Financial review
Seven-year financial review
The 2020 – 2016 historical normalised financial information provided in this seven-year financial review is considered to include pro forma financial information under the Listings Requirements. It is prepared for presenting the group’s sustainable earnings history and is for illustrative purposes only. This information is the responsibility of the company’s directors. Owing 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 provided assurance on the pro forma information for prior years, and these reports are available for inspection at the issuer's registered office.
2022 and 2021 financial information is presented on the IFRS reporting basis. Historically, the reversal of B-BBEE financial information has been the most significant normalisation adjustment. Following the 99.99% share purchase by the group in the B-BBEE SPV entities in December 2020, the B-BBEE SPV entities are consolidated as a subsidiary of the group and therefore these normalisation adjustments are not considered significant for the year. Financial information for 2021 and 2022 are presented inclusive of the application of IFRS 16 Leases, which was adopted for all periods commencing from 1 July 2019. 2020 to 2016 do not reflect the adoption of IFRS 16 Leases. Therefore, historical information may not be comparable.
| Reported | Normalised | |||||||
| R’m | 2022 | 2021 | 2020* | 2019 | 2018 | 2017 | 2016 | |
| Consolidated normalised statements of profit and loss | ||||||||
| Revenue | 1 103.9 | 507.8 | 1 159.3 | 1 548.0 | 1 498.4 | 1 520.4 | 1 493.2 | |
| EBITDA | 297.8 | (138.4) | 228.6 | 489.7 | 588.0 | 616.4 | 624.8 | |
| Depreciation and amortisation | (90.5) | (120.0) | (131.1) | (117.5) | (105.2) | (102.8) | (96.4) | |
| Depreciation – right-of-use assets | (90.2) | (85.9) | – | – | – | – | – | |
| Operating profit | 117.1 | (344.3) | 97.5 | 372.2 | 482.8 | 513.6 | 528.4 | |
| Net impairment reversals/(losses) | 57.2 | (387.6) | (488.4) | – | – | – | – | |
| Net interest expense | (178.7) | (169.7) | (31.7) | (2.4) | (1.9) | (12.6) | (16.4) | |
| Profit on disposal of East Africa | 88.3 | – | – | – | – | – | – | |
| Profit/(loss) before taxation | 83.9 | (901.6) | (422.6) | 369.8 | 480.9 | 501.0 | 512.0 | |
| Taxation | (2.2) | 97.0 | 66.7 | (102.5) | (132.8) | (139.0) | (138.2) | |
| Profit/(loss) for the year | 81.7 | (804.6) | (355.9) | 267.3 | 348.1 | 362.0 | 373.8 | |
| Determination of normalised headlineearnings | ||||||||
| Profit/(loss) for the year | 81.7 | (804.6) | (355.9) | 267.3 | 348.1 | 362.0 | 373.8 | |
| Profit on disposal of East Africa | (88.3) | – | – | – | – | – | – | |
| Profit on sale of equipment | – | – | – | (0.2) | (21.9) | 0.3 | (0.2) | |
| Net impairment (reversals)/losses | (57.2) | 341.5 | 488.4 | – | – | – | – | |
| Impairment of goodwill | – | 10.6 | – | – | – | – | – | |
| Change in corporation tax rate | 2.0 | – | – | – | – | – | – | |
| Taxation effect | 12.2 | (2.7) | (143.9) | – | 4.9 | (0.1) | 0.1 | |
| Headline (loss)/earnings | (49.5) | (455.2) | (11.4) | 267.1 | 331.1 | 362.2 | 373.7 | |
| Number of shares for EPS calculations* | ||||||||
| Undiluted weighted average | 571 645 | 501 001 | 36 606 | 36 556 | 36 543 | 36 448 | 36 309 | |
| B-BBEE shares treated as treasury shares | – | – | 6 390 | 6 390 | 6 390 | 6 390 | 6 390 | |
| 10th anniversary employees’ share trust treated as treasury shares | – | – | 507 | 506 | 509 | 509 | 527 | |
| Undiluted weighted average | 571 645 | 501 001 | 43 503 | 43 452 | 43 442 | 43 347 | 43 226 | |
| Restricted share plan | 1 210 | – | – | 86 | 86 | 88 | 84 | |
| Share appreciation rights | – | – | – | – | – | 12 | 51 | |
| Share options | – | – | – | – | – | – | 93 | |
| Diluted weighted average | 572 855 | 501 001 | 43 503 | 43 538 | 43 528 | 43 447 | 43 454 | |
* 2020 weighted average shares has not been restated for IAS 33.28.
| Reported | Normalised | |||||||
| R’m | 2022 | 2021 | 2020* | 2019 | 2018 | 2017 | 2016 | |
| Consolidated normalised statements of financial position | ||||||||
| Assets | ||||||||
| Non-current assets | 2 662.2 | 2 740.0 | 3 637.8 | 2 751.4 | 2 385.0 | 2 010.9 | 1 929.4 | |
| Property, plant and equipment | 1 576.9 | 1 671.9 | 2 509.8 | 2 630.4 | 2 285.4 | 1 917.0 | 1 844.1 | |
| Right-of-use assets | 1 040.9 | 998.3 | 985.0 | – | – | – | – | |
| Intangible assets and goodwill | 33.7 | 39.9 | 57.4 | 55.4 | 54.7 | 50.5 | 45.6 | |
| Investments and loans | 0.8 | 0.8 | 34.8 | 34.8 | 34.2 | 34.2 | 34.0 | |
| Other investments | – | – | 7.9 | 13.0 | – | – | – | |
| Deferred taxation | 9.9 | 29.1 | 42.9 | 17.8 | 10.7 | 9.2 | 5.7 | |
| Current assets | 620.0 | 613.5 | 288.1 | 335.0 | 362.7 | 394.8 | 305.2 | |
| Total assets | 3 282.2 | 3 353.5 | 3 925.9 | 3 086.4 | 2 747.7 | 2 405.7 | 2 234.6 | |
| Equity | ||||||||
| Total shareholders’ funds | 975.3 | 936.4 | 1 451.9 | 1 948.0 | 1 868.9 | 1 711.5 | 1 607.7 | |
| Stated capital | 1 324.7 | 1 324.7 | 179.5 | 179.5 | 179.5 | 179.4 | 168.0 | |
| Treasury shares | (507.6) | (510.9) | (9.6) | (13.3) | (20.3) | (22.0) | (19.5) | |
| Reserves | 158.2 | 122.6 | 1 282.0 | 1 781.8 | 1 709.7 | 1 554.1 | 1 459.2 | |
| Liabilities | ||||||||
| Non-current liabilities | 1 759.8 | 2 043.9 | 2 245.4 | 924.5 | 701.4 | 549.0 | 497.9 | |
| Interest-bearing borrowings | 400.0 | 650.0 | 750.0 | 660.0 | 450.0 | 320.0 | 270.0 | |
| Lease liability | 1 338.6 | 1 365.6 | 1 376.1 | – | – | – | – | |
| Other non-current liabilities | 8.7 | – | – | 78.9 | 86.3 | 89.6 | 102.2 | |
| Deferred taxation | 12.5 | 28.3 | 119.3 | 185.6 | 165.1 | 139.4 | 125.7 | |
| Current liabilities | 547.1 | 373.2 | 228.6 | 213.9 | 177.4 | 145.2 | 129.0 | |
| Total equity and liabilities | 3 282.2 | 3 353.5 | 3 925.9 | 3 086.4 | 2 747.7 | 2 405.7 | 2 234.6 | |
| Reported | Normalised | ||||||||
| R’m | 2022 | 2021 | 2020* | 2019 | 2018 | 2017 | 2016 | ||
| Ordinary share performance | |||||||||
| Shares in issue | 000 | 571 645 | 571 645 | 43 574 | 43 574 | 43 574 | 43 572 | 43 407 | |
| Weighted average shares in issue | 000 | 572 855 | 501 001 | 43 503 | 43 452 | 43 442 | 43 347 | 43 226 | |
| Earnings per share | cents | 14.3 | (160.6) | (818.1) | 615.2 | 801.3 | 835.1 | 864.8 | |
| Headline (loss)/earnings per share | cents | (8.7) | (90.9) | (181.1) | 614.6 | 762.1 | 835.5 | 864.5 | |
| Diluted headline earnings per share | cents | (8.6) | (90.9) | (181.1) | 613.4 | 760.6 | 833.6 | 859.9 | |
| Dividends per share | cents | – | – | 153.0 | 366.0 | 454.0 | 500.0 | 517.0 | |
| Dividend cover | times | – | – | (0.2) | 1.7 | 1.7 | 1.7 | 1.7 | |
| Net asset value per share | cents | 171 | 164 | 3 332 | 4 471 | 4 289 | 3 928 | 3 704 | |
| Net tangible asset value per share | cents | 165 | 157 | 8 878 | 6 956 | 6 180 | 5 405 | 5 043 | |
| Profitability and liquidity | |||||||||
| EBITDA margin | % | 27.5 | (27.3) | 19.7 | 31.6 | 39.2 | 40.5 | 41.9 | |
| EBITDAR margin | % | 27.0 | (26.9) | 29.7 | 39.1 | 46.3 | 46.8 | 47.5 | |
| Operating margin | % | 10.6 | (67.8) | 8.4 | 24.0 | 32.0 | 33.8 | 35.4 | |
| Effective tax rate | % | 2.6 | (10.7) | (15.8) | 27.7 | 27.2 | 27.7 | 27.0 | |
| Return on equity | % | 8.6 | (1.07) | (0.7) | 14.0 | 18.5 | 21.8 | 24.5 | |
| Interest-bearing debt to equity | % | 68.3 | 78.9 | 54.9 | 33.9 | 24.1 | 18.7 | 16.8 | |
| Current ratio | % | 1.1 | 1.6 | 1.3 | 1.6 | 2.0 | 2.7 | 2.4 | |
| Stock exchange performance | |||||||||
| Market price per ordinary share | |||||||||
| – Closing | Rand | 3.95 | 3.51 | 23.75 | 102.71 | 141.82 | 140.13 | 155.52 | |
| – Highest | Rand | 6.50 | 22.50 | 117.23 | 156.99 | 178.50 | 175.99 | 173.00 | |
| – Lowest | Rand | 3.37 | 2.25 | 16.79 | 97.00 | 114.96 | 132.01 | 129.00 | |
| Total market capitalisation | R’m | 2 409 | 2 141 | 1 035 | 4 475 | 6 180 | 6 106 | 6 751 | |
| Fully diluted closing price-earnings multiple | times | 27.6 | (2.2) | (13.1) | 16.7 | 18.7 | 16.8 | 18.1 | |
| Volume traded | |||||||||
| – Ordinary shares | 000 | 379 560 | 530 366 | 37 071 | 12 139 | 17 795 | 10 251 | 9 217 | |
| Other | |||||||||
| Number of hotels at year-end | 59 | 63 | 62 | 60 | 59 | 57 | 57 | ||
| Number of rooms at year-end | 7 534 | 8 070 | 7 902 | 7 600 | 7 391 | 7 072 | 7 072 | ||
| Group average occupancy | % | 38 | 19 | 38 | 55 | 59 | 63 | 66 | |
| South Africa average occupancy | % | 40 | 21 | 41 | 58 | 61 | 63 | 66 | |
* 2020 information has not been restated for IAS 33.28 as a result of the of the rights offer in August 2020.
Value added statement
| GROUP | |||
| R000 | 2022 | 2021 | 2022 % of total |
| Revenue1 | 1 269 991 | 584 019 | |
|---|---|---|---|
| Paid to suppliers for materials and services | (417 924) | (658 445) | |
| Value added by operations | 852 067 | (74 426) | |
| Disposal of East Africa | 88 275 | – | |
| Interest income | 824 | 7 746 | |
| Total wealth created/(deficit) | 941 166 | (66 680) | 100 |
| Distributed as follows: | |||
| Salaries, wages and all related benefits2 | |||
| – direct | 279 653 | 227 544 | |
| – indirect | 42 951 | 12 240 | |
| 322 604 | 239 784 | 34 | |
| Government | |||
| Taxes3 | 116 045 | 57 228 | |
| Rates | 60 607 | 57 649 | |
| 176 652 | 114 877 | 19 | |
| Providers of capital | |||
| Dividends to ordinary shareholders | – | – | |
| Interest on borrowings | 179 482 | 177 415 | |
| 179 482 | 177 415 | 19 | |
| Reinvested to develop/maintain operations | |||
| Depreciation and amortisation | 180 698 | 205 853 | |
| Accumulated profit/(loss) | 81 730 | (804 609) | |
| 262 428 | (598 756) | 28 | |
| Total wealth created/(deficit) | 941 166 | (66 680) | 100 |
| Headcount | |||
| – direct | 1 130 | 1 477 | |
| – indirect | 83 | – | |
| Total headcount | 1 213 | 1 477 | |
1 Including value added taxation (VAT).
2 Excluding employee taxes.
3 Includes income taxation, deferred taxation, employee taxes and net VAT.
