) 7,3 30,8 (11,7) (13,5)
Intercompany 0,5 - 10,0 (1,2) 1,5 (1,6)
Tusk Group* (4,2) - 42,3 - (14,1) -
Tusk Mmabatho* (0,6) - 4,6 - (1,8) -
Tusk Taung* (0,2) - (1,2) - 0,3 -
Tusk Rio* (2,0) - 14,5 - (4,5) -
Tusk Venda* 0,1 - 4,7 - (1,4) -
Tusk Umfolozi* (2,6) - 8,2 - (2,2) -
TCHM* 0,9 - 6,5 - (3,2) -
TCHM B* 0,6 - 2,5 - (0,7) -
Other* 8,3 - 13,7 - (0,6) -
Intercompany* (8,7) - (11,2) - - -
Peermont Group (121,6) (56,0) 432,3 346,0 (143,3) (118,6)
total
Segmental analysis (continued)
Profit/(loss) Depreciation Net replacement
for the year and amortisation capital expenditure
Reviewed Audited Reviewed Audited Reviewed Audited
31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
2006 2005 2006 2005 2006 2005
R`m R`m R`m R`m R`m R`m
Emperors Palace - 281,5 235,4 (62,4) (62,5) (49,8) (50,0)
100%
Less share not (47,9) (53,9) 10,7 13,1 8,5 9,1
proportionately
consolidated
Emperors Palace - 233,6 181,5 (51,7) (49,4) (41,3) (40,9)
proportionately
consolidated share
Graceland - 100% 15,1 14,0 (6,0) (4,3) (5,1) (5,4)
Less share not (0,4) (0,3) 0,2 0,1 0,2 0,2
proportionately
consolidated
Graceland - 14,7 13,7 (5,8) (4,2) (4,9) (5,2)
proportionately
consolidated share
Botswana # 16,4 18,6 (9,2) (8,1) (7,3) (7,1)
Mondazur 1,9 (0,9) (0,9) (0,6) (0,8) -
Bethlehem (12,9) - (0,5) - - -
Head office (4,4) 17,3 (0,6) (2,9) (0,9) (0,7)
Intercompany 11,5 (2,8) (0,4) (0,4) - 0,9
Tusk Group* 28,2 - (9,1) - (10,2) -
Tusk Mmabatho* 2,8 - (0,9) - (2,4) -
Tusk Taung* (0,9) - - - (0,1) -
Tusk Rio* 10,0 - (2,6) - (2,5) -
Tusk Venda* 3,3 - (0,8) - (2,1) -
Tusk Umfolozi* 6,0 - (3,2) - (3,0) -
TCHM* 3,3 - - - (0,1) -
TCHM B* 1,8 - - - - -
Other* 13,1 - - - - -
Intercompany* (11,2) _ (1,6) - - -
Peermont Group 289,0 227,4 (78,2) (65,6) (65,4) (53,0)
total
Segmental analysis (continued)
Expansion capital Net third-party
expenditure and indebtedness
investment
Reviewed Audited Reviewed Audited
31 Dec 31 Dec 31 Dec 31 Dec
2006 2005 2006 2005
R`m R`m R`m R`m
Emperors Palace - 100% (9,9) (749,0) 840,4 995,6
Less share not proportionately 1,7 130,2 (143,2) (169,7)
consolidated
Emperors Palace - proportionately (8,2) (618,8) 697,2 825,9
consolidated share
Graceland - 100% - - (6,6) (2,7)
Less share not proportionately - - 0,2 0,1
consolidated
Graceland - proportionately - - (6,4) (2,6)
consolidated share
Botswana # - (64,2) 46,7 57,6
Mondazur - (22,7) (0,8) (1,0)
Bethlehem (77,9) (13,9) 84,8 -
Head office - (167,8) 543,2 137,0
Intercompany 2,4 - - -
Tusk Group (395,7) - 88,1 -
Tusk Mmabatho - - 9,4 -
Tusk Taung - - 5,1 -
Tusk Rio - - 18,7 -
Tusk Venda - - (11,4) -
Tusk Umfolozi - - 45,4 -
TCHM - - (13,4) -
TCHM B - - (0,1) -
Other (395,7) - 34,4 -
Intercompany - - - -
Peermont Group total (479,4) (887,4) 1 452,8 1 016,9
# Average exchange rate (ZAR/BWP) 1,1788 (2005: 1,272) applied to income
statement and cash flow items, year end rate of 1,1795 (2005: 1,200) applied to
balance sheet.
* for the 4 months from 1 September 2006
Overview
The Group experienced strong organic growth, particularly at its flagship
Emperors Palace property and also benefited from the Tusk acquisition, which was
earnings accretive and added further impetus to the growth in shareholder value.
Gaming revenue increased by 32,1% to R1 302,3 million and non-gaming revenue
increased by 31,6% to R330,5 million. Earnings before interest, taxation,
depreciation, amortisation and rentals ("EBITDAR") increased by 35,7% to R655,8
million. After adjusting for the effects of the prior period foreign currency
option profit, pre-opening expenses and other minor non-recurring items,
adjusted headline earnings increased by 38,7% to R268,8 million, compared to
R193,8 million in 2005.
The results for the current period include the:
* consolidated results of the Tusk Group from 1 September 2006.
* full effects of a further 20,7% in Emperors Palace acquired with effect from 1
April 2005. As a result, 83,0% of the results of Emperors Palace were
proportionately consolidated for the full period under review, as compared to
62,2% for the first three months of the prior period and 83,0% thereafter;
* ownership, with effect from 1 March 2005, of the Syringa hotels in Gaborone
and Francistown, for a full twelve months. The results of this acquisition were
consolidated for the full period under review, as compared to only 10 months
during the prior period;
* effects of the full commissioning of the additional gaming capacity at
Emperors Palace in August 2005;
* the upgrade and refurbishment of the Mondazur Resort Estate Hotel at San
Lameer, completed in September 2005;
* opening of the Mondior Concorde Hotel at Emperors Palace during March 2006;
and
* opening of the Frontier Inn and Casino ("Frontier Inn") in Bethlehem in
November 2006.
Investment activity consisted mainly of the construction of the Frontier Inn in
Bethlehem, Free State, in respect of which R77,9 million was spent during the
period. Construction commenced in November 2005 and the property opened to the
general public on 16 November 2006 at a total cost of R102 million.
Operations
Emperors Palace
Revenues at Emperors Palace grew by a pleasing 17,1% to R1 464,8 million
compared to R1 250,4 million in 2005. Gross gaming revenues grew by 16,0% to R1
266,9 million, largely due to strong tables` growth, up 29,0% on the prior year.
Rooms revenue increased to R67,8 million, up 41,1% on the prior period. The
Mondior Concorde hotel opened in March 2006 and contributed revenue of R16,6
million since opening. Revenue from the new hotel is expected to continue to
grow as occupancies increase.
Operating profits at Emperors Palace increased by 23,3% to R506,2 million.
EBITDAR growth of 21,2% was impacted by strong tables revenues, additional
marketing costs, increased security costs and pre-opening costs expensed in
respect of the Mondior Concorde.
Graceland
Graceland revenues grew by 10,8% to R122,4 million compared to R110,5 million in
2005. EBITDAR increased by 11,7% to R28,6 million from R25,6 million in 2005.
This EBITDAR improvement was achieved despite absorbing a full year`s cost of
management and service fees of R9,8 million compared to the R5,8 million
incurred in 2005.
Botswana
The Botswana operations experienced revenue growth of 6,7% in Pula terms from
Pula 115,0 million in 2005 to Pula 122,7 million in 2006, which was reduced to
growth of 0,3% in Rand terms following the relative devaluation of the Pula.
Gaming revenues increased by only 2,8% year on year largely due to pressure on
disposable income in the local economy, as well as intensified competitive
activity. Non-gaming revenues grew by 9,2% to Pula 78,3 million, assisted by the
inclusion of the Syringa acquisition for an additional two months as compared to
the prior period. EBITDAR remained flat in Pula terms at Pula 35,8 million as a
result of the lower than expected gaming revenues and significantly higher
levels of inflation in Botswana.
Tusk
Tusk revenues are included for the 4 months that commenced on 1 September 2006.
The main contributors were Tusk Rio at R42,6 million, Tusk Umfolozi at R35,1
million and Tusk Mmabatho at R23,6 million. The management companies generated
combined revenues of R11,1 million. Overall, revenues were ahead of
expectations, especially in respect of Tusk Rio and Tusk Umfolozi.
The Tusk Group generated EBITDAR of R56,8 million and operating profit of R46,5
million for the 4 month period. Tusk Rio contributed R19,4 million and Tusk
Umfolozi R14,2 million to the Tusk group EBITDAR.
Peermont Global will derive further benefits in 2007 when the full 12 months`
results flow through to the income statement.
Bethlehem
Operations commenced on 16 November 2006 and marketing efforts to increase the
customer base are ongoing. The complex generated revenues of R4,0 million in
2006 and incurred an EBITDAR loss of R5,8 million mainly due to pre-opening
costs of R4,5 million being immediately expensed.
Head office
Head office includes revenues from Peermont Global head office and Peermont
Global Management (Pty) Ltd. Head office revenues increased by 33,7%, from R80,8
million in 2005 to R108,0 million for 2006, mainly as a result of increased fees
from Emperors Palace and Graceland. The profitability was affected by additional
costs of the share incentive scheme arising from the increased share price, the
expensing of R6,6 million in respect of new business investigations, and costs
of R2,1 million relating to the scheme of arrangement incurred in the current
period. These resulted in EBITDAR decreasing by 11,2% from R38,4 million in 2005
to R34,1 million for 2006.
Mondazur
The hotel enjoyed a full year of trading in its refurbished premises as these
were fully operational from September 2005. It generated revenues of R16,4
million and earned EBITDAR of R4,1 million compared to an EBITDAR loss of R0,5
million in 2005.
Key financial aspects
Finance costs
Financial expenses increased to R130,2 million from R101,3 million in 2005. The
increased funding costs were mainly due to the funding of the Tusk acquisition
and the additional three months of finance costs relating to the preference
shares and long-term borrowings associated with the Caesars buyout in 2005. In
2005 the financial income of R45,3 million included a once-off gain of R36,5
million on the exercise of European call options to acquire US dollars required
to effect the Caesars buyout.
Net interest cover amounted to 4,6 times for 2006 (2005 - excluding the once-off
option gain: 4,3 times), and remained well above the Group`s minimum cover
target of 2,5 to 3 times.
Taxation
The effective taxation rate of 33,2% for 2006 was affected by STC charges on
ordinary and preference dividends as well as by the non-deductibility of
preference share coupons included in finance costs. The reversal by PGER
Holdings (Pty) Limited ("PGERH") of a provision for taxation on the foreign
currency option payment reduced the Group taxation charge by R8,1 million in
2006.
Balance sheet
Net borrowings increased to R1 452,8 million from R1 016,9 million as at 31
December 2005. The Group`s net debt to equity ratio (net borrowings/book value
of ordinary shareholders` equity) increased to 110% from 88% as at 31 December
2005 and 79% as at 30 June 2006. The increase was largely due to preference
share funding of R375,0 million secured in August 2006, to fund the acquisition
of a controlling interest in the Tusk group of companies with effect from 31
August 2006.
During the period, the Group also raised R83,0 million in term loan funding to
fund the construction of the Frontier Inn. R273,1 million of term loan
borrowings was repaid during 2006.
Cash flow
Cash flows from operating activities of R665,2 million were 39,5% higher than
the R477,0 million in 2005. After deducting higher interest and taxation
payments for the period, the net cash inflow from operating activities increased
by 49,8% to R400,6 million from R267,4 million in 2005.
R544,3 million in cash was utilised in investing activities, of which R479,4
million related to investment in future growth and capacity. These new
investments were mainly in respect of the acquisition of a controlling interest
in the Tusk group and construction of the Frontier Inn, which was funded by term
loan borrowings.
During the period, the Group made dividend payments to Peermont Global and
minority shareholders totalling R123,8 million, up 19,4% from the R103,7 million
paid in 2005.
Acquisition of the Tusk Group and related black empowerment transactions
The integration of the Tusk operations into the Group is progressing well. PGTH
is still to meet the requirements of the various gaming boards by:
* selling a further 10% of Tusk Resorts (Pty) Limited to local BEE
* selling a further 10% of Emanzini Leisure Resorts (Pty) Limited ("Emanzini")
to local BEE investors;
* selling 10% in the Tusk management companies and 15% of Emanzini to staff
trusts;
* facilitating the funding for the staff trusts; and
* constructing hotel and ancillary facilities at Tusk Rio and Tusk Umfolozi.
These commitments are expected to be actioned once the current scheme of
arrangement is finalised.
Scheme of arrangement and general meeting
The scheme as set out in a circular sent to shareholders on 20 February 2007 was
approved by shareholders on 12 March 2007. The general meeting to approve
allotment of shares for the Marang acquisition, held on the same day and details
of which were contained in the same circular, approved the allotment. The
directors and the offering consortium are continuing with the required action to
complete the transaction. It is currently anticipated that the listing of the
company`s shares on the JSE will be terminated on or about 12 April 2007.
Contingent liabilities
Taxation
There have been no material new developments regarding the status of the SARS
findings concerning the audits, previously reported to shareholders. The Group
continues to engage SARS on these matters.
Auditor`s review report
KPMG Inc. has reviewed these results and their unqualified review report is
available for inspection at the company`s registered office.
Prospects
While it is anticipated that the disposable income levels of consumers may be
moderately affected by higher level of interest rates and fuel cost increases
and the decline in the Rand/Dollar exchange rate, the Group should continue to
benefit from anticipated real growth in disposable income levels. In addition,
the Group should benefit in the year ahead from the:
* full year`s impact of the Tusk acquisition, which is expected to continue to
be earnings accretive;
* opening of the Frontier Inn and Casino in Bethlehem; and
* continued degearing of the business.
Since its listing on the JSE in 2004, the group has grown HEPS by a compound
annual rate of 28,7%. The outstanding assets owned and operated by the Group
together with the excellence of its personnel should see the continuation of
positive earnings performance into the future.
Dividend declaration
Final dividend number 7
Notice is hereby given that a final dividend of 10,0 cents per ordinary share
(2005: 17,8 cents) was declared by the directors and is payable to shareholders
recorded in the books of the company at the close of business on Thursday, 5
April 2007. In compliance with the requirements of STRATE the following dates
are applicable:
Last day to trade cum dividend Thursday, 29 March 2007
Securities start trading ex-dividend Friday, 30 March 2007
Record date Thursday, 5 April 2007
Payment date Tuesday, 10 April 2007
The dividend was declared and will be paid in the currency of the Republic of
South Africa. Share certificates may not be de-materialised or re-materialised
between Friday, 30 March 2007 and Thursday, 5 April 2007, both dates inclusive.
By order of the board
AF van Biljon EG Joubert Bryanston
Chairman Chief Executive Officer 16 March 2007
Basis of preparation
The reviewed results of the Group for the year ended 31 December 2006 have been
prepared in accordance with the recognition and measurement requirements of IFRS
and the presentation and disclosure requirements of IAS 34. There have been no
changes to accounting policies from those applied in the preparation of the
annual financial statements to 31 December 2005.
Basis of consolidation
Peermont Global has a direct economic interest of 33,3% in PGERH, which owns
100% of Peermont Global (East Rand) (Pty) Limited ("PGER"), which in turn owns
Emperors Palace. In addition, Peermont Global has a further indirect economic
interest of 49,6% in PGERH. Peermont Global`s total economic interest in PGERH
of 83,0% is proportionately consolidated due to Peermont Global exercising joint
control over PGERH.
Peermont Global has a direct shareholding of 50% in Peermont Global (Southern
Highveld) (Pty) Limited ("PGSH"), which owns Graceland. In addition, Peermont
Global has a right to a further 47% in PGSH in terms of the PGSH shareholders`
agreement. Peermont Global proportionately consolidated 97% of the results of
PGSH from 1 May 2005. Prior to 1 May 2005, 100% of the PGSH results were
consolidated.
Peermont Global has a direct shareholding of 60% in Peermont Global (Botswana)
(Pty) Limited ("PGB"), which owns The Grand Palm as well as the Mondior Summit
Hotel and the Metcourt Lodge. Peermont Global exercises control over PGB and
therefore consolidates the results of PGB and separately deducts the minority
interests of 40%.
Peermont Global has a direct shareholding of 57,1% in PGEFSH, which owns 70% of
Peermont Global (Eastern Free State) (Pty) Limited ("PGEFS"), which owns the
Frontier Inn. Peermont Global exercises control over the companies and therefore
consolidates their results and separately deducts the minority interests.
The Mondazur Resort Estate Hotel at San Lameer is a division of Peermont Global.
Peermont Global has a direct shareholding of 79% in Peermont Global Tusk
Holdings (Pty) Limited ("PGTH"). Peermont Global exercises control over PGTH and
therefore consolidates the results of PGTH and separately deducts the minority
interests of 21%.
Corporate information
Directors
Alan Francis van Biljon (Chairman)#, Ernest Guillaume Joubert (Managing Director
and Chief Executive Officer),Anthony Edward Puttergill (Deputy Managing
Director), William Grant Robinson (Group Financial Director),
Shirley Therese Lue Arnold#, Martin Dods Brand#, Rashad Ismail Cassim#, Kutoane
Obed Kutoane#, Stephanus Hilgard Muller#
# Non-executive independent director
Registered Office: Bridgeport House, Hampton Park, 20 Georgian Crescent East,
Bryanston
Company Secretary: DL Petzer
Sponsor: JP Morgan Equities Limited
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Ltd
www.peermont.com
Date: 19/03/2007 08:48:53 Produced by the JSE SENS Department.
