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GOODERSON LEISURE CORPORATION LTD - Unaudited condensed interim results for the six months ended 31 August 2013

Release Date: 16/10/2013 08:45
Code(s): GDN     PDF:  
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Unaudited condensed interim results for the six months ended 31 August 2013

Gooderson Leisure Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1972/004241/06)
(Share Code: GDN ISIN Code: ZAE000084984)
(“Gooderson”, “the company” or “the group”)

  UNAUDITED CONDENSED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2013
HIGHLIGHTS
- REVENUE UP 14%
- OPERATING PROFIT UP 21%
- HEADLINE EARNINGS (HEPS) UP 55%

               CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
                                                                       Unaudited                 Unaudited        Audited
                                                                      31 Aug 2013               31 Aug 2012   28 Feb 2013
                                                                            R’000                     R’000         R’000
ASSETS
Non-current assets                                                        238 739                  198 062        232 151
Property, plant and equipment                                             213 843                  178 845        207 703
Goodwill                                                                      999                      999            999
Investment in associate                                                       824                      402            818
Timeshare development                                                      15 406                   10 539         15 863
Long term debtors                                                           7 667                    7 277          6 768

Current assets                                                              19 400                   23 601        27 708
Inventories                                                                  1 944                    1 855         1 745
Other financial assets                                                         175                      175           175
Current tax receivables                                                        333                       —            196
Trade and other receivables                                                 13 651                   14 915        16 125
Cash and cash equivalents                                                    3 297                    6 656         9 467

Total Assets                                                              258 139                  221 663        259 859

EQUITY AND LIABILITIES
Equity capital and reserves                                               181 159                  155 861        181 533
Stated capital                                                             16 276                   15 916         15 916
Reserves                                                                   76 317                   54 731         76 297
Retained income                                                            88 566                   85 214         89 320

Non current liabilities                                                     54 366                   50 398        55 956
Other financial liabilities                                                 28 014                   32 348        29 359
Deferred income                                                              3 430                    4 002         3 716
Deferred tax                                                                22 922                   14 048        22 881

Current liabilities                                                         22 614                   15 404        22 370
Other financial liabilities                                                  4 195                    3 594         4 367
Current tax payable                                                             —                       234            —
Trade and other payables                                                    17 847                   10 076        17 431
Deferred income                                                                572                      572           572
Bank overdraft                                                                  —                       928            —

Total liabilities                                                           76 980                   65 802        78 326

Total Equity and Liabilities                                              258 139                  221 663        259 859

Shares in issue                                                       120 032 787               120 000 000   120 000 000
Net asset value per share            (cents)                               150.92                    129.88        151.28
Net tangible asset value per share   (cents)                               150.09                    129.05        150.44
         CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                                    Unaudited     Unaudited        Audited
                                                                   31 Aug 2013   31 Aug 2012   28 Feb 2013
                                                                         R’000         R’000         R’000
Revenue                                                                 55 977        49 034       110 562
Cost of Sales                                                          (8 171)       (7 446)      (16 451)
Gross Profit                                                            47 806        41 588       94 111
Net operating expenses                                                (41 553)      (36 409)      (80 529)
Operating profit                                                         6 253         5 179       13 582
Investments revenue                                                       188           273           460
Finance costs                                                          (1 398)       (1 657)       (3 141)
Profit on Sale of Business                                                 —          15 793       15 793
Income from equity accounted investments                                    5            16           432
Depreciation and impairment                                            (2 956)       (3 377)       (5 644)
Profit before tax                                                        2 092        16 227       21 482
Taxation                                                                 (646)         (504)       (1 926)
Normal taxation                                                          (646)         (304)       (1 726)
Secondary tax                                                              —           (200)         (200)
Profit for the period / year                                             1 446        15 723       19 556
Revaluation surplus on property valuation                                  —             —         29 150
Taxation related to components of other comprehensive income               —             —         (7 352)
Other comprehensive income for the period / year net of taxation           —             —         21 798

Total comprehensive income                                               1 446        15 723       41 354


Reconciliation of headline earnings:
Profit attributable to ordinary shareholders                             1 446        15 723       19 556
Profit on sale of Business / Assets                                       (28)      (14 810)      (14 791)
Headline earnings                                                        1 418          913          4 765
Weighted average shares in issue                                   120 032 787   120 000 000   120 000 000


BASIC, HEADLINE EARNINGS PER SHARE
Basic earnings per share (cents)                                          1.20         13.10        16.30
Diluted earnings per share (cents)                                        1.16         12.58        15.64
Headline earnings per share (cents)                                       1.18          0.76          3.97
Diluted headline earnings per share (cents)                               1.13          0.73          3.81
Dividend per share (cents)                                                 —             —            1.60
                    CONDENSDED CONSOLIDATED STATEMENT OF CASH FLOWS
                                                                                     Unaudited            Unaudited                     Audited
                                                                                    31 Aug 2013          31 Aug 2012                28 Feb 2013
                                                                                          R’000                R’000                      R’000
Cash flows from operating activities                                                       6 693              (4 830)                      5 856
Cash flows from investing activities                                                     (9 505)                5 089                        358
Cash flows from financing activities                                                     (3 358)              (4 303)                    (6 519)
Net movement in cash and cash equivalents                                                (6 170)              (4 044)                      (305)
Cash and cash equivalents at beginning of the period                                       9 467                9 772                      9 772
Cash and cash equivalents at end of the period                                             3 297                5 728                      9 467

SEGMENTAL REPORT
31 AUGUST 2013 – UNAUDITED
                                                                       Revenue              EBITDA                 Assets             Liabilities
                                                                          R’000              R’000                  R’000                 R’000
Hotels and lodges                                                        46 513               4 428               221 832                47 644
Timeshare                                                                 9 464               1 825                34 974                 6 414
Total segments                                                           55 977               6 253               256 806                54 058
Unallocated corporate assets and liabilities                                 ?                   ?                  1 333                22 922
Total                                                                    55 977               6 253               258 139                76 980

SEGMENTAL REPORT
31 AUGUST 2012 – UNAUDITED
                                                                       Revenue              EBITDA                 Assets             Liabilities
                                                                          R’000              R’000                  R’000                 R’000
Hotels and lodges                                                        43 844               1 887               185 622                 9 722
Timeshare                                                                 5 190               3 292                35 042                42 032
Total segments                                                           49 034               5 179               220 664                51 754
Unallocated corporate assets and liabilities                                 —                   —                    999                14 048
Total                                                                    49 034               5 179               221 663                65 802



              CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                       Total stated   Share based   Revaluation         Total       Retained            Total
                                                         capital       payment        reserve         reserves       income            Equity
                                                                        reserve
Group                                                         R’000         R’000         R’000           R’000             R’000         R’000
Balance at 01 March 2012                                     15 916          400         54 332          54 732         71 491          142 139
Changes in equity
Total comprehensive income for the year                          —            —              —               —          19 556           19 556
Transfer of share based payment reserve                          —          (273)            —            (273)              273              —
Share based payments reserves movement                           —            40             —               40               —               40
Revaluation surplus                                              —            —          21 798          21 798               —          21 798
Dividends                                                        —            —              —               —          (2 000)          (2 000)
Total changes                                                    —          (233)        21 798          21 565         17 829           39 394

Balance at 1 March 2013                                      15 916          167         76 130          76 297         89 320          181 533
Changes in equity
Total comprehensive income for the year                          —            —              —               —              1 446         1 446
Share based payment reserve movement                             —            20             —               20               —               20
Dividends                                                        —            —              —               —          (2 200)          (2 200)
Options exercised during the year                               360           —              —               —                —             360
Total changes                                                   360           20             —               20             (754)          (374)

Balance at 31 August 2013                                    16 276          187         76 130          76 317         88 566          181 159
COMMENTARY

OVERVIEW AND FINANCIAL RESULTS

Gooderson Leisure revenue and profits from continuing operations for the six months to August 2013 showed continued sustainable
growth in all of its core businesses compared to the previous corresponding period if the sale of the Beach Hotel in June 2012 of
R15.79 million was excluded. The group has continued to pursue its growth strategy and expansion projects.

Group revenue from continued operations increased to R55.97 million, up by 14% compared to the period ending August 2012.
Operating profit also showed positive growth to R6.25 million an increase of 21%. Headline earnings per share (HEPS) increased by
55% to 1.18 cents per share.

The Net Asset Value (NAV) per share increased by 16% from 129.88 cents per share to 150.92 cents per share primarily due to the
revaluation of all properties which was done by an independent valuer and capex spend to ensure that our assets remain best in class.



PROSPECTS AND DEVELOPMENT ACTIVITY

The group is actively pursuing new growth and business strategies across its brand portfolio to maintain and increase the current sales
momentum and to grow market share. We are well positioned to accelerate growth once the economy begins to show positive signs.

The group has proceeded with a R20 million expansion at Monks Cowl Golf Resort in Central Drakensberg which included the
construction of 18 new rooms, a new reception and upgrading the existing six rooms this year. Other improvements include the
construction of a large bird park at Dumazulu Game Lodge near Hluhluwe and the upgrading of the existing conference room.
The group has also added new revenue producing facilities at some of its other resorts.

In addition, the group has engaged an outside marketer to sell timeshare weeks (ten units) at Kloppenheim Country Estate near
Machadadorp. Further feasibility has been completed with a view to introduce timeshare units at Bushlands Game Lodge.



DIVIDEND

The Gooderson Leisure board deems it prudent not to declare an interim dividend at this stage in the light of the group’s cashflow and
capital requirements needed for growth and development.



SUBSEQUENT EVENTS

The board is pleased to announce that it has settled in full the tax dispute with the South African Revenue Service on
6 September 2013 for one of its subsidiary companies.

A subsidiary Bushlands Game Lodge (Pty) Ltd has purchased an extension to the Bushlands Game Lodge Property for R2.2 million and
the property will be transferred in December 2013.



APPRECIATION

The board would like to take this opportunity to thank the various management teams for their sterling efforts during this reporting
period, as well as all the business partners, customers, suppliers and shareholders for their ongoing support.
CONDENSED NOTES TO THE UNAUDITED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2013

1) BASIS OF PREPARATION

    These condensed, unaudited interim financial statements have been prepared in accordance with International Financial Reporting
    Standards (IFRS), in accordance with IAS 34 – Interim financial reporting, the listings requirements of the JSE Limited and the
    Companies Act, 2008 (Act 71 of 2008) of South Africa as amended. The accounting policies applied in preparing these interim
    financial statements are consistent with those presented in the annual financial statements for the year ended 28 February 2013
    and have not been audited or reviewed by Gooderson’s auditors.

2) SEGMENT INFORMATION

    The group operates two main business segments – Hotels and Lodges and develops and manages timeshare resorts.

    The executive directors assess the performance of the operating segments as each of these operating segments is managed
    separately.

On behalf of the board.




Alan Gooderson                                                       Rajen Nannoolal
Executive Chairman                                                   Financial Director

16 October 2013



Corporate Information

 Executive Directors       AW Gooderson, G M Castleman, C M De Klerk, R Nannoolal,
 Non Executive Directors   B R Warmback, M A Pottier, S Q Moloko

 Company Secretary and     R Nannoolal - 85 O.R. Tambo Parade, Durban, 4001
 Registered Office:        (PO Box 10305, Marine Parade, 4056)
                           Tel: +27 31 337 2672 Fax: +27 31 337 2621
 Transfer Secretaries:     Computershare Investor Services (Pty) Ltd - 70 Marshall Street, Johannesburg, 2001
                           (PO Box 61051, Marshall Street, Johannesburg, 2001)
                           Tel: +27 11 370 5000 Fax: +27 11 688 5210
 Attorneys:                Berkowitz Cohen Wartski - 17th Floor, Southern Life House, Durban, 4001
                           (PO Box 3704, Durban, 4001)
                           Tel: +27 31 314 9300 Fax: +27 31 314 9302
 Designated Adviser:       Exchange Sponsors (2008) (Pty) Ltd - 44A Boundary Road, Inanda, 2196
                           (PO Box 411216, Craighall, 2024)
                           Tel: +27 11 880 2113 Fax: 086 556 5720
 Auditors:                 Grant Thornton - 2nd Floor, 4 Pencarrow Crescent, La Lucia Ridge Office Estate, La Lucia, 4019
                           (PO Box 950, Umhlanga Rocks, 4320)
                           Tel: +27 31 576 5500 Fax: +27 31 576 5555
 Commercial Bankers:       First National Bank Limited - Acacia House, 8 Rydall Vale Park, Douglas Saunders Drive, La Lucia Ridge, 4320
                           (PO Box 4130, The Square, Umhlanga Rocks, 4320)
                           Tel: +27 31 580 6000 Fax: +27 31 580 6045
 Company’s Website:        www.goodersonleisure.co.za

Date: 16/10/2013 08:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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