IFA Hotels & Resorts on Wednesday announced a basic and diluted headline loss of 3.10 cents for the six months ended December 2010, from a 10.41 cents loss previously.

It noted basic and diluted earnings per share of 2.02 cents, from 10.41 cents in 2009.

Revenue declined to R44.47 million, from R45.91 million, while the group noted a pre-tax profit of R7.61 million from a prior loss of R20.94 million.

The group said that the commencement by IFA Resorts of the new Gary Player golf course would result in the release of new serviced land stock within the Zimbali Lakes development and provide a foundation for revenue growth. "The positive impact of the new King Shaka International Airport on the region bodes well for Zimbali Office Estates and Zimbali Lake Developments," it said.

Profitability for IFA Zimbali was improved due mostly to revenue increasing by 10% and improved earnings before interest, tax, depreciation and amortisation (ebitda) and operational performance.

The group pointed to progress at IFA Boschendal on the obtaining of the planning rights for the second phase of the Boschendal Development, which would ultimately result in the realisation of full potential and profitability.

Looking ahead, IFA Hotels said: "The directors believe that the prospects for the group remain positive. The group has consolidated its position during the recessionary climate and laid the foundation for future growth. The continued improvement in operations and sales will impact positively on profitability and cash flows and encouraging sales activity, particularly in Zimbali, is continuing."

Source: I-Net Bridge