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Condensed consolidated reviewed annual results for the year ended 28 February 2015
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 2015
PERFORMANCE HIGHLIGHTS
REVENUE up 7%
EBITDA up 23%
TOTAL ASSETS up 8%
CASH GENERATED FROM OPERATIONS R20M
CONDENSED CONSOLIDATED REVIEWED STATEMENT OF FINANCIAL POSITION AS AT
28 February 2015 28 February 2014
Reviewed Audited
R R
ASSETS
Non-current assets 262 553 935 253 257 393
Property, plant and equipment 230 562 092 221 906 783
Goodwill 999 563 999 563
Investments in associates 1 073 197 1 063 729
Timeshare development 13 308 048 15 691 650
Deferred tax 7 667 572 6 429 425
Long term debtors 8 943 463 7 166 243
Current assets 22 909 802 20 708 880
Inventories 2 022 338 2 020 617
Other financial assets 175 000 175 000
Current tax receivable 444 323 38 353
Trade and other receivables 16 336 216 15 156 857
Cash and cash equivalents 3 931 925 3 318 053
Non-current assets held for sale 9 511 956 -
Total Assets 294 975 693 273 966 273
EQUITY AND LIABILITIES
Equity capital and reserves 191 203 210 186 157 385
Share capital 16 657 835 16 276 235
Reserves 75 608 206 76 286 417
Retained income 98 937 169 93 594 733
Non-current liabilities 66 207 887 58 608 919
Other financial liabilities 34 229 267 26 390 226
Deferred income 2 572 398 3 182 330
Deferred tax 29 406 222 29 036 363
Current liabilities 37 479 039 29 199 969
Other financial liabilities 11 644 560 6 446 011
Current tax payable 311 040 621 130
Trade and other payables 20 269 193 17 834 282
Deferred income 571 694 572 754
Bank overdraft 4 682 552 3 725 792
Liabilities of disposal groups 85 557 -
Total liabilities 103 772 483 87 808 888
Total Equity and Liabilities 294 975 693 273 966 273
Shares in issue 120 950 236 120 313 973
Net asset value per share (cents) 158.08 154.73
Net tangible asset value per share (cents) 157.26 153.90
CONDENSED CONSOLIDATED REVIEWED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED
28 February 2015 28 February 2014
Reviewed Audited
R R
Revenue 128 316 487 120 251 630
Cost of sales (19 598 050) (18 692 068)
Gross profit 108 718 437 101 559 562
Net operating expenses (88 733 437) (85 337 534)
EBITDA 19 985 000 16 222 028
Depreciation (6 139 991) (5 545 981)
Profit before interest and taxation 13 845 009 10 676 047
Profit from Associates 9 468 245 953
Net interest paid (3 942 932) (2 447 970)
Profit before taxation 9 911 545 8 474 030
Taxation (2 350 575) (2 131 200)
Profit for the year 7 560 970 6 342 830
Other comprehensive income:
Revaluation surplus on property valuation (897 417) -
Taxation related to components of other comprehensive income 251 277 -
Other comprehensive income for the year net of taxation (646 140) -
Total comprehensive income 6 914 830 6 342 830
Reconciliation of Headline Earnings:
Profit attributable to ordinary shareholders 7 560 970 6 342 830
Adjusted for profit on disposal of property, plant and equipment (20 220) (16 382)
Headline Earnings 7 540 750 6 326 448
Weighted average shares in issue on which earnings are based 120 950 236 120 313 973
Diluted number of shares in issue 120 973 897 120 411 232
Number of shares in issue 125 000 000 125 000 000
SUPPLEMENTARY INFORMATION
EARNINGS, HEADLINE EARNINGS PER SHARE
Earnings per share (EPS) (cents) 6.25 5.27
Headline earnings per share (HEPS) (cents) 6.23 5.26
Diluted earnings per share (cents) 6.25 5.27
Diluted headline earnings per share (cents) 6.23 5.25
Dividends per share (cents) 1.87 1.76
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 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
Options exercised during the year 6 359 994 - - - 360 000
Dividends - - - - (2 125 200) (2 125 200)
Total changes 6 359 994 (10 229) - 4 274 712 4 624 483
Balance at 1 March 2014 1 206 16 275 029 156 546 76 129 871 93 594 733 186 157 385
Changes in equity
Total comprehensive income for the year - - - (646 140) 7 560 970 6 914 830
Transfer of share based payment - - (55 091) - 55 091 -
Share based payment reserve movement - - 23 020 - - 23 020
Options exercised during the year 6 381 594 - - - 381 600
Dividends - - - - (2 273 625) (2 273 625)
Total changes 6 381 594 (32 071) (646 140) 5 342 436 5 045 825
Balance at 28 February 2015 1 212 16 656 623 124 475 75 483 731 98 937 169 191 203 210
CONDENSED CONSOLIDATED REVIEWED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED
28 February 2015 28 February 2014
Reviewed Audited
R R
Cash flows from Operating Activities 12 418 457 12 741 368
Cash generated from operations 20 020 267 16 808 764
Interest income 201 101 382 026
Finance costs (4 144 033) (2 829 996)
Tax paid (3 658 878) (1 619 426)
Cash flows from Investing Activities (23 906 910) (19 960 307)
Purchase of property, plant and equipment (24 759 334) (19 808 441)
Sale of property, plant and equipment 246 042 75 052
Decrease in timeshare development 2 383 602 171 779
Increase in long term debtors (1 777 220) (398 697)
Net cash from Financing Activities 11 145 565 (2 655 861)
Proceeds on share issue 381 600 360 000
Proceeds / (repayment) of other financial liabilities 13 037 590 (890 661)
Dividends paid (2 273 625) (2 125 200)
Total cash outflow for the year (342 888) (9 874 800)
Cash and cash equivalents at the beginning of the year (407 739) 9 467 061
Total cash and cash equivalents at the end of the year (750 627) (407 739)
COMMENTARY ON GOODERSON LEISURE CORPORATION LIMITED
GROUP OVERVIEW AND FINANCIAL RESULTS
Trading during the financial year under review was good in a tough economic environment, despite the pressure being experienced
by participants in the small and medium business sectors.
Gooderson Leisure has continued to allocate capital in terms of growth strategy and accordingly has invested more than R20 million
on expansion projects and major hotel refurbishments to benefit from the upturn in tourism.
Group revenue from continuing operations increased by 7% to R128.31 million (2014: R120.25 million).
Operating expenses were well managed and increased by 4% to R88.73 million (2014: R85.33 million) following the implementation
of various cost containment measures.
EBITDA increased by 23% from R16.22 million to R19.98 million and EBITDA margin was two percentage points up on last year.
Net interest paid is 61% up on last year due to the expansion at Monks Cowl Golf Resort and refurbishing and upgrades at
Fabz Garden Hotel and Conference Centre, Drakensberg Gardens Golf and Leisure Resort and Natal Spa Hot Springs and Leisure
Resort respectively.
Group adjusted headline earnings for the financial year ended 28 February 2015 at R7.54 million is 18% above the previous year.
The net asset value per share increased from 154.73 cents per share to 158.08 cents per share.
SEGMENTAL ANALYSIS
The group is divided into two operating segments namely Hotels / Lodges and Timeshare.
Profit before
FINANCIAL YEAR END 28 FEBRUARY 2015 Revenue taxation Assets Liabilities
R R R R
Hotels and Lodges 105 918 272 8 933 477 241 815 315 65 764 552
Timeshare 22 398 215 4 911 532 34 288 330 8 205 112
Total segments 128 316 487 13 845 009 276 103 645 73 969 664
Income from equity - 9 468 - -
Net Interest (Paid) - (3 942 932) - -
Unallocated corporate assets and liabilities - - 18 872 048 29 802 819
Total 128 316 487 9 911 545 294 975 693 103 772 483
SOCIAL RESPONSIBILITY AND EMPOWERMENT
The group recognises that it has a huge responsibility to the broader community to act in a socially responsible manner, for the
benefit of all citizens. Contributions to selected training institutions and community related projects continue.
The group has also adopted the Black Economic Empowerment (B-BBEE) and employment equity, training and procurement policies
to improve the overall scorecard as required by the various regulators. The group has achieved a level 4 B-BBEE rating.
PROSPECTS AND DEVELOPMENT ACTIVITY
The group continues to pursue significant opportunities to invest capital in its growth and expansion strategy.
We are converting some self-catering rooms into hotel rooms at Drakensberg Gardens Golf and Leisure Resort and also want to
create an Adventure Park.
In order to ensure security of electricity supply, most of our properties will have backup diesel generators installed during the
current financial year for use during power outages.
The construction of 24 rooms at Monks Cowl Golf Resort as well as “Good Value” “Good Fun” activities was completed in
March 2015.
The group remains cautiously optimistic about the future long term growth prospects and is well positioned to take advantage of
market improvements as they arise.
DECLARATION OF DIVIDENDS
The board has approved and declared final dividend number (7) seven of 2.025 cents per share in respect of the financial year ended
28 February 2015 payable to shareholders recorded in the register of the company at the close of business on the record date
appearing below.
The dividend will be subject to Dividends Withholding Tax (DWT). In accordance with the JSE Listings requirements the following
additional information is disclosed:
1. The dividend has been declared out of income reserves;
2. The local Dividend Tax rate is 15%;
3. The net local dividend amount is 1.72125 cents per share for shareholders liable to pay the new Dividends Tax and 2.025 cents
per share for shareholders exempt from paying the new Dividends Tax;
4. The issued ordinary share capital of Gooderson is 125 000 000 ordinary shares; and
5. The company’s tax reference number is 9005053203.
Shareholders are advised of the following dates in respect of the final dividends:
2015
Last day to trade shares cum div Friday 17 July
Shares trade ex dividend Monday 20 July
Record date Friday 24 July
Payment date Monday 27 July
Share certificates may not be dematerialised or rematerialised during the period Monday, 20 July 2015 and Friday, 24 July 2015,
both days inclusive.
SUBSEQUENT EVENTS
The group has entered into a long term lease agreement with Motsa Properties for the lease of the Beach Hotel in Durban effective
1 June 2015.
The directors have entered into negotiations for the sale of the Fabz Garden Hotel and Conference Centre in Gauteng.
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 2015, 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.
For and on behalf of the board.
AW Gooderson R Nannoolal
Executive Chairman Financial Director
27 May 2015
CORPORATE INFORMATION
Directors : A W Gooderson, G M Castleman, C M de Klerk, R Nannoolal, J Lakaram
*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: 27/05/2015 09:03:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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