Wrap Text
Audited consolidated financial results for the year ended 28 February 2014 and a cash dividend announcement
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
Audited preliminary announcement of consolidated financial results
for the year ended 28 February 2014 and a cash dividend declaration
Highlights
- Revenue up 16% to BWP1 401 million
- EBI TDA increase of 39% to BWP151 million
- Profit after tax up by 75% to BWP48 million
- HEPS increase of 44% to 16 thebe per share
- Cash generated by operations up 138% to BWP184 million
- RevPar increase of 23%
- Occupancy percentage up to 62% from 56%
- Cash dividend of 10 thebe per share
Summarised consolidated statement of comprehensive income
Audited Audited
Year ended Year ended
BWP’000 28 Feb 2014 Change 28 Feb 2013
Revenue 1 401 206 16% 1 205 074
Cost of sales (816 387) (690 529)
Gross profit 584 819 514 545
Other gains 17 200 22 889
Operating expenses (452 166) 8% (419 605)
Foreign exchange
gains/(losses) 1 315 (8 928)
Operating profit for year
before items listed below
(EBITDA) 151 168 39% 108 901
Impairment loss on property,
plant and equipment and loans (8 902) (14 000)
Depreciation and
amortisation (50 093) (46 982)
Operating profit 92 173 92% 47 919
Net finance costs (7 509) (8 205)
Unrealised foreign exchange
loss on loans (9 851) (7 260)
Share of associate company
profit 2 708 66
Profit before taxation 77 521 138% 32 520
Taxation (29 031) (4 816)
Profit for the year 48 490 75% 27 704
Other comprehensive
(loss)/income
Items that may be subsequently
reclassified to profit or loss
Exchange differences on
translating foreign operations: (5 275) (3 156)
Equity holders of the
Company 4 270 9 470
Non-controlling interest (709) (1 013)
Net investment in foreign
operations (8 836) (11 613)
Total comprehensive income
for year 43 215 24 548
Profit/(loss) attributable
to:
Owners of the Company 46 147 29 561
Non-controlling interest 2 343 (1 857)
48 490 27 704
Total comprehensive income/(loss)
attributable to:
Owners of the Company 41 581 27 418
Non-controlling interest 1 634 (2 870)
43 215 24 548
Number of shares issued
(thousands)
Issued 231 000 231 000
Weighted average 231 000 231 000
Diluted 234 003 231 094
Earnings per share (thebe)
Headline 16.07 44% 11.13
Diluted headline 15.86 42% 11.13
Basic 19.98 56% 12.80
Diluted 19.72 54% 12.79
Summarised consolidated statement of financial position
Audited Audited
Year ended Year ended
BWP’000 28 Feb 2014 29 Feb 2013
Assets
Non-current assets 474 933 474 047
Property, plant and equipment and
intangibles 405 833 391 235
Goodwill 32 696 34 855
Investment and loans in associates 13 982 11 390
Loans receivable 237 1 768
Deferred taxation 22 185 34 799
Current assets 407 530 319 065
Inventories 19 707 17 889
Receivables and prepayments 77 903 97 384
Current tax receivable 14 530 14 467
Bank balances and cash 295 390 189 325
Assets of disposal group classified as
held for sale – 1 386
Total assets 882 463 794 498
Equity and liabilities
Equity attributable to owners of the
Company 382 695 344 728
Non-controlling interest (7 747) (7 259)
Total equity 374 948 337 469
Non-current liabilities 124 221 130 249
Borrowings and obligations 96 597 102 129
Deferred taxation 27 624 28 120
Current liabilities 383 294 326 780
Trade and other payables 336 937 273 724
Current tax liabilities 1 686 3 368
Bank overdrafts 44 671 49 688
Total liabilities 507 515 457 029
Total equity and liabilities 882 463 794 498
Net asset value per share (thebe) 166 149
Net tangible asset value per share
(thebe) 152 134
Summarised consolidated statement of cash flows
Audited Audited
Year ended Year ended
BWP’000 28 Feb 2014 28 Feb 2013
Net cash inflow from operating
activities 184 426 77 518
Net cash outflow from investing
activities (51 819) (66 253)
Net cash outflow from financing
activities (32 959) (44 960)
Increase/(decrease) in cash and cash
equivalents 99 648 (33 695)
Unrealised exchange gains on foreign
cash balances 11 434 15 828
Cash and cash equivalents at beginning
of year 139 637 157 504
Cash and cash equivalents at end of
year 250 719 139 637
Summarised consolidated statement of changes in total equity
Audited Audited
Year ended Year ended
BWP’000 28 Feb 2014 28 Feb 2013
Balance at beginning of year 337 469 331 212
Total comprehensive income for the
year 43 215 24 548
Minority portion of dividend paid (2 093) (342)
Dividends paid (9 240) (19 865)
Share-based payments 6 151 3 029
Acquisition of subsidiary (554) (1 113)
Balance at end of year 374 948 337 469
Determination of headline earnings
Reconciliation between profit attributable to owners of the
Company and headline earnings
Audited Audited
Year ended Year ended
BWP’000 28 Feb 2014 28 Feb 2013
Profit attributable to owners of the
Company 46 147 29 561
Adjustments
Surplus on disposal of operations,
investments and associates (3 051) –
Profit on disposal of property, plant
and equipment (7 345) (18 506)
Net impairments 2 320 13 855
Tax effects of adjustments (909) 347
Non-controlling interests portion (41) 459
Headline earnings 37 121 25 716
Segmental analysis
Audited Audited
Year ended Year ended
BWP’000 28 Feb 2014 28 Feb 2013
Botswana 440 940 354 640
Namibia 218 296 221 246
South Africa 1 059 545 891 062
Zambezi 139 270 125 766
Intergroup (456 845) (387 640)
1 401 206 1 205 074
Reportable segment profit/(loss)*
Botswana 98 459 78 992
Namibia 3 032 4 716
South Africa 26 533 15 184
Zambezi 4 592 (3 938)
Net items unallocated to a segment 37 (14)
132 653 94 940
Total assets
Botswana 425 292 407 292
Namibia 130 061 136 512
South Africa 239 639 186 133
Zambezi 100 214 88 267
Central financing activities and
eliminations (12 743) (23 706)
882 463 794 498
* Segment profit and loss comprises EBITDA and excludes other gains
and foreign exchange gains and losses.
Commentary
The directors of Wilderness Holdings are pleased to announce the
results for the 2014 financial year that represent the best trading
performance to date. This lays the foundation for future growth both
within and beyond the Group’s current geographic footprint.
The Wilderness business model
Founded in 1983, the Wilderness Holdings Group owns and operates more
than 60 luxury safari camps in nine African countries. Most camps are
marketed under one of two trading brands, Wilderness Safaris or
Wilderness Collection, both recognised as leading brands in our sector
of the travel industry.
The business is vertically integrated offering international and
regional guests unique experiences in remote wildlife areas by
providing a multiple service platform of reservation, transfer and
access, as well as accommodation. Itineraries may also include an
element of various independent products, these being hotels,
lodges or B&Bs in which the Group has no shareholding interest.
Financial review
Revenue grew by 16% despite a 9% reduction in available bednights
from 231 528 to 210 880. Growth came from organic expansion of
existing businesses and is attributable to greater volumes of sales
of independent product, increased yield per owned bednight and a
benefit from depreciating local currencies.
The average exchange rate for the period was 11% weaker against the
US Dollar at BWP8.56 having the effect of increasing revenue.
However, the ZAR depreciated against the Botswana Pula by 8% to
R1.20, causing the inverse effect of reducing revenue on translation
of the South African operation to Botswana Pula. The combination of
the net currency movement contributed approximately 6% of the
revenue growth.
Gross margin has decreased by 1% to 41.7%. This was a result of the
change in sales mix with the lower margin independent product sales
constituting 38.5% of total revenue compared with 37% in the
corresponding period.
EBITDA margin has improved from 9% to 11% due to the initiatives
undertaken in the prior year including the closure of loss making
camps and a shift in focus from cost cutting to eliminations of
inefficient or non-value add activities; an example is the creation
of the flying circuit. Greater investment in camp maintenance, marketing
and sales, technology and a doubling of the share-based payments charge
to BWP6 million resulted in an acceptable 8% increase in operating costs.
All geographical segments reported an improved operational
performance, if Namibia is normalised for the VAT refund received in
the prior year.
Other gains amounting to BWP17.2 million include BWP14 million profit
from the disposal of an associate and a property in Namibia together
with a profit of BWP2.6 million on disposal of the Lusaka property.
In line with the Group’s hedging strategy, forward cover has been
reduced to between 30% and 50% of the unhedged position. Foreign
exchange gains amounted to BWP1.3 million.
Impairment losses amounted to BWP8.9 million. Approximately BWP6
million is for impairment of a vendor loan advanced and insurance
claim, BWP1.9 million is for goodwill impaired at half year, with the
remaining balance attributed to an investment in associate and
property, plant and equipment.
Net finance cost decreased from BWP8.2 million to BWP7.5 million
reflecting the lower level of interest bearing debt.
The Group’s effective tax rate increased from 15% in the prior year
to 37% in the current year. The effective tax rate in the prior year
was lower than normal owing to the recognition of a previously
unrecognised deferred tax asset. Excluding this and on a normalised
basis the effective tax rate reduced by nearly 4% from just under
41%. The effective tax rate is higher than the Group’s nominal rate
of 22% largely due to the higher tax jurisdiction in the other
geographical segments and the continued inability to recognise
deferred tax assets on various tax losses. Nearly BWP81 million was
reinvested in capital expenditure, including camp assets, technology
and new camps. Two new camps under the Explorations brand were opened
as well as the new Hoanib Skeleton Coast Camp in Namibia scheduled
for opening in August 2014.
Cash available has increased by 80% to BWP251 million notwithstanding
a decrease in average interest bearing debt of 7% with an overall
improvement in working capital. The existing facilities have been
utilised and new facilities are being renegotiated.
Dividend
Notice is hereby given that a final dividend for the year ended
28 February 2014 of 10.0 thebe per share was declared by the board
on 21 May 2014 (9.25 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. The dividend will be payable on
Thursday, 26 June 2014 to those shareholders registered at the close of
business on Friday, 13 June 2014. For JSE registered shareholders, the
last date to trade shall be Friday, 6 June 2014 and shall commence trading
ex the dividend on Monday, 9 June 2014. The South African branch register
will be closed for the purposes of dematerialisation, rematerialisation
within the South African register, and transfers between the South
African and Botswana registers, from Monday, 9 June 2014 to Friday,
13 June 2014, 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 22 May 2014 which was BWP1/R1.19 and accordingly
the gross dividend payable is 11.90 cents per share (10.115 cents per
share net of South African withholding tax). 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 are 231 000 000.
Capital commitments
The Board approved BWP93 million in capital expenditure to maintain
and develop new camps and other assets and thus expand the Group’s
earnings base. The Board envisage that this will be funded by
existing cash balances and new borrowing facilities. Directorate
On 24 January 2014 Ami Azoulay was appointed to the Board as its
Chief Financial Officer. Derek de la Harpe, the former CFO, remains
on the Board and has been appointed to the position of Commercial
Director and Chief Sustainability Officer.
Subsequent events
No material events have occurred between the reporting date and the
date of this report.
Segmental information
In line with a change in the internal structure of reporting and
management, the Group has modified its operating segments from
operating divisions to geographic segments by country or region.
Consequently the segment report has been amended to reflect these new
segments as required by the “management approach” of IFRS 8 –
Operating Segments. In order to allow for comparison the segment
information has been restated accordingly.
Contingencies
The matters related to the previously reported contingent
liability which arose on the sale of Duba camp have been addressed
and accordingly the contingent liability is no longer in existence.
Basis of preparation
The summarised 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. The new
accounting standards which have been adopted do not impact on the
reported results and enhance disclosure.
Independent auditor’s opinion
The auditors, Deloitte & Touche, have issued their opinion on the
Group’s financial statements for the year ended 28 February 2014. The
audit was conducted in accordance with International Standards on
Auditing. They have issued an unmodified audit opinion. These
summarised 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
The focus of the past year has been on consolidation and organic
growth, this is expected to continue on the back of the stronger US
market and an improvement in the European market. Various
opportunities for expansion both within the current geographic
footprint of the Group and beyond it into other regions of Africa
have been identified and expansion plans are being considered.
The market outlook on tourism in Southern Africa is positive,
therefore the Board is optimistic about the future and thanks its
staff for their effort over the past year.
By order of the Board
Parks Tafa Ami Azoulay
Chairman Chief Financial Officer
23 May 2014
Registered office (Botswana): Deloitte House, Plot 64518,
Fairgrounds, Gaborone, Botswana
Registered office (South Africa): 373 Rivonia Boulevard, Rivonia,
South Africa.
PO Box 5219, Rivonia 2128, South Africa
External company registration number: 2009/022894/10
Tax reference number: C075372-01-01-7
JSE Sponsor: Rand Merchant Bank (a division of FirstRand Bank
Limited)
Transfer secretaries: Corpserve Botswana – Computershare
Directors: BBP Tafa (Chairman), M Tollman (Deputy Chairman), K
NW Vincent (CEO), A Azoulay (CFO), DA de la Harpe, C de Fleurieu,
RM Hartman, JM Hunt, RJ Marnitz, MW McCulloch, GB Tollman,
MPK ter Haar, J Zeitz
Group Company Secretary: S Mganga
www.wilderness-group.com
www.wilderness-safaris.com
www.wilderness-collection.com
www.wilderness-residents.co.za
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 23/05/2014 01:59:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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