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CANCELLATION OF S323402 Interim results for the period ended June 2012
IFA HOTELS & RESORTS LIMITED
(“IFA SA Group”)
Registration number 1919/001318/06
Share code: IFH ISIN: ZAE000075669
CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2012
CONDENSED CONSOLIDATED CONDENSED CONSOLIDATED CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL POSITION STATEMENT OF CASH FLOWS STATEMENT OF CHANGES IN EQUITY
Reviewed Reviewed Audited Reviewed Unreviewed Audited Share Share Revaluation Accumulated
30 June 30 June 31 December 30 June 30 June 31 December capital premium reserve profit/(loss) Total
2012 2011 2011 2012 2011 2011 Audited R’000 R’000 R’000 R’000 R’000
R’000 R’000 R’000 R’000 R’000 R’000
Balance at 1 July 2010 2 182 69 710 45 595 (38 384) 79 103
ASSETS Cash flows from operating activities 1 591 (37 640) (42 096) Total comprehensive
Non-current assets 464 964 557 159 473 132 Cash used in operations 5 812 (23 179) (18 837) income for the period – – 283 (136 279) (135 996)
Property plant and equipment 110 325 110 611 111 984 Interest income 5 712 4 434 10 090
Balance at
Goodwill 2 298 2 298 2 298 Finance cost (9 796) (19 637) (33 290)
Investments in joint venture – – – Tax (paid)/received (137) 742 (59) 31 December 2011 2 182 69 710 45 878 (174 663) (56 893)
Investment in associates – 1 308 – Cash flows from investing activities 20 818 52 574 53 951 Balance at
Loans to associates 324 304 410 152 324 403 1 January 2012 2 182 69 710 45 878 (174 663) (56 893)
Financial assets 2 416 10 114 11 079 Expenditure to maintain
operating capacity Total comprehensive
Deferred tax 25 621 22 676 23 368 income for the period – – – (15 902) (15 902)
Purchase of property,
Current assets 234 958 236 082 218 509 Balance at 30 June 2012 2 182 69 710 45 878 (190 567) (72 797)
plant and equipment (66) (4 073) (7 439)
Inventories 960 920 1 138 Sale of property, plant and equipment 75 67 439 67 439
Financial assets 14 095 34 252 9 479 Expenditure for expansion COMMENTS
Current tax receivable – – – Disposal of interest in joint venture – – 32 099
Township properties 153 785 153 824 157 672 IFA Hotels & Resorts KSCC (“IFA H&R Kuwait”) holds the majority interest in IFA Hotels &
Net movement of loans
Trade and other receivables 24 954 30 084 27 421 to subsidiaries – – – Resorts Limited with an 85% shareholding. The IFA SA Group comprises:
Cash and cash equivalents 41 165 17 002 22 799 Net movement of loans to IFA Hotels & Resorts (South Africa) (Pty) Limited (“IFA Hotels”)
fellow subsidiaries 26 471 (12 821) 17 073 IFA Hotels and Tongaat Hulett Developments’ joint venture (“TIFAZ”) developed the Zimbali
Total assets 699 921 793 241 691 641 Net movement of loans to associate (9 708) – (37 126) Coastal Resort and includes an estate agency which markets the joint venture’s real estate and
EQUITY AND LIABILITIES Net movement of loans to that of other owners in Zimbali. The slower than expected economic recovery has resulted in a
Capital and reserves (72 797) 48 435 (56 893) joint venture – 11 053 – more cautious approach to the development of the Zimbali Lakes and the Westbrook projects.
Net movement of financial assets 4 046 600 (8 471)
Issued share capital and IFA Zimbali Lodge (Pty) Limited (“IFA Zimbali”)
Purchase of additional
share premium 71 892 71 892 71 892
shares in associate – (9 624) (9 624) IFA Zimbali is the owner of the Fairmont Zimbali Lodge. The traditional hotel operation has
Revaluation reserve 45 878 45 595 45 878
Accumulated loss (190 567) (69 052) (174 663) Cash flows from financing activities (2 308) (18 187) (9 240) been extended to include a vacation club offering.
Non-current liabilities 737 440 656 156 724 362 Movement of borrowings (12 463) (21 951) (24 252) IFA Boschendal Investments (Pty) Limited (“IFA Boschendal”)
Movement of loan from joint venture – 26 161 (30 112) IFA Boschendal held a 37,33% stake in the Boschendal Estate (“Boschendal”), a 2 240 hectare
Loans from group companies 63 540 – 37 069
Net movement of shareholders’ loan 10 242 (22 397) 46 659 property near Franschhoek in the Western Cape. Subsequent to the reporting period the
Loans from shareholders 417 395 374 833 408 016
Finance lease payments (87) – (1 535)
Finance lease obligation 236 404 202 group has disposed of its interest in and loans to Boschendal for R80 million to Canombys
Borrowings 246 065 270 432 268 335 Limited as announced on 20 July 2012.
Deferred tax 10 203 10 487 10 740 Total cash movement for the period 20 101 (3 253) 2 615
Amount owing to joint venture – – – Cash at the beginning of the period 21 053 18 437 18 438 IFA Hotels and Resorts 8 (Pty) Limited (“IFA Estates”)
Total cash at end of the period 41 154 15 184 21 053 IFA Estates has the sole mandate to sell the Fairmont Zimbali Hotel & Resorts development
Current liabilities 35 279 88 650 24 172
(“Fairmont Zimbali”) and the Zimbali Vacation Club, both situated in the Zimbali Coastal
Other financial liabilities 9 369 – –
Resort.
Current tax payable 105 42 179 BASIS OF PREPARATION AND ACCOUNTING POLICIES
Finance lease obligation 54 55 175 The condensed consolidated financial statements as set out in this report have been prepared in IFA Hotels and Resorts Limited (“IFA SA”)
Deferred revenue – 1 448 – accordance with the framework concepts and the measurement and recognition requirements of IFA SA is the holding company of the IFA SA Group, is listed on the JSE and fulfils a “head
Trade and other payables 25 741 18 140 22 072 IFRS and the AC 500 standards as issued by the Accounting Practices Board and containing the office” function.
Advance deposits – 1 565 – information required by IAS 34: Interim Financial Reporting, the Companies Act of South Africa and
Financial liabilities – 65 582 – IFA Legends Investments (Pty) Limited (“IFA Legends”)
the JSE Limited (Listings Requirements).
Bank overdraft 11 1 818 1 746 IFA Legends partnered with IFA H&R Kuwait and LGSR Investments (Pty) Limited in the Legend
These condensed consolidated interim financial results for the six months ended 30 June 2012 (“the
period”), have been reviewed by the group’s auditors, BDO South Africa Incorporated, and have Golf & Safari Resort and Entabeni Game Reserve (“Legends”).
Total equity and liabilities 699 921 793 241 691 641 been prepared on the historical cost basis, except for the measurement of revaluations of land and
Zimbali Rentals (Pty) Limited (“Zimbali Rentals”)
buildings. The unmodified review report is available for inspection at IFA Hotels & Resorts Limited’s
Net asset value per share (“NAV”) Zimbali Rentals offers a professional service to Zimbali owners renting their properties to
registered office.
(cents) (33,36) 22,20 (26,07) guests wishing to experience the unique beauty and qualities of Zimbali.
Net tangible asset value per share The preparation of these interim results were done under the supervision of the Company’s Financial
(“NTAV”) (cents) (34,41) 21,14 (27,13) Director, C J Schutte CA (SA). FINANCIAL REVIEW
Number of shares in issue and used The board acknowledges its responsibility for the preparation of the interim condensed consolidated IFA Hotels – Limited revenue from real estate sales in the Zimbali Coastal Resort has been
for NAV and NTAV calculation 218 210 680 218 210 680 218 210 680 financial statements in accordance with IAS 34, the Companies Act of South Africa and the JSE partially offset by improved commission income from estate agency operations.
Listings Requirements.
IFA Zimbali – Sale of Zimbali Vacation Club weeks have continued to compliment the hotel
CONDENSED CONSOLIDATED The accounting policies applied conform with IFRS and are consistent with those followed in the
operation’s performance.
STATEMENT OF COMPREHENSIVE INCOME preparation of the annual financial statements for the year ended 31 December 2011.
IFA Estates – Limited demand for the traditional private residence club and hotel condominium
Reviewed Unreviewed Reviewed Audited
6 months 6 months 12 months 18 months NOTES TO THE FINANCIAL RESULTS sales had resulted in lower commission earnings; this has, however, been partially offset by
ended ended ended ended Reviewed Unreviewed Audited commissions from the sale of Zimbali Vacation Club weeks.
30 June 30 June 30 June 31 Dec 6 months 6 months 18 months IFA Boschendal – Operational and debt service funding provided to Boschendal resulted in
2012 2011 2011 2011 ended ended ended
30 June 30 June 31 December
a further, but moderate impairment provision. In light of the sale of our interests this will not
R’000 R’000 R’000 R’000 impact on future operations.
2012 2011 2011
Continuing operations R’000 R’000 R’000
Revenue 30 387 27 021 71 486 98 205 IFA SA – Impairments to intercompany loans, which reverse on consolidation, resulted in the
1. Basic and diluted earnings and headline earnings loss reported for this entity.
Operating profit/(loss) (15 762) (8 474) (100) (122 051) per ordinary share
Investment revenue 6 928 697 29 491 12 407 The earnings and weighted average number of IFA Legends – IFA Legend’s 20% share in associate Legends has been accounted for in terms
Loss from equity accounted ordinary shares used in the calculation of basic of IAS 28 and therefore is not included in IFA SA’s total after tax loss for the period. Appropriate
investments – (9 066) (25 876) (18 919) and diluted earnings and headline earnings per impairment provisions have been made against the loan to Legends.
Finance costs (9 796) (32 217) (44 964) (33 289) ordinary share are as follows:
Zimbali Rentals – The slower than expected economic recovery continues to impact on leisure
Profit/(loss) before taxation (18 630) (49 060) (41 449) (161 852) Headline and diluted headline loss per share
travel resulting in lower holiday rentals and therefore commissions earned.
Taxation 2 728 13 979 10 781 9 887 (“HEPS”) (cents) (7,29) (16,08) (64,61)
Profit/(loss) for the period from Reconciliation of total earnings to headline earnings
PROSPECTS
continuing operations (15 902) (35 081) (30 668) (151 964) attributable to equity holders of the parent. Having made the required provisions to recognise the long-term nature of land bank
Discontinued operation Earnings attributable to ordinary shareholders (15 902) (35 081) (135 996) developments, successfully operated the Zimbali Vacation Club for a year and now disposed
Profit/(loss) from discontinued Less profit on disposal of joint venture – – – of our interest in Boschendal, we remain confident that the Group is well placed to meet its
operation – – – 15 685 Add tax effect – – – challenges.
Less IAS 16 (Profit)/loss on disposal of property, – – –
Profit/(loss) for the period (15 902) (35 081) (30 668) (136 279) plant and equipment DIVIDEND
Other comprehensive income Add tax effect – – – No dividend has been declared for the period.
Gains on property revaluation – – – – Add impairment of share of associate – – 6 176
Add impairment of goodwill – – – BOARD CHANGE
Income tax relating to components
Add loss/(less profit) on disposal of JV or associate – – (15 513) WP Witthuhn resigned on 31 January 2012.
of other comprehensive income – – – 283
Add/(less) tax effect – – 4 344
Other comprehensive income for WP APPRECIATION
Headline loss (15 902) (35 081) (140 989) The directors would like to thank management and staff for their ongoing hard work and
the period, net of tax – – – 283
Number of shares dedication during the period, as well as shareholders, customers and suppliers for their
Total comprehensive income for – in issue 218 210 680 218 210 680 218 210 680
the period (15 902) (35 081) (30 668) (135 996) – for EPS and HEPS calculation 218 210 680 218 210 680 218 210 680
continued invaluable support.
Profit/(loss) attributable to: 2. Capital expenditure commitments For and behalf of the board
Equity holders of the parent (15 902) (35 081) (30 668) (135 996) Contracted – 3 214 3 214 TJM Al-Bahar WJ Burger
Total comprehensive income Approved but not contracted – – –
Chairman Chief Executive Officer
attributable to: – 3 214 3 214
28 September 2012
Equity holders of the parent (15 902) (35 081) (30 668) (135 996) 3. Operating lease commitments 329 134 377
Zimbali, Durban, KwaZulu-Natal
Basic and diluted (loss)/earnings 4. Investments and loans
per share (“EPS”) (cents) (7,29) (16,08) (14,05) (62,32) Investment in associate companies – 1 308 –
Loans to associate companies 324 303 410 152 324 403
Other unlisted investments 2 416 10 114 2 400
Basic and diluted headline loss per
326 719 421 574 326 803
share (“HEPS”) (note 1) (cents) (7,29) (16,08) (19,17) (64,61)
Directors’ valuation of unlisted investments
– unlisted associate companies 324 303 411 460 324 403
SEGMENTAL ANALYSIS – other unlisted investments 2 416 10 114 2 400 CORPORATE INFORMATION
The IFA SA Group adopted IFRS 8: Operating Segments with effect from 1 July 2009. 326 719 421 574 326 803 Directors
IFRS 8 requires operating segments to be identified on the basis of internal reporting TJM Al-Bahar (Chairman)*, EAA Al-Essa*, WJ Burger (Chief Executive Officer), WP Witthuhn
about components of the group that are regularly reviewed by the chief operating decision 5. Related party transactions (resigned 31 January 2012), PGR de Sylva, GE Larson*, KM El-Marsafy*, VM Nkosi*, CJ Schutte
maker (“CODM”) to allocate resources to the segments and to assess their performance. During the reporting period, companies in the group entered into various transactions. *Non-executive
The CODM has been identified as the executive directors. Management has determined 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
reportable segments as follows:
consolidated financial statements of the group. All transactions with joint ventures and the
– IFA Hotels – IFA Zimbali – IFA Boschendal associates are concluded on an arm’s length basis
– IFA Estates – IFA SA – IFA Namibia
6. Post balance sheet events
– IFA Legends – Zimbali Rentals
The directors are not aware of any significant matter or circumstance arising since the end
The executive directors evaluate the segment performance based on operating profit
of the reporting period not otherwise dealt with in this report or the financial results which
or loss before tax and exceptional items. The following is an analysis of IFA SA Group’s materially affect the financial position of IFA SA Group or the results of its operations to the
revenue and operating results by reportable segment: date of this report.
IFA Hotels IFA Zimbali IFA Boschendal IFA Estates IFA SA IFA Namibia IFA Legends Zimbali Rentals Eliminations Consolidated
Reviewed Audited Reviewed Audited Reviewed Audited Reviewed Audited Reviewed Audited Reviewed Audited Reviewed Audited Reviewed Audited Reviewed Audited Reviewed Audited
6 months 18 months 6 months 18 months 6 months 18 months 6 months 18 months 6 months 18 months 6 months 18 months 6 months 18 months 6 months 18 months 6 months 18 months 6 months 18 months
ended ended ended ended ended ended ended ended ended ended ended ended ended ended ended ended ended ended ended ended
30 June 31 Dec 30 June 31 Dec 30 June 31 Dec 30 June 31 Dec 30 June 31 Dec 30 June 31 Dec 30 June 31 Dec 30 June 31 Dec 30 June 31 Dec 30 June 31 Dec
2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011
R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000
Revenue from
external customers 6 413 27 873 19 878 54 772 – – 2 681 10 204 – – – 6 681 – – 369 1 483 – (6 681) 29 341 94 332
Intersegment revenue – – – – – – – – 3 336 9 854 – – – – – – (2 290) (5 982) 1 046 3 872
EBITDA (977) 5 531 54 (3 079) (199) (1 763) (1 162) (2 511) (1 638) (5 002) – 14 952 (330) (1 006) (136) (152) – (14 401) (4 388) (7 431)
EBIT (1 200) 4 852 (1 269) (7 635) (6 294) (101 829) (1 126) (2 585) (12 310) (202 518) – 14 419 (3 957) (27 767) (136) (190) 10 530 182 282 (15 762) (140 970)
Net profit/(loss) (925) (1 442) (2 424) (3 062) (6 820) (106 227) (2 559) (5 848) (9 773) (205 610) – 15 685 (3 848) (26 381) (83) (95) 10 530 196 701 (15 902) (136 279)
Segment assets 195 742 196 840 127 684 125 341 79 428 76 788 37 612 33 477 526 165 537 630 – – 245 440 248 067 1 989 3 403 (514 137) (529 906) 699 921 691 641
Johannesburg
Sponsor: Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 28/09/2012 04:25:59 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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