No dividend for 1time

Johannesburg - 1time Holdings on Tuesday reported headline earnings per share of 39.35 cents for the year ended December 2009 from 0.46 cents a year ago.

In line with the group's strategy to reinvest in the group to sustain growth, no dividend was declared. The dividend policy will be reviewed annually in light of the group's cash flow, gearing and capital requirements, it said.

Attributable headline earnings rose to R82.6m compared with just one million rand in 2008. Revenue was up 19% to R1.251bn despite the generally difficult economic conditions and tough trading environment.

1time said revenue growth was underpinned by a 12% increase in passenger volumes and increased revenue generated from the recently acquired maintenance facility Safair Technical.

The stronger rand against the US dollar translated into a R16.6m foreign exchange gain on the write down of foreign debt but also resulted in a currency based aircraft valuation impairment of R50.5m.

The net current liability position is largely due to an increase in forward ticket sales and the policy of replacing all off balance sheet aircraft operating leases with on balance sheet financing, it said.

Cash generated from operations for the year was exceptionally strong at R232.8m compared with R58.9m for 2008. The cash generated has been used to acquire additional aircraft and to reduce debt.

The airline operates a fleet of twelve standard stage III MD80 type aircraft operating over 1 200 flights a month to ten destinations.

African expansion

"Our planned African expansion has continued with Zanzibar and Livingstone performing well and Maputo planned to commence in the second quarter of this financial year," it said.

"Our continued unfair exclusion from Lanseria has been referred to the Competition Tribunal. We expect a final conclusion of the matter this year," the company added.

Looking ahead 1time said for the airline it expects further revenue growth on expanded capacity and higher passenger volumes for 2010. There is uncertainty as to what impact the World Cup will have on earnings for the year.

Margins in the airline will be largely dependent on the average Rand fuel price achieved for 2010. Hedging is, however, considered and assessed on an ongoing basis.

For the aircraft maintenance business it expects further revenue growth and improved margins.

- I-Net Bridge