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Condensed consolidated reviewed annual results for the year ended 28 February 2014
GOODERSON LEISURE CORPORATION LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1972/004241/06)
(JSE code: GDN ISIN: ZAE000084984)
(“Gooderson” or “the company”
or “the group”)
CONDENSED CONSOLIDATED REVIEWED ANNUAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2014
HIGHLIGHTS
Revenue of R120.25 million up 9%
EBITDA of R16.22 million up 19%
HEPS 5.26 cents up 32%
Cash generated from operations up 74% to R16.80 million
NAV of 154.73
CONDENSED CONSOLIDATED REVIEWED STATEMENT OF FINANCIAL POSITION AS AT
28 February 2014 28 February 2013
Reviewed Audited
R R
ASSETS
Non-current assets 253,257,393 238,034,741
Property, plant and equipment 221,906,783 207,702,994
Goodwill 999,563 999,563
Investments in associates 1,063,729 817,725
Timeshare development 15,691,650 15,863,429
Deferred tax 6,429,425 5,883,484
Long term debtors 7,166,243 6,767,546
Current assets 20,708,880 28,019,321
Inventories 2,020,617 1,744,606
Other financial assets 175,000 175,000
Current tax receivable 38,353 507,620
Trade and other receivables 15,156,857 16,125,034
Cash and cash equivalents 3,318,053 9,467,061
Total Assets 273,966,273 266,054,062
EQUITY AND LIABILITIES
Equity capital and reserves 186,157,385 181,532,902
Share capital 16,276,235 15,916,235
Reserves 76,286,417 76,296,646
Retained income 93,594,733 89,320,021
Non-current liabilities 58,608,919 61,839,960
Other financial liabilities 26,390,226 29,359,582
Deferred income 3,182,330 3,715,806
Deferred tax 29,036,363 28,764,572
Current liabilities 29,199,969 22,681,200
Other financial liabilities 6,446,011 4,367,316
Current tax payable 621,130 311,040
Trade and other payables 17,834,282 17,431,150
Deferred income 572,754 571,694
Bank overdraft 3,725,792
Total liabilities 87,808,888 84,521,160
Total Equity and Liabilities 273,966,273 266,054,062
Shares in issue 120,313,973 120,000,000
Net asset value per share (cents) 154.73 151.28
Net tangible asset value per share (cents) 153.90 150.44
CONDENSED CONSOLIDATED REVIEWED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED
28 February 2014 28 February 2013
Reviewed Audited
R R
Revenue 120,251,630 110,561,989
Cost of sales (18,692,068) (16,451,065)
Gross profit 101,559,562 94,110,924
Net operating expenses (85,337,534) (80,528,671)
EBITDA 16,222,028 13,582,253
Profit on sale of business 15,793,402
Depreciation (5,545,981) (5,644,017)
Profit before interest and taxation 10,676,047 23,731,638
Profit from Associates 245,953 431,748
Net interest paid (2,447,970) (2,681,517)
Profit before taxation 8,474,030 21,481,869
Taxation (2,131,200) (1,925,995)
Profit for the year 6,342,830 19,555,874
Other comprehensive income :
Revaluation surplus on property valuation 29,150,818
Taxation related to components of other
comprehensive income (7,352,536)
Other comprehensive income (loss) for the year net of taxation 21,798,282
Total comprehensive income 6,342,830 41,354,156
Reconciliation of Headline Earnings:
Profit attributable to ordinary shareholders 6,342,830 19,555,874
Adjusted for profit on disposal of property, plant and equipment (16,382) (14,791,545)
Headline Earnings 6,326,448 4,764,329
Weighted average shares in issue on which earnings are based 120,313,973 120,000,000
Diluted number of shares in issue 120,411,232 125,000,000
Number of shares in issue 125,000,000 125,000,000
SUPPLEMENTARY INFORMATION
EARNINGS, HEADLINE EARNINGS PER SHARE
Earnings per share (EPS) (cents) 5.27 16.30
Headline earnings per share (HEPS) (cents) 5.26 3.97
Diluted earnings per share (cents) 5.27 15.64
Diluted headline earnings per share (cents) 5.25 3.81
Dividends per share (cents) 1.76 1.60
CONDENSED CONSOLIDATED REVIEWED STATEMENT OF CHANGES IN EQUITY
Share Share Share based Revaluation Retained Total
capital premium payment reserve income equity
reserve
R R R R R R
Balance at 1 March 2012
Changes in equity 1,200 15,915,035 399,729 54,331,588 71,491,357 142,138,909
Total comprehensive income for the year 19,555,874 19,555,874
Transfer of share based payment (272,790) 272,790
Share based payment reserves movement 39,836 39,836
21,798,283 21,798,283
Revaluation surplus
Dividends (2,000,000) (2,000,000)
Total changes (232,954) 21,798,283 17,828,664 39,393,993
Balance at 1 March 2013 1,200 15,915,035 166,775 76,129,871 89,320,021 181,532,902
Changes in equity
Total comprehensive income for the year 6,342,830 6,342,830
Transfer of share based payment (57,082) 57,082
Share based payment reserves movement 46,853 46,853
Dividends (2,125,200) (2,125,200)
Options exercised during the year 6 359,994 360,000
Total changes 6 359,994 (10,229) 4,274,712 4,624,483
Balance at 28 February 2014 1,206 16,275,029 156,546 76,129,871 93,594,733 186,157,385
CONDENSED CONSOLIDATED REVIEWED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED
28 February 2014 28 February 2013
Reviewed Audited
R R
Cash flows from Operating Activities 12,741,368 5,856,547
Cash generated from operations 16,808,764 9,678,079
Interest income 382,026 460,086
Finance costs (2,829,996) (3,141,603)
Tax paid (1,619,426) (1,140,015)
Cash flows from Investing Activities (19,960,307) 357,920
Purchase of property, plant and equipment (19,808,441) (15,254,627)
Sale of property, plant and equipment 75,052 233,044
Sale of business 19,500,000
(Increase) / Decrease in timeshare development 171,779 (6,373,374)
(Increase) / Decrease in long term debtors (398,697) 2,252,877
Net cash from Financing Activities (2,655,861) (6,518,936)
Proceeds on share issue 360,000
Proceeds / (repayment) of other financial liabilities (890,661) (4,518,936)
Dividends paid (2,125,200) (2,000,000)
Total cash inflow / (outflow) for the year (9,874,800) (304,469)
Cash at beginning of year 9,467,061 9,771,530
Total cash at end of the year (407,739) 9,467,061
COMMENTARY ON GOODERSON LEISURE CORPORATION LIMITED
OVERVIEW AND FINANCIAL RESULTS
The trading performance of the group continued to reflect good growth with an increase in activity levels during the second half of
the financial year as a result of strong sales, superior products and service quality available within the group.
The group purchased the remaining property of Bushlands Game Lodge (Pty) Ltd for R2.2 million in December 2013.
Year on year growth was achieved by the acquisition of Monks Cowl Golf Resort and the group added a further 18 rooms in
November 2013 as part of the groups stated growth strategy.
The group has launched an in-house timeshare points club in January 2014 (Gooderson Vacation Club) which will supplement
revenue streams and increase profitability.
Revenue from continuing operations increased by 9% to R120.25 million (2013: R110.56 million).
Operating expenses were well managed and increased by 6% to R85.33 million (2013: R80.52 million) following the implementation
of various cost containment measures.
EBITDA increased by 19% from R13.58 million to R16.22 million due to increased volumes and good cost control and the
EBITDA margin was one percentage point up on last year. Headline earnings per share (HEPS) rose by 32% to R6.32 million
(2013: R4.76 million).
The net asset value (NAV) per share increased from 151.28 cents per share to 154.73 cents per share.
SEGMENTAL ANALYSIS
The chief operating decision maker has been identified as the groups board of directors. The board reviews the group’s internal
reporting in order to assess performance and allocate resources.
The group is divided into two operating segments namely Hotels / Lodges and Timeshare.
Profit / (Loss)
FINANCIAL YEAR END 28 FEBRUARY 2014 Revenue before taxation Assets Liabilities
Hotels and Lodges 103,300,242 7,382,738 231,950,718 51,372,953
Timeshare 16,951,388 3,293,309 34,309,048 6,778,442
Total segments 120,251,630 10,676,047 266,259,766 58,151,395
Income from equity 245,953
Net Interest Income / (Paid) (2,447,970)
Unallocated corporate assets and liabilities 7,706,507 29,657,493
Total 120,251,630 8,474,030 273,966,273 87,808,888
SOCIAL RESPONSIBILITY AND BROAD BASED BLACK ECONOMIC EMPOWERMENT
The group remains fully committed to improving all aspects of transformation including ownership, management control,
employment equity, skills development, preferential procurement, enterprise development and socio-economic development.
The group achieved a level 4 B-BBEE status which was measured in terms of the Tourism Charter Scorecard and is valid from
17 February 2014 to 16 February 2015 and verified by Empowerdex Rating Agency.
PROSPECTS AND DEVELOPMENT ACTIVITY
The trading conditions across the group operations into the first 3 months of the current financial year have been very difficult due
to inactivity prior to the elections. The group continues to pursue significant opportunities to invest capital in its growth strategy
and is well positioned to take advantage of market improvements as they arise.
The group has proceeded with phase two and phase three at Monks Cowl Golf Resort in Central Drakensberg which will include the
construction of 16 new rooms and 8 self-catering rooms, a new swimming pool and an 18 hole adventure golf course which will be
ready in November / December 2014. The group has also upgraded the entrance road to Kloppenheim Country Estate Hotel in
Mpumalanga.
The group has re-launched Dumazulu Game Lodge and Traditional Village and constructed a walk through Bird and Reptile Park at a
cost of R1 million which was officially opened up by King Goodwill Zwelithini on 27 March 2014.
The group is also upgrading Fabz Garden Hotel and undergoing cosmetic changes to some of its properties to ensure that its assets
reflect the group’s motto of “Good Value, Good Fun”.
The group has introduced timeshare at Bushlands Game Lodge in Hluhluwe from March 2014.
DIVIDENDS
The board of directors has declared a final gross cash dividend in respect of the financial year ended 28 February 2014 of
1.875 cents per share payable to shareholders recorded in the register of the company at the close of business on the record date
appearing below. The dividend is payable from the companies cash reserves.
The salient dates applicable to the final dividend are as follows:
2014
Last day to trade shares cum div Friday 18 July
Shares trade ex dividend Monday 21 July
Record date Friday 25 July
Payment date Monday 28 July
Share certificates may not be dematerialised or rematerialised during the period Monday, 21 July 2014 and Friday, 25 July 2014,
both days inclusive.
1. The local Dividend Tax rate is 15%;
2. The net local dividend amount is 1.59375 cents per share for shareholders liable to pay the new Dividends Tax
and 1.875 cents per share for shareholders exempt from paying the new Dividends Tax;
3. The issued ordinary share capital of Gooderson is 125 000 000 ordinary shares; and
4. The company’s tax reference number is 9005053203.
5. No STC credits have been utilized.
SUBSEQUENT EVENTS
The directors are not aware of any matter or circumstance arising since the end of the financial year, not otherwise dealt with
within the financial statements, that would affect the operations or results of the group.
BASIS OF PREPARATION
The condensed consolidated financial statements for the year have been prepared in accordance with the recognition and
measurement principles of International Financial Reporting Standards (IFRS), and with the presentation and the disclosure
requirements of IAS 34: Interim Financial Reporting, the listing requirements of the JSE limited and the Companies Act, 2008 (Act 71
of 2008) as amended. The accounting policies and method of measurement and recognition applied in preparation of the
condensed consolidated annual financial statements are consistent with those applied in the group’s annual financial statements for
the year ended 28 February 2014, which comply with International Financial Reporting Standards.
AUDIT REVIEW
Grant Thornton, the group’s independent auditor, has reviewed the condensed consolidated financial statements contained in this
report and has expressed an unmodified review opinion which is available for inspection at the company’s registered office.
APPRECIATION
We appreciate that the group’s success is attributable to the directors, management and staff and thank them for their continued
invaluable support. In addition we also extend our appreciation to our valued business partners and most importantly to our
shareholders for their continued support.
On behalf of the Board
AW Gooderson R Nannoolal
Executive Chairman Financial Director
28 May 2014
CORPORATE INFORMATION
Directors : A W Gooderson, G M Castleman, C M de Klerk, R Nannoolal
*B R Warmback, *M A Pottier, *S Q Moloko (* Non-Executive)
Registration Number : 1972/004241/06
Registered Office : 85 O.R. Tambo (Marine) Parade, Durban, 4001
Postal Address : PO Box 10305, Marine Parade, 4056
Company Secretary : R. Nannoolal
Transfer Secretaries : Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Sponsor : Exchange Sponsors (2008) (Pty) Limited
Website : www.goodersonleisure.co.za
Date: 29/05/2014 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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