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Unaudited Condensed Interim Results For The Six Months Ended 31 August 2016
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 2016
HIGHLIGHTS
- REVENUE UP 22%
- NET CASH GENERATED FROM OPERATIONS UP 62%
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
31 Aug 2016 31 Aug 2015 29 Feb 2016
R’000 R’000 R’000
ASSETS
Non-current assets 241 412 271 379 250 026
Property, plant and equipment 202 362 236 672 216 807
Goodwill 999 999 999
Investment in associates 1 040 966 1 127
Timeshare development 12 533 13 018 12 832
Deferred tax 11 938 9 904 7 962
Long term debtors 12 540 9 820 10 299
Current assets 18 107 25 793 23 341
Inventories 2 201 2 134 2 054
Other financial assets 175 175 175
Current tax receivables 785 49 798
Trade and other receivables 11 423 19 718 16 311
Cash and cash equivalents 3 523 3 717 4 003
Non-current assets held for sale 8 353 9 512 31 022
and assets of disposal groups
Total Assets 267 872 306 684 304 389
EQUITY AND LIABILITIES
Equity capital and reserves 162 400 188 673 191 475
Stated capital 16 658 16 658 16 658
Reserves 57 828 75 616 74 227
Retained income 87 914 96 399 100 590
Non-current liabilities 54 501 65 264 63 786
Other financial liabilities 28 154 33 555 31 007
Deferred income 1 715 2 287 2 001
Deferred tax 24 632 29 422 30 778
Current liabilities 50 930 52 661 49 022
Loans from shareholders 7 600 — 4 600
Other financial liabilities 12 430 15 942 13 243
Current tax payable 816 437 529
Trade and other payables 24 186 26 086 24 273
Deferred income 572 572 572
Bank overdraft 5 326 9 624 5 805
Liabilities of disposal groups 41 86 106
Total liabilities 105 472 118 011 112 914
Total Equity and Liabilities 267 872 306 684 304 389
Shares in issue 121 236 000 121 236 000 121 236 000
Net asset value per share (cents) 133.95 155.62 157.94
Net tangible asset value per share (cents) 133.13 154.80 157.11
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Unaudited Unaudited Audited
31 Aug 2016 31 Aug 2015 29 Feb 2016
R’000 R’000 R’000
Revenue 78 374 64 109 150 330
Cost of Sales (11 455) (9 643) (24 867)
Gross Profit 66 919 54 466 125 463
Net operating expenses (61 945) (49 327) (107 988)
EBITDA 4 974 5 139 17 474
Impairment of assets (14 540) - -
Investment revenue 118 70 132
Finance costs (2 693) (2 622) (5 410)
(Loss) / Income from equity accounted investments (87) (107) 53
Depreciation and impairment (3 698) (3 232) (6 806)
(Loss) / profit before taxation (15 926) (752) 5 443
Taxation 3 250 681 (1 323)
(Loss) / profit for the year (12 676) (71) 4 120
Other comprehensive loss:
Reversal of revaluation surplus on property valuation (22 122) - -
Taxation related to the reversal of revaluation surplus on 5 715 - -
property valuation
Change in Capital Gains Tax rate - - (1 396)
Other comprehensive loss for the year net of taxation (16 407) - (1 396)
Total comprehensive income (29 083) (71) 2 723
Reconciliation of Headline Earnings:
(Loss) / profit attributable to ordinary shareholders (12 676) (71) 4 120
Profit / (Loss) on sale of Assets (45) (22) 29
Impairment loss 14 540
Headline Earnings / (Loss) 1 819 (93) 4 149
Weighted average shares in issue 121 236 000 121 236 000 121 236 000
BASIC, HEADLINE EARNINGS PER SHARE
Basic (loss) / earnings per share (EPS) (cents) (10.46) (0.06) 3.40
Headline earnings /(loss) per share (HEPS) (cents) 1.50 (0.08) 3.42
Diluted (loss) / earnings per share (cents) (10.46) (0.06) 3.40
Diluted headline earnings /(loss) per share (cents) 1.50 (0.08) 3.42
Dividend per share (cents) - - 2.02
CONDENSDED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
31 Aug 2016 31 Aug 2015 29 Feb 2016
R’000 R’000 R’000
Cash flows from operating activities 5 834 3 608 14 554
Cash flows from investing activities (5 168) (9 922) (16 115)
Cash flows from financing activities (666) 1 156 509
Net movement in cash and cash equivalents — (5 156) (1 052)
Cash and cash equivalents at beginning of the period (1 803) (751) (751)
Cash and cash equivalents at end of the period (1 803) (5 907) (1 803)
SEGMENTAL REPORT
31 AUGUST 2016 – UNAUDITED Revenue EBITDA Assets Liabilities
R’000 R’000 R’000 R’000
Hotels and lodges 67 388 3 016 211 911 64 992
Timeshare 10 987 1 958 33 670 7 391
Total segments 78 375 4 974 245 581 72 383
Unallocated corporate assets and liabilities — — 22 291 33 089
Total 78 375 4 974 267 872 105 472
31 AUGUST 2015 – UNAUDITED Revenue EBITDA Assets Liabilities
R’000 R’000 R’000 R’000
Hotels and lodges 53 276 2783 231 131 81 466
Timeshare 10 832 2356 31 887 6 213
Total segments 64 109 5139 263 018 87 679
Unallocated corporate assets and liabilities — — 43 666 30 332
Total 64 109 5 139 306 684 118 011
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 2015 16 658 124 75 484 75 608 98 937 191 203
Profit for the year — — — — 4 119 4 119
Other comprehensive loss — — (1 396) (1 396) — (1 396)
Total comprehensive income for the year — — (1 396) (1 396) 4 119 2 723
Share based payments reserve movement — 16 — 16 — 16
Transfer of share premium — — — — — —
Dividends — — — — (2 467) (2 467)
Total contributions by and distributions to owners — 16 — 16 (2 467) (2 451)
of company recognised directly in equity
Balance at 1 March 2016 16 658 140 74 087 74 228 100 590 191 476
Loss for the year — — — — (12 676) (12 676)
Other comprehensive loss — — (16 407) (16 407) — (16 407)
Total comprehensive Loss for the year — — (16 407) (16 407) (12 676) (29 083)
Share based payment reserve movement — 7 — 7 — 7
Total contributions by and distributions to owners — 7
— 7 — 7
of company recognised directly in equity
Balance at 31 August 2016 16 658 147 57 680 57 828 87 914 162 400
COMMENTARY
The directors of Gooderson Leisure present the unaudited results for the half year ended 31 August 2016 which are
available on the company’s website: www.goodersonleisure.co.za.
The results show the consolidated position of Gooderson Leisure compared to results for the half year ended
31 August 2016 and the audited results for the Financial Year Ended 29 February 2016.
REVIEW OF OPERATIONS
Trading conditions during the first half of the financial year reflected continued pressure on the consumer due to the tough
economic environment. Despite external factors the group remains focused on improving occupancies, enhancing weak
performing areas, the continuation of stringent cost containment and improving operating efficiencies.
Year on year growth was, however achieved in both Hotels and Lodges and Timeshare and the revenues were positively
impacted by various projects which we have done the previous year, including the acquisition of the business
operations of the Beach Hotel in Durban on 1 June 2015.
Net operating expenses increased substantially to R61.94 million (2015: R49.33 million) due to the full six months
trading of the Beach Hotel, high maintenance costs and the misappropriation of funds of R2.9 million.
The impairment charge of R14.54 million was a result of the revaluation of the group property portfolio based on the
asset’s market value which has been significantly reduced. The property valuations were performed by an independent
valuer Mr T.D. Labuscagne Professional Valuer –Reg No. 1374 Fellow, SA Institute of Valuers, of Real Estate Valuations.
The exception was the Gooderson Sanrock Resort and Conference Centre for which an offer to purchase was received,
as announced on SENS on 20 September 2016.
Total revenue for the group rose by 22% to R78.37 million (2015: R64.11 million) for the six months ended 31 August 2016.
EBITDA was R4.97 million (2015: R5.13 million) and the EBITDA margin was two percentage points down on the
previous period.
Depreciation at R3.69 million (2015: R3.23 million) is 14% up on the previous year due to various expansionary projects
and the purchase of assets.
The group has posted a loss of R12.67 million of the period under review.
Net cash generated from operations for the period increased by 62% on the previous period to R5.83 million.
PROSPECTS
The declining business confidence in South Africa is expected to continue beyond 2016, nevertheless the group remains
cautiously optimistic about the improvement in the second half of the financial year and is well positioned to take
advantage of market improvements as they arise.
SUBSEQUENT EVENTS
On 12 July 2016 the Board has received a Letter of firm intention from the Alju Family Trust in terms of Regulation 101
of the Companies Regulations, 2011, in respect of the proposed delisting of Gooderson following approval and
implementation of a scheme of arrangement in terms of section 114 of the Companies Act, 2008. A revised offer of 85
cents to all remaining shareholders was submitted to the Board of Directors on 26 October 2016.
The directors have signed an agreement for the sale of Gooderson Sanrock Resort and Conference Centre in Modimolle
which was announced on SENS on 20 September 2016.
CONDENSED NOTES TO THE UNAUDITED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2016
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 29 February 2016 and have not been audited or reviewed by Gooderson’s auditors.
These condensed group interim financial statements were prepared by Rajen Nannoolal, the Financial Director.
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.
3) INTERIM DIVIDEND
The board has considered it prudent not to declare a dividend.
On behalf of the board.
Alan Gooderson Rajen Nannoolal
Executive Chairman Financial Director
28 October 2016
CORPORATE INFORMATION
Directors AW Gooderson, G M Castleman, R Nannoolal, C M De Klerk, J Lakaram, B R Warmback*, S Q Moloko*,
J E Gooderson*, M A Pottier* (Non-Executive Directors)
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 - 16th 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, 2 Kikembe Drive, La Lucia Ridge, 4320
(PO Box 4130, The Square, Umhlanga Rocks, 4320)
Tel: 087 335 3500
Company’s Website: www.goodersonleisure.co.za
Date: 28/10/2016 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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