Financial Statements and Related Announcement::First Quarter Results Issuer & Securities
Issuer/ ManagerGUOCOLEISURE LIMITED
Securities GUOCOLEISURE LIMITED - BMG4210D1020 - B16 Stapled Security NoAnnouncement Details
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 SecretaryPlease refer to the attached.
Additional Details
GL_FY2016_1Q_FINAL.pdf
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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 |
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$0.1m
Note: N.M - not meaningful
1(a)(ii) Statement of Comprehensive IncomeUnaudited 1st Quarter ended | Favourable / (unfavourable) variance % | ||
1 Jul to 30 Sep 2015 US$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$0.1m
Note: N.M - not meaningful
1(b)(i) A Statement of Financial Position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial yearGROUP | COMPANY | |||
Unaudited 30 Sep 2015 | Audited 30 June 2015 US$m | Unaudited 30 Sep 2015 | Audited 30 June 2015 US$m | |
US$m | US$m | |||
ASSETS | 1,177.5 | 1,220.2 | - | - |
Hotels, property and equipment | ||||
Intangible assets | 117.0 | 126.2 | - | - |
Investments in subsidiaries | - | - | 1,051.3 | 956.5 |
Pensions surplus | 11.2 | 10.3 | - | - |
Other investments | 2.4 | 2.5 | - | - |
TOTAL NON-CURRENT ASSETS | 1,308.1 | 1,359.2 | 1,051.3 | 956.5 |
Inventories | 1.0 | 1.0 | - | - |
Development properties | 176.8 | 177.0 | - | - |
Trade and other receivables | 52.4 | 65.6 | 0.2 | 0.2 |
Advances to subsidiaries | - | - | 427.8 | 625.8 |
Cash and cash equivalents | 45.3 | 21.8 | - | - |
TOTAL CURRENT ASSETS | 275.5 | 265.4 | 428.0 | 626.0 |
TOTAL ASSETS | 1,583.6 | 1,624.6 | 1,479.3 | 1,582.5 |
LIABILITIES | ||||
Loans and borrowings | 2.3 | 20.7 | - | - |
Trade and other payables | 108.9 | 112.1 | 1.6 | 1.5 |
Corporate tax payable | 6.3 | 2.1 | - | - |
Provisions | 1.6 | 3.2 | - | - |
TOTAL CURRENT LIABILITIES | 119.1 | 138.1 | 1.6 | 1.5 |
Loans and borrowings | 294.2 | 308.5 | - | - |
Pensions obligations | 3.0 | 3.6 | - | - |
Deferred tax liabilities | 21.3 | 22.1 | - | - |
Derivative financial liability | 6.4 | 2.9 | - | - |
TOTAL NON-CURRENT LIABILITIES | 324.9 | 337.1 | - | - |
TOTAL LIABILITIES | 444.0 | 475.2 | 1.6 | 1.5 |
NET ASSETS | 1,139.6 | 1,149.4 | 1,477.7 | 1,581.0 |
SHARE CAPITAL AND RESERVES | 1,142.3 | 1,152.1 | 1,477.7 | 1,581.0 |
Equity attributable to owners of the | ||||
Company | ||||
Non-controlling interests | (2.7) | (2.7) | - | - |
TOTAL EQUITY | 1,139.6 | 1,149.4 | 1,477.7 | 1,581.0 |
As at 30 Sep 2015 | As at 30 June 2015 | ||
Secured US$m | Unsecured US$m | Secured US$m | Unsecured US$m |
- | 2.3 | - | 20.7 |
As at 30 Sep 2015 | As at 30 June 2015 | ||
Secured US$m | Unsecured US$m | Secured US$m | Unsecured US$m |
87.8 | 206.4 | 91.5 | 217.0 |
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$139.6 million.
1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial yearOPERATING ACTIVITIES Profit before financing costs Adjustments for non-cash items Depreciation of hotels, property and equipment Amortisation of intangible assets Other non-cash items Gain on disposal of property and equipment Net change in working capital items Development properties Trade and other receivables Trade and other payables Provisions Income tax paid Purchase of shares of the Company for ESOS 2008 CASH FLOWS FROM OPERATING ACTIVITIES INVESTING ACTIVITIES Proceeds from sale of property and equipment Acquisition of hotels, property and equipment CASH FLOWS USED IN INVESTING ACTIVITIES FINANCING ACTIVITIES Drawdown of short-term borrowings Repayment of short-term borrowings Interest received Interest paid Other financing costs Realised exchange losses on financial derivatives CASH FLOWS USED IN FINANCING ACTIVITIES NET INCREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at beginning of the year Effect of exchange rate fluctuations on cash held CASH AND CASH EQUIVALENTS AT END OF THE PERIOD | Unaudited 1st Quarter ended | |
1 Jul to 30 Sep 2015 US$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$0.1 million) under loan and borrowings
(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year Statement of Changes in Equity - GroupShare Capital US$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$0.1m
Statement of Changes in Equity - CompanyShare Capital US$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 |
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.
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 |
Not applicable
-
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.
-
Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of a matter)
Not applicable.
-
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.
-
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.
-
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.
- Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the:-
- current financial period reported on; and
-
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.
- 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:-
- 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
-
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:
Trade and other receivables - decrease was primarily due to lower outstanding debts and prepayments for the hotel segment during the quarter.
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.
Short term loans and borrowings - decrease was due to lower outstanding overdraft during the quarter.
Trade and other payables - decrease was mainly due to scheduled settlements of creditor liabilities.
Corporate tax payable - increase was mainly due to tax provision on higher hotel earnings in the current quarter.
Provisions - decrease was mainly due to a partial settlement for ongoing litigation.
Pensions - Pensions surplus has exceeded the obligations resulting from actuarial gain during the quarter.
Derivative financial liability - increase was mainly due to fair value adjustment for a forward interest rate swap contract.
-
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.
- 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
Dividend
Current Financial Period Reported On
Any dividend declared for the current financial period reported on?None
Corresponding Period of the Immediately Preceding Financial Year
Any dividend declared for the corresponding period of the immediately preceding financial year?None
Date payable
Not applicable
Books closure date
-
If no dividend has been declared/recommended, a statement to that effect
No dividend has been declared/recommended.
- 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
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.
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.
Not applicable
The Group does not have a general mandate from shareholders for interested person transactions.
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