LUX Island Resorts Ltd HY 2014 financial results #Mauritius


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LUX Island Resorts Ltd HY 2014 financial results #Mauritius

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LUX Island Resorts Ltd HY 2014 financial results #Mauritius

  1. 1. LUX ISLAND RESORTS LTD AND ITS SUBSIDIARIES. The group results for the quarter and half year ended 31st December 2013 are as follows: Notes to the Financial Highlights • The Financial Highlights have been prepared in accordance with International Financial Reporting Standards (IFRSs). • The Financial Highlights have been prepared on the same basis as the accounting policies set out in the audited statutory Financial Statements of the Group for the period ended June 30, 2013, except for the adoption of relevant amendments to published Standards, Standards and Interpretations issued and effective for accounting period starting on July 1, 2013. • The Financial Highlights are issued pursuant to Listing Rule 12.14 and published according to the Securities Act 2005. • Copies of the Financial Highlights and the statement of direct and indirect interests of officers of the Company required under Rule 8 (2) (m) of the Securities (Disclosure Obligations of Reporting Issuers) Rules 2007 are available free of charge, upon request, from the Company Secretary, at the Company’s registered office, Lux Island Resorts Ltd, Pierre Simonet Street, Floréal. • The Board of Directors of Lux Island Resorts Ltd accepts full responsibility for the accuracy of the information contained in the Financial Highlights. Continuing Operations Revenue Earnings before Interest, Tax, Depreciation and Amortisation Depreciation and Amortisation Operating profit Net finance costs Share of results of associate Profit before income tax Taxation Profit after taxation from continuing operations Result after tax from discontinued operation Profit for the period Non-controlling interest Profit attributable to the group Other comprehensive income Movement for the period Total recognised gain Earnings per share - Basic SEGMENTAL INFORMATION Segment revenue: Mauritius Maldives Reunion Total revenue Segment results: Mauritius Maldives Reunion Results before net finance costs GROUP ABRIDGED STATEMENT OF COMPREHENSIVE INCOME 2013 Rs 000 (Unaudited) 2,028,154 449,180 (159,914) 289,266 (146,342) 2,628 145,552 (18,562) 126,990 - 126,990 (5,598) 121,392 (5,763) 115,629 1.12 977,591 629,535 421,028 2,028,154 173,804 101,709 13,753 289,266 2012 Rs 000 (Unaudited) 1,802,276 362,751 (161,322) 201,429 (161,342) (4,369) 35,718 (6,016) 29,702 - 29,702 (2,056) 27,646 (3,348) 24,298 0.26 853,096 548,682 400,498 1,802,276 120,576 62,946 17,907 201,429 Half year to 31st December 2013 Rs 000 (Audited) 3,771,263 774,320 (313,552) 460,768 (303,443) (12,095) 145,230 (38,635) 106,595 3,487 110,082 (6,935) 103,147 7,592 110,739 0.91 1,796,834 1,200,826 773,603 3,771,263 271,785 182,663 6,320 460,768 Year ended 30th JuneQuarter to 31st December 2012 Rs 000 (Unaudited) 1,157,091 360,685 (80,617) 280,068 (78,009) 3,433 205,492 (12,716) 192,776 - 192,776 (3,521) 189,255 565,704 335,362 256,025 1,157,091 175,882 65,502 38,684 280,068 2013 Rs 000 (Unaudited) 1,241,516 400,494 (80,707) 319,787 (72,598) 6,891 254,080 (19,946) 234,134 - 234,134 (4,996) 229,138 615,640 356,399 269,477 1,241,516 197,758 82,727 39,302 319,787 GROUP ABRIDGED STATEMENT OF FINANCIAL POSITION ASSETS Non current assets Property, plant & equipment Intangible assets Investment in associate Other financial assets Deferred tax assets Retirement benefit asset Current assets TOTAL ASSETS EQUITY AND LIABILITIES Shareholders’ interest Non-controlling interest Non-current liabilities Current liabilities TOTAL EQUITY AND LIABILITIES Net Assets per Share Rs 31st December 2013 Rs 000 (Unaudited) 7,425,197 1,159,236 213,844 36 35,679 8,724 8,842,716 1,344,523 10,187,239 3,721,751 107,330 4,562,653 1,795,505 10,187,239 32.72 31st December 2012 Rs 000 (Unaudited) 7,417,645 1,108,029 231,620 94 38,876 11,671 8,807,935 1,337,813 10,145,748 3,519,681 104,068 5,000,594 1,521,405 10,145,748 30.94 30th June 2013 Rs 000 (Audited) 7,382,497 1,164,840 217,634 36 36,097 10,216 8,811,320 1,046,485 9,857,805 3,606,122 101,638 4,751,745 1,398,300 9,857,805 31.70 GROUP ABRIDGED STATEMENT OF CASH FLOWS Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Movement in cash & cash equivalents Cash and bank balance At beginning of period At end of period 31st December 2013 Rs 000 158,455 (158,041) (238,473) (238,059) 64,049 (174,010) 31st December 2012 Rs 000 70,070 (23,240) (149,801) (102,971) (180,842) (283,813) 30th June 2013 Rs 000 520,814 (71,256) (204,667) 244,891 (180,842) 64,049 ABRIDGED STATEMENT OF CHANGES IN EQUITY At beginning of period Total recognised gain At end of period 31st December 2013 Rs 000 3,606,122 115,629 3,721,751 31st December 2012 Rs 000 3,495,383 24,298 3,519,681 30th June 2013 Rs 000 3,495,383 110,739 3,606,122 COMMENTARY Tourist arrivals to Mauritius for the quarter ended 31st December 2013 amounted to 298,663 up by 3% on the corresponding quarter last year. Arrivals from Europe, our main market, were flat on last year at 172,506 and France the number one source market for both Mauritius and Reunion Island decreased by 1.5%. However this was compensated by an increase in arrivals from Germany and UK which grew by 9.5% and 4.2% respectively. The Chinese market continues to perform well with arrivals for the quarter under review reaching 11,494 twice as many as in 2012 as a result of increased connectivity to that destination since January 2013. The Maldives performed very well during the quarter under review with tourist arrivals amounting to 306,927 representing a growth of 15% on the corresponding quarter last year, mainly due to the increase in arrivals from China which increased by 35%. For the six months ended 31st December 2013, tourist arrivals in Mauritius amounted to 521,442 an increase of 5% on last year whilst in Maldives the number of tourists grew by 17% to reach 585,535. Maldives is maintaining its lead essentially due to their proactive and pragmatic approach to connectivity. Group Results Despite the ongoing challenges in some markets, the Group delivered a solid second quarter performance with EBITDA reaching Rs 400m an increase of 11% on last year, consistent with the guidance communicated in our previous quarterly announcement. This result is in line with our LUX* 2016 strategic plan which for this financial year will result in double digit growth in EBITDA. The Group occupancy for the quarter was at the same level as last year at 74% and RevPAR (Room Revenue per Available Room) increased by 7% driven by improved ADR (Average Daily Rate). Total revenue for the quarter under review reached Rs 1.2bn up by 7% on the corresponding quarter last year whilst EBITDA (Earnings before Interest Tax Depreciation and Amortisation) amounted to Rs 400m compared to Rs 360m last year. Operating profit improved by 14% from Rs 280m to Rs 320m and net finance costs decreased by Rs 6m as a result of reduced borrowings and conversion of a significant portion of our rupee denominated loans into euro at a lower interest rate. Tamassa, whose results are consolidated as an associate in the financial statements of Lux Island Resorts Ltd, doubled its profit from Rs 7m to Rs 14m and therefore the share of LUX amounted to Rs 7m compared to Rs3m last year. Net profit for the quarter amounted to Rs 229m an improvement of 21% on the corresponding quarter last year. The turnover of the Group for the six months ended 31st December 2013 reached Rs 2bn, a growth of 13% on last year whilst profit for the period improved by more than fourfold from Rs 30m to Rs 127m. The table below summarises the performance of our hotels by destination compared to corresponding period last year: Maldives and Mauritius performed very well during the quarter and semester with 23% and 15% increase in RevPAR respectively compared to the previous year. Our hotels in Reunion Island which depend almost entirely on the French market fared quite well with RevPAR flat on last year for the quarter under review and down by only 1% for the semester. Between 1st July and 31st December 2013 the Group generated a net cash flow of Rs 158m from operations compared to Rs 70m for the same period last year and paid down a total of Rs 238m in term loans. We will pay down a further Rs 270m by end of June 2014 and as a result, our term loans as at the same date will total at Rs 3.8bn compared to Rs 4.3bn at 30th June 2013, a reduction of Rs 500m (12%). Outlook The Global Economic Environment is improving and there is cause for a more optimistic and positive outlook on the future growth of tourism globally which is forecasted to continue growing at approximately 5% per annum and especially to the Indian Ocean. Of our major markets, only France remains uncertain due to their slow economic recovery. We are encouraged by the improvement noted in the arrivals from the UK since July 2013 and the significant increase in the number of tourists from China following introduction of additional direct flights to and from Shanghai. We are also confident that the new Boeing Dreamliner operated by TUI UK commencing April 2014 will increase arrivals especially in the low season. The daily Emirates A380 service introduced last December has had the predicted positive impact. We have observed that tourism to Mauritius can only increase if there is a substantial improvement in connectivity. This should be the focus of all decision makers and stakeholders in the industry. The recent announcement concerning Turkish Airlines intention to fly to Mauritius is positive. We also look forward to regular all year round services to Moscow to be able to attract the Russian clientele. Finally, Mauritius must continue to focus increasingly on China with 97 million outbound tourists in 2013 and a forecast of 112 million in 2014; this, without doubt, is the most attractive market in terms of potential to rapidly grow the number of arrivals. We should ramp up the number of direct flights as well as consider other cities to connect. We are pleased to report that both occupancy and ADR held on the books are ahead on last year for the current quarter as well as the last quarter ending 30th June 2014. Providing there is no significant deterioration in the environment, we expect therefore turnover for this quarter to improve on last year. We are also confident that profit for the full year ending 30th June 2014 will show substantial growth on last year. By order of the Board LUX Hospitality Ltd 13th February 2014. Quarter to 31st December 2013 Half year to 31st December 2013 Mauritius Reunion Maldives The Group Mauritius Reunion Maldives The Group -1% - +3% - Occupancy (points) +5% - +8% +4% +8% -1% +7% +7% ADR +6% -1% +10% +6% +7% - +5% +6% Rev PAR +15% -1% +23% +14%