The Don Group, which focuses on suite hotels, said revenues improved slightly to 22.6 million rand from 21.4 million rand the previous year, helped by an increase in tariff rates, while operating profit almost doubled to 1.08 million rand versus 533,000 rand.
Profit attributable to ordinary shareholders and headline earnings came in at 116,000 rand, up from a loss of 505,000 rand the year earlier.
Cash used by operations during the six months totalled 729,000 rand, compared to cash generated of 3.8 million rand previously, and cash and cash equivalents at the end of the period stood at 2.4 million rand, versus 6.6 million rand a year earlier and 4.7 million rand six months earlier. The reduction in cash reserves came about from property guarantee requirements as part of the group's decision to buy back the eight hotels leased from Ellwain Investments. Finance for the repurchase was arranged with the IDC.
Net asset value per share was reported at 0.074 cents, down from 0.086 cents in the year-earlier period.
The company said the turnaround had stemmed from tighter control of expenses, excellent service delivery, improved efficiency through in-depth training, better technology resources and expanded guest facilities that included restaurants. A further substantial aid had been the absence of extraneous negative factors that had featured heavily in the 2004 reporting periods.
Commenting on prospects, the group said the second half of the financial year to June 30, 2005, would see the completion of the group's property buyback and the further consolidation of its business model, with a stronger asset base financed at favourable terms. The Don was well positioned to realise the potential inherent in its core business of suite hotels, it concluded.
I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge
