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HOTEL group African Sun has posted a profit before tax of $1,23 million in the six months to March this year, a figure lower than $1,50 million achieved in the prior period. The chairman, Mr Bekithemba Nkomo said this in a statement accompanying the group’s audited financial results for the half year ending 31 March 2013.
Excluding prior year, he said other income and expenses that were non-recurring, profit before tax grew by 303 percent from $306 354 to $1,23 million.
“Net debt closed at $16,13 million, a four percent increase as a result of capital expenditure on refurbishment. As a result, gearing slightly increased to 40 percent from 39 percent reported in September 2012,” said Mr Nkomo.
The group’s revenue grew by 1,6 percent to $26,6 million in comparison to the same period last year.
The marginal growth was attributable to a six percent growth in ADR, on the back of a reduction in total room nights by six percent from the same period in 2012. The drop in occupancy resulted in a five percent slump in Revenue Per Average Room (RevPAR) to $44 from $46 achieved during the comparable period last year.
“However, business is expected to rebound from the domestic market as we enter our peak period.
“The recovery of room capacity is imminent, as we are nearing completion of our refurbishment programme for Crowne Plaza Monomotapa and Holiday Inn Harare,” he said.
African Sun targets to have completed refurbishment of its Harare hotels by next month while Victoria Falls properties were set for completion before the United Nations World Tourism Organisation general assembly in August. It is hoped that the UNWTO general assembly, which Zimbabwe and Zambia are co-hosting would provide the tourism sector a unique marketing platform expected to enhance the visibility of the destination. Mr Nkomo said the overall performance of the group was pleasing as this had been demonstrated by consistent growth in key performance indicators.
“Cost of sales and operating expenses were down five percent and four percent respectively, driving a 65 percent growth in Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to $3,59 million from $2,17 million achieved during the same period last year,” said Mr Nkomo.
Bongani Ndlovu