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Gold Reef Casino Resorts reports profit
Date: 10 March, 2004
Listed gaming and resorts group Gold Reef Casino Resorts (GDF)
has reported a 29.4% rise in headline earnings per share (HEPS)
for the year to end-December 2003, to 65.1 cents from 50.3 cents
a year earlier. The group declared a final dividend for the year
of 27 cents, up 80% from its maiden dividend of 15 cents per share
in 2002.
Gold Reef has interests such businesses as Gold Reef City in Johannesburg,
the Apartheid Museum, Golden Horse Casino, Casino Mykonos and the
Garden Route Casino (42.5%). It also holds a 10% interest in Goldfields
Casino, a new resort opened in Welkom in December.
Announcing its final results, Gold Reef said revenues were 14.8%
higher at R903.9 million from R787.1 million a year earlier, while
operating profit before interest, tax, depreciation and amortisation
rose 13.1% to R349 million. Net profit attributable to shareholders
was reported at R125.1 million, a 23.4% increase from 2002 levels.
The group said all of its casinos had exceed their budgets for
the year, reflecting excellent trading driven in part by reduced
inflation and interest rates in South Africa. This, together with
continued strict cost discipline, had further reduced net external
debt at a quicker rate than expected.
CAI Gold Reef Management, which holds one theme park and five casino
management contracts, had also continued to perform well, generating
strong cash flows over the year.
Net cash generated in operating activities (before deducting the
dividend) totaled 141.7 cents, up 36.5% from 103.8 cents previously.
Cash on hand at year-end was R65.8 million, down from R153.4 million
in 2002. The group's net asset value per share rose to 401.7 cents
from 356.7 cents a year earlier.
Looking ahead, Gold Reef said it expected steady growth in 2004,
underpinned by its continued robust cash flow and reduced gearing
levels. Management would continue to explore opportunities in line
with the group's growth strategy, but would pursue only those opportunities
that met the appropriate threshold and criteria.
Source: Business Day
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