Pressure on consumer wealth and sentiment in South Africa‚ while offshore the impact of the Ebola epidemic and security fears made 2014 a tough year for Tsogo Sun‚ according to an announcement on Thursday.
Despite these factors resulting in reduced hotel occupancies‚ the company’s income for the year ended March 31 was up 5% to R11.3-billion.
“Tsogo has shown resilience‚ good overhead control and has remained highly cash generative. In addition‚ we have maintained our focus on our growth strategym‚” said CEO Marcel von Aulock.
The group believes its development and merger and acquisition activity alleviated the impact of the tough trading conditions‚ with both the casino and hotel divisions achieving year-on-year growth in revenues.
Despite the tough current operating environment‚ the group continues to allocate capital and spent a total of R5.9-billion on various expansionary activities.
“We expect the trading conditions to remain under pressure in the short term as indicated by consumer sentiment. However‚ we are of the view that the actions we are taking now and will continue to take will place Tsogo Sun in good stead once the economy recovers‚” said Von Aulock.
Adjusted headline earnings per share‚ at 175 cents‚ declined by 1% from the prior year‚ while the final dividend per share remains unchanged at 60 cents.
Tsogo looks to reap benefits of R5.9bn spend ‘once the economy
Pressure on consumer wealth and sentiment in South Africa‚ while offshore the impact of the Ebola epidemic and security fears made 2014 a tough year for Tsogo Sun‚ according to an announcement on Thursday.
Despite these factors resulting in reduced hotel occupancies‚ the company’s income for the year ended March 31 was up 5% to R11.3-billion.
“Tsogo has shown resilience‚ good overhead control and has remained highly cash generative. In addition‚ we have maintained our focus on our growth strategym‚” said CEO Marcel von Aulock.
The group believes its development and merger and acquisition activity alleviated the impact of the tough trading conditions‚ with both the casino and hotel divisions achieving year-on-year growth in revenues.
Despite the tough current operating environment‚ the group continues to allocate capital and spent a total of R5.9-billion on various expansionary activities.
“We expect the trading conditions to remain under pressure in the short term as indicated by consumer sentiment. However‚ we are of the view that the actions we are taking now and will continue to take will place Tsogo Sun in good stead once the economy recovers‚” said Von Aulock.
Adjusted headline earnings per share‚ at 175 cents‚ declined by 1% from the prior year‚ while the final dividend per share remains unchanged at 60 cents.
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