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Short-form condensed unaudited interim financial results for the six months ended 30 September 2019
Tsogo Sun Hotels Limited
(previously known as Southern Sun Hotels Proprietary Limited)
(Incorporated in the Republic of South Africa)
(Registration number 2002/006356/06)
Share code: TGO ISIN: ZAE000272522
('Tsogo Sun Hotels' or 'the company' or 'the group')
Short-form condensed unaudited interim financial results
for the six months ended 30 September 2019
FINANCIAL RESULTS
This marks the group's first set of financial results subsequent to the company's unbundling from Tsogo Sun
Gaming Limited and its listing on the main board of the Johannesburg Stock Exchange Limited on 12 June 2019.
Total income for the six months of R2.1 billion ended 2% above the prior period with a 3% growth in hotel
rooms revenue and a 4% growth in food and beverage revenue offset by a 2% reduction in other income.
Earnings before interest, income tax, depreciation, amortisation, property rentals, long-term incentives
and exceptional items (‘Ebitdar') of R559 million ended 3% down on the prior period for the six months.
The overall group Ebitdar margin of 27.0% is 1.5 percentage points ('pp') down on the prior period.
% 2019 2018 2018
Change on Unaudited Pro forma Unaudited
For the period ended 30 September pro forma Rm Rm Rm
Income 2 2 080 2 030 2 030
Ebitdar (3) 559 577 577
Exceptional losses, net of gains
Headline adjustments (1) (119) (119)
Loss on disposal of property, plant and equipment (1) - -
Fair value adjustment on investment properties - (119) (119)
Other adjustments (23) (1) (1)
Fair value adjustments on interest rate swaps - 23 23
Pre-opening costs - (1) (1)
Restructuring costs (including
termination benefits) (21) (6) (6)
Transaction costs (2) (17) (17)
Ebitdar post exceptional items 17 535 457 457
Property and equipment rentals (106) (104) (104)
Property and equipment rentals - IFRS 16 71 - -
Amortisation and depreciation (151) (147) (147)
Amortisation and depreciation - IFRS 16 (22) - -
Long-term incentive (expense)/credit (7) (7) 9
Operating profit 320 199 215
Finance income 15 14 14
Finance costs (145) (126) (250)
Finance costs - IFRS 16 (49) - -
Share of profit of associates and
joint ventures 21 21 21
Profit before income tax 50 162 108 -
Income tax expense (38) (37) (7)
Profit/(loss) for the period 124 71 (7)
Profit attributable to:
Equity holders of the company 54 40 (38)
Non-controlling interests 70 31 31
124 71 (7)
Reconciliation of earnings attributable to
equity holders of the company to headline
earnings and adjusted headline earnings
Profit/(loss) attributable to equity
holders of the company: 35 54 40 (38)
Loss on disposal of plant and equipment 1 - -
Fair value adjustment on investment properties - 119 119
NCI effects of adjustments - (49) (49)
Headline earnings (50) 55 110 32
Fair value adjustment on interest rate swaps - (23) (23)
Pre-opening costs - 1 1
Restructuring costs (including termination benefits) 21 6 6
Transaction costs 2 17 17
Total tax effects of other exceptional items (6) (2) (2)
Total NCI effects of other exceptional items - 2 2
Share of associates' exceptional items (net) 1 - -
Adjusted headline earnings (34) 73 111 33
Number of shares in issue (million) 1 061 1 061
Weighted average number of shares in issue (million) 1 061 1 061
Basic and diluted earnings per share (cents) 34 5.1 3.8
Basic and diluted headline earnings per share (cents) (50) 5.2 10.4
Basic and diluted adjusted headline
earnings per share (cents) (34) 6.9 10.5
DIVIDEND
As outlined in the pre-listing statement, the group intends to apply cash resources generated during the
initial 15 months post the listing towards the settlement of the offshore division's Dollar denominated
interest-bearing debt. Accordingly, the board of directors has not declared an interim cash dividend for
the six months ended 30 September 2019.
SHORT-FORM ANNOUNCEMENT
The contents of this short-form announcement are the responsibility of the board of directors of Tsogo Sun
Hotels. The information in this short-form announcement is a summary of the full announcement, which can be
accessed on https://senspdf.jse.co.za/documents/2019/jse/isse/TGOE/Interims.pdf or on the company's website at
https://www.tsogosun.com/investors/financial-reports on 21 November 2019 and accordingly, does not contain full
or complete details. The short-form announcement has been extracted from the summary consolidated financial
results, but the short-form announcement itself is not audited. Any investment decisions by shareholders should
be based on a consideration of the full announcement, which shareholders are encouraged to view on SENS and on
the company's website set out above.
The full announcement is available for inspection at the offices of Tsogo Sun Hotels (Palazzo Towers West,
Montecasino Boulevard, Fourways, Gauteng, 2055) and the offices of the sponsor, Investec Bank (100 Grayston
Drive, Sandown, Sandton, 2196) at no charge during normal business hours on business days from Thursday, 21
November 2019 to Thursday, 28 November 2019.
Fourways
21 November 2019
Sponsor
Investec Bank Limited
Note: In order to provide shareholders with meaningful, like-for-like analyses of the group's performance
for the six-month period, commentary on the consolidated results of operations after reported Ebitdar is made
against the pro forma financial information for the six-month period ended 30 September 2018. The pro forma
financial information has been prepared for illustrative purposes only and because of its nature may not fairly
present the group's consolidated results of operations. Pro forma financial information is the responsibility of
the directors of Tsogo Sun Hotels. The pro forma income statement has been prepared on the assumption that
the listing and unbundling occurred on 1 April 2018 and consequently that the group's interest-bearing treasury
loan was settled in full as at that date and that the conversion to the equity-settled share appreciation
plan was effective from the same date. The pro forma financial information has been prepared using the accounting
policies of the group which comply with IFRS and are consistent with those applied in the historical
financial information set out in the company's prelisting statement.
The pro forma financial information has not been audited or reviewed by the company's auditors.
www.tsogosun.com
Date: 21/11/2019 08:00:00
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