Comments

The Group performed well over the past six months with headline earnings per share growing by 20% over the same period last year. Revenue increased by 9% while operating profit increased by 24%. Trading, both incoming and outgoing with the Eastern markets has returned to normal after heavy losses sustained last year as a result of the SARS health epidemic The half year was charcterised by an increase in activity and significant changes in both the outbound product mix and source of inbound customers. Cash balances improved from R81,4 million to R95,2 million at the end of March 2004. However net financing income declined by 11,6% as a consequence of lower interest rates.

Thompsons Holidays (Outbound) Over the border sales, which have become increasingly more affordable as the currency improved, have increased and record turnovers have been experience in a number of destinations. The activity levels required to achieve these results, on the back of a stronger rand, increase significantly which caused an increase in operating costs. The market remains competitive and margins continue to be under pressure, even in a buoyant sales environment Thompsons South Africa (Inbound) The number of passengers handled, turnover and profits increased over the previous reporting period. The strong currency had an adverse effect on traffic in some of our marginal markets, but this has been more than balanced by strong performances out of Holland and the United Kingdom. The footprint of our inbound business continues to expand with new delivery hubs being opened in Namabia and at the Victoria Falls. This is in line with our objective of expanding our branded services throughout Southern Africa. Retail Travel The Leisure Retail brands had a good six months with turnover and profits up on the previous period. Two new Retail shops will be opened by Pentravel this year which are not expected to add materially to the Group's short-term performance. The Corporate Retail divisions had a disappointing six months and steps have been taken to consolidate the business under the Thompsons Travel brand. Manex Power and Marine Manex, which is a supplier to the Yacht building and Scuba diving industries, suffered reduced profits in difficult in trading conditions. The strong rand is inhibiting growth in yacht exports which in turn affects turnover. By contrast the sale of imported diving equipment has been good. Prospects for the next six months Barring unforeseen circumstances, the company is expected to trade at levels above those achieved during the second six months last year. Dividend The board declared an ordinary dividend for the financial year ending September 2004 of 1 cent per ordinary share (number 125) to all ordinary shareholders. The last date to trade cum dividend will be Friday 28th May 2004. Shares will commence trading ex dividend from Monday 31st May 2004. The record date will be Friday 4th June 2004. The dividend will be paid on Monday 7th June 2004. Share certificates may not be dematerialised or rematerialised between Monday 31st May 2004 and Friday 4th June 2004, both days inclusive.