Loading...
See More

Cullinan Holdings' earnings soar

Dec 30 2010 15:14 I-Net Bridge

Related Articles

Cullinan sales down, profit climbs

Huge diamond found at Cullinan

Ex-SAA boss leaves Cullinan

Petra thinks big at Cullinan

Petra Diamonds aquires Cullinan

Cullinan expects earnings surge

 

Johannesburg - Tourism and leisure group Cullinan Holdings [JSE:CUL] boosted headline earnings by 84% from R14.6m to R26.9m.

This translated into diluted headline earnings per share of 3.87 cents versus 2.50 cents the previous year.

This was despite a reduction in revenue from R469m to R405m.

"In the year under review, all divisions and subsidiaries have improved efficiencies and service levels. Market share has been retained throughout the group, and financial results across the divisions have generally improved.

"All operating divisions were profitable for the year. This is despite the effect of challenging economic conditions and a number of events which affected the travel industry during the year. These events included volcanic ash clouds, BA strikes, political problems in Bangkok and significant fluctuations in exchange rates," the group said.

It also said it was pleasing to note that during the year the group became BEE compliant and certified accordingly.

It noted that the year under review had witnessed a slight upturn in the local economy, while international tourism also saw a recovery.

"The year saw growth in the travel, coaching and touring businesses within the group. The World Cup had a positive impact on the Coaching and Touring inbound businesses, whilst the impact on the rest of the business was limited.

"The Marine and Boating businesses felt the effect of the global recession in 2010, having been protected in the prior year by the lengthy lead times in boat building. Whilst turnover deteriorated during the year, steps have been taken to improve the business in 2011.

"Group cash flow improved significantly with R68m generated by operations as compared to a decrease in cash from operations of R2m in the prior year," the group added.

Looking ahjead, it said: "While the 2010 results reflect a significant improvement on prior years, there remains room to increase profitability within the Group.

"Growth in sales in 2011 is expected to remain challenging due to current economic conditions. Despite these challenges, improved efficiencies should create opportunities to increase market share in various sectors in the business.

"The group's balance sheet is supportive of further acquisitions. Withsignificant improvements implemented throughout the operations of the group over the past 18 months, the Board will actively pursue acquisition opportunities in 2011."

cullinan
NEXT ON FIN24X

 

Lastest Articles

Here is how to check your credit score and manage it Read More...
Top tips to save money over the festive period Read More...
These are the top 5 most fuel efficient cars in SA Read More...
What to consider when switching medical aid schemes Read More...
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...