Integrated Report 2020
The information provided in this seven-year financial review is considered to include pro forma financial information under the Listings Requirements. It is prepared for the purpose of presenting the group's sustainable earnings history and is for illustrative purposes only. This information is the responsibility of the company's directors. Due to its nature, the information provided may not fairly present the financial position, changes in equity or results of operations or cash flows. The reporting accountant has provided assurance on the pro forma information and the reports are available for inspection at the issuer's registered office.
| R'm | Reported 2020 |
Norm- alised adjust- ments* |
Norm- alised IFRS 16 adjust- ments* |
Norm- alised (ex IFRS 16) 2020 |
Normalised | |||||||||||||||
| 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
| Consolidated normalised statements of profit and loss | ||||||||||||||||||||
| Revenue | 1 159.3 | – | – | 1 159.3 | 1 548.0 | 1 498.4 | 1 520.4 | 1 493.2 | 1 303.1 | 1 062.8 | ||||||||||
| EBITDA | 330.4 | 14.4 | (116.2) | 228.6 | 489.7 | 588.0 | 616.4 | 624.8 | 547.1 | 438.2 | ||||||||||
| Depreciation and amortisation | (131.1) | – | – | (131.1) | (117.5) | (105.2) | (102.8) | (96.4) | (86.4) | (78.4) | ||||||||||
| Depreciation – right-of-use assets | (92.3) | – | 92.3 | – | – | – | – | – | – | – | ||||||||||
| Operating profit | 107.0 | 14.4 | (23.9) | 97.5 | 372.2 | 482.8 | 513.6 | 528.4 | 460.7 | 359.8 | ||||||||||
| Impairment loss | (488.4) | – | – | (488.4) | – | – | – | – | – | – | ||||||||||
| Net interest (expense)/income | (201.3) | 52.4 | 117.2 | (31.7) | (2.4) | (1.9) | (12.6) | (16.4) | (6.2) | 3.3 | ||||||||||
| Investment in joint venture | – | – | – | – | – | – | – | – | 60.0 | 44.7 | ||||||||||
| Income from joint ventures | – | – | – | – | – | – | – | – | 1.6 | 21.3 | ||||||||||
| (Loss)/profit before taxation | (582.7) | 66.8 | 93.3 | (422.6) | 369.8 | 480.9 | 501.0 | 512.0 | 516.1 | 429.1 | ||||||||||
| Taxation | 96.1 | (3.5) | (25.9) | 66.7 | (102.5) | (132.8) | (139.0) | (138.2) | (123.6) | (102.2) | ||||||||||
| (Loss)/profit for the year | (486.6) | 63.3 | 67.4 | (355.9) | 267.3 | 348.1 | 362.0 | 373.8 | 392.5 | 326.9 | ||||||||||
| Determination of normalised headline earnings | ||||||||||||||||||||
| (Loss)/profit for the year | (486.6) | 63.3 | 67.4 | (355.9) | 267.3 | 348.1 | 362.0 | 373.8 | 392.5 | 326.9 | ||||||||||
| Fair value gain on remeasurement of investment in joint venture | – | – | – | – | – | – | – | – | (60.0) | (44.7) | ||||||||||
| Gain on bargain purchase | – | – | – | – | – | – | – | – | – | (0.6) | ||||||||||
| Profit on sale of equipment | – | – | – | – | (0.2) | (21.9) | 0.3 | (0.2) | (0.7) | – | ||||||||||
| Impairment of property, plant and equipment and right-of-use assets | 488.4 | – | – | 488.4 | – | – | – | – | – | – | ||||||||||
| Taxation effect | (143.9) | – | – | (143.9) | – | 4.9 | (0.1) | 0.1 | 0.3 | – | ||||||||||
| Normalised headline earnings (ex IFRS 16 Leases) | (142.1) | 63.3 | 67.4 | (11.4) | 267.1 | 331.1 | 362.2 | 373.7 | 332.1 | 281.6 | ||||||||||
| Number of shares for normalised EPS calculations* | ||||||||||||||||||||
| Undiluted weighted average | 36 606 | – | – | 36 606 | 36 556 | 36 543 | 36 448 | 36 309 | 36 229 | 35 936 | ||||||||||
| BEE shares treated as treasury shares | – | 6 390 | – | 6 390 | 6 390 | 6 390 | 6 390 | 6 390 | 6 390 | 6 390 | ||||||||||
| 10th anniversary employees' share trust treated as treasury shares | – | 507 | – | 507 | 506 | 509 | 509 | 527 | 549 | 549 | ||||||||||
| Normalised undiluted weighted average | 36 606 | 6 897 | – | 43 503 | 43 452 | 43 442 | 43 347 | 43 226 | 43 168 | 42 875 | ||||||||||
| Restricted share plan | – | – | – | – | 86 | 86 | 88 | 84 | 38 | 221 | ||||||||||
| Share appreciation rights | – | – | – | – | – | – | 12 | 51 | 373 | 508 | ||||||||||
| Share options | – | – | – | – | – | – | – | 93 | 115 | 185 | ||||||||||
| Normalised diluted weighted average shares in issue | 36 606 | 6 897 | – | 43 503 | 43 538 | 43 528 | 43 447 | 43 454 | 43 694 | 43 789 | ||||||||||
| * | Refer to Pro forma financial information reconciliations for more detailed information on the normalised adjustments. |
| Normalised | ||||||||||||||||||
| R'm | Reported 2020 |
Normalised adjustments* |
Normalised 2020 |
2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||
| Consolidated normalised statements of financial position | ||||||||||||||||||
| Assets | ||||||||||||||||||
| Non-current assets | 3 617.3 | 20.5 | 3 637.8 | 2 751.4 | 2 385.0 | 2 010.9 | 1 929.4 | 1 809.2 | 1 535.7 | |||||||||
| Property, plant and equipment | 2 509.8 | – | 2 509.8 | 2 630.4 | 2 285.4 | 1 917.0 | 1 844.1 | 1 740.2 | 1 453.8 | |||||||||
| Right-of-use assets | 985.0 | – | 985.0 | |||||||||||||||
| Intangible assets and goodwill | 57.4 | – | 57.4 | 55.4 | 54.7 | 50.5 | 45.6 | 32.6 | 15.3 | |||||||||
| Investments and loans | 0.8 | 34.0 | 34.8 | 34.8 | 34.2 | 34.2 | 34.0 | 31.7 | 63.0 | |||||||||
| Other investments | 7.9 | – | 7.9 | 13.0 | – | – | – | – | – | |||||||||
| Deferred taxation | 56.4 | (13.5) | 42.9 | 17.8 | 10.7 | 9.2 | 5.7 | 4.7 | 3.6 | |||||||||
| Current assets | 241.1 | 47.0 | 288.1 | 335.0 | 362.7 | 394.8 | 305.2 | 221.1 | 175.7 | |||||||||
| Total assets | 3 858.4 | 67.5 | 3 925.9 | 3 086.4 | 2 747.7 | 2 405.7 | 2 234.6 | 2 030.3 | 1 711.4 | |||||||||
| Equity | ||||||||||||||||||
| Total shareholders’ funds | 568.3 | 883.6 | 1 451.9 | 1 948.0 | 1 868.9 | 1 711.5 | 1 607.7 | 1 439.8 | 1 238.1 | |||||||||
| Share capital and premium | 179.5 | – | 179.5 | 179.5 | 179.5 | 179.4 | 168.0 | 164.0 | 158.3 | |||||||||
| Incentive scheme shares | (514.4) | 504.8 | (9.6) | (13.3) | (20.3) | (22.0) | (19.5) | (11.0) | (22.1) | |||||||||
| Reserves | 903.2 | 378.8 | 1 282.0 | 1 781.8 | 1 709.7 | 1 554.1 | 1 459.2 | 1 286.8 | 1 101.9 | |||||||||
| Liabilities | ||||||||||||||||||
| Non-current liabilities | 2 260.1 | (14.7) | 2 245.4 | 924.5 | 701.4 | 549.0 | 497.9 | 470.7 | 376.2 | |||||||||
| Interest-bearing borrowings | 750.0 | – | 750.0 | 660.0 | 450.0 | 320.0 | 270.0 | 250.0 | 185.0 | |||||||||
| BEE interest-bearing borrowings | – | – | – | – | – | – | – | – | – | |||||||||
| BEE preference shares | – | – | – | – | – | – | – | – | – | |||||||||
| BEE shareholder’s loan | – | – | – | – | – | – | – | – | – | |||||||||
| BEE B preference dividend actual | – | – | – | – | – | – | – | – | – | |||||||||
| Lease liability | 1 376.1 | – | 1 376.1 | – | – | – | – | – | – | |||||||||
| Other non-current liabilities | – | – | – | 78.9 | 86.3 | 89.6 | 102.2 | 113.4 | 105.9 | |||||||||
| Deferred taxation | 134.0 | (14.7) | 119.3 | 185.6 | 165.1 | 139.4 | 125.7 | 107.3 | 85.3 | |||||||||
| Current liabilities | 1 030.0 | (801.4) | 228.6 | 213.9 | 177.4 | 145.2 | 129.0 | 119.8 | 97.1 | |||||||||
| Total equity and liabilities | 3 858.4 | 67.5 | 3 925.9 | 3 086.4 | 2 747.7 | 2 405.7 | 2 234.6 | 2 030.3 | 1 711.4 | |||||||||
| * | Refer to Pro forma financial information reconciliations for more detailed information on the normalised adjustments. |
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||
| Ordinary share performance | ||||||||||||||||
| Normalised shares in issue | 000 | 43 574 | 43 574 | 43 574 | 43 572 | 43 407 | 43 347 | 43 221 | ||||||||
| Normalised weighted average shares in issue | 000 | 43 503 | 43 452 | 43 442 | 43 347 | 43 226 | 43 168 | 42 875 | ||||||||
| Normalised earnings per share | cents | (818.1) | 615.2 | 801.3 | 835.1 | 864.8 | 909.2 | 762.4 | ||||||||
| Normalised headline earnings per share | cents | (181.1) | 614.6 | 762.1 | 835.5 | 864.5 | 769.2 | 656.8 | ||||||||
| Normalised diluted headline earnings per share | cents | (181.1) | 613.4 | 760.6 | 833.6 | 859.9 | 759.9 | 643.1 | ||||||||
| Normalised diluted headline earnings per share (excluding IFRS 16 Leases) | cents | (26.3) | 613.4 | 760.6 | 833.6 | 859.9 | 759.9 | 643.1 | ||||||||
| Dividends per share | cents | 153.0 | 366.0 | 454.0 | 500.0 | 517.0 | 460.0 | 391.0 | ||||||||
| Normalised dividend cover | times | (0.2) | 1.7 | 1.7 | 1.7 | 1.7 | 1.7 | 1.7 | ||||||||
| Normalised net asset value per share | cents | 3 332 | 4 471 | 4 289 | 3 928 | 3 704 | 3 322 | 2 865 | ||||||||
| Normalised tangible asset value per share | cents | 8 878 | 6 956 | 6 180 | 5 405 | 5 043 | 4 609 | 3 924 | ||||||||
| Profitability and liquidity (normalised) | ||||||||||||||||
| EBITDA margin | % | 19.7 | 31.6 | 39.2 | 40.5 | 41.9 | 42.0 | 41.2 | ||||||||
| EBITDAR margin | % | 29.7 | 39.1 | 46.3 | 46.8 | 47.5 | 47.7 | 48.0 | ||||||||
| Operating margin | % | 8.4 | 24.0 | 32.0 | 33.8 | 35.4 | 35.4 | 33.9 | ||||||||
| Effective tax rate | % | (15.8) | 27.7 | 27.2 | 27.7 | 27.0 | 24.0 | 23.8 | ||||||||
| Return on equity | % | (0.7) | 14.0 | 18.5 | 21.8 | 24.5 | 24.8 | 24.6 | ||||||||
| Interest-bearing debt to equity | % | 54.9 | 33.9 | 24.1 | 18.7 | 16.8 | 17.4 | 14.9 | ||||||||
| Current ratio | 1 | 1.3 | 1.6 | 2.0 | 2.7 | 2.4 | 1.9 | 1.8 | ||||||||
| Stock exchange performance | ||||||||||||||||
| Market price per ordinary share | ||||||||||||||||
| – Closing | Rand | 23.75 | 102.71 | 141.82 | 140.13 | 155.52 | 138.99 | 127.00 | ||||||||
| – Highest | Rand | 117.23 | 156.99 | 178.50 | 175.99 | 173.00 | 159.00 | 143.01 | ||||||||
| – Lowest | Rand | 16.79 | 97.00 | 114.96 | 132.01 | 129.00 | 112.01 | 107.33 | ||||||||
| Total market capitalisation | R’m | 1 035 | 4 475 | 6 180 | 6 106 | 6 751 | 6 025 | 5 489 | ||||||||
| Normalised fully diluted closing price-earnings multiple |
times | (13.1) | 16.7 | 18.7 | 16.8 | 18.1 | 18.3 | 19.8 | ||||||||
| Volume traded | ||||||||||||||||
| – Ordinary shares | 000 | 37 071 | 12 139 | 17 795 | 10 251 | 9 217 | 14 162 | 9 397 | ||||||||
| Other | ||||||||||||||||
| Number of hotels at year-end | 62 | 60 | 59 | 57 | 57 | 55 | 54 | |||||||||
| Number of rooms at year-end | 7 902 | 7 600 | 7 391 | 7 072 | 7 072 | 6 834 | 6 685 | |||||||||
| Group average occupancy | % | 38 | 55 | 59 | 63 | 66 | 67 | 63 | ||||||||
| South Africa average occupancy | % | 41 | 58 | 61 | 63 | 66 | 67 | 63 |
These measures, which are used by the group to assess the financial performance of the group, are not defined by IFRS.
Normalised shares in issue
Basic number of shares at the end of the year adjusted for the BEE shares and 10th Anniversary Employee Share Trust shares treated as treasury shares.
Normalised weighted average number of shares in issue
Normalised weighted average number of shares used to calculate EPS is the weighted average number of shares over the period adjusted for treasury shares.
Normalised earnings
Normalised earnings is (loss)/profit for the year adjusted for transactions relating to the BEE entities, the 10th Anniversary Employee Share Trust transaction charges and dividend withholding tax (DWT), IFRS 2 Share-based Payment share-based payment charge for the 10th Anniversary Employee Share Trust and pre-opening expenses write-off net of tax.
Normalised earnings excluding IFRS 16 Leases
Normalised earnings before the effect of the implementation of IFRS 16 Leases.
Normalised earnings per share
Normalised earnings per share is defined as normalised earnings for the year divided by the normalised weighted average number of shares in issue.
Normalised headline earnings
Headline earnings adjusted for transactions relating to BEE entities, the 10th Anniversary Employee Share Trust transaction charges and dividend withholding tax (DWT), IFRS 2 Share-based Payment charge for the 10th Anniversary Employee Share Trust, pre-opening expenses write-off net of tax and other recurring items on income and expense.
Normalised headline earnings excluding IFRS 16 Leases
Normalised headline earnings before the effect of the implementation of IFRS 16 Leases.
Normalised headline earnings per share
Normalised headline earnings divided by the normalised weighted average number of ordinary shares in issue for the period.
Normalised headline earnings excluding IFRS 16 Leases per share
Normalised headline earnings excluding expenses relating to implementation of IFRS 16 Leases divided by the weighted average number of ordinary shares in issue.
Normalised diluted headline earnings per share
Normalised headline earnings divided by the normalised weighted average number of ordinary shares in issue for the period, and any outstanding share options in issue.
Normalised diluted headline earnings excluding IFRS 16 Leases per share
Normalised headline earnings excluding expenses relating to implementation of IFRS 16 Leases divided by the normalised weighted average number of ordinary shares in issue for the period for diluted EPS calculation.
Normalised dividend cover
Normalised diluted headline earnings per share divided by dividends declared per share.
Normalised net asset value per share
Normalised equity divided by the normalised shares in issue at year-end.
Normalised tangible asset value per share
Normalised assets excluding intangible assets and goodwill divided by the normalised shares in issue at year-end.
Normalised EBITDA
Normalised earnings before interest, taxation, depreciation and amortisation.
Normalised EBITDA margin
Normalised EBITDA expressed as a percentage of revenue.
Normalised EBITDAR
Normalised earnings before interest, taxation, depreciation, amortisation and rental.
Normalised EBITDAR margin
Normalised EBITDAR expressed as a percentage of revenue.
Normalised operating margin
Normalised operating profit expressed as a percentage of revenue.
Normalised effective tax rate
Taxation per normalised statement of profit or loss expressed a percentage of normalised profit before taxation.
Normalised return on average normalised equity
Normalised headline earnings excluding expenses relating to implementation of IFRS 16 Leases attributable to ordinary shareholders expressed as a percentage of the average normalised equity.
Normalised interest-bearing debt (excluding IFRS 16 Leases) to normalised equity
Interest-bearing borrowings excluding lease liabilities related to implementation of IFRS 16 Leases, expressed as percentage of normalised equity.
Normalised interest-bearing debt (excluding IFRS 16 Leases)
Interest-bearing borrowings excluding lease liabilities and BEE liabilities and including bank overdraft.
Normalised equity
Capital and reserves adjusted for the effects of transactions relating to the BEE entities as well as the related deferred tax, pre-opening expenses (net of tax), IFRS 2 share-based payment charge for the 10th Anniversary Employee Share Trust, transactions that are of a non-recurring/non-core nature.
Current ratio
Normalised current assets divided by normalised current liabilities.
| GROUP | ||||||
| R000 | 2020 | 2019 | ||||
| 1 | Normalised shares in issue (‘000s) | |||||
| Shares in issue | 36 677 | 36 677 | ||||
| BEE shares treated as treasury shares | 6 390 | 6 390 | ||||
| 10th Anniversary Employee Share Trust shares treated as treasury shares | 507 | 507 | ||||
| Normalised shares in issue | 43 574 | 43 574 | ||||
| 2 | Normalised headline earnings reconciliation | |||||
| Headline earnings | (142 082) | 205 334 | ||||
| BEE transaction charges | 288 | 352 | ||||
| BEE interest on interest-bearing borrowings | 4 060 | 4 187 | ||||
| Preference dividends paid/payable by the BEE entities | 48 369 | 51 005 | ||||
| 10th Anniversary Employee Share Trust transaction charges and DWT | (37) | (43) | ||||
| IFRS 2 share-based payment charge for the 10th Anniversary Employee Share Trust | 2 925 | 4 148 | ||||
| Reversal of impairment of other investment in Chase Bank Kenya (net of tax) | – | (9 403) | ||||
| Pre-opening expenses write-off (net of tax) | 7 688 | 11 487 | ||||
| Normalised headline earnings | (78 789) | 267 067 | ||||
| Net effect on adoption of IFRS 16 Leases | 67 358 | – | ||||
| Lease expense previously included in operating costs | (116 202) | – | ||||
| Depreciation – leases | 92 302 | – | ||||
| Interest expense – leases | 117 214 | – | ||||
| Taxation effect | (25 956) | – | ||||
| Normalised headline earnings excluding IFRS 16 Leases | (11 431) | 267 067 | ||||
| 3 | Normalised headline earnings per share (cents) | |||||
| – undiluted | (181.1) | 614.6 | ||||
| – fully diluted | (181.1) | 613.4 | ||||
| – undiluted excluding IFRS 16 Leases | (26.3) | 614.6 | ||||
| – fully diluted excluding IFRS 16 Leases | (26.3) | 613.4 | ||||
| 4 | Normalised interest-bearing debt (excluding IFRS 16 Leases) (R000) | |||||
| Interest-bearing borrowings | 750 000 | 660 000 | ||||
| Bank overdraft | 47 438 | – | ||||
| Normalised interest-bearing debt (excluding IFRS 16 Leases) | 797 438 | 660 000 | ||||
| 5 | Normalised equity reconciliation (R000) | |||||
| Reported total shareholders’ funds | 568 316 | 1 106 701 | ||||
| BEE and 10th Anniversary Employee Share Trust treasury shares | 504 729 | 504 729 | ||||
| Fair value of BEE – retained earnings | 342 982 | 308 797 | ||||
| Fair value of 10th Anniversary Employee Share Trust – retained earnings | 14 577 | 14 232 | ||||
| Kenya CGT reversal – retained earnings | 15 561 | 15 561 | ||||
| Chase Bank impairment – retained earnings | 7 383 | 7 383 | ||||
| Pre-opening expenses (net of tax) retained earnings | 25 253 | 17 565 | ||||
| Other equity – BEE – other reserves | (26 941) | (26 941) | ||||
| Normalised equity | 1 451 860 | 1 948 027 | ||||
