Describing itself as a conservation tourism pioneer, JSE-listed Wilderness Holdings on Friday declared a maiden dividend of 8.6 thebe per share, despite a 26% decline in operating profits for the year ending in February. One pula is made up of 100 thebe and is worth 1.05 rand.

The group announced diluted headline earnings per share of 10.92 thebe, from 23.85 thebe previously.

Diluted earnings per share declined to 43.30 thebe, from 26.23 thebe in 2010.

Turnover increased by 9% to 949 million pula while continuing profits after tax increased by 79% to 92 million pula, due to gains from sale of two non-core assets, the group said.

"The year under review has been a complex one to understand. While the year was dominated by the successful FIFA World Cup hosted in June 2010, underlying market conditions remain challenging and there appears to be little respite to this adverse trend.

"Discretionary income remains scarce in our source markets (mainly the US and Europe) and these are still under pressure, demand in the region is soft after the focus it received during the World Cup, and the local exchange rates remain strong relative to the US dollar, having strengthened significantly in the prior year," Wilderness said.

The group said it had committed 58 million pula to develop and refurbish certain camps and properties in the year ahead to maintain standards and increase bed capacity.

Looking ahead, Wilderness said it expected the soft trading conditions to persist for the foreseeable future, due to weak demand in source markets and the current over-supply of beds in some destinations.

"Nonetheless, our booking sheets show a gradual recovery in occupancies and yields, except in Namibia. The impact of price increases passed to the market in December 2010 should reflect in results for the current year although this might be partly offset if the strength of the rand persists," it said.

The Wilderness group noted that it was well-placed to weather the present difficult environment, gaining market share in the process. "Our investments in brands, product and our people have positioned us to take advantage of an upswing in the market, when it occurs," it concluded.

Source: I-Net Bridge