Breaking News

Zimbabwe hotels spurs Africa Sun's recovery

by Moyo Roy
02 December 2011 | 1113 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

Could there be war if Grace Mugabe becomes President?

Yes
73.23%
No
11.02%
Who cares?
15.75%
127

Comments

Latest Classifieds (Click Here For More)

News Updates

Email:

Latest News

Zimbabwe, Zambia to launch pilot uni-visa - The government will launch...

by Staff reporter | 20 October 2014 | 39 Views

MDC-T youths bay for suspended Hlalo's blood - Members of the MDC-T Bu...

by Makhosi Sibanda | 20 October 2014 | 135 Views

Another NRZ train derails - A Victoria Falls-bound National Railways o...

by Lesley Moyo | 20 October 2014 | 133 Views

Grade 7 boy hangs himself on burglar bar - A Grade 7 boy at Senzangakh...

by Staff Reporter | 20 October 2014 | 905 Views

Ambassador Nyamupinga dies at 65 - A career diplomat who served in Aus...

by Staff Reporter | 20 October 2014 | 1819 Views

Econet buys Telecel - Econet Wireless Global (EWG) has acquired the a...

by Staff reporter | 20 October 2014 | 2825 Views

Man jailed for battering his 'loose' sisters

by Court reporter | 20 October 2014 | 1674 Views

'Hungry' man in trouble for robbing Good Samaritan - A CHITUNGWIZA m...

by Staff Reporter | 20 October 2014 | 1625 Views

South Africa extends ZSP appointment dates deadline! - The new deadli...

by ZIM-ID (SA) | 20 October 2014 | 3785 Views

Mother of six 'shocked' to death after getting BCC bill

by Staff Reporter | 20 October 2014 | 4353 Views

7 years behind bars for reckless kombi driver

by Staff Reporter | 20 October 2014 | 2322 Views

5 highway patrol cops in soup - Five National Highway Patrol cops have...

by Staff reporter | 20 October 2014 | 3442 Views

Man in trouble for selling crocodile eggs

by Staff reporter | 20 October 2014 | 2455 Views

Grace Mugabe lashes at Ray Kaukonde - Video - Robert Mugabe's wife Gra...

by Staff reporter | 20 October 2014 | 3076 Views

How many insults are the people of Matabeleland going to stomach? - IT...

by Nomazulu Thata | 20 October 2014 | 2551 Views

'Help me find my father' - WhatsApp update

by Concerned Citizen | 20 October 2014 | 2081 Views

Crisis of expectation in the MDC formations - The current goings on in...

by Stewart Murewa | 20 October 2014 | 1661 Views

Death threats against Grace Mugabe mount - Report

by Itai Mushekwe/ Mary-Kate Kahari | 20 October 2014 | 9162 Views

Politburo gags Gumbo - As faction fighting intensifies, the Zanu-PF se...

by Staff reporter | 20 October 2014 | 3737 Views

Welcome to abject poverty dumped minister Dzikamai Mavhaire! - The fa...

by Wilbert Mukori | 20 October 2014 | 4650 Views

Grace Mugabe to deputise hubby before taking over next year - Grace Mu...

by Staff reporter | 20 October 2014 | 4830 Views

Kingdom bank crisis continues as people spend nights for $50

by Business reporter | 20 October 2014 | 1459 Views

Pastor ordered to pay $80 maintenance

by Staff Reporter | 20 October 2014 | 2062 Views

Zanu-PF MP accused of grabbing conservancy - Zanu-PF Kariba MP Isaac M...

by Staff reporter | 20 October 2014 | 933 Views

Mugabe backs Grace over Mujuru attacks

by Staff reporter | 20 October 2014 | 7223 Views

City man offers $10 for upkeep of 4 children

by Court reporter | 20 October 2014 | 1138 Views

Ezra 'Tshisa' Sibanda eyeing Bosso post?

by Staff reporter | 20 October 2014 | 3257 Views

Jostling for posts at Bosso begins - JOSTLING for positions at Bulaway...

by Sikhumbuzo Moyo | 20 October 2014 | 1486 Views

Entertainment

Zim representative in the Big Brother Africa survives eviction - Zimba...

by Staff reporter | 20 October 2014 | 602 Views

Grace Mugabe's political comedy takes ZTV hostage - For the past two w...

by Staff reporter | 20 October 2014 | 2892 Views

Oliver Mtukudzi to deliver lecture at Musica 2014 - Zimbabwe's interna...

by Staff reporter | 19 October 2014 | 883 Views

Gezha maoko - Ladybee (Official Video)

by Staff Reporter | 19 October 2014 | 1452 Views

Matebeleland Music & Arts Festival - Sivala umnyaka ngengoma lapho sit...

by Staff Reporter | 17 October 2014 | 1382 Views

Obediah Matulana releases Christmas DVD - Bulawayo-based musician Obed...

by Staff reporter | 16 October 2014 | 1571 Views

Grace Mugabe honoured in song - Dancehall outfit Final Warning has rel...

by Tawanda Marwizi | 15 October 2014 | 2037 Views

US firm makes money off Zimbabwe concept - United States transport sh...

by Staff reporter | 14 October 2014 | 2593 Views
iBlog

Yet Another Wave Of Digital Destruction Is Coming

Malware fever keeps on raging, taking sophisticated forms to wreak havoc around the worldwide web. even if your system is guarded thoroughly, you are still skating on thin ice, so you should better keep your eyes open and think twice before you make ... Read More
SecNews 02 March 2014 ago

Top 10 Causes Of Vaginal Bleeding After Intercourse

bleeding after sex can be rather alarming, and there could be many reasons why a woman would bleed after sex. though most women bleed after their first time having sex, if bleeding becomes frequent, there may be an underlying issue. below are the 1... Read More
adoniadennis 02 May 2014 ago