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WIL - Wilderness Holdings Limited - Audited condensed Group Financial results
for the year ended 29 February 2012 and a cash dividend declaration
WILDERNESS HOLDINGS LIMITED
(Registration number 2004/2986)
(Registered as an external company in South Africa Registration number
2009/022894/10)
ISIN: BW0000000868
Share code: WIL
("Wilderness" or "the Group" or "the Company")
AUDITED CONDENSED GROUP FINANCIAL RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2012
AND A CASH DIVIDEND DECLARATION
HIGHLIGHTS
- Bednight sales up 5% and revenue up 12% on the prior year
- EBITDA in line with prior year, in spite of challenging trading conditions
- Strong balance sheet and cash reserves with cash generated from operating
activities up 46% on prior year and net cash at the end of the year of
P157.5 million
- A cash dividend of 8.6 thebe per share declared
- Significant investments made in solar power systems which will reduce
future operating costs as well as the Group`s carbon footprint
- Our 2011 integrated report has received a number of national and
international awards
CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
P`000 Audited Change Audited
Year ended Year ended
29 Feb 2012 28 Feb 2011
Revenue 1 066 243 12% 948 607
Cost of sales (604 373) (526 837)
Gross profit 461 870 421 770
Other gains 4 382 12 995
Operating expenses (393 965) 10% (359 184)
Net foreign exchange gains 5 494 1 836
Operating profit for year 77 781 0% 77 417
before items listed below
(EBITDA)
Impairment losses (4 371) (4 085)
Depreciation and amortisation (45 718) (43 707)
Profit on sale of business 2 047 29 219
Goodwill impairment - (8 312)
Operating profit 29 739 (41%) 50 532
Net finance costs (5 021) (6 925)
Unrealised foreign exchange (8 207) 7 974
(loss)/gain on loans
Share of associate company (492) 59 437
(loss)/profit
Profit before taxation 16 019 (86%) 111 018
Taxation (7 824) (18 895)
Profit for the year 8 195 (91%) 92 123
Other comprehensive 4 647 (3 054)
income/(loss):
Exchange differences on
translating foreign
operations:
Equity holders of the Company 15 203 (2 757)
Non-controlling interest 333 -
Net investment in foreign (10 889) (297)
operations
Total comprehensive income for 12 842 89 069
the year
Profit attributable to:
Owners of the Company 11 344 100 033
Non-controlling interest (3 149) (7 910)
8 195 92 123
Total comprehensive income
attributable to:
Owners of the Company 15 657 96 979
Non-controlling interest (2 815) (7 910)
12 842 89 069
Number of shares issued
(thousands)
Issued 231 000 231 000
Weighted average 231 000 228 417
Diluted weighted average 231 000 231 000
Earnings per share (thebe)
Headline 3.76 11.05
Diluted headline 3.76 10.92
Basic 4.91 43.79
Diluted 4.91 43.30
DETERMINATION OF HEADLINE EARNINGS
Reconciliation between profit attributable to owners of the Company and headline
earnings
P`000 Audited Audited
Year ended Year ended
29 Feb 2012 28 Feb 2011
Profit attributable to owners of the 11 344 100 033
Company
Adjustments
Goodwill impairment - 8 312
Surplus on disposal of operations, (2 047) (87 975)
investments and associates
Profit on disposal of property, plant (4 058) (3 766)
and equipment
Net impairments 2 899 4 085
Other 187 -
Tax effects of adjustments 363 4 541
Headline earnings 8 688 25 230
CONDENSED GROUP STATEMENT OF FINANCIAL POSITION
P`000 Audited Audited
As at As at
29 Feb 2012 28 Feb 2011
Assets
Non-current assets 451 100 440 997
Property, plant and equipment and 384 873 375 732
intangible assets
Goodwill 30 917 31 022
Investment and loans in associates 10 373 18 754
Loans receivable 2 053 1 155
Deferred tax assets 22 884 14 334
Current assets 287 451 289 769
Inventories 20 615 17 053
Receivables and prepayments 65 871 72 197
Current tax receivable 13 087 14 105
Cash and cash equivalents 187 878 186 414
Total assets 738 551 730 766
Equity and liabilities
Equity attributable to owners of the 334 845 350 368
Company
Non-controlling interest (3 633) (17 419)
Total equity 331 212 332 949
Non-current liabilities 145 709 141 138
Long-term liabilities 113 990 114 071
Deferred tax liabilities 31 719 27 067
Current liabilities 261 630 256 679
Trade and other payables 229 254 222 513
Current tax liabilities 2 002 345
Bank overdrafts 30 374 33 821
Total liabilities 407 339 397 817
Total equity and liabilities 738 551 730 766
Net asset value per share (thebe) 145 152
Net tangible asset value per share 130 137
(thebe)
CONDENSED GROUP STATEMENT OF CASH FLOWS
P`000 Audited Audited
Year ended Year ended
29 Feb 2012 28 Feb 2011
Net cash inflow from operating 67 374 45 979
activities
Net cash outflow from investing (47 469) (40 453)
activities
Net cash (outflow)/inflow from (28 016) 84 726
financing activities
(Decrease)/increase in cash and cash (8 111) 90 252
equivalents
Unrealised exchange gains/(losses) on 13 022 (1 582)
foreign cash balances
Cash and cash equivalents at beginning 152 593 63 923
of year
Cash and cash equivalents at end of 157 504 152 593
year
CONDENSED STATEMENT OF CHANGES IN TOTAL EQUITY
P`000 Audited Audited
Year ended Year ended
29 Feb 2012 28 Feb 2011
Balance at beginning of year 332 949 240 256
Reserves 332 949 235 037
Change in accounting policy - 5 219
Total comprehensive income for the year 12 842 89 069
Minority portion of dividend paid (1 169) (164)
Issue of shares - 124 000
Expenses related to issue of shares - (16 357)
Common control business combination - (103 855)
reserve
Dividends paid (19 868) -
Other 215 -
Share based payments expense 1 622 -
Disposal of subsidiary 4 621 -
Balance at end of year 331 212 332 949
SEGMENTAL ANALYSIS
P`000 Audited Audited
Year ended Year ended
29 Feb 2012 28 Feb 2011
Revenue
Safari consulting 1 009 452 938 075
Camp, lodge and safari explorations 315 680 288 315
Transfer and touring 205 410 176 810
Finance and asset management 72 532 50 645
Intergroup (536 831) (505 238)
1 066 243 948 607
Reportable segment profit/(loss) before
tax
Safari consulting 1 045 15 523
Camp, lodge and safari explorations (2 438) 3 526
Transfer and touring (20 238) (1 447)
Finance and asset management 9 616 33 888
(12 015) 51 490
Net items unallocated to a segment 28 034 59 528
Profit before taxation 16 019 111 018
Total assets
Safari consulting 229 603 214 457
Camp, lodge and safari explorations 451 887 351 907
Transfer and touring 85 011 73 296
Finance and asset management 700 968 699 262
Intergroup (728 918) (608 156)
738 551 730 766
COMMENTARY
The directors of Wilderness Holdings Limited are pleased to report the results
of the Group`s operations for the year ended 29 February 2012.
OUR BUSINESS
The Wilderness Holdings Group owns and operates a network of 65 safari camps and
lodges in seven southern African countries. These camps are serviced by a fleet
of 42 aircraft. Our main trading brand is Wilderness Safaris which has operated
for nearly 30 years and is one of the leading brands in our sector of the travel
industry. Our operations are staffed by nearly 2 800 employees.
TRADING ENVIRONMENT
The environment within which the Group trades continues to be challenging.
Uncertain and unpredictable economic conditions persist in the key source
markets, particularly Europe. In addition, local currencies were over-valued
during the first half of the year although there was some respite to this in the
third quarter before they again strengthened in the final quarter. Inflation has
continued to exert upward pressure on costs at rates varying from 6% in South
Africa to 9% in Botswana. These challenges in the trading environment are
exacerbated in some countries, primarily South Africa and Namibia, by an over-
supply of beds.
PERFORMANCE
We are pleased to report that bednight sales for the year have increased by 5%
to nearly 190 000. Performance in Botswana, where the Group operates 23 camps,
continues to improve with a 12% increase in bednight sales. This increase was to
a degree offset by a 15% decline in bednight sales in Namibia, where we operate
16 camps. The continued decline in the Namibian market is a function of
uncertainty in Europe and the over-valued Namibian dollar. The effects of the
improvement in sales volumes have been offset by a slight change in sales mix
towards lower yielding products. During the year we discounted certain prices in
order to build our brand and increase occupancy in key areas through this
recessionary period. Nonetheless, our turnovers in source currencies have
increased by at least 10% except the Namibian dollar which is down 10%. Exchange
rates remained strong during the first half of the year before weakening at the
mid-point. Over the last few months of the financial year the Rand and the Pula
again strengthened against the dollar and this has had a negative effect on
results. Reported turnover for the year was BWP1 066 million, up 12% on the
prior year. This satisfying increase is a function of real growth in the
business, real yield increases achieved and the fluctuation in exchange rates.
The Group`s gross margin percentage declined from 44.5% in the prior year to
43.3% in the current year. A number of inflation and exchange rate-related
matters have contributed to this decline but the single largest contributing
factor was the 35% increase in the cost of aviation fuel.
Group operating expenses have increased by 10% over the prior year. This
increase is high in relation to rates of inflation in the countries we operate
in and is largely attributable to additional investments in staff needed to
improve product quality as well as marketing initiatives to counter the effects
of depressed source markets. Escalating fuel prices have once again contributed
to this increase.
Foreign exchange gains were BWP5.5 million, compared with BWP1.8 million in the
prior year.
The net effect of the above factors is that EBITDA was BWP78 million, level with
what was achieved in 2011. The Board believes that this outcome is most
satisfactory given the pressures on the industry and the fact that the Group has
used this difficult period to build capacity and our brands.
Below the line results are significantly lower than those achieved last year.
This decrease is mainly due to the capital profits amounting to P87.9 million
which were included in the prior year results. This was exacerbated by the fact
that weakening of the dollar resulted in unrealised losses on foreign currency
denominated loans of P8.2 million, a turnaround of P16.2 million compared with
the unrealised gains reported in the prior year. Net finance costs were down
slightly from P6.9 million to P5.0 million, reflecting the low levels of gearing
in the Group.
The Group`s effective rate of tax was 49%, a significant increase on the rate of
17% achieved in the prior year. Two major factors have contributed to this
increase: in the first instance, the prior year effective rate was reduced by
the capital profits that were reported and secondly, the non-recognition of
deferred tax assets in the current year. These tax losses have not been
recognised where our conservative forecasts suggest that they may not be
recouped in the near future or before `sunset` provisions in some national
legislation result in elimination of the assessed losses. Profit for the year
after tax was therefore P8.1 million (2011: P92.1 million).
The Group`s balance sheet continues to be healthy and this is best demonstrated
by the net cash position of P157.5 million (2011: P152.6 million).
We have continued to make significant investments aimed at improving product
quality and productivity. These have included major training initiatives
targeted at all levels of our staff. Exciting innovations in brand and product
have been made and we have received a number of international awards in
recognition of this. In addition, we have made real progress in our initiatives
to ensure the sustainability of the Group`s operations. These have included an
investment of P9.3 million in solar technologies. Once again, our efforts in
this regard, and in our sustainability reporting, have resulted in a number of
prestigious local and international awards.
In the current trading environment it is necessary to do more with less and so
we have re-aligned the business for lower demand. We have re-worked the business
models for the Botswana flying business, and for the businesses that are under
stress (primarily Namibia and Zambia), and expect the resulting changes to bear
fruit in the 2013 financial year. This framework is likely to continue to be
applied in the years ahead while trading remains challenging.
DIVIDEND
Notice is hereby given that a final dividend for the year ended 29 February 2012
of 8.6 thebe per share was declared on 24 May 2012 (8,0 thebe per share net of
Botswana withholding tax). Withholding tax of 7.5% is applicable to all
shareholders who are not exempt and registered on the Botswana share register.
The dividend has been declared from income reserves and secondary tax on
companies` credits is not applicable. The dividend will be payable on or about
27 June 2012 to those shareholders registered at the close of business on
Friday, 15 June 2012. For JSE registered shareholders, the last date to trade
shall be Friday, 8 June 2012 and shall commence trading ex the dividend on
Monday, 11 June 2012. The South African branch register will be closed for the
purposes of dematerialisation, rematerialisation and transfers between the South
African register and the South African and Botswana registers from Monday, 11
June 2012 to Friday, 15 June 2012, both dates inclusive. The dividend shall be
paid in Rand to shareholders on the South African register, calculated at the
Pula to Rand exchange rate on 25 May 2012 which was BWP1/R1.07'and accordingly
the gross dividend payable is 9.2 cents per share (7.82' cents per share net of
South African withholding tax). South African Withholding tax of 15% is
applicable to all shareholders who are not exempt and are registered on the
South African share register. The issued shares at the declaration date is 231
000 000.
CAPITAL COMMITMENTS
The Group is committed to fully maintain all of its assets in order to defend
its earnings base. Accordingly, we have authorised P45 million in defensive
capital to maintain and refurbish existing assets. In addition, we have
authorised a further P57 million to develop new camps and other assets and thus
expand our earnings base. These authorisations compare with a total of P58
million for the prior year. The Board envisage that this will be funded by
existing cash balances and unutilised borrowing facilities.
CONTINGENCIES
Included in the prior year results is an amount of P29.2 million, being the
capital profit arising on the Duba Plains transaction. As announced on 16 August
2010, the underlying transaction has been concluded and full payment has been
received by the Group. However, this transaction remains subject to certain
conditions precedent which have not yet been fulfilled. As at the date of this
report, based on legal advice, the directors are confident that the remaining
resolutive condition will be fulfilled. Accordingly, the capital profit has been
brought to account and the amount is recorded as a contingent liability until
such time as all necessary regulatory approvals have formally been obtained.
SUBSEQUENT EVENTS
Subsequent to the year end, the Malawi kwacha was devalued by approximately 50%.
This devaluation has had the effect of reducing the carrying value of our
investment in an associated company in that country by approximately P0.9
million.
BASIS OF PREPARATION
The abridged financial information has been prepared in accordance with the
framework concepts and the measurement and recognition requirements of
International Financial Reporting Standards and the information as required by
IAS 34 - Interim Financial Reporting. The report has been prepared using
accounting policies that comply with International Financial Reporting Standards
which are consistent with those applied in the prior year financial statements.
INDEPENDENT AUDITOR`S OPINION
The auditors, Deloitte & Touche, have issued their opinion on the Group`s
financial statements for the year ended 29 February 2012. The audit was
conducted in accordance with International Standards on Auditing. They have
issued an unmodified audit opinion. These condensed financial statements have
been derived from the Group financial statements and are consistent in all
material respects with the Group financial statements. A copy of their audit
report is available for inspection at the company`s registered office. Any
reference to future financial performance included in this announcement, has not
been reviewed or reported on by the company`s auditors.
OUTLOOK
While the economic climate remains challenging, real progress has been made in
aligning the business to lower levels of demand in the industry. During this
period we are pleased to report continued real growth and, while we recognise
that efforts to drive continued improvement are not complete, opportunities for
growth are now being pursued. This can largely be undertaken on the back of
successful efforts to significantly strengthen the balance sheet of the
business.
In recognition of the changing expectations of our guests, we continue to
innovate our products and develop our people. In this regard the business is
excited to launch our 4Cs platform which is to frame our behaviour in the
future.
Regardless, we continue to be nimble in adapting to the challenges presented by
the prevailing uncertain global economic climate.
During the coming year we will open the newly rebuilt Duma Tau camp in Botswana
and also commission new camps in the Republic of Congo and Kenya, the latter two
camps being additions to our Wilderness Collection brand.
30 May 2012
Registered office Plot 1 Mathiba Road, Maun, Botswana
External company registration number 2009/022894/10
Registered office 373 Rivonia Boulevard, Rivonia, South Africa
BSE: Primary Listing
JSE: Secondary Listing
BSE Sponsor: Capital Securities (a member of the Botswana Stock Exchange)
JSE Sponsor: RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Transfer Secretaries: CorpServe Botswana
Directors: M McCulloch (Chairman), A Payne (CEO), D de la Harpe (CFO), R
Friedman, J Gnodde, R Hartmann, J Hunt, R Marnitz, R Polet, P Tafa, G Tollman, M
Tollman, M ter Haar, D van Smeerdijk, K Vincent and J Zeitz.
Company secretary Desert Secretarial Services (Pty) Limited and
Julia Swanepoel
Visit our world
www.wilderness-the4cs.com
www.wilderness-safaris.com
www.wilderness-group.com
Date: 30/05/2012 07:05:05 Supplied by www.sharenet.co.za
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