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12th Sep 2007, 16:17
Com - Comair Limited - Audited Group Results For The Year Ended 30 June 2007
Release Date: 12/09/2007 12:00:02 Code(s): COM [Email this JSE Sens Item to a Friend] [Printer Friendly Version]
COM - Comair Limited - Audited group results for the year ended 30 June 2007
Comair Limited -
Reg. No. 1967/006783/06
Incorporated in the Republic of South Africa
ISIN Code: ZAE000029823 & Share Code: COM
(Comair or "the Company")
Earnings review
We`re proud to announce this year`s results for Comair Limited. The company
continues to maintain what we believe to be a world record in the airline
industry of sixty one years of consecutive operating profits. We would like to
congratulate and thank all 1559 members of the Comair team for their part in
achieving these results. We continue to attract the best talent in the industry,
and the team`s persistent focus on serving our customers forms the basis of our
success. We also thank our customers for their ongoing support of both our
British Airways and kulula.com brands.
Consistent growth in both volumes and yields across both our brands delivered
turnover growth of 12% to R2.2 billion. Record profits resulted in a 39%
increase in earnings per share, and were achieved despite a R120 million price
related increase in our fuel bill. The operating margin of 7.7% is improved
from 6.7% in the prior year, but is still below our target of 10%. Cash flow
remained strong, with R316 million generated by operations, resulting in a cash
balance of R242 million at year end. In a recent survey by leading airline
industry researcher, Airwatch, Comair was ranked third in the world amongst
similar sized airlines on its strong financial performance.
During the year we aggressively pursued the implementation of our fleet
replacement programme. An additional 2 aircraft were bought for cash for R200
million and brought into service. Our goal is to replace the entire kulula.com
fleet by the end of the calendar year. The replacement Boeing 737-400s are not
only more efficient to operate, but also offer a much better customer
experience. Furthermore, our new kulula.com fleet will continue to ensure that
our cost per seat remains the lowest in the industry. We will also start
benefiting from the many efficiencies associated with a single aircraft type
fleet.
Prospects
The major risk factors in our industry remain the volatile oil price and
exchange rate, and the distortion of the industry through government
intervention. We will continue to hedge a part of our exposure to the oil price
and currency in order to partially mitigate these risks. Our new fleet will, as
mentioned above, reduce our fuel requirements. Continued pricing of tickets at
below cost by the state owned competitor, will reduce margins on the low cost
end of the market. A further concern for the industry is the rapidly escalating
airport charges as well as increased airport congestion.
We will continue to benefit from cost efficiencies, not only from our new fleet
but also through our new, streamlined maintenance contract and reduced
distribution charges.
Once again, we are confident that the commitment and creativity of the Comair
team, and the strength of our brands, will allow us to maintain our leadership
position in the Southern African airline industry, while simultaneously
providing scope to develop successful new business ventures.
Dividends
It is envisaged that a final dividend of 9 cents (prior year: 7 cents) per share
will be declared during October 2007. A further announcement regarding the
dividend payment will be made in due course.
Basis of preparation
In terms of the listing requirements of the JSE Limited, the Group is required
to prepare its consolidated financial statements in accordance with
International Financial Reporting Standards. The accounting policies used in the
preparation of these results are consistent in all material aspects with those
used for the prior comparative period.
ABRIDGED GROUP INCOME STATEMENT 2007 2006 %
R`000 R`000 change
Revenue 2,211,743 1,973,245 12%
Operating Expenses (2,041,975) (1,840,099) 11%
Profit from operations before 169,768 133,146 28%
interest
Net investment expense (10,228) (17,272)
Share of loss of associates (2,064) -
Profit from ordinary activities 157,476 115,874
before taxation
Taxation (48,313) (37,074)
Attributable profit 109,163 78,800 39%
ABRIDGED GROUP BALANCE SHEET 2007 2006
R`000 R`000
ASSETS
Property, plant and equipment 676,029 503,455
Investment in associates 13,404 -
Available for sale investments 88,740 67,320
Current assets 366,112 488,777
1,144,285 1,059,552
EQUITY AND LIABILITIES
Capital and reserves 425,531 368,061
Non-current liabilities 259,952 296,281
Deferred taxation 20,766 5,128
Current liabilities 438,036 390,082
1,144,285 1,059,552
ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY
Opening balance 368,061 308,274
BEE Share Deal 741 -
Attributable profit 109,163 78,800
Dividend paid (27,959) (27,960)
Realisation of gain from fuel (23,041) -
hedge
Gain from cash flow hedges - - 22,556
fuel hedge
Utilisation of cash flow hedge - - (9,269)
aircraft hedge
Shares purchased by Share Trust (2,805) (13,199)
Shares sold by Share trust 1,371 8,859
Closing balance 425,531 368,061
ABRIDGED GROUP CASH FLOW 2007 2006
STATEMENT
R`000 R`000
Cash at the beginning of the 318,979 215,672
year
Cash generated by operations 315,727 222,695
Net interest expense (10,228) (17,272)
Taxation paid (33,001) (21,659)
Dividend paid (27,959) (27,960)
Additions to property, plant and (270,447) (159,730)
equipment
Proceeds on disposal of 64 54
property, plant and equipment
Proceeds on disposal of shares 13,383 -
in subsidiary
Investment in associated (10,316) -
Net cost of share trust (1,435) (4,340)
purchases
Aircraft deposits utilised - 10,452
Acquisition of preference shares (21,420) (21,420)
Cash (utilised in)/ generated by (31,323) 122,487
financing activities
Cash at the end of the year 242,024 318,979
HEADLINE EARNINGS PER SHARE
Earnings attributable to 109,163 78,800
ordinary shareholders
Less profit on sale of (8,432) -
subsidiary
Less profit on disposal of (64) (45)
property, plant and equipment
Headline earnings attributable 100,667 78,755
to ordinary shareholders
SALIENT FEATURES
Earnings per share (cents) 27.3 19.7
Headline earnings per share 25.2 19.7
(cents)
Diluted Earnings per share 25.0 19.5
(cents)
Dividend per share (cents) 7.0
declared
Weighted ordinary shares in 399,517 399,412
issue (`000)
Depreciation (R`000) 87,141 76,161
Interest expense (R`000) 35,145 34,300
Audit Opinion
These financial statements have been audited by PKF (Jhb) Inc. and their
unqualified audit report is available for inspection at the registered office of
the company
By order of the Board
D. Novick (Chairman) G. Novick (Joint CEO) E. Venter (Joint CEO)
10 September 2007
Date: 12/09/2007 12:00:02 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
Release Date: 12/09/2007 12:00:02 Code(s): COM [Email this JSE Sens Item to a Friend] [Printer Friendly Version]
COM - Comair Limited - Audited group results for the year ended 30 June 2007
Comair Limited -
Reg. No. 1967/006783/06
Incorporated in the Republic of South Africa
ISIN Code: ZAE000029823 & Share Code: COM
(Comair or "the Company")
Earnings review
We`re proud to announce this year`s results for Comair Limited. The company
continues to maintain what we believe to be a world record in the airline
industry of sixty one years of consecutive operating profits. We would like to
congratulate and thank all 1559 members of the Comair team for their part in
achieving these results. We continue to attract the best talent in the industry,
and the team`s persistent focus on serving our customers forms the basis of our
success. We also thank our customers for their ongoing support of both our
British Airways and kulula.com brands.
Consistent growth in both volumes and yields across both our brands delivered
turnover growth of 12% to R2.2 billion. Record profits resulted in a 39%
increase in earnings per share, and were achieved despite a R120 million price
related increase in our fuel bill. The operating margin of 7.7% is improved
from 6.7% in the prior year, but is still below our target of 10%. Cash flow
remained strong, with R316 million generated by operations, resulting in a cash
balance of R242 million at year end. In a recent survey by leading airline
industry researcher, Airwatch, Comair was ranked third in the world amongst
similar sized airlines on its strong financial performance.
During the year we aggressively pursued the implementation of our fleet
replacement programme. An additional 2 aircraft were bought for cash for R200
million and brought into service. Our goal is to replace the entire kulula.com
fleet by the end of the calendar year. The replacement Boeing 737-400s are not
only more efficient to operate, but also offer a much better customer
experience. Furthermore, our new kulula.com fleet will continue to ensure that
our cost per seat remains the lowest in the industry. We will also start
benefiting from the many efficiencies associated with a single aircraft type
fleet.
Prospects
The major risk factors in our industry remain the volatile oil price and
exchange rate, and the distortion of the industry through government
intervention. We will continue to hedge a part of our exposure to the oil price
and currency in order to partially mitigate these risks. Our new fleet will, as
mentioned above, reduce our fuel requirements. Continued pricing of tickets at
below cost by the state owned competitor, will reduce margins on the low cost
end of the market. A further concern for the industry is the rapidly escalating
airport charges as well as increased airport congestion.
We will continue to benefit from cost efficiencies, not only from our new fleet
but also through our new, streamlined maintenance contract and reduced
distribution charges.
Once again, we are confident that the commitment and creativity of the Comair
team, and the strength of our brands, will allow us to maintain our leadership
position in the Southern African airline industry, while simultaneously
providing scope to develop successful new business ventures.
Dividends
It is envisaged that a final dividend of 9 cents (prior year: 7 cents) per share
will be declared during October 2007. A further announcement regarding the
dividend payment will be made in due course.
Basis of preparation
In terms of the listing requirements of the JSE Limited, the Group is required
to prepare its consolidated financial statements in accordance with
International Financial Reporting Standards. The accounting policies used in the
preparation of these results are consistent in all material aspects with those
used for the prior comparative period.
ABRIDGED GROUP INCOME STATEMENT 2007 2006 %
R`000 R`000 change
Revenue 2,211,743 1,973,245 12%
Operating Expenses (2,041,975) (1,840,099) 11%
Profit from operations before 169,768 133,146 28%
interest
Net investment expense (10,228) (17,272)
Share of loss of associates (2,064) -
Profit from ordinary activities 157,476 115,874
before taxation
Taxation (48,313) (37,074)
Attributable profit 109,163 78,800 39%
ABRIDGED GROUP BALANCE SHEET 2007 2006
R`000 R`000
ASSETS
Property, plant and equipment 676,029 503,455
Investment in associates 13,404 -
Available for sale investments 88,740 67,320
Current assets 366,112 488,777
1,144,285 1,059,552
EQUITY AND LIABILITIES
Capital and reserves 425,531 368,061
Non-current liabilities 259,952 296,281
Deferred taxation 20,766 5,128
Current liabilities 438,036 390,082
1,144,285 1,059,552
ABRIDGED GROUP STATEMENT OF CHANGES IN EQUITY
Opening balance 368,061 308,274
BEE Share Deal 741 -
Attributable profit 109,163 78,800
Dividend paid (27,959) (27,960)
Realisation of gain from fuel (23,041) -
hedge
Gain from cash flow hedges - - 22,556
fuel hedge
Utilisation of cash flow hedge - - (9,269)
aircraft hedge
Shares purchased by Share Trust (2,805) (13,199)
Shares sold by Share trust 1,371 8,859
Closing balance 425,531 368,061
ABRIDGED GROUP CASH FLOW 2007 2006
STATEMENT
R`000 R`000
Cash at the beginning of the 318,979 215,672
year
Cash generated by operations 315,727 222,695
Net interest expense (10,228) (17,272)
Taxation paid (33,001) (21,659)
Dividend paid (27,959) (27,960)
Additions to property, plant and (270,447) (159,730)
equipment
Proceeds on disposal of 64 54
property, plant and equipment
Proceeds on disposal of shares 13,383 -
in subsidiary
Investment in associated (10,316) -
Net cost of share trust (1,435) (4,340)
purchases
Aircraft deposits utilised - 10,452
Acquisition of preference shares (21,420) (21,420)
Cash (utilised in)/ generated by (31,323) 122,487
financing activities
Cash at the end of the year 242,024 318,979
HEADLINE EARNINGS PER SHARE
Earnings attributable to 109,163 78,800
ordinary shareholders
Less profit on sale of (8,432) -
subsidiary
Less profit on disposal of (64) (45)
property, plant and equipment
Headline earnings attributable 100,667 78,755
to ordinary shareholders
SALIENT FEATURES
Earnings per share (cents) 27.3 19.7
Headline earnings per share 25.2 19.7
(cents)
Diluted Earnings per share 25.0 19.5
(cents)
Dividend per share (cents) 7.0
declared
Weighted ordinary shares in 399,517 399,412
issue (`000)
Depreciation (R`000) 87,141 76,161
Interest expense (R`000) 35,145 34,300
Audit Opinion
These financial statements have been audited by PKF (Jhb) Inc. and their
unqualified audit report is available for inspection at the registered office of
the company
By order of the Board
D. Novick (Chairman) G. Novick (Joint CEO) E. Venter (Joint CEO)
10 September 2007
Date: 12/09/2007 12:00:02 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department