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Financial Statements and Related Announcement::First Quarter Results Issuer & Securities

Issuer/ Manager

GUOCOLEISURE LIMITED

Securities GUOCOLEISURE LIMITED - BMG4210D1020 - B16 Stapled Security No


Announcement Details


Announcement Title

Financial Statements and Related Announcement

Date & Time of Broadcast 16-Oct-2015 17:30:18 Status New Announcement Sub Title First Quarter Results Announcement Reference SG151016OTHR3DPT Submitted By (Co./ Ind. Name) Susan Lim Designation Group Company Secretary


Description (Please provide a detailed description of the event in the box below - Refer to the Online help for the format)


Please refer to the attached.


Additional Details


For Financial Period Ended 30/09/2015


Attachments


GL_FY2016_1Q_FINAL.pdf

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Unaudited Financial Statement And Related Announcement For First Quarter Ended 30 September 2015


1(a)(i) An income statement and statement of comprehensive income, or a statement of comprehensive income, for the group, together with a comparative statement for the corresponding period of the immediately preceding financial year


Unaudited

1st Quarter ended


Favourable / (unfavourable)

variance %

1 Jul to

30 Sep 2015

1 Jul to

30 Sep 2014

US$m

US$m


Revenue

(Restated)


(2)

115.1

(46.3)

117.5

Cost of sales

(46.8)

1


Gross profit


68.8


70.7


(3)

Other operating income

13.4

0.2

N.M.

Administrative expenses

(41.5)

(43.8)

5


Operating profit


40.7


27.1


50

Finance income

0.3

2.3

(87)

Finance costs

(3.2)

(8.3)

61

Net financing costs

(2.9)

(6.0)

52


21.1

Profit before tax

37.8

79

Income tax expense

(6.5)

(4.6)

(41)

Profit for the period

31.3

16.5

90


16.6

Profit / (loss) attributable to:

Owners of the Company

31.4

89

Non-controlling interests

(0.1)

(0.1)

N.M

Profit for the period

31.3

16.5

90


Note to Income Statement

Unaudited

1st Quarter ended


Favourable / (unfavourable)

variance %

1 Jul to

30 Sep 2015

US$m

1 Jul to

30 Sep 2014

US$m


Profit / (loss) before tax is stated after (charging) /


*


0.1


N.M.

crediting:

Gain on disposal of investments / assets

Depreciation of hotels, property and equipment

(6.8)

(6.0)

(13)

Amortisation of intangible assets

(0.8)

(1.0)

20


* Amount less than US$0.1m

Note: N.M - not meaningful

1(a)(ii) Statement of Comprehensive Income


Unaudited

1st Quarter ended


Favourable / (unfavourable)

variance %

1 Jul to

30 Sep 2015

US$m

1 Jul to

30 Sep 2014

US$m


Profit for the period


31.3


16.5


90

Other comprehensive income:

Items that are or may be reclassified subsequently to profit or loss:

Net exchange differences from consolidation of foreign operations

(37.7)

(49.8)

24

Change in fair value of available-for-sale investments

*

-

N.M.

Change in fair value on cash flow hedge

(3.5)

-

N.M.


Other comprehensive income for the period, net of income tax


(41.2)


(49.8)


17


Total comprehensive income for the period


(9.9)


(33.3)


70


Total comprehensive income attributable to:


(9.9)


(33.4)


70

- Owners of the Company

- Non-controlling interests

-

0.1

N.M.


Total comprehensive income for the period


(9.9)


(33.3)


70


* Amount less than US$0.1m

Note: N.M - not meaningful

1(b)(i) A Statement of Financial Position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year


GROUP

COMPANY

Unaudited 30 Sep 2015

Audited 30 June 2015

US$m

Unaudited 30 Sep 2015

Audited 30 June 2015

US$m

US$m

US$m


ASSETS


1,177.5


1,220.2


-


-

Hotels, property and equipment

Intangible assets

117.0

126.2

-

-

Investments in subsidiaries

-

-

1,051.3

956.5

Pensions surplus

11.2

10.3

-

-

Other investments

2.4

2.5

-

-


TOTAL NON-CURRENT ASSETS


1,308.1


1,359.2


1,051.3


956.5

Inventories

1.0

1.0

-

-

Development properties

176.8

177.0

-

-

Trade and other receivables

52.4

65.6

0.2

0.2

Advances to subsidiaries

-

-

427.8

625.8

Cash and cash equivalents

45.3

21.8

-

-


TOTAL CURRENT ASSETS


275.5


265.4


428.0


626.0


TOTAL ASSETS


1,583.6


1,624.6


1,479.3


1,582.5

LIABILITIES

Loans and borrowings

2.3

20.7

-

-

Trade and other payables

108.9

112.1

1.6

1.5

Corporate tax payable

6.3

2.1

-

-

Provisions

1.6

3.2

-

-


TOTAL CURRENT LIABILITIES


119.1


138.1


1.6


1.5


Loans and borrowings


294.2


308.5


-


-

Pensions obligations

3.0

3.6

-

-

Deferred tax liabilities

21.3

22.1

-

-

Derivative financial liability

6.4

2.9

-

-


TOTAL NON-CURRENT LIABILITIES


324.9


337.1


-


-


TOTAL LIABILITIES


444.0


475.2


1.6


1.5


NET ASSETS


1,139.6


1,149.4


1,477.7


1,581.0


SHARE CAPITAL AND RESERVES


1,142.3


1,152.1


1,477.7


1,581.0

Equity attributable to owners of the

Company

Non-controlling interests

(2.7)

(2.7)

-

-


TOTAL EQUITY


1,139.6


1,149.4


1,477.7


1,581.0

1(b)(ii) Aggregate amount of group's borrowings and debt securities Amount repayable in one year or less, or on demand

As at 30 Sep 2015

As at 30 June 2015

Secured

US$m

Unsecured

US$m

Secured

US$m

Unsecured

US$m

-

2.3

-

20.7


Amount repayable after one year


As at 30 Sep 2015

As at 30 June 2015

Secured US$m

Unsecured

US$m

Secured US$m

Unsecured

US$m

87.8

206.4

91.5

217.0


Details of any collateral


As at 30 Sep 2015, the Group's unsecured borrowings that are repayable in one year or less stood at US$2.3 million and repayable after one year at US$206.4 million. The Group continues to have banking lines for its funding requirements.


The Group's secured borrowings as at 30 Sep 2015 of US$87.8 million that are repayable after one year, are secured by one hotel owned by the Group with a net book value of US$139.6 million.

1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year



OPERATING ACTIVITIES

Profit before financing costs Adjustments for non-cash items

Depreciation of hotels, property and equipment Amortisation of intangible assets

Other non-cash items

Gain on disposal of property and equipment Net change in working capital items

Development properties Trade and other receivables Trade and other payables Provisions

Income tax paid

Purchase of shares of the Company for ESOS 2008 CASH FLOWS FROM OPERATING ACTIVITIES


INVESTING ACTIVITIES

Proceeds from sale of property and equipment Acquisition of hotels, property and equipment CASH FLOWS USED IN INVESTING ACTIVITIES


FINANCING ACTIVITIES

Drawdown of short-term borrowings Repayment of short-term borrowings Interest received

Interest paid

Other financing costs

Realised exchange losses on financial derivatives CASH FLOWS USED IN FINANCING ACTIVITIES


NET INCREASE IN CASH AND CASH EQUIVALENTS

Cash and cash equivalents at beginning of the year Effect of exchange rate fluctuations on cash held


CASH AND CASH EQUIVALENTS AT END OF THE PERIOD

Unaudited

1st Quarter ended

1 Jul to

30 Sep 2015

US$m

1 Jul to

30 Sep 2014

US$m


40.7


6.8

0.8

(0.1)

*


0.1

11.5

(4.9)

(2.4)

(2.4)

-


27.1


6.0

1.0

0.2

(0.1)


- 25.6

(25.3)

(1.2)

(3.1)

(4.0)

50.1

26.2


* (6.0)


0.1

(14.0)

(6.0)

(13.9)


-

-

* (1.5)

*

-


1.6

(1.4)

- (0.1)

-

(0.1)

(1.5)

-


42.6

1.1

(0.7)


12.3

(2.4)

(0.1)


43.0#


9.8#


* Amount less than US$0.1m

# including bank overdraft of US$2.3 million (2014:US$0.1 million) under loan and borrowings

(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year Statement of Changes in Equity - Group



Share Capital US$m


Contributed

Surplus US$m


Translation Reserve US$m


Fair Value Reserve US$m


Hedging Reserve US$m

Capital Reserve Share Based Payment US$m


Equity Compen

-sation Reserve US$m


ESOS

Reserve US$m


Retained Earnings US$m


Total US$m


Non- Controlling Interests US$m


Total Equity US$m


Balance at 1 Jul 2015


273.6


654.2


(99.7)


0.6


(2.9)


(1.6)


4.3


(46.2)


369.8


1,152.1


(2.7)


1,149.4

Profit/(loss) for the period

-

-

-

-

-

-

-

-

31.4

31.4

(0.1)

31.3


Other comprehensive income:


-


-


(37.8)


-


*


-


-


-


-


-


-


(37.8)


0.1


(37.7)

Net exchange differences from

consolidation of foreign operations

Change in fair value of available-for-

sale investments

-

-

-

-

-

-

-

-

*

-

*

Change in fair value on cash flow

hedges

-

-

-

(3.5)

-

-

-

-

(3.5)

-

(3.5)

Total other comprehensive income, net of income tax


-


-


(37.8)


-


(3.5)


-


-


-


-


(41.3)


0.1


(41.2)

Total comprehensive income for the period, net of income tax


-


-


(37.8)


-


(3.5)


-


-


-


31.4


(9.9)


-


(9.9)


Transactions with owners, recorded directly in equity:

Value of employee services received for issue of share options


-


-


-


-


-


-


0.1


-


-


0.1


-


0.1

Total transactions with owners

-

-

-

-

-

-

0.1

-

-

0.1

-

0.1

Balance at 30 Sep 2015

273.6

654.2

(137.5)

0.6

(6.4)

(1.6)

4.4

(46.2)

401.2

1,142.3

(2.7)

1,139.6


Balance at 1 Jul 2014


273.6


654.2


(10.4)


0.6


-


(1.6)


3.4


(42.2)


339.7


1,217.3


(2.5)


1,214.8

Profit/(loss) for the period

-

-

-

-

-

-

-

-

16.6

16.6

(0.1)

16.5


Other comprehensive income:


-


-


(50.0)


-


-


-


-


-


-


(50.0)


0.2


(49.8)

Net exchange differences from

consolidation of foreign operations

Total other comprehensive income, net


-


-


(50.0)


-


-


-


-


-


-


(50.0)


0.2


(49.8)

of income tax

Total comprehensive income for the


-


-


(50.0)


-


-


-


-


-


16.6


(33.4)


0.1


(33.3)

period, net of income tax


Transactions with owners, recorded


-


-


-


-


-


-


-


(4.0)


-


(4.0)


-


(4.0)

directly in equity:

Purchase of shares of the Company for

ESOS 2008

Value of employee services received for

issue of share options

-

-

-

-

-

-

0.2

-

-

0.2

-

0.2

Total transactions with owners

-

-

-

-

-

-

0.2

(4.0)

-

(3.8)

-

(3.8)

Balance at 30 Sep 2014

273.6

654.2

(60.4)

0.6

-

(1.6)

3.6

(46.2)

356.3

1,180.1

(2.4)

1,177.7


* Amount less than US$0.1m

Statement of Changes in Equity - Company



Share Capital

US$m


Contributed

Surplus

US$m

Capital Reserve Share Based Payment

US$m


Equity Compensation

Reserve

US$m


ESOS

Reserve

US$m


Retained Earnings

US$m


Total US$m


Balance at 1 Jul 2015


273.6


654.2


(1.6)


2.7


(46.2)


698.3


1,581.0

Loss for the period

-

-

-

-

-

(103.3)

(103.3)

Other comprehensive income

-

-

-

-

-

-

-

Total comprehensive income for the period, net of income tax


-


-


-


-


-


(103.3)


(103.3)

Balance at 30 Sep 2015

273.6

654.2

(1.6)

2.7

(46.2)

595.0

1,477.7


Balance at 1 Jul 2014


273.6


654.2


(1.6)


2.9


(42.2)


402.7


1,289.6

Loss for the period

-

-

-

-

-

(3.6)

(3.6)

Other comprehensive income

-

-

-

-

-

-

-

Total comprehensive income for the period, net of


-


-


-


-


-


(3.6)


(3.6)

income tax


Transactions with owners, recorded directly in


-


-


-


-


(4.0)


-


(4.0)

equity:

Purchase of shares of the Company for ESOS 2008

Total transactions with owners

-

-

-

-

(4.0)

-

(4.0)

Balance at 30 Sep 2014

273.6

654.2

(1.6)

2.9

(46.2)

399.1

1,282.0



1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year



Issued Shares & Share Options


1st Quarter ended 30 Sep 2015


(a) Issued and fully paid ordinary shares:


1,368,063,633

As at 1 July and 30 September 2015

(b) Grant of share options under ESOS 2008:

As at 1 July 2015

58,400,000

Options granted

19,500,000

Options lapsed

(5,500,000)

As at 30 September 2015

72,400,000


As at

30 Sep 2015

As at

30 Sep 2014


Number of shares held in the ESOS Trust to be transferred to eligible employees to satisfy the outstanding share options under the ESOS 2008


68,295,000


68,295,000


There has been no change in the Company's share capital since the immediate preceding financial period reported on.


1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.


As at 30 Sep 2015

As at

30 June 2015


Total issued ordinary shares


Less: Number of shares acquired by the ESOS Trust for ESOS 2008


Total issued ordinary shares excluding shares acquired by the ESOS Trust for ESOS 2008


1,368.1 million


(68.3) million


1,368.1 million


(68.3) million


1,299.8 million


1,299.8 million



1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on.


Not applicable


  1. Whether the figures have been audited, or reviewed and in accordance with which auditing standard or practice


    These figures have not been audited nor reviewed by the Group's auditors.


  2. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of a matter)


    Not applicable.


  3. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied


    Except as disclosed in note 5 below, the Group had applied the same accounting policies and methods of computation in the preparation of the financial statements for the quarter ended 30 September 2015 compared with the audited financial statement financial year ended 30 June 2015.


  4. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.


    Comparative amounts in the consolidated income statement were restated for consistency.

  5. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends.


    Unaudited

    1st Quarter Ended


    Basic earnings per share (US cents) Diluted earnings per share (US cents)

    1 Jul to

    30 Sep 20151

    1 Jul to

    30 Sep 20142


    2.4

    2.4


    1.3

    1.3


    1 Based on the weighted average number of ordinary shares in issue after adjusting for the shares held by the ESOS Trust for ESOS 2008, being 1,299.8 million shares.

    2 Based on the weighted average number of ordinary shares in issue after adjusting for the shares held by the ESOS Trust for ESOS 2008, being 1,303.9 million shares.


  6. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the:-
  7. current financial period reported on; and
  8. immediately preceding financial year.


    Net assets per share (US cents)


    The Group The Company

    Unaudited 1st Quarter 30 Sep 20151

    Audited full year

    30 June 20152


    87.9

    113.7


    88.6

    121.6


    1 Based on the weighted average number of ordinary shares in issue after adjusting for the shares held by the ESOS Trust for ESOS 2008, being 1,299.8 million shares.

    2 Based on the weighted average number of ordinary shares in issue after adjusting for the shares held by the ESOS Trust for ESOS 2008, being 1,299.8 million shares.


  9. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following:-
  10. any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and
  11. any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on

    U


    Income Statement


    Profit after tax for the quarter ended 30 September 2015 stood at US$31.3 million, an increase of 90% compared to US$16.5 million for the previous corresponding quarter. The following review sets out the factors that affected profit after tax for the quarter:


    Revenue

    Revenue decreased by 2% to US$115.1 million quarter on quarter principally due to lower Bass Strait oil and gas royalty income. Lower average crude oil and gas prices and decline of oil production has negatively impacted the receipt of royalty income during the quarter. Apart from this, the weakening AUD against USD also affected the overall royalty earnings. However, this was offset by higher gaming revenue with improved gaming drop and win margin compared to previous corresponding quarter.


    Hotel revenue was stable compared to same quarter last year as a result of improved RevPAR offset by the weakening of the GBP against USD.

    Cost of sales

    The cost of sales remain stable for the quarter mainly due to higher gaming duty associated with the increase in gaming revenue has offset by the impact of weakening GBP against USD.


    Other operating income

    The increase in other operating income for the quarter was mainly due to a one-off compensation received from the cessation of management 19 regional Thistle Hotels owned by a third party.


    Administrative expenses

    The decrease in administrative expenses for the quarter was mainly attributable to the weakening of GBP against USD.


    Net financing costs

    Lower financing costs for the quarter were primarily due to savings in interest cost resulting from the refinancing of mortgage debentures with a term loan in December 2014.


    Income tax expense

    The increase in income tax expense was associated with the increase in hotel earnings during the quarter, thus higher tax provision.


    Statement of Comprehensive Income


    Total comprehensive loss for the quarter was US$9.9 million. This was due to a net foreign exchange loss of US$37.7 million as a result of translating the books of the Group's UK subsidiaries and the Bass Strait oil and gas royalty rights which are denominated in GBP and AUD respectively into the Group's reporting currency, which is USD. As at the end of 30 September 2015, the GBP and AUD depreciated by 3% and 8% respectively against the USD as compared to 30 June 2015.


    Statement of Financial Position


    The Group's net assets before non-controlling interests decreased by 1% from US$1,152.1 million as at 30 June 2015 to US$1,142.3 million as at 30 September 2015. This was mainly attributable to net foreign exchange translation loss referred to above.


    Excluding the effects of currency translation, other significant factors that affected the Group's net assets as at 30 September 2015 were as follows:


  12. Trade and other receivables - decrease was primarily due to lower outstanding debts and prepayments for the hotel segment during the quarter.

  13. Cash and cash equivalents - increase was due to a one-off compensation received from cessation of management 19 regional Thistle Hotels owned by a third party and the receipt of royalty income during the quarter.

  14. Short term loans and borrowings - decrease was due to lower outstanding overdraft during the quarter.

  15. Trade and other payables - decrease was mainly due to scheduled settlements of creditor liabilities.

  16. Corporate tax payable - increase was mainly due to tax provision on higher hotel earnings in the current quarter.

  17. Provisions - decrease was mainly due to a partial settlement for ongoing litigation.

  18. Pensions - Pensions surplus has exceeded the obligations resulting from actuarial gain during the quarter.

  19. Derivative financial liability - increase was mainly due to fair value adjustment for a forward interest rate swap contract.


  20. Statement of Cash Flows


    Net cash inflow of US$42.6 million was recorded at the end of the quarter compared with US$12.3 million in the previous corresponding quarter. This was primarily due to the timing difference on the receipt of royalty income, lower capital expenditures as well as the one-off compensation received from the hotel owners after the termination of hotel management contract during the quarter.

  21. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results


    The Group has not previously released any forecast or prospect statements.


  22. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months

  23. The transformation of our hotels division is on track with overall hotel RevPAR for the quarter growing 11% against the same quarter last year. However a stronger USD compared to the same quarter last year continues to weigh down on hotel revenues in USD terms even as RevPAR continues to grow in GBP terms. The planned refurbishment program for our hotels continues to be implemented and this will impact rooms available for sale. The average occupancy rate for the London hotel market is not expected to change significantly in the near future.


    We expect to launch the 2nd hotel under our Amba Hotels brand, the Amba Hotel Marble Arch, in the 4th quarter of 2015.


    A significant decline in global oil prices coupled with a weaker AUD have adversely affected the Group's oil and gas royalty revenues. Oil and gas prices are not expected to recover in the coming year.


    1. Dividend


    2. Current Financial Period Reported On

      Any dividend declared for the current financial period reported on?


      None


    3. Corresponding Period of the Immediately Preceding Financial Year

      Any dividend declared for the corresponding period of the immediately preceding financial year?


      None


    4. Date payable


      Not applicable


    5. Books closure date


    6. Not applicable


      1. If no dividend has been declared/recommended, a statement to that effect


        No dividend has been declared/recommended.


      2. If the group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect


      The Group does not have a general mandate from shareholders for interested person transactions.

distributed by