Wrap Text
Group audited results for the year ended 28 February 2019
Wilderness Holdings Limited
"Wilderness" or "the Company" or "the Group"
Share code: WIL ISIN: BW0000000868
Registration number: 2004/2986
BSE: Primary Listing
JSE: Secondary Listing
Tax reference number: C075372-01-01-7
Group audited results
for the year ended 28 February 2019
Founded in Botswana in 1983, Wilderness Holdings is an award-winning and globally
respected ecotourism company present in the prime wilderness and wildlife areas of
southern and east Africa. Pivoted off the continent's most diverse portfolio of
luxury safari camps, the Group operates a vertically integrated business model that
combines the ownership of product (safari camps), support services (bush airline,
and touring and transfer services), and marketing, sales and reservations
businesses. Collectively, these are termed "the travel experience" and serve to
ensure certainty of supply, ownership of the supply chain and a seamless service
to both the client (the travel trade) and the consumer (our guest).
Abridged consolidated statement of comprehensive income
P'000 28 Feb 2019 Change 28 Feb 2018
Revenue 1 338 702 11% 1 208 912
Gross profit 946 999 836 073
Profit before taxation 162 454 41% 114 884
Taxation (64 368) (27 580)
Profit for the period 98 086 12% 87 304
Other comprehensive income:
Currency translation differences (11 943) 7 723
Remeasurement on post-retirement
benefit obligation 266 -
Total comprehensive income for the period 86 409 95 027
Profit attributable to:
Owners of the Company 82 854 76 658
Non-controlling interest 15 232 10 646
98 086 87 304
Earnings per share (thebe)
Basic 34.87 8% 32.32
Diluted 34.54 8% 32.03
Abridged consolidated statement of financial position
P'000 28 Feb 2019 28 Feb 2018
Assets
Non-current assets 1 007 641 986 295
Current assets 522 087 538 077
Inventories 36 751 32 089
Receivables and prepayments 182 879 150 425
Current tax receivable 36 302 34 918
Bank balances and cash 266 155 320 645
Total assets 1 529 728 1 524 372
Equity and liabilities
Equity attributable to the owners of the company 587 126 553 665
Non-controlling interest 56 081 38 268
Total equity 643 207 591 933
Non-current liabilities 287 253 394 138
Borrowings 215 570 325 639
Deferred tax liabilities 71 683 68 499
Current liabilities 599 268 538 301
Trade and other payables 502 485 454 653
Borrowings - current portion 44 300 39 743
Current tax liabilities 2 625 1 830
Bank overdrafts 49 858 42 075
Total liabilities 886 521 932 439
Total equity and liabilities 1 529 728 1 524 372
Abridged consolidated statement of cash flows
P'000 28 Feb 2019 28 Feb 2018
Cash flow from operating activities
Cash generated from operations 310 351 280 725
Net finance costs (25 639) (19 169)
Taxation paid (60 685) (42 633)
Net cash inflow from operating activities 224 027 218 923
Cash flow from investing activities
Disposal of subsidiary companies 14 634 -
Additions to property, plant and equipment (148 118) (264 587)
Additions to intangible assets (7 668) (1 462)
Proceeds on disposal of property, plant and
equipment and intangibles 11 196 4 189
Acquisition of associate company - (4 990)
Long-term loan receivable advanced - (18 710)
Net cash outflow from investing activities (129 956) (285 560)
Cash flow from financing activities
Non-controlling interests' share of dividends (2 238) (1 299)
Dividends paid (39 177) (39 082)
Repayment of long-term liabilities (157 443) (7 260)
Increases in long-term liabilities 12 198 233 828
Net cash (outflow)/inflow from financing activities (186 660) 186 187
Net (decrease)/increase in cash and cash equivalents (92 589) 119 550
Unrealised exchange gains/(losses) on foreign
cash balances 30 316 (11 459)
Cash and cash equivalents at the beginning of the year 278 570 170 479
Cash and cash equivalents at the end of the year 216 297 278 570
Abridged consolidated statement of changes in equity
P'000 28 Feb 2019 28 Feb 2018
Opening balance 591 933 536 571
Share issue on settlement of share scheme obligation 554 1 343
Minority portion of dividend paid (2 238) (1 299)
Dividends paid (39 177) (39 082)
Total comprehensive income for the period 86 409 95 027
Share-based payment reserve 711 (627)
Disposal of a subsidiary 5 015 -
Closing balance 643 207 591 933
Additional disclosure
P'000 28 Feb 2019 28 Feb 2018
Reconciliation between profit attributable to
owners of the Company and headline earnings
Profit attributable to owners of the Company 82 854 76 658
Adjustments
IAS 16 - Gains on disposal and impairment of
property, plant and equipment (2 563) (873)
IAS 27 - Gains on disposal of subsidiaries 4 478
IAS 36 - Impairment of assets 13 096 9 549
Tax effects of adjustments (1 893) (2 231)
Minority interest (417) (93)
Headline earnings 95 555 83 010
Number of shares issued (thousands)
Issued 238 177 237 437
Weighted average 237 617 237 203
Diluted weighted average 239 851 239 356
Headline earnings per share (thebe)
Basic 40.21 35.00
Diluted 39.84 34.68
Borrowings
Non-current
Interest bearing 248 453 354 413
Non-interest bearing 11 417 10 969
Less: Current portion of long-term liabilities (44 300) (39 743)
215 570 325 639
Commentary
The Board is pleased to announce its final set of results as a listed entity
following the overwhelming vote to delist from the Botswana and Johannesburg
Stock Exchanges. The Group produced a solid performance with 12% growth in profit
after tax. The return of Mombo camp and the continued growth in Rwanda (Bisate)
and Kenya (Governors' businesses) were the main drivers for the improved
performance. Performance was weighed down by the air business in Botswana
following the strategic decision to standardise the fleet together with the
heavy tax burden.
Financial performance
Revenue increased by 11% to P1 339 million (2018: P1 209 million) driven by the
increase in yield as bednights sold remained flat at 177 981 (2018: 178 347).
Available bednights decreased by 2% to 300 046 (2018: 304 698), as a result of
disposals of various camps. The Group's occupancy rate remained flat at 59%.
The weighted average exchange rate of the Pula to the US Dollar on date of
receipt has declined by 1.4% to P10.13 (2018: P10.28). This resulted in a decrease
in revenue of approximately P20 million, with a reciprocal increase in foreign
exchange gains.
The Group's effective tax rate has increased from 24% to 40%. The increase is
largely due to Withholding Taxes amounting to P12.2 million incurred on internal
distributions of reserves, together with the recognition in the prior year of a
P5 million deferred tax asset. Excluding the impact of these items, the tax rate
is higher than the nominal rate due to the higher tax rates applicable in other
tax jurisdictions, and expenses that are generally not claimable for tax purposes.
Financial position and cash flow
Capital expenditure and commitments
Capital expenditure for the year amounted to P151 million. Approximately P41
million was spent on new camps, rebuilds and refurbishments with P28 million spent
on a used aircraft and engine overhauls. The balance of P82 million is defensive
in nature. The Group's philosophy of ensuring that our properties and assets remain
in pristine condition, requires that significant amounts are spent on maintenance
capital and is estimated at P100 million annually.
Shares in issue
During the year, the Company issued 739 227 ordinary shares of no par value
(representing approximately 0.3% of the enlarged number of shares in issue) for
no consideration to settle the share scheme obligations. At 28 February 2019,
the number of ordinary shares in issue and the weighted average number of shares
was 238 176 580 (2018: 237 437 353) and 237 617 199 (2018: 237 203 013),
respectively.
Bank and cash
Cash balances, less overdrafts, have decreased by 22% to P216 million which is
mainly made up of cash generated from operations of P310 million reduced by the
repayment of long-term liabilities amounting to P157 million and additions to
property, plant and equipment of P148 million.
Dividend declaration - number 9
Notice is hereby given that a final dividend for the year ended 28 February 2019
of 16.5 thebe per share (15.2625 thebe per share net of Botswana withholding
tax, where applicable) was declared on Friday, 24 May 2019. Shareholders' attention
is specifically drawn to the fact that the dividend will be payable, after
delisting, on Tuesday, 31 July 2019 to shareholders registered at the close of
business on Tuesday, 16 July 2019. The ex-dividend date will be 12 July 2019.
The dividend has been declared out of income reserves. Botswana dividends
withholding tax of 7.5% is applicable to all shareholders who are not exempt.
Since the South African share register would have been closed at the date of
delisting, the above will also apply to those remaining shareholders who
previously were listed on the South African register. Such shareholders will
be responsible for any applicable taxes resulting.
The issued shares at the declaration date are 238 176 580 (2018: 237 437 353).
Related party transactions
There were no transactions with related parties that would be material to an
understanding of these results.
Subsequent events
On 9 March 2019 the Company and African Wildlife Holdings Partnerships ("AWH")
made a joint announcement of the latter's intention to make an offer to acquire
shares in the Company and to delist off the Botswana Stock Exchange (?BSE?) and
Johannesburg Stock Exchange ("JSE"). On 23 May 2019 the Company advised its
shareholders that all of the conditions for the implementation of the offer
and the delisting had been fulfilled. Accordingly, the final payment for the
offer and the termination of the listing of shares on the BSE and JSE are
expected on Tuesday, 25 June 2019 and Wednesday, 3 July 2019 respectively.
No other material events have occurred between the reporting date and the
date of this report.
Leases
The concession upon which Vumbura Plains and Little Vumbura camps are situated
has been awarded although the lease agreement has not yet been finalised.
Basis of preparation
The provisional abridged consolidated financial statements have been prepared in
consultation with the BSE in anticipation of the delisting and in accordance
with the framework concepts and the measurement and recognition requirements
of International Financial Reporting Standards ("IFRS").
Changes in accounting policies and comparability
The Group has adopted certain new standards, amendments and interpretations to
existing standards which are effective for the financial year beginning 1 March
2018. The adoption of amendments to these standards has not had any material
impact on previously reported figures.
Independent auditor's opinion
The auditor, Deloitte & Touche, has issued its unmodified audit opinion on the
Group's consolidated financial statements for the year ended 28 February 2019.
These abridged consolidated financial statements have been derived from the
audited Group consolidated financial statements. The provisional abridged
announcement itself was not audited.
Outlook
Our future occupancy book is lagging behind in bookings suggesting early
signs of a slow-down in demand but we believe occupancy should remain relatively
flat for the year ahead. The new Magashi Camp in Akagera National Park, Rwanda
opened as planned on 1 May and the rebuild of Kings Pool is progressing well
and is on schedule. The Group's strategic intent is to invest in African
tourism markets which offer authentic wildlife and safari experiences and
where we feel our specific ecotourism model can have positive conservation
and community impacts. The Board and Management have been proud to be listed
but now look forward to a period as an unlisted company and appreciate the
support of our shareholders in voting for that next step in our future.
By order of the Board
Keith Vincent Ami Azoulay
Chief Executive Officer Chief Financial Officer (Preparer)
31 May 2019
Corporate information
Wilderness Holdings Limited
"Wilderness" or "the Company" or "the Group"
Share code: WIL ISIN: BW0000000868
Registration number: 2004/2986
BSE: Primary Listing
JSE: Secondary Listing
Tax reference number: C075372-01-01-7
Registered office (Botswana): Deloitte House,
Plot 64518, Fairgrounds, Gaborone, Botswana
External company registration number: 2009/022894/10
Registered office (South Africa):
373 Rivonia Boulevard,
Rivonia, South Africa
PO Box 5219, Rivonia 2128, South Africa
BSE Sponsor:
Motswedi Securities (Proprietary) Ltd
JSE Sponsor:
Arbor Capital Sponsors Proprietary Limited
Transfer secretaries:
Corpserve Botswana - Computershare
Directors: M Stone# (Chairman), KNW Vincent (CEO), A Azoulay (CFO),
DA de la Harpe, JM Hunt*, A Lalude#, MW McCulloch#, B Olanrewaju#,
N Stone#, MPK ter Haar*
#non-executive director *independent non-executive director
Group Company Secretary:
L Alexander
www.wilderness-holdings.com
Date: 31/05/2019 04:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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