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Condensed Consolidated Reviewed Annual Results for the year ended 29 February 2016
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 29 FEBRUARY 2016
PERFORMANCE HIGHLIGHTS
-REVENUE increased by 17%
-CASH GENERATED FROM OPERATIONS R21M
CONDENSED CONSOLIDATED REVIEWED STATEMENT OF FINANCIAL POSITION AS AT
29 February 2016 28 February 2015
Reviewed Audited
R R
ASSETS
Non-current assets 250 026 495 262 553 935
Property, plant and equipment 216 806 779 230 562 092
Goodwill 999 563 999 563
Investments in associates 1 126 793 1 073 197
Timeshare development 12 832 142 13 308 048
Deferred tax 7 962 291 7 667 572
Long term debtors 10 298 927 8 943 463
Current assets 23 340 840 22 909 802
Inventories 2 054 350 2 022 338
Other financial assets 175 000 175 000
Current tax receivable 797 280 444 323
Trade and other receivables 16 311 106 16 336 216
Cash and cash equivalents 4 003 104 3 931 925
Non-current assets held for sale and assets of disposal groups 31 022 554 9 511 956
Total Assets 304 389 889 294 975 693
EQUITY AND LIABILITIES
Equity 191 475 809 191 203 210
Stated capital 16 657 835 16 657 835
Reserves 74 227 525 75 608 206
Retained income 100 590 449 98 937 169
Liabilities
Non-Current Liabilities 63 785 757 66 207 887
Other financial liabilities 31 006 779 34 229 267
Deferred income 2 000 694 2 572 398
Deferred tax 30 778 284 29 406 222
Current liabilities 49 022 271 37 479 039
Loans from shareholders 4 600 000 -
Other financial liabilities 13 242 950 11 644 560
Current tax payable 529 320 311 040
Trade and other payables 24 272 953 20 269 193
Deferred income 571 694 571 694
Bank overdraft 5 805 354 4 682 552
Liabilities of disposal groups 106 052 85 557
Total liabilities 112 914 080 103 772 483
Total Equity and Liabilities 304 389 889 294 975 693
Weighted number of shares in issue 121 236 000 120 950 236
Net asset value per share (cents) 157.94 158.08
Net tangible asset value per share (cents) 157.11 157.26
CONDENSED CONSOLIDATED REVIEWED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED
29 February 2016 28 February 2015
Reviewed Audited
R R
Revenue 150 329 990 128 316 487
Cost of sales (24 867 357) (19 598 050)
Gross profit 125 462 633 108 718 437
Net operating expenses (107 988 578) (88 733 437)
EBITDA 17 474 055 19 985 000
Depreciation (6 806 305) (6 139 991)
Profit before interest and taxation 10 667 750 13 845 009
Profit from Associates 53 596 9 468
Net interest paid (5 278 204) (3 942 932)
Profit before taxation 5 443 142 9 911 545
Taxation (1 323 400) (2 350 575)
Profit for the year 4 119 742 7 560 970
Other comprehensive loss:
Reversal of revaluation surplus on property valuation - (897 417)
Taxation related to components of other comprehensive income - 251 277
Change in Capital Gains Tax rate (1 396 249)
Other comprehensive income for the year net of taxation (1 396 249) (646 140)
Total comprehensive income 2 723 493 6 914 830
Reconciliation of Headline Earnings:
Profit attributable to ordinary shareholders 4 119 742 7 560 970
Adjusted for (loss) / profit on disposal of property, plant and equipment 28 862 (20 220)
Headline Earnings 4 148 604 7 540 750
Weighted average shares in issue on which earnings are based 121 236 000 120 950 236
Diluted number of shares in issue 121 236 000 120 973 897
Number of shares in issue 125 000 000 125 000 000
SUPPLEMENTARY INFORMATION
EARNINGS, HEADLINE EARNINGS PER SHARE
Earnings per share (EPS) (cents) 3.40 6.25
Headline earnings per share (HEPS) (cents) 3.42 6.23
Diluted earnings per share (cents) 3.40 6.25
Diluted headline earnings per share (cents) 3.42 6.23
Dividends per share (cents) 2.02 1.87
CONDENSED CONSOLIDATED REVIEWED STATEMENT OF CHANGES IN EQUITY
Stated Share Share based Revaluation Retained Total
share premium payment reserve income equity
capital reserve
R R R R R R
Balance at 1 March 2014 1 206 16 275 029 156 546 76 129 871 93 594 733 186 157 385
Profit for the year - - - - 7 560 970 7 560 970
Other comprehensive loss - - - (646 140) - (646 140)
Total comprehensive income for the year - - - (646 140) 7 560 970 6 914 830
Transfer of share based payment reserve - - (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 contributions by and distributions to 6 381 594 (32 071) - (2 218 534) (1 869 005)
owners of company recognised directly in
equity
Balance at 1 March 2015 1 212 16 656 623 124 475 75 483 731 98 937 169 191 203 210
Transfer of share premium 16 656 623 (16 656 623) - - - -
Profit for the year - - - - 4 119 742 4 119 742
Other comprehensive loss - - - (1 396 249) - (1 396 249)
Total comprehensive income for the year - - - (1 396 249) 4 119 742 2 723 493
Share based payment reserve movement - - 15 568 - - 15 568
Dividends - - - - (2 466 462) (2 466 462)
Total contributions by and distributions to - - 15 568 - (2 466 462) (2 450 894)
owners of company recognised directly in
equity
Balance at 29 February 2016 16 657 835 - 140 043 74 087 482 100 590 449 191 475 809
CONDENSED CONSOLIDATED REVIEWED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED
29 February 2016 28 February 2015
Reviewed Audited
R R
Cash flows from operating activities
Net cash from operating activities 14 553 794 12 418 457
Cash from operations 21 608 981 20 020 267
Interest income 132 023 201 101
Finance costs (5 410 227) (4 144 033)
Tax paid (1 776 983) (3 658 878)
Cash flows from investing activities
Net cash from investing activities (16 114 857) (23 906 910)
Purchase of property, plant and equipment (15 235 299) (24 759 334)
Proceeds on sale of property, plant and equipment - 246 042
Decrease in timeshare development 475 906 2 383 602
Increase in long term debtors (1 355 464) (1 777 220)
Cash flows from financing activities
Net cash from financing activities 509 440 11 145 565
Proceeds on share issue - 381 600
(Repayment of) proceeds from other financial liabilities (1 624 098) 13 037 590
Proceeds from shareholders’ loans 4 600 000 -
Dividends paid (2 466 462) (2 273 625)
Total cash outflow for the year (1 051 623) (342 888)
Cash at the beginning of the year (750 627) (407 739)
Total cash at end of the year (1 802 250) (750 627)
COMMENTARY ON GOODERSON LEISURE CORPORATION LIMITED
GROUP OVERVIEW AND FINANCIAL RESULTS
The Directors of Gooderson Leisure present the Condensed Consolidated Reviewed Annual Results for the Financial Year
Ended 29 February 2016 which are available on the company’s website: www.goodersonleisure.co.za.
Trading conditions were tough and was compounded by load shedding, interest rate hikes, spread of the Ebola Virus and
South Africa’s onerous new visa laws. Generators have been installed at 3 (three) of our properties.
Total revenue for the group grew by 17% to R150.32 million (2015: R128.31 million) assisted by the takeover of Beach Hotel
in Durban on 1 June 2015.
Operating expenses increased by 22% to R107.98 million (2015: R88.73 million) due to the acquisition of the current assets
and business of Beach Hotel and high maintenance costs to ensure that our assets remain best in class.
EBITDA was R17.47 million (2015: 19.98 million) and the EBITDA margin was 4 (four) percentage points down on last year.
Depreciation at R6.80 million (2015: R6.13 million) is 11% up on the prior year due to capital spend during the year, the
inclusion of Beach Hotel and Monks Cowl Golf Resort in Winterton, Central Drakensberg for the full 12 months as the new
developments have been completed.
Net Finance Costs of R5.27 million (2015: R3.94 million) is 34% above the prior year due to the increase in short term debt and
the reduction in net cash, to fund the growth strategy.
The group posted a profit after tax of R4.11 million (2015: R7.56 million) due to the tough economic trading conditions,
upgrades and refurbishment programmes done in the winter months.
During the period under review the following change was made to authorised Share Capital:
Par Value Shares were converted to Nil Par Shares and the Share Premium now forms part of Stated Capital.
SEGMENTAL ANALYSIS
The group is divided into two operating segments namely Hotels / Lodges and Timeshare.
Profit before
FINANCIAL YEAR END 29 FEBRUARY 2016 Revenue taxation Assets Liabilities
R R R R
Hotels and Lodges 126 169 375 5 812 623 227 711 181 67 140 329
Timeshare 24 160 615 4 855 127 35 594 790 9 760 095
Total segments 150 329 990 10 667 750 263 305 971 76 900 424
Income from equity - 53 596 - -
Net Interest (Paid) - (5 278 204) - -
Unallocated corporate assets and liabilities - - 41 083 918 36 013 656
Total 150 329 990 5 443 142 304 389 889 112 914 080
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
PROSPECTS AND DEVELOPMENT ACTIVITY
Trading is expected to remain under pressure due to the ongoing macro-economic conditions and weaker consumer
sentiment. Nevertheless, the group remains confident in achieving good returns from the growth strategy once the economy
begins to show positive signs.
Construction of an additional 4 (four) lodge rooms at Dumazulu Kraal in Hluhluwe is progressing well and is on track for
completion in July 2016 also constructing an adventure golf course in Kloppenheim and should be ready in November 2016.
Various cosmetic changes have been planned for this year at some of our properties in keeping with the brand “Good Value,
Good Fun”.
DIVIDEND POLICY
No dividend has been declared for the financial year ended 29 February 2016 due to tough economic conditions. It remains
the policy of the group to review the dividend annually in light of the group`s cash flow, gearing and capital requirements.
SUBSEQUENT EVENTS
The Directors have signed an agreement for the sale of the Fabz Garden Hotel and Conference Centre in Gauteng and Sanrock
Resort and Conference Centre in Modimolle and this was announced on SENS on the 18 May 2016.
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 29 February 2016, 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
31 May 2016
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, *J E Gooderson (* 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
www.goodersontimeshare.co.za
Date: 31/05/2016 08:01:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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