Wrap Text
Audited provisional consolidated financial results
for the year ended 29 February 2016 and cash dividend declaration
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
Tax reference number: C075372-01-01-7
Audited provisional announcement of consolidated financial results
for the year ended 29 February 2016 and a cash dividend
declaration
www.wilderness-group.com
www.wilderness-safaris.com
Highlights
– Revenue decrease of 1% to P935 million
- EBITDA increase of 10% to P199 million
- Profit before tax up 11% to P120 million
- HEPS decrease of 5% to 31 thebe
- Cash generated by operations up 3% to P135 million
- TRevPAR decrease of 4%*
- Occupancy percentage down to 58% from 63% (restated)
- Cash dividend of 15 thebe per share
Summarised consolidated statement of comprehensive income
Audited Audited
Year ended Year ended
P’000 29 Feb 2016 Change 28 Feb 2015
Revenue 935 087 (1%) 944 586
Cost of sales (276 186) (301 972)
Gross profit 658 901 642 614
Other gains 374 7 056
Operating expenses (486 206) 2% (476 072)
Foreign exchange gains 26 241 8 103
Operating profit for year
before items listed below
(EBITDA) 199 310 10% 181 701
Net impairment reversal/(loss) 796 (10 175)
Depreciation and amortisation (64 736) (55 896)
Operating profit 135 370 17% 115 630
Net finance costs (4 288) (4 607)
Unrealised foreign exchange
loss on loans (12 215) (6 519)
Share of associate company
profit 1 502 4 191
Profit before taxation 120 369 11% 108 695
Taxation (46 241) (32 463)
Profit for the year 74 128 (3%) 76 232
Other comprehensive(loss)/income
Items that may be subsequently
reclassified to profit or loss
Exchange differences on
translating foreign operations: (11 824) 9 106
Equity holders of the
Company (1 950) 12 336
Non-controlling interest 2 376 13
Net investment in foreign
operations (12 250) (3 243)
Total comprehensive income
for the year 62 304 85 338
Profit attributable to:
Owners of the Company 76 525 72 611
Non-controlling interest (2 397) 3 621
74 128 76 232
Total comprehensive income
attributable to:
Owners of the Company 62 325 81 704
Non-controlling interest (21) 3 634
62 304 85 338
Number of shares issued
(thousands)
Issued 231 882 231 882
Weighted average 231 882 231 588
Diluted weighted average 242 195 237 712
Earnings per share (thebe)
Basic 33.00 5% 31.35
Diluted 31.60 3% 30.55
Basic headline 31.03 (5%) 32.49
Diluted headline 29.71 (6%) 31.66
*Total revenue per available room (TRevPAR) is calculated
as total revenue from travel experience divided by total
available rooms.
Summarised consolidated statement of financial position
Audited Audited
Year ended Year ended
P’000 29 Feb 2016 28 Feb 2015
Assets
Non-current assets 554 950 505 514
Property, plant and equipment 483 688 424 634
Goodwill 32 901 34 664
Intangible assets 10 743 14 683
Investments in associates 10 100 9 598
Deferred tax assets 17 518 21 935
Current assets 378 621 410 907
Inventories 24 442 23 480
Receivables and prepayments 95 523 98 072
Current tax receivable 9 525 6 155
Bank balances and cash 249 131 283 200
Total assets 933 571 916 421
Equity and liabilities
Equity attributable to the owners
of the Company 481 287 449 026
Stated capital 156 086 156 086
Foreign currency translation
reserve 5 733 19 933
Common control reserve (73 324) (73 324)
Other non-distributable reserves 19 318 21 599
Share-based payment reserve 23 051 15 435
Retained income 350 423 309 297
Non-controlling interest (11 759) (4 995)
Total equity 469 528 444 031
Non-current liabilities 72 411 89 376
Borrowings 43 423 60 567
Deferred tax liabilities 28 988 28 809
Current liabilities 391 632 383 014
Trade and other payables 310 873 305 079
Borrowings – current portion 32 116 27 423
Current tax liabilities 1 477 1 229
Bank overdrafts 47 166 49 283
Total liabilities 464 043 472 390
Total equity and liabilities 933 571 916 421
Net asset value per share (thebe 208 194
Net tangible asset value per share
(thebe) 189 173
Additional disclosure
Audited Audited
Year ended Year ended
P’000 29 Feb 2016 28 Feb 2015
Reconciliation between profit
attributable to owners of the
Company and headline earnings
Profit attributable to owners of
the Company 76 525 72 611
Adjustments
Gains and compensation on disposal
and impairment of property, plant
and equipment (6 321) (10 834)
Profit on disposal of interests in
subsidiaries – (1 057)
Loss on disposal of investment in
associate – 4 998
Impairment of assets (911) 9 523
Impairment of Intangible assets – 500
Tax effects of adjustments 2 402 (903)
Minority interest 250 411
Headline earnings 71 945 75 249
Commitments
Capital
Authorised by directors and
contracted for 1 783 33 321
Not yet contracted for but
authorised by directors 211 534 121 884
213 317 155 205
It is intended to finance capital
expenditure from working capital
generated and new borrowing facilities
Operating leases
Minimum lease payments due
– within one year 21 369 23 618
– in second to fifth year inclusive 59 280 59 342
– after fifth year 89 743 92 420
170 392 175 380
Borrowings
Non-current
Interest bearing 63 053 76 485
Non-interest bearing 12 486 11 505
Less: Current portion of long-term
liabilities (32 116) (27 423)
43 423 60 567
Summarised consolidated statement of cash flow
Audited Audited
Year ended Year ended
P’000 29 Feb 2016 28 Feb 2015
Net cash generated from
operating activities 135 022 130 799
Net cash used in investing
activities (128 270) (92 346)
Net cash used in financing
activities (64 679) (69 659)
Net decrease in cash and
cash equivalents (57 927) (31 206)
Unrealised exchange gains on
foreign cash balances 25 975 14 404
Cash and cash equivalents at the
beginning of the year 233 917 250 719
Cash and cash equivalents at
the end of the year 201 965 233 917
Summarised consolidated statement of changes in equity
Audited Audited
Year ended Year ended
P’000 29 Feb 2016 28 Feb 2015
Opening balance 444 031 374 948
Share issue on settlement of
share scheme – 2 383
Minority portion of dividend paid (3 919) (2 208)
Dividends paid (34 782) (23 100)
Total comprehensive income for the year 62 304 85 338
Net share-based payment reserve 7 616 5 209
Other (5 722) 1 461
Closing balance 469 528 444 031
Comprising:
Stated capital 156 086 156 086
Foreign currency translation reserve 5 733 19 933
Common control reserve (73 324) (73 324)
Other non-distributable reserves 19 318 21 599
Share-based payment reserve 23 051 15 435
Retained income 350 423 309 297
Total shareholders’ equity 481 287 449 026
Non-controlling interest (11 759) (4 995)
Total equity 469 528 444 031
Segmental information
Audited Audited
Year ended Year ended
P’000 29 Feb 2016 28 Feb 2015
Segment profit
Botswana 123 736 111 076
Kenya (1 233) (972)
Namibia 17 787 17 853
South Africa 32 067 29 843
Zambezi 342 8 746
Intergroup (4) (4)
Group 172 695 166 542
Depreciation and amortisation
Botswana (31 951) (28 790)
Kenya (23) (9)
Namibia (10 826) (9 787)
South Africa (7 112) (6 650)
Zambezi (14 824) (10 660)
Group (64 736) (55 896)
Transactions unallocated to a segment
Other gains 374 7 056
Foreign exchange (losses)/gains 26 241 8 103
Impairment losses 796 (10 175)
Interest paid (5 748) (7 108)
Interest received 1 460 2 501
Unrealised foreign exchange loss
on loans (12 215) (6 519)
Associate earnings 1 502 4 191
Profit before taxation 120 369 108 695
Taxation (46 241) (32 463)
Profit after tax 74 128 76 232
Segmental assets
Botswana 516 032 442 368
Kenya 2 465 1 040
Namibia 133 357 149 230
Rwanda 6 619 –
South Africa 208 278 252 212
Zambezi 111 601 108 564
Central financing activities
and eliminations (44 781) (36 993)
Group 933 571 916 421
Founded in Botswana in 1983, Wilderness Holdings is an award-winning
and globally respected ecotourism business established in
the prime wilderness and wildlife areas of southern and East Africa.
Pivoted off the continent’s most diverse portfolio of luxury safari
camps the Group operates a vertically integrated business model that
combines the owning of product (safari camps) with ownership of
associated support services (bush airline, transfers and touring
companies), as well as ownership of a marketing, sales and
reservations entity. Collectively these are defined as the “travel
experience” and serve to ensure the certainty of supply, ownership
of the supply chain and a seamless service to both the client
(the travel trade) and the consumer (our guest).
The 2015 financial year saw the completion of the largest ever
cross-border translocation of Critically Endangered black rhino, in
close partnership with Wilderness Safaris and the Botswana, South
African and Zimbabwean Governments. This was the latest phase in a
collaborative project that spans over 15 years and has grown to
become one of the most important international rhino translocations
ever undertaken in the history of conservation.
Our values provide a moral compass and framework for decision making
and day-to-day operations within our organisation
COMMERCE
We create life-changing journeys for our guests and clients and work
closely with our government partners, conservation and community
stakeholders and shareholders, to ensure the ongoing financial
success and sustainability of our business.
Community
People are at the heart of our business. We hope to provide
opportunities and growth to inspire our staff and external
communities to learn about nature, love and conserve it, and to
realise the importance of ecotourism.
Culture
We respect and promote our unique Wilderness culture, as well as
those of our employees and neighbouring rural communities. We hope to
positively impact a global culture of respect and care for the
environment.
Conservation
We aim to maximise the positive impact of our operations on
biodiversity conservation and to build and manage our camps in the
most eco-friendly way possible to minimise any negative impacts.
Commentary
In a challenging environment influenced by the hangover from the
Ebola outbreak of 2014, the strength of the US Dollar against other
hard currencies, and to a lesser extent the South African visa
regulations and xenophobia, the Group delivered pleasing results.
While EBITDA for the first half of the year was up 6% on the prior
period, the second half was 22% better than the corresponding
period, with the result that EBITDA for the full year was 10%
up on the prior year.
Financial review
The average rate of exchange of the Botswana Pula against the US
Dollar depreciated by 15% from P9.08 to P10.42, whilst the Rand
depreciated against the Pula by 7% from R1.21 to R1.29.
Financial performance
As reported at half-year, two mobile camps were converted to fully
inclusive camps under the Wilderness Safaris’ Adventures category,
resulting in a restatement of the prior year available bednights and
bednights sold. The impact of this restatement was negligible.
Baobab Lodge and Hoanib Skeleton Coast Camp were included for the
full financial year, compared to eight and seven months respectively
in the prior year. In addition, Linkwasha Camp opened in May of the
current year while Moremi Tented Camp closed at the beginning of the
financial year. As a result available bednights increased by 3% from
233 108 (restated) to 240 748.
Demand was weak during the first half because of the Ebola outbreak
and the strength of the US Dollar against other destination
currencies. The effect of these factors was most notable in the Tour
Series category (lowest yield) out of the United States and these
bednight sales declined by 23%. Excluding the Tour Series category,
bednights sold were up 1%. Overall, bednights sold decreased by 5%
from 147 136 (restated) to 140 162. The favourable exchange rate,
coupled with favourable changes in the product mix, cushioned the
fall in revenue to just 1%.
Gross margin has increased by 2% to 70% as a result of the stronger
USD against the BWP and the reduced contribution by the Tour Series
category.
EBITDA margin has improved from 19% to 21% with operating costs well
contained at a 2% increase despite the growth in available bednights.
There was a 59% decrease in the annual incentive bonus and share
scheme to P12 million from P29 million. Excluding this, operating
costs would have increased by 6%. The 7% weakening of the Rand and
the Namibian Dollar against the Pula resulted in a benefit on
conversion of results for South African and Namibian businesses to
Pula reported results.
Botswana and South Africa reported an improved segmental profit of
11% and 7%, respectively. Namibia was flat, mainly as greater losses
were incurred by the flying business honouring existing bookings made
prior to changes to flight arrangements. Zambezi reported a decline
in segmental profit largely because of discounted flying to promote
occupancy and lower demand from Asia for the road transfer business.
The level of forward cover taken to hedge against foreign exchange
conversion risk remained at zero. This will continue until, in the
opinion of the Board, the risks to the business make cover necessary.
Reversals of impairment amounted to P0.8 million. These arose mainly
from the P3.4 million reversal of previous impairments of our Zambian
assets as a result of lease renewals, offset by P2.5 million
impairment due to damage to two aircraft. The remaining balance is
attributable to impairment of loans receivable and property, plant
and equipment.
Net finance costs remained flat at P4.3 million, compared with
P4.6 million last year.
The Group’s effective tax rate increased from 30% in the prior year
to 38% in the current year. The effective tax rate is higher than the
Group’s nominal rate of 22%. This is largely due to increased
dividend payments by the subsidiary companies to the holding company
in the current year, resulting in additional withholding and
dividends taxes, higher tax rates in other jurisdictions, expenses
not claimable for tax purposes and losses incurred by entities where
deferred tax assets could not be recognised.
Financial position and cash flow
Capital expenditure and commitments
Approximately P131 million was invested in capital expenditure.
P46 million related to expansion of the business whereas P85 million
was for maintaining existing operations. Expansion included four new
aircraft, the completion of the new Linkwasha Camp in Zimbabwe, the
commencement of the investment in Rwanda and new vehicles. Maintaining
existing operations included the completion of the solar power project
at Vumbura Plains Camp, the refurbishment of a number of camps,
replacement of vehicles and the purchase of parts for the aircraft
fleet. In addition, the Group has elected to reassess its
rehabilitation policy and recognised a provision of P7 million
for the rehabilitation of our lodge sites.
The Board has approved P213 million in capital expenditure for FY17.
P89 million of this relates to new projects including the development
of Bisate Lodge in Rwanda and three camp rebuilds, the largest of
which is for Mombo in Botswana. The remaining capital expenditure
relates to the maintenance and refurbishment of existing camps as
well as ongoing aircraft fleet upgrade.
Shares in issue
No shares were issued in the current year. The Company has
231 882451 shares in issue at 29 February 2016 (2015: 231 882 451)
and the weighted average number of shares in issue for the year
was 231 882 451 (2015: 231 588 301).
Bank and cash
Cash generated improved by 3% due to positive working capital
movements as a result of prepayments and deposits amounting to
P20 million in the prior year in respect of camp refurbishments
and an insurance claim of P7 million.
Net bank balances have decreased by 14% to P202 million as a result
of debt reduction of P9 million, increased capital expenditure and
the increased dividend payment. New facilities amounting to USD35
million to finance the Group’s expansion plans have been negotiated
and are expected to be available for drawdown during May 2016.
Overall, the net asset value per share and net tangible value per
share increased by 7% and 9%, respectively.
Dividend
Notice is hereby given that a final dividend for the year ended
29 February 2016 of 15 thebe per share was declared on Wednesday,
25 May 2016 (13.88 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 or about Monday, 27 June 2016 to those shareholders registered at
the close of business on Friday, 17 June 2016. For JSE registered
shareholders, the last date to trade shall be Thursday, 9 June 2016
and shall commence trading ex the dividend on Friday, 10 June 2016.
The South African branch register will be closed for the purposes
of dematerialisation and rematerialisation within the South African
register, and transfers between the South African and Botswana
registers may not take place, between Friday, 10 June 2016 and
Friday, 17 June 2016, both days inclusive. The dividend shall be
paid in Rand to shareholders on the South African register,
calculated at the Pula to Rand exchange rate on Wednesday,
25 May 2016 which was P1/R1.40 and accordingly the gross dividend
payable is 21 cents per share (17.85 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 231 882 451.
Leases
As reported in the interim results, the leases for the concessions
upon which our Mombo, Little Mombo, Vumbura and Xigera camps are
located expired in mid-2014. These have not yet been renewed as
the structures and the process by which these concessions are
allocated and administered by the Botswana authorities are being
changed in order to improve stability and long-term confidence in
the industry. A number of our competitors are similarly affected.
On the basis of correspondence with senior Government representatives,
the Group is confident that the concessions concerned will be
reissued to existing operators in good standing.
Subsequent events
As announced on 6 April 2016, subject to certain conditions the
Group acquired a 51% stake in the Governors’ Camp Group of
Companies in Kenya and Rwanda for approximately USD6.2 million. No
other material events took place between the reporting date and the
date of this report.
Segmental information
Kenya and Rwanda have been included for the first time, the
comparative figures have been restated accordingly. In the prior year
Kenya was included with Botswana as it was deemed immaterial.
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, in a manner that is
consistent with those applied in the prior year financial statements.
Changes in accounting policies and comparability
The Group has adopted certain new standards, amendments and
interpretations to existing standards which are effective for the
financial year beginning 1 March 2015. The adoption of amendments to
these standards has not had any material impact on previously
reported figures.
Independent auditor’s opinion
The auditors, Deloitte & Touche, have issued their opinion on the
Group’s consolidated financial statements for the year ended
29 February 2016. 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 thereof. 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 Group’s auditors.
Outlook
The Group’s strategic intent has been to invest in African tourism
markets which offer authentic wildlife and safari experiences. The
investment in Governors’ Camp Collection and the development of a new
lodge in Rwanda is in line with that strategy. We expect to integrate
Governors’ Camp operations into our existing business in terms of
systems and processes, while retaining their unique brand and
offering, discrete from that of Wilderness Safaris. The Rwanda
greenfield project of Bisate Lodge is continuing, following the
receipt of our long-term leases. We expect the opening to be in
calendar year 2017.
The existing business is reflecting promising forward occupancies,
with a rebuilt Ruckomechi Camp that opened in Zimbabwe’s Mana
Pools National Park in May 2016, to be followed by a brand new camp,
Little Ruckomechi, in August 2016. We await the renewal of the leases
in Botswana to commence the rebuilding of Mombo Camp.
By order of the Board
Keith Vincent Ami Azoulay
Chief Executive Officer Chief Financial Officer
26 May 2016
Registered office (South Africa): 373 Rivonia Boulevard, Rivonia,
South Africa. PO Box 5219, Rivonia 2128, South Africa
BSE: Primary Listing
JSE: Secondary Listing
JSE Sponsor: Rand Merchant Bank (a division of FirstRand Bank
Limited)
Transfer secretaries: Corpserve Botswana – Computershare
Directors: BBP Tafa (Chairman), M Tollman (Deputy Chairman),
KNW Vincent (CEO), A Azoulay (CFO), DA de la Harpe, JM Hunt, RJ Marnitz,
MW McCulloch, GB Tollman, MPK ter Haar, C Vinsonneau, J Zeitz
Group Company Secretary: S Mganga
Date: 26/05/2016 04:40:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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