Wilderness Holding Group says its revenue and cost of sales reduced after the adoption of International Financial Reporting Standard (IFRS) 15, dipping to P561 million in 2015 against P558 million in the prior year.
Information contained on the company’s consolidated financial results for the year ended 28 February 2015 shows that on a restated basis revenue grew by 12 percent to P945 million. Bed-nights sold increased by 11 percent, driven mainly by Namibia and a greater contribution from the lower end products. Also, available bed-nights increased by six percent from 210 880 to 224 228.
The average exchange rate for the year was six percent weaker against the US Dollar from P8.56 to P9.08, whilst the Rand depreciated against the Botswana Pula by three percent from R1.17 to R1.21. The gross margin decreased by one percent to 68 percent as a result of greater contribution by the lower margin Namibian business.
According to the statement, EBITDA margin improved from 17.9 percent to 19.2 percent with operating costs were decreased by five percent despite growth in available bed-nights. Continued investment in information technology resulted in an increase of 35 percent to P8.3 million in share-based payments charges.
“The weakening by three percent of the South African Rand and the Namibian Dollar against the Botswana Pula resulted in a benefit on conversion to our Pula reported results,” reads the statement.
Wilderness also stated that all geographical segments reported an improved operational performance, with Namibia now contributing 11 percent of segmental profit compared to two percent in the prior year. Other gains amounting to P7 million include P10.7 million insurance claim for damages to an aircraft, profit from the disposal of subsidiaries amounting to P1.1 million and a loss from disposal of associates of P5 million.
In line with the Group’s hedging strategy, during the latter half of the year the forward cover taken was reduced to 30 percent of the unhedged position expected over the next four months. The company stated that impairment losses amounted to P10.2 million, this mainly arose from damage to an aircraft that was impaired for P4.3 million and P4.9 million impairment of the Zambian assets until the leases are renewed. The remaining balance is said to be attributed to impairments of intangible assets, loans and property, plant and equipment. Wilderness’s net finance costs decreased from P7.5 million to P4.6 million reflecting the lower level of interest-bearing debt. The Group’s effective tax rate decreased from 37 percent in the prior year to 30 percent in the current year. The effective tax rate is higher than the group’s nominal rate of 22 percent largely due to the higher tax rate in other jurisdictions and expenses that are not deductible for tax purposes.