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GOODERSON LEISURE CORPORATION LTD - Unaudited Condensed Interim Results For The Six Months Ended 31 August 2014

Release Date: 24/10/2014 10:35
Code(s): GDN     PDF:  
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Unaudited Condensed Interim Results For The Six Months Ended 31 August 2014

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 2014

HIGHLIGHTS

-    REVENUE UP 5%
-    TOTAL ASSETS UP 12% INCLUDING R10M SPENT ON EXPANSIONS
-    NAV OF 153.39

               CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
                                                                       Unaudited                 Unaudited        Audited
                                                                      31 Aug 2014               31 Aug 2013   28 Feb 2014
                                                                            R’000                     R’000         R’000
ASSETS
Non-current assets                                                        267 600                  238 739       253 257
Property, plant and equipment                                             235 405                  213 843       221 907
Goodwill                                                                      999                      999           999
Investment in associates                                                      950                      824         1 064
Timeshare development                                                      13 785                   15 406        15 692
Deferred tax                                                                 7 111                       —         6 429
Long term debtors                                                            9 350                    7 667        7 166

Current assets                                                              20 998                   19 400       20 709
Inventories                                                                  2 060                    1 944        2 021
Other financial assets                                                         175                      175          175
Current tax receivables                                                        537                      333           38
Trade and other receivables                                                 13 926                   13 651       15 157
Cash and cash equivalents                                                    4 300                    3 297        3 318

Total Assets                                                              288 598                  258 139       273 966

EQUITY AND LIABILITIES
Equity capital and reserves                                               185 098                  181 159       186 157
Stated capital                                                             16 658                   16 276        16 276
Reserves                                                                   76 243                   76 317        76 286
Retained income                                                            92 197                   88 566        93 595

Non-current liabilities                                                     74 175                   54 366       58 609
Other financial liabilities                                                 42 658                   28 014       26 390
Deferred income                                                              2 858                    3 430        3 182
Deferred tax                                                                28 659                   22 922       29 037

Current liabilities                                                         29 325                   22 614       29 200
Other financial liabilities                                                  6 537                    4 195        6 446
Current tax payable                                                            753                       —           621
Trade and other payables                                                    18 675                   17 847       17 834
Deferred income                                                                572                      572          573
Bank overdraft                                                               2 788                       —         3 726

Total liabilities                                                         103 500                    76 980       87 809

Total Equity and Liabilities                                              288 598                  258 139       273 966

Shares in issue                                                        120 669 130              120 032 787   120 313 973
Net asset value per share            (cents)                               153.39                    150.92        154.73
Net tangible asset value per share   (cents)                               152.56                    150.09        153.90
 
          STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME


                                                     Unaudited     Unaudited        Audited
                                                    31 Aug 2014   31 Aug 2013   28 Feb 2014
                                                          R’000         R’000         R’000
Revenue                                                  58 671        55 977       120 252
Cost of Sales                                           (9 513)       (8 171)      (18 692)
Gross Profit                                             49 158        47 806      101 560
Net operating expenses                                 (43 512)      (41 553)      (85 338)
EBITDA                                                    5 646         6 253       16 222
Investment revenue                                         120           188           382
Finance costs                                           (1 735)       (1 398)       (2 830)
Income / (loss) from equity accounted investments         (114)            5           246
Depreciation and impairment                             (3 029)       (2 956)       (5 546)
Profit before tax                                          888          2 092         8 474
Taxation                                                   (67)         (646)       (2 131)
Profit for the period / year                               821          1 446         6 343
Other comprehensive income                                   —             —             —
Total comprehensive income                                 821          1 446         6 343


Reconciliation of headline earnings:
Profit attributable to ordinary shareholders               821          1 446         6 343
Profit on sale of Assets                                   (15)          (28)          (16)
Headline earnings                                          806          1 418         6 326
Weighted average shares in issue                    120 669 130   120 032 787   120 313 973


BASIC, HEADLINE EARNINGS PER SHARE
Earnings per share (cents)                                 0.68          1.20          5.27
Diluted earnings per share (cents)                         0.66          1.16          5.27
Headline earnings per share (cents)                        0.67          1.18          5.26
Diluted headline earnings per share (cents)                0.65          1.13          5.25
Dividend per share (cents)                                   —             —           1.76
 
                   CONDENSDED CONSOLIDATED STATEMENT OF CASH FLOWS
                                                                                     Unaudited             Unaudited                   Audited
                                                                                    31 Aug 2014           31 Aug 2013              28 Feb 2014
                                                                                           R’000                R’000                     R’000
Cash flows from operating activities                                                       4 257                 6 693                   12 741
Cash flows from investing activities                                                    (16 804)               (9 505)                 (19 960)
Cash flows from financing activities                                                      14 467               (3 358)                  (2 656)
Net movement in cash and cash equivalents                                                  1 920               (6 170)                  (9 875)
Cash and cash equivalents at beginning of the period                                       (408)                 9 467                    9 467
Cash and cash equivalents at end of the period                                             1 512                 3 297                    (408)

SEGMENTAL REPORT
31 AUGUST 2014 – UNAUDITED
                                                                       Revenue              EBITDA                  Assets           Liabilities
                                                                          R’000              R’000                   R’000               R’000
Hotels and lodges                                                        48 408               2 467                246 300              68 373
Timeshare                                                                10 263               3 179                 33 524               5 716
Total segments                                                           58 671               5 646                279 824              74 088
Unallocated corporate assets and liabilities                                 —                   —                   8 774              29 412
Total                                                                    58 671               5 646                288 598             103 500

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

              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 1 March 2013                                      15 916          166         76 130          76 296          89 320        181 533
Changes in equity
Total comprehensive income for the year                          —            —             —                —            6 343          6 343
Transfer of share based payment reserve                          —           (57)           —               (57)             57              —
Share based payments reserves movement                           —            47            —                47              —                 47
Options exercised during the year                               360           —             —                —               —             360
Dividends                                                        —            —             —                —           (2 125)        (2 125)
Total changes                                                   360          (10)           —              (10)           4 275          4 625

Balance at 1 March 2014                                      16 276          156         76 130          76 286          93 594        186 157
Changes in equity
Total comprehensive income for the year                          —            —             —                —               821           821
Transfer of share based payment reserve                          —           (55)           —               (55)             55              —
Share based payment reserve movement                             —            12            —                12              —                 12
Options exercised during the year                               382           —             —                —               —             382
Dividends                                                        —            —             —                —           (2 273)        (2 273)
Total changes                                                   382          (43)           —              (43)          (1 397)        (1 059)

Balance at 31 August 2014                                    16 658          113         76 130          76 243          92 197        185 098
COMMENTARY

OVERVIEW AND FINANCIAL RESULTS

The directors are pleased to present the interim financial results of Gooderson group for the six months ended
31 August 2014. The group has continued to pursue its growth and expansion projects.
Revenue for the period rose by 5% to R58.67 million, mainly as a result of the improvement in occupancies and higher room
rates achieved.

Operating costs were well contained to a 5% increase compared to the previous year.
Profit after tax of R821,065 was down compared to the previous year due to a significant increase in finance costs as well as
the upgrade and refurbish costs to some of our properties. Total assets was up 12% compared to the previous year which
were due to the expansion at Monks Cowl Golf Resort in Central Drakensberg by constructing more rooms and leisure
facilities.

DEVELOPMENT ACTIVITY

Construction of an additional 24 rooms at Monks Cowl Golf Resort is progressing well and is on track for completion by
December 2014, as well as a new swimming pool and 18 hole putt putt golf course. The refurbishment and upgrade of
24 rooms at Fabz Garden Hotel and Conference Centre in Lonehill, Gauteng is completed.
The refurbishment and upgrade at Natal Spa in Paulpietersburg would be completed in January 2015.

We strongly believe that occupancies will improve due to new and refurbished accommodation facilities coming on stream
from improved demand and with the Monks Cowl Golf Resort operating in its first financial year.

OUTLOOK

Management remains optimistic of the usual improvement in earnings in the second half of the financial year as the
Gooderson group is well positioned to take advantage of market improvements as they arise.

Gooderson will continue to pursue its strategy of expanding into new markets and opportunities to invest capital in its
growth strategy and sell any non performing assets.

SUBSEQUENT EVENTS

The directors are not aware of any matter or circumstance arising since the end of the financial period, not otherwise dealt
with within the financial statements, that would affect the operations or results of the group significantly.

CONDENSED NOTES TO THE UNAUDITED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2014

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 2014 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

24 October 2014

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: 24/10/2014 10:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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