STRATEGIC UPDATE• The austerity measures which were implemented last year have begun to bear fruit.• We have negotiated an earlier exit from Holiday Inn Accra. This is reflected on our post balance sheet events in our annual report note 31. • We have exited Holiday Inn Gaborone in light of what we perceived as a depressed operating environment after our exit from South Africa.• Amber Express is progressing well and we are looking at options of structuring it in line with our new business model going forward.• We continue to pursue management contracts in our selected markets. • The refurbishment of our hotels is now underway with the first three city hotels, Holiday Inn Harare, Holiday Inn Bulawayo and Crowne Plaza Monomotapa, expected to be completed by June 2012. Thereafter we start the refurbishment of the Victoria Falls properties.•
5 MONTHS PERFORMANCE UPDATE• The foreign arrivals revenue into our hotels has grown by 25% for 5 months up to February compared with same period last year• Turnover ↑ 19% compared to same period last year at $22 million• This is 1.70% ahead of budget.• RevPAR ↑ 16% compared to same period last year.• Occupancy remained the same as prior year at 50% against a current year budget of 50% with growth in revenue mainly driven by a 20% increase in ADR.
5 MONTHS PERFORMANCE UPDATE• EBITDA margin for the 5 months was 11% compared to 1% of same period last year.• Zimbabwe operations EBITDA margin up to 11% compared to 5% of same period last year.• Management contracts profitable, recording an EBITDA margin of 41% compared to minus 92% of same period last year.
COSTS UPDATE• Cost of Sales has improved to 28% compared to 31% same period prior year, following the closure of the South African Hotels• Central office costs are down 40% from same period last year following our successful restructuring which we completed in October 2011.• These are now 9% of Turnover, compared to 19% of the same period last year.
HOTEL PERFORMANCE UPDATE Rank Hotel 2012 2012 2011 2011 Occupancy RevPAR Occupancy RevPAR 1 The Victoria 58% $78 49% $54 Falls Hotel 2. Crowne 67% $67 63% $54 Plaza Monomotapa 3. Holiday Inn 69% $61 68% $55 Harare 5. Elephant 44% $36 30% $22 Hills Conferencing 5. The Kingdom 35% $34 37% $36 At Victoria Falls
FUNDING• Borrowings are at $13.41m consisting of $8.76m short-term and $4.65m long-term borrowings.• The net current liabilities position has improved to $6.93m from $7.47m as at 30 September 2011 with improved cash generation and settling part of our retrenchment obligations from operational cash flows.• We are in the process of restructuring our short-term longs to reduce the effective cost of borrowing and our exposure.
OUTLOOK• Forward bookings for our Victoria Falls properties are as follows – Elephant Hills - (30% until September) – The Kingdom at Victoria Falls - (21% until September) – The Victoria Falls Hotel - (61% until September) • Although the lead time on bookings into our hotels has improved generally this is still very short so we expect the performance in our resorts to meet or exceed expectations. • Consolidated this is ↑7p.p compared to the same period last year• The budgeted turnover for the year is $59.88m, which we expect to exceed if the current growth in RevPAR continues. Last year the turnover on continuing operations was $49.8 million.• We expect to meet our original EBITDA budget of 8%.