Leisure management company Kersaf Investments can focus more on its core assets following the disposal of most of its cinema interests in Europe and the Middle East.

Kersaf CE Peter Bacon said at the weekend that the disposal enabled the group to concentrate more on providing management services and keep an eye on its investments in the gaming, casino resorts and hotels sector.

The sale of its cinema interest, together with the acquisition of the minority's interest in Sun International management and the recent acquisition of an additional 18,6% interest in Sun International SA, would simplify the group's structure.

The past year saw Kersaf's Ster Century Europe finalising the sale of all of its operations other than one complex in Slovakia, which was currently for sale .

Its cinema interests in Poland and Greece were sold in July last year for 19,6m, while the sale of its Spanish operations was concluded on June 30 for à 9,3m.

The sale of its UK and Ireland cinema operations were concluded for £16,9m after the end of the year to June.

Ster Century Middle East closed one of the sites while another was downsized.

This has left Kersaf with its interest in casino resorts and hotels throughout southern Africa.

In spite of the slowdown in the domestic economy , Bacon said SA was beginning to cement itself in the world tourism market. Growth in foreign travel to SA would be further boosted by the arrival of international conference centres in Johannesburg, Cape Town and Durban, he said.

The travel industry was also being boosted, with government becoming more involved in developing potential and co-operation among various role players in the industry.

Although Kersaf is happy with government's involvement in tourism , it is concerned about some aspects of the proposed National Gambling Bill.

The casino industry, through the Casino Association of SA, will be addressing these concerns to the parliamentary portfolio committee on trade and industry in the near future.

Kersaf, which reported full-year results of Friday, said its revenue for the year rose 13% to R4,2bn, while gross profit increased 19% to 2,4bn.

Attributable earnings rose to R125bn from a loss of R297m.

The group said the improvement in its earnings came mostly from higher earnings from its associate companies Sun International SA and City Lodge as well as the reduced losses incurred at its Zambian resort.

Sun International SA increased its contribution from R28m to R78m, while City Lodge grew its contribution to R34m from R22m.

Kersaf incurred a foreign-exchange loss of R116m, mainly because of unrealised exchange losses on interest on company loans. The group increased the amount of cash generated from its operations to R1,21bn from R872m.

Its strong cash flows and growth in headline earnings encouraged Kersaf to declare a final dividend of 50c, bringing the total dividends declared in respect of the year to 75c.

The group's share price closed up 3,29% to R34,50 with 6200 shares changing hands in 30 deals on Friday.

Source: Business Day