Vous êtes sur la page 1sur 1

Abridged Audited Results For The Year Ended 31 December 2013

Occupancy RevPAR Interest Costs

Group Zimbabwe Operations

$29.3 million



$1.8 million
Interest Costs

Refreshing hotels, Amazing experiences

$27.7 million



$1.8 million

Profit after tax


$1.1 million from $5.9 million loss


to $4.3 million

HIGHLIGHTS Profit after tax $1.1 million in 2013 from a loss of $5.9 million in 2012. Revenue 6% from $27.6 million in 2012 to $29.3 million in 2013. Zimbabwe operations revenue 9% from $25.4 million same period last year to $27.7 million in 2013. Occupancy 9% from 43% in prior year to 47% in 2013. Zimbabwe operations occupancy 15% from 47% in the prior year to 54% in 2013 RevPar 8% from $36 to $39. Costs 18% compared to prior year. EBITDA 7 times from $0.6 million (2% margin) during same period last year to $4.3 million (15% margin). Interest cost 51% to $1.8 million from $3.7 million same period last year. Gearing down from 69% to 59%.

1. INTRODUCTION The Groups focus in 2013 was restructuring debt, reducing costs and generating revenue. I am pleased to report that substantial progress was made towards these goals and the company is on the path to sustainable recovery. In spite of a trading environment that was riddled with liquidity constraints, rising costs and intense competition, RTG has been able to record a meaningful profit, the highest since dollarisation. This is an especially pleasing set of results considering the negative performance recorded last year.

ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 31 December 2013 Group Group 31.12.2013 31.12.2012 Group Group US$ US$ 31.12.2013 31.12.2012 US$ US$ CASH FLOWS FROM OPERATING ACTIVITIES ASSETS Cash generated from operations 2,895,473 1,582,468 Non current assets Property and equipment 38,233,817 35,814,057 Interest received 108,154 220,827 Intangible asset 180,635 206,441 Investment income 124,767 212,787 Interest paid (1,884,319) (3,874,791) 38,414,452 36,020,498 Income tax paid (117,177) (255,704) Exchange losses on translation of foreign operations 40,271 6,668 Current assets Net cash inflow/(outflow) from operating activities 1,167,169 (2,107,745) Inventories 2,379,733 1,967,424 CASH FLOWS FROM INVESTING ACTIVITIES Accounts receivable 6,111,029 5,688,796 Held for trading investments 5,847 25,288 Purchase of property and equipment (3,974,932) (3,936,629) Proceeds from sale of property and equipment - 217,602 Cash and cash equivalents 4,015,719 2,961,923 Proceeds from sale of subsidiaries 762,000 12,512,328 10,643,431 Proceeds from disposal of stock market investments 19,441 Proceeds from disposal of investment property - 580,000 Assets in disposal group classified as held for sale - 1,722,452 Net cash outflow from investing activities (3,955,491) (2,377,027) CASH FLOWS FROM FINANCING ACTIVITIES Total assets 50,926,780 48,386,381 Increase/(decrease) in borrowings 2,509,391 (1,254,342) Proceeds from rights issue of ordinary shares 4,500,000 EQUITY AND LIABILITIES Net cash inflow/(outflow) from financing activities 7,009,391 (1,254,342) Capital and reserves Share capital 187,055 164,555 NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 4,221,069 (5,739,114) Share premium 4,477,500 CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR (1,199,347) 4,539,767 Non distributable reserves 16,711,500 16,711,500 Foreign currency translation reserve (38,773) 1,498 CASH AND CASH EQUIVALENTS AT END OF THE YEAR 3,021,722 (1,199,347) Revaluation reserve 1,257,114 1,257,114 ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31 December 2013 Accumulated losses Total equity (5,806,833) 16,787,563 (6,865,677) 11,268,990

Non current liabilities NOTES TO THE ABRIDGED FINANCIAL STATEMENTS Borrowings 19,878,518 10,162,903 for the year ended 31 December 2013 Deferred tax 2,100,317 2,295,798 21,978,835 12,458,701 1. General Information Rainbow Tourism Group Limited, is a company incorporated and domiciled in Zimbabwe. The Current liabilities Borrowings Accounts payable Tax payable Bank overdraft 3,000,000 8,043,861 122,524 993,997 12,160,382 10,206,224 8,570,017 122,524 4,161,270 23,060,035
Group is in tourism services industry as hoteliers, tour operators and providers of conference facilities. Its registration number is 4880/91. The Group is listed on the Zimbabwe Stock Exchange. 2. Significant accounting policies and estimates The Abridged Financial Statements have been prepared in accordance with the accounting policies and estimates adopted in the Groups last Annual Financial Statements. 3. Basis of preparation The Abridged Financial Statements for the year ended 31 December 2013 have been prepared 24:03). The Abridged Financial Statements should be read in conjunction with the audited annual financial statements for the year ended 31 December 2013, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) The financial statements are based on statutory records that are maintained under the historical cost convention, except for land and buildings that are maintained at fair value.

2. OPERATING PERFORMANCE The Group registered an increase in revenue of 6% from $27.6 million in 2012 to $29.3 million in 2013 whilst cost of sales was contained at $3 million. Zimbabwe operations revenues grew by 9% to $27.7 million in the current year from $25.4 million recorded in 2012. However, the Groups overall revenues were diluted by the Mozambique operation which recorded a 27% drop in revenue from $2.2 million to $1.6 million. Mozambiques depressed revenues were largely due to the emergence of competition in the area in the wake of stalled refurbishment of the hotel. The refurbishment exercise is now under way. The hotel remains strategic for the Group due to its ideal operating cost structure and the opportunities that are emerging in the Mozambican market. Occupancies for the Group improved by 9%, whilst the average room rate grew from $82 in 2012 to $83 in 2013. The Group re-energised its operational model to a cost effective operating structure which ensures both quality and efficiency. Underlying operating costs dropped by $3.8 million resulting in Earnings before Interest, Taxes and Depreciation and Amortization (EBITDA) growth of 593% to $4.3 million (15% margin) from $0.6 million (2% margin) attained in the prior year. Interest expense reduced by 51% to $1.8 million from $3.7 million last year following the retirement of expensive short term loans. The retirement of these short term loans was achieved through the proceeds from the rights issue of $4.5 million and the attainment of a $10 million loan at 10% rate of interest. This interest rate was substantially lower than the 24% average cost of short term money for the Group at the time. The Groups continuing operations achieved a profit before tax of $1.0 million compared to a loss of $4.6 million recorded in the prior year. The total debt closed the year at $23.9 million as at 31 December 2013 including a new loan of $4.4 million for Rainbow Beitbridge Hotel furniture, fittings and equipment. Despite this additional loan, gearing for the year closed at 59% down from 69% in 2012.

in accordance with International Accounting Standard 34, Interim Financial Reporting, and in terms of the Zimbabwe Stock Exchange (ZSE) listing rules and the Companies Act, (Chapter Liabilities directly associated with assets in disposal group classified as held for sale Total liabilities Total equity and liabilities - 34,139,217 50,926,780 1,598,655 37,117,391 48,386,381 Group 31.12.12 US$ 3,936,629 1,536,887 2,961,923 (4,161,270) (1,199,347) 2,500,000 1,645,546

3. DISCONTINUED OPERATIONS Hathanay Investments t/a Matetsi Water Lodge which was previously reported as a discontinuing operation as at 31 December 2012 is undergoing the process of liquidation. The final liquidation order was granted in December 2013. 4. REFURBISHMENT PROGRAMME Rainbow Towers Hotel and Conference Centre The refurbishment of Rainbow Towers Hotel and Conference Centre is currently in progress. A total of 48 rooms were released into operation during the year. The refurbishment was stalled during the second half of 2013 as the $1.9 million at Capital Bank remains inaccessible since the postcuratorship period. There is continued engagement to get the funds released. Beitbridge Hotel Project The soft opening of the hotel for trading was on 16 January 2014. The procurement of furniture, fittings and equipment is complete. Rainbow Hotel Mozambique Refurbishment The focus of the project is the modernisation of rooms including bathrooms, public areas and elevators set to be completed in first half 2014. This will improve the competitiveness of the hotel. Bulawayo Rainbow Refurbishment The refurbishment of the hotel is progressing as planned. The works cover public areas which include reception, bar and restaurants. This will be completed by first half of 2014.

Group 31.12.13 US$ 4. Property and equipment Additions to property and equipment 3,974,932 Depreciation and amortisation 1,471,271 ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2013 5. Cash and cash equivalents Cash and bank balances 4,015,719 Group Group Bank overdraft (993,997) 3,021,722 31.12.2013 31.12.2012 6. Share capital US$ US$ Number of shares (000s) Authorised shares of 0.01 cents each 2,500,000 Issued and fully paid shares of 0.01 cents each 1,870,546 Revenue 29,322,787 27,570,966

5. CORPORATE SOCIAL INVESTMENT The Group continued to support green agenda initiatives through the sponsorship of the Environmental Reporter Awards in partnership with Environment Africa and Nyaradzo Group. The 17th edition of the Environmental Reporter Awards was held in November 2013. These awards were supported by media seminars and tours conducted during the course of 2013 for journalists who report on environment matters. The Environmental Reporter Awards have become a positive contributor towards the enhancement of environmental reporting in Zimbabwe. uring 2013, RTG continued its partnership with the Zimbabwe National Army relating to its D rehabilitation centre Tsanga Lodge, through the provision of linen and blankets. The Group also partnered with Kidzcan Cancer Association by providing linen, blankets and pillows for the childrens ward at Parirenyatwa Hospital. Going forward, RTG will pursue community engagement initiatives that foster social and economic empowerment of local communities by providing market support for small scale farmers.

6. DIVIDENDS In view of RTGs obligations arising from pre-existing loan covenants, the directors have resolved that no dividend be declared for the full year ended 31 December 2013. 7. DIRECTORATE Mr Grant Gore left the organisation in August 2013. We wish him success in his future endeavours. 8. OUTLOOK Whilst economic uncertainties remain I believe that the key enablers of our strategy will support the continued growth of the Group in the years ahead. The Group will continue to drive operational efficiency whilst positioning the business towards sustainable growth and profit. Debt retirement is a key priority in building a strong balance sheet. At the same time, generation of free cashflows and prudent working capital management remain top priorities into the future.

7. Earnings per share Cost of sales (3,131,887) (3,008,238) 7.1 Basic earnings per share (continuing operations) Profit/(loss) attributable to shareholders 1,225,989 (3,416,297) Gross profit 26,190,900 24,562,728 Weighted average number of shares in issue(000s) 1,870,546 1,645,546 Basic earnings per share(US cents) 0.065 (0.21) Other operating income 112,915 212,787 7.2 Headline earnings per share (continuing operations) Profit/(loss) attributable to shareholders 1,225,989 (3,416,297) Operating expenses (22,046,720) (24,161,131) Loss on sale of assets - (276,991) 1,225,989 (3,693,288) Earnings before interest, tax, depreciation and amortisation 4,257,095 614,384 Weighted average number of shares in issue(000s) 1,870,546 1,645,546 Depreciation (1,471,271) (1,536,887) Headline earnings per share(US cents) 0.065 (0.22) 8. Revenue Profit/(loss) from operations 2,785,824 (922,503) Zimbabwe 27,731,289 25,379,862 Mozambique 1,591,498 2,191,104 29,322,787 27,570,966 Finance expense (1,776,166) (3,653,963) 9. Abridged income statement for discontinued operations Profit/(loss) before tax 1,009,658 (4,576,466) for the year ended 31 December 2013 Group Group 31.12.13 31.12.12 Income tax 216,331 1,160,169 US$ US$ Profit/(loss) after tax from continuing operations 1,225,989 (3,416,297) Revenue - 1,927,089 Cost of sales - (426,276) Loss from discontinued operations, net of tax (167,145) (2,470,611) Profit/(loss) for the year Gross profit Operating expenses Other comprehensive income: Earnings before interest, tax, depreciation and amortisation Items that will not be reclassified subsequently to profit or loss Depreciation Gain on property revaluation, net of tax - 148,119 Impairment of property and equipment Items that will be reclassified subsequently to profit or loss Loss from operations Exchange loss arising from translation of foreign operations (40,271) (6,668) Finance expense Total comprehensive income/(loss) for the year 1,018,573 (5,745,457) Loss before tax for the year Earnings per share(note 7) Income tax Basic(US cents) 0.065 (0.21) Headline(US cents) 0.065 (0.22) Loss from discontinued operations 1,058,844 (5,886,908) - (116,243) (116,243) (50,902) - (167,145) - (167,145) - (167,145) 1,500,813 (3,775,188) (2,274,375) (136,093) (22,015) (2,432,483) (38,042) (2,470,525) (86) (2,470,611)

9. ACKNOWLEDGEMENT On behalf of the Board, I would like to express my gratitude to all stakeholders, business partners, shareholders, board members and management for their effort and support which has enabled RTG to achieve such a performance.


The summary Group financial statements derived from the audited Group financial statements of Rainbow Tourism Group Limited for the year ended 31 December 2013 are consistent in all material respects, with those financial statements, on the basis described in note 3 to the summary Group financial statements. The audit opinion on the Group financial statements is unqualified. These summary Group financial statements should be read in conjunction with the complete set of Group financial statements for the year ended 31 December 2013. The auditors report on the Group financial statements is available for inspection at the companys registered office.

Grant Thornton Camelsa Chartered Accountants (Zimbabwe) Registered Public Auditors Harare 18 March 2014

ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 31 December 2013 Foreign currency Share Share Non distributable translation Revaluation Accumulated Total capital premium reserve reserve reserve losses equity US$ US$ US$ US$ US$ US$ US$ Balance at 1 January 2012 164,555 - 17,174,038 8,166 1,108,995 (1,441,307) 17,014,447 Total comprehensive income for the year - - - (6,668) 148,119 (5,886,908) (5,745,457) Transfer of reserves - - (462,538) - - 462,538 Balance at 31 December 2012 164,555 - 16,711,500 1,498 1,257,114 (6,865,677) 11,268,990 Total comprehensive income for the year - - - (40,271) - 1,058,844 1,018,573 Issue of ordinary shares 22,500 4,477,500 - - - - 4,500,000 Balance at 31 December 2013 187,055 4,477,500 16,711,500 (38,773) 1,257,114 (5,806,833) 16,787,563

Directors: John M. Chikura (Chairman),Tendai Madziwanyika (Chief Executive), Shingirayi N. Chibanguza, David Govere, Ian C. Haruperi, Douglas Hoto, Joseph Kanyekanye, Douglas Mavhembu, Thandiwe T. Mlobane, Shadreck C. Vera