Breaking News

Zimbabwe hotels spurs Africa Sun's recovery

by Moyo Roy
02 December 2011 | 191 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

Comments

Latest News

War vets can have Mnangagwa Zanu PF leader but cannot imposing on the ...

by Patrick Guramatunhu | 31 May 2016 | 1639 Views

RBZ orders parastals to use plastic money - The Reserve Bank of Zimbab...

by Staff Reporter | 31 May 2016 | 1984 Views

Time to end donor dependency, says Mugabe

by Staff Reporter | 31 May 2016 | 1556 Views

MDC-T hallucinating - My departed grandfather (may his dear soul rest ...

by Chadzimura Mhute | 31 May 2016 | 2209 Views

Matabeleland fueling cash crisis, says RBZ - Reserve Bank of Zimbabwe ...

by Thobekile Zhou | 31 May 2016 | 4381 Views

Coalition formed, MDC-T, Zapu stay away - An alliance of five oppositi...

by Thobekile Zhou | 31 May 2016 | 3115 Views

Action on Public Audit results urgent and mandatory now - The Auditor ...

by Sparkleford Masiyambiri | 31 May 2016 | 1481 Views

Stolen deceased clothes haunt businesswoman - A Murewa businesswoman g...

by Staff reporter | 31 May 2016 | 5333 Views

Zanu-PF and corruption are like inseparable siamese twins - The MDC-T ...

by Obert Chaurura Gutu | 31 May 2016 | 1958 Views

A'Level: Daily Divinity presentation by Witness Dingani - •Today the...

by Witness Dingani | 31 May 2016 | 1076 Views

Mnangangwa primed to take over

by Staff reporter | 31 May 2016 | 6717 Views

Mugabe's ally taken ill, been in intensive ICU for the past 3 weeks - ...

by Staff reporter | 31 May 2016 | 8665 Views

Biti's PDP abandons smaller parties coalition - The opposition People'...

by Staff reporter | 31 May 2016 | 1884 Views

Aspiring MP flees home citing intimidation - Renewal Democrats for Zim...

by Staff reporter | 31 May 2016 | 2079 Views

Mugabe dragged into Negomo chieftainship wrangle - President Robert Mu...

by Staff reporter | 31 May 2016 | 2006 Views

Mugabe cuts lone figure at ACP - President Robert Mugabe is the only H...

by Staff reporter | 31 May 2016 | 2367 Views

Political leaders should quit at 70, says Makova - Zimbabwe people fir...

by Staff reporter | 31 May 2016 | 1614 Views

Zanu-PF, MDC-T hold rallies same time, venue - In a rare feat, Zanu-PF...

by Staff reporter | 31 May 2016 | 2440 Views

Kangai appeals to Mugabe - Suspended Net one chief executive  Rew...

by Staff reporter | 31 May 2016 | 3106 Views

Drowned priests buried - DOZENS of mourners gathered to pay their last...

by Staff Reporter | 31 May 2016 | 3886 Views

Golfers condemn state of Masvingo Golf Club

by Staff Reporter | 31 May 2016 | 1169 Views

Zanu PF youth ask Indigenisation Minister to create youth index

by Stephen Jakes | 31 May 2016 | 1064 Views

Ghost haunts school! - THE YOUNG pupil said she was leading the prayer...

by Staff Reporter | 31 May 2016 | 2917 Views

Police torment motorists over biscuit spare wheels

by Stephen Jakes | 31 May 2016 | 4757 Views

Harare Residents Trust probed council over suspension of nurses

by Stephen Jakes | 31 May 2016 | 1077 Views

Six in court for possession of dagga

by Staff Reporter | 31 May 2016 | 1253 Views

Man lies in court, his love affair with tenant exposed in court

by Staff Reporter | 31 May 2016 | 3189 Views

Man in court for cement fraud worth $12 000

by Staff Reporter | 31 May 2016 | 1184 Views

Entertainment

Xhosa activists' gift to the people of Matebeleland

by Thulani Nkala | 31 May 2016 | 2267 Views

Delta hosts fun run, comedians in Masvingo - Standup comedians Clive C...

by Staff Reporter | 30 May 2016 | 1182 Views

Hosiah Chipanga fights in Tuku's corner - Outspoken and talented sungu...

by Staff reporter | 29 May 2016 | 3135 Views

Mtukudzi loses his lustre - The country's harsh economic situation has...

by Staff reporter | 29 May 2016 | 3495 Views
iBlog

Tb Joshua Worst Enemy Angelique Tonge Exposed

About two years ago, we came out emphatically about those behind the t.b joshua watch. many were those who thought we were framing innocent people up or on a witch hunt. some events have vindicated us and the cat is out of the bag. it is said that no... Read More
pointblank 01 May 2015 ago

Ios 9 Features Inspired By Android

apple announced ios 9 on monday, and while watching the keynote, i had just a little bit of déjà vu. most of ios 9's new features seem to be squarely aimed at apple's biggest rival in mobile: android. specifically, they were about catching up to ... Read More
Sergey 13 June 2015 ago