Wrap Text
Unaudited announcement of condensed consolidated financial results for the six months ended 31 August 2017
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
Unaudited interim announcement of condensed consolidated financial results
For the six months ended 31 August 2017
Founded in Botswana in 1983, Wilderness Holdings is an award-winning
and globally respected ecotourism company present 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
ownership of product (safari camps), support services (bush airline, and
touring and transfer services), and marketing, sales and reservations
businesses. Collectively, these are termed "the travel experience" and
serve to ensure certainty of supply, ownership of the supply chain and a
seamless service to both the client (the travel trade) and the consumer
(our guest).
Our Blueprint-The 4Cs
The Wilderness Group is committed to ensuring the sustainability of our
operations. This commitment is part of our DNA, with our Vision and
Values based on our 4Cs sustainability ethos of:
- Commerce
- Community
- Culture
- Conservation
Highlights
- Revenue up 10% to P705 million
- EBITDA up 2% to P179 million
- Adjusted EBITDA* up 8%
- Total revenue per available room** down 5%
- Profit after tax up 25% to P117 million
- Cash generated by operations up 13% to P218 million
- HEPS up 26% to 43 thebe per share
- Occupancy rate down to 65% from 66%
* Adjusted EBITDA excludes the effects of the Governors' acquisition and
foreign exchange (losses)/gains.
** Total revenue per available room (TRevPar) is calculated as total
revenue from Travel Experience divided by total available rooms.
Condensed consolidated statement of comprehensive income
Unaudited Unaudited
Six Six Audited
months months year
ended ended ended
31 Aug 31 Aug 28 Feb
P'000 2017 Change 2016 2017
Revenue 704 949 10% 641 912 1 107 467
Cost of sales (209 826) (184 406) (353 447)
Gross profit 495 123 457 506 754 020
Other gains 581 2 000 16 182
Operating expenses (309 161) 11% (277 278) (550 018)
Foreign exchange losses (7 754) (7 400) (11 317)
Operating profit for year
before items listed below
(EBITDA) 178 789 2% 174 828 208 867
Impairment loss (4 231) (3 133) (3 165)
Depreciation and
amortisation (41 273) (36 121) (76 927)
Operating profit 133 285 (2%) 135 574 128 775
Net finance costs (9 473) (3 297) (9 195)
Unrealised foreign exchange
gains/(losses) on loans 9 319 (5 416) (20 806)
Share of associate company
profit 2 035 1 926 2 600
Profit before taxation 135 166 5% 128 787 101 374
Taxation (18 395) (35 205) (38 623)
Profit for the period 116 771 25% 93 582 62 751
Other comprehensive
(loss)/income (2 211) 4 764 17 059
Items that may be
subsequently reclassified
to profit or loss:
Exchange differences on
translating foreign
operations (2 211) 4 764 17 059
Total comprehensive income
for the period 114 560 98 346 79 810
Profit attributable to:
Owners of the Company 99 945 79 370 55 497
Non-controlling interest 16 826 14 212 7 254
116 771 93 582 62 751
Total comprehensive
income attributable to:
Owners of the Company 97 311 85 422 73 844
Non-controlling interest 17 249 12 924 5 966
114 560 98 346 79 810
Earnings per share (thebe)
Basic 42.17 23% 34.23 23.74
Diluted 41.92 28% 32.71 23.59
Condensed consolidated statement of financial position
Unaudited Unaudited Audited
as at as at as at
31 Aug 31 Aug 28 Feb
P'000 2017 2016 2017
Assets
Non-current assets 887 950 714 620 795 849
Property, plant and
equipment 643 635 540 855 571 121
Goodwill 69 085 62 937 69 152
Intangible assets 116 107 71 019 119 694
Investments and loans in
associates 14 735 12 026 12 700
Loans receivable 13 622 – –
Deferred tax assets 30 766 27 783 23 182
Current assets 732 720 454 500 428 919
Inventories 35 341 32 799 31 952
Receivables and prepayments 181 975 161 602 140 968
Current tax receivable 25 885 11 902 23 818
Bank balances and cash 489 519 248 197 232 181
Total assets 1 620 670 1 169 120 1 224 768
Equity and liabilities
Equity attributable to the
owners of the Company 566 763 532 329 507 985
Stated capital 167 291 156 086 167 291
Foreign currency
translation reserve 21 443 11 780 24 080
Common control reserve (73 324) (73 324) (73 324)
Other non-distributable
reserves 19 318 (9 983) 19 318
Share-based payment reserve 34 23 461 (518)
Retained income 432 001 424 309 371 138
Non-controlling interest 44 536 (13 402) 28 586
Total equity 611 299 518 927 536 571
Non-current liabilities 444 548 100 461 226 759
Borrowings 379 402 49 741 160 617
Deferred tax liabilities 65 146 50 720 66 142
Current liabilities 564 823 549 732 461 438
Trade and other payables 497 119 461 674 385 923
Borrowings - current portion 7 078 12 254 7 210
Current tax liabilities 8 471 13 692 6 603
Bank overdrafts 52 155 62 112 61 702
Total liabilities 1 009 371 650 193 688 197
Total equity and
liabilities 1 620 670 1 169 120 1 224 768
Net asset value per share
(thebe) 239 230 217
Net tangible asset value per 161 172 137
share (thebe)
Condensed consolidated statement of cash flows
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 Aug 31 Aug 28 Feb
P'000 2017 2016 2017
Cash flow from operating
activities
Cash generated from
operations 253 776 218 540 210 902
Net finance costs (9 473) (3 297) (9 195)
Taxation paid (26 532) (23 280) (45 839)
Net cash inflow from
operating activities 217 771 191 963 155 868
Cash flow from investing
activities
Acquisition of
subsidiary companies – (71 705) (71 705)
Additions to property,
plant and equipment and
intangibles (120 794) (71 308) (142 392)
Proceeds on disposal
of property, plant and
equipment 3 318 1 469 4 510
Increases in long-term
loans receivable (13 622) – –
Net cash outflow from
investing activities (131 098) (141 544) (209 587)
Cash flow from
financing activities
Non-controlling interests'
share of dividends (1 299) (3 269) (3 269)
Share-based payment –
employee tax settlement – – (14 908)
Dividends paid (39 082) (34 782) (34 782)
Repayment of long-term
liabilities (2 709) (28 447) (58 037)
Increases in long-term
liabilities 227 134 2 592 138 857
Net cash inflow/(outflow)
from financing activities 184 044 (63 906) 27 861
Net increase/(decrease) in
cash and cash equivalents 270 717 (13 487) (25 858)
Unrealised exchange
(losses) on foreign cash
balances (3 832) (2 393) (5 628)
Cash and cash equivalents
at the beginning of year 170 479 201 965 201 965
Cash and cash equivalents
at end of year 437 364 186 085 170 479
Condensed consolidated statement of changes in equity
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 Aug 31 Aug 28 Feb
P'000 2017 2016 2017
Opening balance 536 571 469 528 469 528
Minority portion of
dividend paid (1 299) (3 269) (3 269)
Dividends paid (39 082) (34 782) (34 782)
Total comprehensive income
for the period 114 560 98 346 79 810
Share-based payment reserve 552 410 (12 364)
Other (3) (11 306) 37 648
Closing balance 611 299 518 927 536 571
Additional disclosure
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 Aug 31 Aug 28 Feb
P'000 2017 2016 2017
Reconciliation between
profit attributable to
owners of the Company
and headline earnings
Profit attributable to
owners of the Company 99 945 79 370 55 497
Adjustments
IAS 16 - Gains on disposal
and impairment of property,
plant and equipment (543) (1 977) (6 128)
IAS 27 - Gains on disposal
of subsidiaries - - (10 134)
IAS 36 - Impairment of
assets 4 209 3 086 3 204
Tax effects of adjustments (745) (130) 2 841
Minority interest (37) (286) (299)
Headline earnings 102 829 80 063 44 981
Number of shares issued
(thousands)
Issued 237 362 231 882 236 859
Weighted average 237 017 231 882 233 781
Diluted weighted average 238 444 242 642 235 246
Basic 43.38 34.53 19.24
Diluted 43.13 33.00 19.12
Commitments
Capital
Authorised by directors and
contracted for 63 478 33 483 110 006
Not yet contracted for but
authorised by directors 56 832 79 234 129 381
120 310 112 717 239 387
It is intended to finance
capital expenditure from
working capital generated and
existing borrowing facilities.
Operating leases
Minimum lease payments due
– within one year 16 122 23 415 16 929
– in second to fifth year
inclusive 51 515 53 667 39 557
– after fifth year 49 526 84 387 66 229
117 163 161 469 122 715
Borrowings
Non-current
Interest bearing 371 274 38 440 157 661
Non-interest bearing 15 206 23 555 10 166
Less: Current portion of (7 078) (12 254) (7 210)
long-term liabilities
379 402 49 741 160 617
Segmental information
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 Aug 31 Aug 28 Feb
P'000 2017 2016 2017
Segmental profit
Botswana 91 608 93 669 122 677
Kenya 5 083 13 360 9 523
Namibia 22 909 14 492 16 833
Rwanda 7 669 3 802 6 914
South Africa 35 399 45 831 39 173
Zambezi 24 546 8 509 8 959
Intergroup (1 252) 565 (77)
Group 185 962 180 228 204 002
Depreciation and amortisation
Botswana (18 543) (17 674) (37 942)
Kenya (1 792) (593) (2 737)
Namibia (6 981) (5 371) (11 495)
Rwanda (141) (165) (397)
South Africa (4 360) (3 537) (6 408)
Zambezi (9 456) (8 781) (17 948)
Group (41 273) (36 121) (76 927)
Transactions unallocated to
a segment
Other gains 581 2 000 16 182
Foreign exchange
(losses)/gains (7 754) (7 400) (11 317)
Impairment losses (4 231) (3 133) (3 165)
Interest paid (11 052) (3 739) (11 096)
Interest received 1 579 442 1 901
Unrealised forex loss –
loans 9 319 (5 416) (20 806)
Associate earnings 2 035 1 926 2 600
Profit before taxation 135 166 128 787 101 374
Taxation (18 395) (35 205) (38 623)
Profit after tax 116 771 93 582 62 751
Segmental assets
Botswana 850 492 627 294 705 077
Kenya 59 537 59 862 48 314
Namibia 173 726 149 775 143 138
Rwanda 76 262 31 059 70 626
South Africa 415 478 241 447 199 714
Zambezi 150 307 152 124 122 019
Central financing activities
and eliminations (105 132) (92 441) (64 120)
Group 1 620 670 1 169 120 1 224 768
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 Aug 31 Aug 28 Feb
P'000 2017 2016 2017
Revenue
Revenues by type of
service
Travel experience 621 484 573 948 990 273
Service fees 67 192 53 006 87 645
Other revenue 16 273 14 958 29 549
704 949 641 912 1 107 467
Revenues by geographical
regions
Botswana 293 969 284 803 477 373
Kenya 49 355 31 430 73 021
Namibia 107 477 91 342 176 559
Rwanda 20 733 8 352 24 192
South Africa 459 286 446 503 731 983
Zambezi 114 177 96 752 162 432
Intergroup (340 048) (317 270) (538 093)
704 949 641 912 1 107 467
% % %
Revenue by source market (%)
Africa and Middle East 32 31 33
Americas 43 44 40
Australasia 2 3 2
Europe and Asia 23 22 25
100 100 100
Commentary
The Group produced a sound performance demonstrating its resilience to
the continued appreciation of the home currencies with 10% and 2% growth
in revenue and EBITDA, respectively. Organic growth was pleasing,
recording an 8% increase in EBITDA, this despite having the Group's
flagship camp earning less revenue while the rebuilding of the new camp
is in progress. Total available bednights (capacity) increased by 14% as
the Governors' businesses were included for the full period in
comparison to just two months in the prior period. This inclusion of
Governors' resulted in a marginal decline of one percentage point, to
65%, in occupancy rate. The air business in Namibia has made a promising
recovery from a loss of P2 million to a profit of P1.5 million. In late
June, Bisate Lodge opened in Rwanda and is proving to be highly successful
with occupancy rates reaching 90% in the high season.
The Group recorded a 26% increase in headline earnings per share
("HEPS").
Governors' acquisition
The comparative results for Governors' include only high season,
following its consolidation from 1 July 2016, while the current reporting
also includes low season. This equates to a contribution of P64 million
(2016: P39 million) to revenue and P12 million (2016:P18 million) to
EBITDA. In the volatile election environment in Kenya the downturn in
performance was expected and with the continued electoral uncertainty
there could be further impact. The Group is satisfied with its
acquisition of Governors' and the mutual co-operation between the two
businesses, and is confident that additional synergies between the groups
can be unlocked.
Financial review
Revenue increased by 10% to P705 million following the strong growth in
bednights sold to 101 166 (2016: 89 297). Available bednights have
increased by 14% to 155 226 (2016: 136 038). The sales mix has changed
materially as the Tour Series and Governors' categories combined now
account for 35% (2016: 25%) of total bednights sold.
EBITDA margin declined from 27% to 25%, largely due to the inclusion of
the low season of the Governors' businesses. Excluding Governors', EBITDA
margin would have been unchanged at 26%. The impact of the exchange rate
on the revenue line was negligible but on bottom line was far more
significant as the stronger Pula and Rand pushed real selling rates down,
impacting negatively on performance in South Africa and Botswana in
particular. The Rand gained 11% against the USD, while the Pula
appreciated by 5%. Operating costs remained well contained with an
increase of 5% after adjusting for Governors'.
Other gains of P0.5 million include proceeds from insurance claims
amounting to P1.1 million offset by losses on disposal of assets
amounting to P0.6 million. Impairment losses amounted to P4.2 million
and relate to the decommissioning of the old camp assets.
In line with the Group's hedging strategy, forward cover remains at zero
percent of calculated forward exposure until, in the opinion of the
Board, the Rand fundamentals make cover necessary.
Net finance costs were 187% higher at P9.5 million (2016: P3.3 million),
being a consequence of the inclusion of Governors' and the increased
debt to finance capital investment and acquisitions.
The Group's effective tax rate decreased from 27% in the prior year to
14%, largely due to the recognition of a P10 million deferred tax asset
in the Governors' Group following its strong turnaround in performance.
Capital expenditure amounted to P121 million for the period, continuing
with the Group's philosophy to ensure our properties and assets remain
in pristine condition. However, capital expenditure is expected to taper
off at the end of the financial year following the completion of Bisate
Lodge and Mombo Camp. Approximately P23 million has been spent on new
camps and P71 million on rebuilding existing camps. The balance is
largely defensive in nature.
Cash balances, less overdrafts, have increased by 135% to P437 million
as a result of strong cash generated from operations amounting to
P218 million and a net increase in borrowings amounting to P224 million,
as these were drawn down to finance capital expenditure previously
funded out of own cash resources.
Geographical operations (segmental performance)
Namibia, Rwanda and Zambezi regions all recorded strong growth as,
combined, they contributed 30% (2016: 15%) of segmental profit and
reflect combined growth of 104% from P27 million to P55 million.
Botswana's performance was down 2%. South Africa declined 23% as a
direct result of the strength of the Rand. Kenya recorded a decline of
62% following the inclusion of low season for the period.
Loan advanced
The Group continues to look for growth opportunities and to promote
sustainable tourism land use. Accordingly, the Group is participating
in the development of a camp in a new concession area and has advanced
funds on loan account to a local investor. The funds will be utilised,
under supervision by the Group, to develop a world-class camp which it
will support thereafter by providing marketing and sales services. This
transaction allows the Group to take a more direct interest in the camp
at an opportune time in the future, should this be considered prudent
for the Group and the local investor.
Dividend
In line with the Group's stated policy to only consider paying dividends
based on full year results, no interim dividend is proposed.
Subsequent events
No material events have occurred between the reporting date and the date
of this report.
Leases
The Lease Renewal Process ("LRP") for the concessions upon which Mombo,
Little Mombo and Xigera camps are located has been completed. The Group
expects the signed leases to be received imminently and for all intents
and purposes deems the process complete. The Group has also commenced
the LRP for the concession upon which Vumbura Plains and Little Vumbura
are situated. All the relevant requirements in terms of the LRP have
been complied with and submitted to the Botswana Tourism Organisation;
the Group is confident of a positive conclusion early next year.
Shares in issue
During the period the Company issued 503 555 ordinary shares at no par
value (representing approximately 0.21% of the enlarged number of shares
in issue) for no consideration to settle the share scheme obligations.
At 31 August 2017 the number of ordinary shares in issue was 237 362 408
(2016: 231 882 451) and the weighted average number of shares was
237 016 867 (2016: 231 882 451).
Related party information
There have been no related party matters that require disclosure which
would have a material impact on the interpretation of the above results.
Basis of preparation
The condensed financial information has been prepared in accordance with
and containing the information required by IAS 34 Interim Financial
Reportin,the SAICA Finacial reporting Guides as issued by the
Accounting Practices Commitee and Financial Prononcements as issued
by Financial Reporting Standards council and complies with the
disclousure requirements of the Botswana Stock Exchange and
the JSE.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 2017. The adoption of amendments to
these standards has not had any material impact on previously reported
figures.
The IFRIC issued IFRIC 22 Foreign Currency Transactions and Advance
Consideration in December 2016 clarifying the application of IAS 21 to
advance consideration transactions. The IFRIC is applicable for all
financial periods commencing on or after 1 January 2018, however, the
Group has elected to early adopt the interpretation with effect from this
current period. In addition, the Group has elected to apply this IFRIC
on a prospective basis and as such no comparative information is
restated as a result of the new requirements.
Outlook
Tourism activity in southern Africa is at high levels. Our forward
occupancy for the rest of the year is encouraging. The Group's strategic
intent is to invest in African tourism and we have tailored our business
model to have the most impact in this environment. However, this model
is vulnerable to events that impact on travellers. The political and
economic uncertainty in Kenya and Zimbabwe and the volatile currencies
are a concern.
By order of the Board
26 October 2017
Keith Vincent
Chief Executive Officer
Ami Azoulay
Chief Financial Officer (Preparer)
Wilderness Holdings Limited: Registered office (Botswana):
Deloitte House, Plot 64518, Fairgrounds, Gaborone, Botswana
External company registration number: 2009/022894/10
Registered office (South Africa):
373 Rivonia Boulevard, Rivonia, South Africa. PO Box 5219, Rivonia 2128,
South Africa
JSE Sponsor: Arbor Capital Sponsors Proprietary 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*
#non-executive director *independent non-executive director
Group Company Secretary: L Alexander
www.wilderness-holdings.com
Date: 26/10/2017 03:00:00 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.
Sharenet Sites 
