Breaking News

Zimbabwe hotels spurs Africa Sun's recovery

by Moyo Roy
02 December 2011 | 1237 Views
Africa Sun revenue from continuing operations for the year ended 30 September 2011 grew by 22% to $48.8 million, up from $39.95 million last year, driven mainly by a strong revenues per available room (RevPAR) performance from the Zimbabwe hotels. The RevPAR growth of 21 % that was achieved by the Zimbabwe hotels emanated from a 13% growth in volumes, and an 8% increase in ADR over the last year.

Cost of sales increased by 27% over same period last year, ahead of the 22% growth in Revenue, owing to a 28% increase in NEC wages and a surge in the prices of key food products due to the stronger South African Rand during the greater part of the financial year.

Operating expenses (excluding once-off restructuring costs of $3.28 million) increased by 12.7%, and were contained within the growth in RevPAR following benefits of earlier cost cutting initiatives implemented.

Consequently, the Group achieved EBITDA (before restructuring costs) of $2.7 million (5.6% margin) from continuing operations, which is a 432% growth from same period last year of $0.51 million on a like-for-like basis.

The positive EBITDA performance from continuing operations was however negated by non-recurring items charge emanating from the impairment of property, plant and equipment and restructuring costs, amounting to $5.96 million. This resulted in a loss before tax from continuing operations of $4.77 million, increasing the loss by 90% from prior year loss of $2.51 million.

Finance costs attributable to the continuing operations increased by 44% from last year following a 17.5% increase in short term loans to finance working capital.

The overall loss after tax for the period was $10.23 million after taking into account the impact of the discontinued operations which reported a loss after tax of $6.62 million, with 28% of the loss arising from depreciation, impairment of intangible assets and a deferred tax asset reversal.

DISCONTINUED OPERATIONS South Africa
The South African operations remained depressed for the year under review, posting an EBITDA loss of $3.77 million. This resulted mainly from a further drop in occupancies to an average of 30%. Revenue achieved for the 11 months amounted to $4.84 million, which was 59% of prior year. The operations were closed by mutually agreeing with the landlords to exit the leases.

Hotelserve was disposed of as it had become non-core to the Group's operations. Revenue from Hotelserve was depressed during the year under review, falling 39% short of what was achieved last year as volumes declined and margins were affected by the USD/Rand volatility, registering an EBITDA loss of $279,100.

Following the restructuring exercise, closure of the loss making operating units and disposal of non-core assets, the group says the outlook for the continuing operations is positive, with a forecast growth in RevPAR of at least 25% from the $40 achieved in 2011. Foreign operations remain predominantly management contracts, which are considered to be less risky, and management fees are expected to grow by at least 20%.

The Board has resolved not to declare a final dividend for the year ended 30 September 2011.

The world travel industry has remained volatile, posting mixed results for 2011 owing to the failure by major economies to realize recovery after the global recession, forcing tourism growth figures to be revised downwards in the US and key European countries. However, there was growth in some parts of the world, mainly in the BRICS (Brazil, Russia, India, China and South Africa) with Africa recording growth of 5%.




Despite the mixed growth trends, the overall pattern in our Zimbabwe hotels continued on the recovery path, realizing a volumes growth of 13% over last year, with the foreign room nights sold increasing by 14% over the same period.

Oil exports have continued to spur growth in Ghana and Nigeria, presenting an opportunity for further rooms growth within this hub, as economic activities and attendant business travel are expected to increase.

Africa Sun Hotel

Source: Byo24News

Does Prophet Magaya's anointing oil work?

Yes
17.42%
No
71.21%
Spiritual matters
11.36%
396

Comments

News Updates

Email:

Latest News

Maleme Issue: Open letter to Hon. VP Phelekezela Mphoko - Honourable V...

by Khumbulani Maphosa | 27 February 2015 | 1617 Views

Fistfights at MDC-T Bulawayo meeting - Police were called in when fist...

by Bhebhe Mandla | 27 February 2015 | 2365 Views

Watch Mugabe's Bob@91 birthday gala - live - The Zimbabwe Broadcastin...

by Staff reporter | 27 February 2015 | 1990 Views

Kiya kiya Chinamasa to reschedule government debt repayments but for h...

by Wilbert Mukori | 27 February 2015 | 1627 Views

An open letter to hon VP Mphoko - Matebeleland People in Diaspora woul...

by Matebeleland People in Diaspora | 27 February 2015 | 1921 Views

Morgan Tsvangirai under fire - The Head of Zimbabwe's parliamentary de...

by Staff reporter | 27 February 2015 | 2408 Views

Victoria Falls explodes as Mugabe arrives - President Robert Mugabe h...

by Staff reporter | 27 February 2015 | 1814 Views

Zanu-PF, CIO desperate to infiltrate the MDC-T - It is beyond debate t...

by Obert Gutu | 27 February 2015 | 2394 Views

1 471 defaulters apply for Zimra tax amnesty - 1 471 defaulters have s...

by Funny Hudzerema | 27 February 2015 | 1045 Views

Jane Mutasa bid to stop Telecel EGM fails - Key shareholder Dr Jane M...

by Tawanda Musarurwa | 27 February 2015 | 850 Views

Dr James Makamba opens up on Telecel debacle - The current problems ho...

by Staff reporter | 27 February 2015 | 1647 Views

Mujuru allies stop Grace Mugabe

by Itai Mushekwe | 27 February 2015 | 6585 Views

MDC-United doomed to fail, says MDC-T - Morgan Tsvangirai's MDC has sl...

by Staff reporter | 27 February 2015 | 1684 Views

Zanu-PF splits as Mutasa digs in - Two Zanu-PF formations are now effe...

by Staff reporter | 27 February 2015 | 3602 Views

Mnangagwa contradicts Mugabe - Suddenly newly-appointed Vice President...

by Staff reporter | 27 February 2015 | 2910 Views

Caps United plot Bosso upset - Caps United head coach, Mark Harrison h...

by Staff reporter | 27 February 2015 | 1457 Views

Keep your Europe and we keep our Mugabe - The European Union (EU) has ...

by Tafara Shumba | 27 February 2015 | 2267 Views

Didymus Mutasa a Political Bastard

by Suitable Kajau | 27 February 2015 | 2427 Views

Watch LIVE streaming of Mugabe's 91st birthday party - The Zimbabwe Br...

by Staff reporter | 27 February 2015 | 3090 Views

Grace Mugabe deserves ministerial post - EDITOR,It is worrisome that s...

by Chido Chikuni, | 27 February 2015 | 2895 Views

Chanakira mourns AfrAsia collapse - KINGDOM Bank founder Nigel Chanaki...

by Charity Ruzvidzo | 27 February 2015 | 2978 Views

Thousands attend Prophet Magaya's one day healing service - Thousands ...

by Staff reporter | 27 February 2015 | 2735 Views

Bosso miss opportunity to cash in on Prophet Magaya crusade - HIGHLAND...

by Pamela Shumba and Bongani Ndlovu | 27 February 2015 | 2760 Views

Mugabe's big 91 birthday bash - Zimbabwe's Robert Mugabe, the oldest l...

by Columbus Mavhunga, Monika Guarino (AP/AFP/dpa) | 27 February 2015 | 1734 Views

Mutasa, Mliswa to be recalled from parliament - ZANU-PF administration...

by Staff Reporter | 27 February 2015 | 2104 Views

Mugabe's problem with Mujuru doctorate - PRESIDENT Robert Mugabe has c...

by Staff Reporter | 27 February 2015 | 4240 Views

Zimbabwe: Africa's best-kept secret? - I don't know what I was expect...

by Anna Rosenberg | 27 February 2015 | 2571 Views

Delma Lupepe's fall from glory continues

by Staff reporter | 27 February 2015 | 5979 Views

Entertainment

Popular Zim dancehall chanter arrested for fraud

by Liberty Dube | 27 February 2015 | 1933 Views

Group pens song for Mugabe - A 7-member group from Acturus has release...

by Staff reporter | 21 February 2015 | 1616 Views

Mathias Mhere saga takes new twist - Gift Mahlupeka, who allegedly che...

by Staff reporter | 20 February 2015 | 9597 Views

Mlambos Express Band flies Matabeleland Flag - Mlambos Express Band po...

by Entertainment Reporter | 20 February 2015 | 3051 Views

Will Smith's marriage is pretty much dead - For the past 18 years, Wil...

by BlackAmericaWeb | 19 February 2015 | 6546 Views

Bulawayo musician urges artists to work together

by Staff Reporter | 19 February 2015 | 2402 Views
iBlog

Obviously, Windows Xp Has Nothing More To Offer

With no support from the manufacturer, windows xp no longer receives antivirus updates, which provoked an increase in the number of attacks on xp users. according to avast company, windows xp systems are attacked 6 times more often than the devices r... Read More
Sergey 12 June 2014 ago

The Zero-day Vulnerability Cve-2014-4114 Impacting All Versions Of Microsoft Windows

new microsoft windows zero-day vulnerability - cve-2014-4114on tuesday, october 14, 2014, isight partners - in close collaboration with microsoft - announced the discovery of a zero-day vulnerability impacting all supported versions of microsoft win... Read More
SecNews 16 October 2014 ago