October 20 2011 at 05:00am
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Audrey D'Angelo

Despite tough conditions in the hotel industry and a "dramatic decrease" in international guests booking into its game lodges, Gooderson Leisure lifted group revenue by 10 percent to R49.5 million in the six months to August, the AltX-listed firm said yesterday.

Chairman Alan Gooderson said the rise in revenue was due mainly to an increase in government spend in its conference division and a marginal increase in hotel occupancies. It was black economic empowerment (BEE) compliant with 90 percent black staff.

Gooderson continued to concentrate mainly on the local rather than the international market and he expected conditions to remain tough in the hotel market for at least 18 months. The "turmoil in Europe" meant that he did not expect the international market to improve before 2013.

Earnings before tax, interest and depreciation rose by 16 percent to R6.2m and headline earnings a share by 59 percent to 2.04c. Profit after tax rose to R880 000 from R554 000 in the same period last year, despite the fact that last year's interim results included the World Cup period.

The net asset value rose by 3 percent to R1.176 a share and the tangible asset value to R1.1685 due to acquisitions and refurbishment. Cash in hand was 60 percent higher.

Of the two hotels acquired in 2009, the Sanrock Hotel and conference centre in Modimolle was showing good growth in revenue, attributable to an extensive upgrade and refurbishment. A delay in the transfer of the Fabz Hotel and the late approval of plans to upgrade it prevented completion of plans to improve revenue obtained from it.

The directors said management remained "cautiously optimistic of a stronger performance in the second half of the year. With its portfolio of refurbished and upgraded properties, the group will be well positioned to accelerate growth once the economy begins to show positive signs."

Meanwhile no interim dividend would be paid.

The chairman said he was still on the lookout for further acquisitions. It was likely that the company would eventually transfer to the main board of the JSE. But at present the shares were tightly held.

Earlier this month it was announced that Alawill Investments, a wholly owned subsidiary of Gooderson, had offered to buy the Kloppenheim country estate for R10.9m. This included the hotel business and assets, the time-share property and assets, and other assets.

Gooderson shares closed unchanged at 55c yesterday.

Source: Businesss Report (http://www.iol.co.za/business/business-news/gooderson-grows-revenue-despite-foreign-stayaway-1.1160780)