Gold Reef Resorts which is to be renamed Tsogo Sun Holdings reported a 17% increase in adjusted headline earnings to R1 billion for the year ended March 2011.

This translated into basic and diluted headline earnings per share of 110.2 cents verus 96.3 cents for the previous year - an increase of 4%.

Gold Reef said the past financial year had seen growth in revenue across most of the group's casinos, albeit at low levels, with trading in the last quarter of the financial year reflecting stronger growth in casino win, particularly in Gauteng and KwaZulu-Natal.

"Southern Sun Hotels benefited from the FIFA 2010 Soccer World Cup in June and July 2010, although the benefit was diluted as a result of the substantial disruption to normal trading patterns in the time periods both during and adjacent to the tournament," it noted.

Total income of R6.5 billion was 12% above the prior period, assisted by the inclusion of R195 million income from Gold Reef in March 2011 and the opening of the Southern Sun Montecasino Hotel, parking and Pivot office development in April 2010, which contributed R75 million in income for the financial year under review.

"The trading environment for gaming and hotels continues to be subdued, however the group remains highly cash generative.

"The merger with Gold Reef has seen Tsogo emerge as the largest gaming and hotel group in South Africa and the group remains focused on growth," the group stated.

The group declared a final cash dividend of 50 cents per share in respect of the company's year-end.

Source: I-Net Bridge