Wrap Text
IFH - IFA Hotels & Resorts Limited - Condensed consolidated results for the
period ended 30 June 2011
IFA HOTELS & RESORTS LIMITED
("IFA SA Group")
Registration number 1919/001318/06
Share code: IFH ISIN: ZAE000075669
CONDENSED CONSOLIDATED RESULTS
FOR THE PERIOD ENDED 30 JUNE 2011
CONDENSED CONSOLIDATED
STATEMENT OF COMPREHENSIVE INCOME
12 months Six months Year
ended ended ended
30 June 31 December 30 June
2011 2010 2010
Reviewed Audited Audited
R`000 R`000 R`000
Revenue 71 486 44 465 78 887
Operating profit/(loss) (100) 8 374 (22 428)
Investment revenue 29 491 28 794 32 510
Finance costs (44 964) (12 747) (57 115)
Loss from equity accounted investments (25 876) (16 810) (14 396)
Profit/(loss) before taxation (41 449) 7 611 (61 429)
Taxation 10 781 (3 198) (6 869)
Profit/(loss) for the period (30 668) 4 413 (68 298)
Other comprehensive income
Gains on property revaluation - - -
Income tax relating to components
of other comprehensive income - - -
Other comprehensive income for
the period, net of tax - - -
Total comprehensive income for
the period (30 668) 4 413 (68 298)
Profit/(loss) attributable to:
Equity holders of the parent (30 668) 4 413 (68 298)
Total comprehensive income
attributable to:
Equity holders of the parent (30 668) 4 413 (68 298)
Basic and diluted (loss)/earnings per
share (cents) ("EPS") (14,05) 2,02 (31,24)
Notes to the income statement
Basic and diluted headline loss
per share (cents) ("HEPS") (note 1) (19,17) (3,10) (26,59)
SEGMENTAL ANALYSIS
The IFA SA Group adopted IFRS 8 Operating Segments with effect from 1 July
2009. IFRS 8 requires operating segments to be identified on the basis of
internal reporting about components of the group that are regularly reviewed
by the chief operating decision maker ("CODM") to allocate resources to the
segments and to assess their performance.
The CODM has been identified as the executive directors. Management has
determined the operating segments based on the internal reports. The group has
identified eight reportable segments as follows:
- IFA Hotels - IFA Zimbali
- IFA Boschendal - IFA Estates
- IFA SA - IFA Namibia
- IFA Legends - Zimbali Rentals
The executive directors evaluate the segment performance based on operating
profit or loss before tax and exceptional items. The following is an analysis
of the IFA SA Group`s revenue and operating results by reportable segment:
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOW
30 June 31 December 30 June
2011 2010 2010
Reviewed Audited Audited
R`000 R`000 R`000
Cash flows from operating activities (37 640) 5 286 (28 144)
Cash generated by operating activities (23 179) 14 410 (4 365)
Interest received 4 434 3 285 32 064
Interest paid (19 637) (12 747) (56 319)
Taxation paid 742 338 476
Cash flows from investing activities 52 574 (20 426) (98 157)
Expenditure to maintain operating capacity
Property, plant and equipment acquired (4 073) (3 328) (5 052)
Proceeds of disposals of property,
plant and equipment 67 439 67 068 502
Expenditure for expansion
Investment in associates (9 624) (9 624) -
Loans to associate and joint ventures 11 053 (24 191) (74 612)
Loans advanced to group companies (12 821) (50 951) (19 495)
Other investments 600 600 500
Cash flows from financing activities (18 187) 17 472 81 083
Loans (repaid)/raised (21 951) 28 786 42 559
Loans raised/(repaid) 26 161 (21 266) -
Shareholder`s loan (repaid)/raised (22 397) 9 952 38 524
Total cash movement for the period (3 253) 2 332 (45 218)
Cash at the beginning of the period 18 437 18 437 63 655
Total cash at end of the period 15 184 20 769 18 437
CONDENSED CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY
Share Share Revaluation
capital premium reserve
Audited R`000 R`000 R`000
Balance at 1 July 2009 2 182 69 710 45 595
Total comprehensive income for the period - - -
Balance at 30 June 2010 2 182 69 710 45 595
Balance at 1 July 2010 2 182 69 710 45 595
Total comprehensive income for the period - - -
Balance at 30 June 2011 2 182 69 710 45 595
Accumulated
profit/(loss) Total
Audited R`000 R`000
Balance at 1 July 2009 29 914 147 401
Total comprehensive income for the period (68 298) (68 298)
Balance at 30 June 2010 (38 384) 79 103
Balance at 1 July 2010 (38 384) 79 103
Total comprehensive income for the period (30 668) (30 668)
Balance at 30 June 2011 (69 052) 48 435
CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
30 June 31 December 30 June
2011 2010 2010
Reviewed Audited Audited
R`000 R`000 R`000
ASSETS
Non-current assets 557 159 572 207 644 124
Property, plant and equipment 110 611 112 286 178 677
Goodwill 2 298 2 298 2 298
Investments in joint venture - - 16 605
Investment in associates 1 308 11 400 19 547
Loans to associates 410 152 421 359 410 224
Financial assets 10 114 10 114 3 400
Deferred tax 22 676 14 750 13 373
Current assets 236 082 265 472 243 459
Inventories 920 1 252 1 593
Financial assets 34 252 61 819 28 136
Current tax receivable - 6 26
Township properties 153 824 154 218 161 227
Trade and other receivables 30 084 26 752 32 659
Cash and cash equivalents 17 002 21 425 19 818
Total assets 793 241 837 679 887 583
EQUITY AND LIABILITIES
Capital and reserves 48 435 83 516 79 103
Issued share capital and share premium 71 892 71 892 71 892
Revaluation reserve 45 595 45 595 45 595
Accumulated loss (69 052) (33 971) (38 384)
Non-current liabilities 656 156 622 342 683 868
Loans from shareholders 374 833 374 370 389 475
Borrowings 270 432 231 799 251 691
Finance lease obligation 404 370 1 509
Deferred tax 10 487 15 803 11 081
Amount owing to joint venture - - 30 112
Current liabilities 88 650 131 821 124 612
Current tax payable 42 269 99
Finance lease obligation 55 167 403
Deferred revenue 1 448 578 11 152
Trade and other payables 18 140 60 723 69 780
Advance deposits 1 565 1 220 2 376
Financial liabilities 65 582 68 208 39 421
Bank overdraft 1 818 656 1 381
Total equity and liabilities 793 241 837 679 887 583
Net asset value per share ("NAV")
(cents) 22,20 38,27 36,25
Net tangible asset value per share
("NTAV") (cents) 21,14 37,22 35,20
Number of shares in issue and used
for NAV and NTAV calculation 218 210 680 218 210 680 218 210 680
IFA Hotels IFA Zimbali
12 months ended 12 months ended
30 June 30 June
2011 2010 2011 2010
Reviewed Audited Reviewed Audited
R`000 R`000 R`000 R`000
Revenue from
external customers 22 295 21 338 31 064 34 186
Intersegment revenue - - - -
EBITDA 1 541 9 760 (5 944) (4 620)
EBIT 1 088 9 297 (9 037) (8 813)
Net profit/(loss) (980) 4 035 (1 948) (21 889)
Segment assets 196 963 207 370 122 294 127 286
IFA Boschendal IFA Estates
12 months ended 12 months ended
30 June 30 June
2011 2010 2011 2010
Reviewed Audited Reviewed Audited
R`000 R`000 R`000 R`000
Revenue from
external customers - - 7 407 7 941
Intersegment revenue - - - -
EBITDA (738) 196 (881) 161
EBIT (28 600) 3 065 (929) 104
Net profit/(loss) (28 991) 2 720 (3 151) (1 861)
Segment assets 147 416 151 931 29 666 21 220
IFA SA IFA Namibia
12 months ended 12 months ended
30 June 30 June
2011 2010 2011 2010
Reviewed Audited Reviewed Audited
R`000 R`000 R`000 R`000
Revenue from
external customers 3 352 2901 6 681 11 123
Intersegment revenue 3 285 3531 - -
EBITDA (42 493) (3044) 15 000 (18 347)
EBIT (43 041) (3 598) 14 464 (19 423)
Net profit/(loss) (47 730) 819 13 566 (31 087)
Segment assets 673 645 721 123 12 348 84 743
IFA Legends Zimbali Rentals
12 months ended 12 months ended
30 June 30 June
2011 2010 2011 2010
Reviewed Audited Reviewed Audited
R`000 R`000 R`000 R`000
Revenue from
external customers - - 987 1 398
Intersegment revenue - - - -
EBITDA (690) (511) (109) 348
EBIT (690) (21 424) (134) 323
Net profit/(loss) (284) (21 281) (66) 248
Segment assets 265 441 279 215 1 604 1 610
Eliminations Consolidated
12 months ended 12 months ended
30 June 30 June
2011 2010 2011 2010
Reviewed Audited Reviewed Audited
R`000 R`000 R`000 R`000
Revenue from
external customers (300) - 71 486 78 887
Intersegment revenue (3 285) (3 531) - -
EBITDA 38 914 (2) 4 600 (16 059)
EBIT 40 903 3 645 (25 976) (36 824)
Net profit/(loss) 38 916 (2) (30 668) (68 298)
Segment assets (656 136) (706 915) 793 241 887 583
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The condensed consolidated financial statements as set out in this report have
been prepared in accordance with the framework concepts and the measurement
and recognition requirements of IFRS and the AC 500 standards as issued by the
Accounting Practices Board and containing the information required by IAS 34:
Interim Financial Reporting, Companies Act of South Africa and the JSE Listing
Requirements ("JSE Listing Requirements").
These condensed consolidated financial results for the twelve months ended 30
June 2011 ("the period"), have been reviewed by the group`s auditors, namely
BDO South Africa Incorporated, and have been prepared on the fair value and
going concern bases. The unmodified review report is available for inspection
at IFA Hotels & Resorts Limited`s registered office.
The board acknowledges its responsibility for the preparation of the interim
condensed consolidated financial statements in accordance with IAS 34, the
South African Companies Act and JSE Listings Requirements.
The accounting policies applied conform with IFRS and are consistent with
those followed in the preparation of the annual financial statements for the
year ended 30 June 2010.
NOTES TO THE FINANCIAL RESULTS
Reviewed Audited
12 months Year
ended ended
30 June 30 June
2011 2010
R`000 R`000
1. Basic and diluted earnings and
headline earnings per ordinary share
The earnings and weighted
average number of ordinary shares
used in the calculation of basic
and diluted earnings and headline
earnings per ordinary share are as follows:
Headline and diluted headline loss
per share ("HEPS") (cents) (19,17) (26,59)
Reconciliation of total earnings to
headline earnings attributable to
equity holders of the parent.
Earnings attributable to ordinary shareholders (30 668) (68 298)
Less profit on disposal of joint venture (15 513) -
Add tax effect 4 344 -
Less IAS 16 (Profit)/loss on disposal of
property, plant and equipment - (4)
Add tax effect - 1
Add impairment of property, plant and equipment
- share of associate - 9 361
Less tax effect - (2 621)
Add impairment of goodwill
- share of associate - 3 541
Headline loss (41 837) (58 020)
Number of shares
- in issue 218 210 680 218 210 680
- for EPS and HEPS calculation 218 210 680 218 210 680
2. Capital expenditure commitments
Contracted 3 412 10 923
Approved but not contracted - -
3 412 10 923
3. Operating lease commitments 134 196
4. Investments and loans
Investment in associate companies 1 308 19 547
Loans to associate companies 410 152 410 224
Other unlisted investments 10 114 3 400
421 574 433 171
Directors` valuation of unlisted investments
- unlisted associate companies 411 460 429 771
- other unlisted investments 10 114 3 400
421 574 433 171
5. Related party transactions
During the twelve months ended 30 June 2011, companies in the group entered
into various transactions. These transactions were entered into in the
ordinary course of business and under terms that are no less favourable than
those arranged with independent third parties. All related party transactions
and outstanding balances are eliminated in preparation of the consolidated
financial statements of the group. All transactions with joint ventures and
the associates are concluded on an arm`s length basis.
6. Post balance sheet events
The directors are not aware of any significant matter or circumstance arising
since the end of the financial year not otherwise dealt with in this report or
the financial results which would materially affect the financial position of
IFA SA Group or the results of its operations to the date of this report.
COMMENTS
IFA Hotels & Resorts KSCC (IFA H&R Kuwait) holds the majority interest in IFA
Hotels & Resorts Limited with an 85% shareholding. The IFA SA Group comprises:
IFA Hotels & Resorts (South Africa) (Pty) Limited ("IFA Hotels")
IFA Hotels and Tongaat Hulett Developments` joint venture ("TIFAZ") developed
the Zimbali Coastal Resort and has launched the Zimbali Lakes Resort and
Zimbali Office Estate developments. The development by IFA Zimbali Hotel &
Resorts (Pty) Limited ("IFA Resorts") of the new Gary Player signature golf
course is in progress; a driving range and Gary Player Golf Academy within
Zimbali Lakes are also planned. The real estate opportunities created around
this new golf course provides further secure investment potential and is being
marketed as one of South Africa`s finest integrated resort developments.
IFA Zimbali Lodge (Pty) Limited ("IFA Zimbali")
IFA Zimbali is the owner of the Fairmont Zimbali Lodge, operated by Fairmont
Hotels & Resorts, a leading global luxury hotel management company with almost
a century of experience of "turning moments into memories" in the hospitality
industry.
IFA Boschendal Investments (Pty) Limited ("IFA Boschendal")
IFA Boschendal holds a 37,33% stake in the Boschendal Estate ("Boschendal").
Boschendal is a 2 240 hectare property near Franschhoek in the Western Cape,
which includes plans for farming, upmarket residential, a retirement village,
a boutique hotel and mixed-use development that includes retail outlets,
offices and apartments.
IFA Hotels and Resorts 8 (Pty) Limited ("IFA Estates")
IFA Estates has the sole mandate to sell the Fairmont Zimbali Hotel & Resorts
development ("Fairmont Zimbali") and the newly launched Zimbali Vacation Club,
both situated in the Zimbali Coastal Resort.
IFA Hotels and Resorts Limited ("IFA SA")
IFA SA is the holding company of the IFA SA Group, is listed on the JSE and
fulfills a "head office" function.
IFA Hotels and Resorts (Namibia) (Pty) Limited ("IFA Namibia")
IFA Namibia`s interest in the joint venture with Ohlthaver & List Group
("OLIFA") was disposed of during the period under review. The transaction
allows the purchaser to promote the OLIFA operations in Namibia while the
Group directs its attention to its South African investments.
IFA Legends Investments (Pty) Limited ("IFA Legends")
IFA H&R Kuwait, IFA Legends and LGSR Investments (Pty) Limited (formerly
Crimson King Properties (Pty) Limited) have partnered in the Legend Golf &
Safari Resort and Entabeni Game Reserve ("Legends"), located within a 22 000
hectare wildlife conservancy in the malaria-free Waterberg region of the
Limpopo Province. The resort currently comprises five operating lodges with
associated conference facilities and spas, 900 residential opportunities and
an 18-hole championship golf course, with each hole having been designed by a
renowned international golfer. Future plans include an internationally branded
five-star hotel with a health spa and a wellness centre, conference and
recreational facilities is being planned, all of which, once developed, will
cater for up to 2 500 guests.
Zimbali Rentals (Pty) Limited ("Zimbali Rentals")
Zimbali Rentals offers a professional service to Zimbali owners renting their
properties to guests wishing to experience the unique beauty and qualities of
Zimbali.
FINANCIAL REVIEW
IFA Hotels - The launch of Zimbali Lakes and the commencement by IFA Resorts
of the new will result in the release of new serviced land stock and provides
Gary Player golf course a foundation for future growth in revenue. The
positive impact of the new King Shaka International Airport on the region
bodes well for Zimbali Office Estates and Zimbali Lakes Developments.
IFA Zimbali - Improved results as a result of lower borrowing costs are
expected to be enhanced by the launching of the Zimbali Vacation Club, to
compliment the hotel operation of IFA Zimbali.
IFA Estates - Sales commissions have been largely maintained despite the tough
trading conditions. An improvement in profitability is anticipated as the
economy steadily recovers and sales of the Zimbali Vacation Club product
commence.
IFA Boschendal - Delays in progressing the sale of land stock have resulted in
increased equity accounted losses. Subsequent to the end of the reporting
period, the group has commenced negotiations that may result in the disposal
of the investment and are the subject of recent cautionary announcements.
IFA SA - Impairments on intercompany loans, which reverse on consolidation,
resulted in the increased loss reported for this entity.
IFA Namibia - The disposal of the investment and de-recognition of the Group`s
50% share of the assets and liabilities in the joint venture contributed to
the overall improvement in profitability of IFA SA Group for the period.
IFA Legends - IFA Legend`s 20% share in associate Legends has been accounted
for in terms of IAS 28 and therefore is not included in IFA SA`s total after
tax loss for the period.
Zimbali Rentals - The slower than expected economic recovery continues to
impact on leisure travel resulting in lower holiday rentals and so commissions
earned.
PROSPECTS
The directors believe that the prospects for the group remain positive. The
group has consolidated its position during the previous recessionary climate
and with the foundations laid for future growth in both revenue and existing
investments. The continued improvement in operations will impact positively on
profitability and cash flows and with encouraging sales activity expected,
particularly in Zimbali.
DIVIDEND
No dividend has been declared for the period.
APPRECIATION
The directors would like to thank management and staff for their ongoing hard
work and dedication during the period, as well as shareholders, customers and
suppliers for their continued invaluable support.
For and behalf of the board
TJM Al-Bahar WJ Burger
Chairman Chief Executive Officer
29 September 2011
Zimbali, Durban, KwaZulu-Natal
CORPORATE INFORMATION
Directors
TJM Al-Bahar (Chairman)*, WJ Burger (Chief Executive Officer),
WP Witthuhn, PGR de Sylva, GE Larson*, JAM Wilson* (resigned 3 March 2011),
KM El Marsafy*, VM Nkosi*, EAA Al Essa* (appointed 3 March 2011)
*Non-executive
Registered office
Zimbali Northgate Suites, Zimbali Coastal Resort, KwaZulu-Natal
Company Secretary
CJ Schutte CA(SA)
Transfer secretaries
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg
Sponsor
QuestCo Sponsors (Pty) Limited
Date: 29/09/2011 08:00:03 Supplied by www.sharenet.co.za
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