OVERVIEW
The year has been characterised by good growth in both the inbound and outbound divisions which account for over 80% of group
profits. Pentravel had a good year, and the losses in the Singapore operation that were a result of the SARS epidemic in the Far East
last year, have been turned around into a small profit. Trading conditions in the outbound division remain buoyant, and in spite of a
strong rand our inbound customers continue to deliver improved turnovers.
The comparative results for the year make good reading and are as follows:
• Headline earnings improved by 37% from R19,1 million to R26,2 million.
• Attributable earnings improved by 35% from R18,7 million to R25,3 million.
• Headline earnings per share increased from 2,7c per share to 3,6c per share.
• Cash flows remain strong with cash balances at year-end totalling R107,0 million.
REVIEW OF OPERATIONS
Thompsons
Outbound
The Outbound division is a travel wholesaler that caters for the travel and holiday requirements of people living in Southern Africa.
Turnover continues to grow off an already high base. The Thompsons brand is a market leader in the outbound market, and continues
to grow in most destinations.
Thompsons
Inbound
The inbound division is a destination marketing organisation that markets Southern Africa to the rest of the world. The customer
base is drawn primarily from large international tourism companies that are located throughout the world. More than half of the
business comes from Britain, Germany and the Netherlands. Traffic is also generated from the America’s, Russia and the Middle and
Far East.
In spite of a dip in long haul arrivals into South Africa, inbound turnover has improved which is encouraging. Our customer base has
adjusted to the reality of the stronger rand and Southern Africa still remains an attractive destination. Continued growth from this
sector can be expected.
Thompsons Touring
The Touring division, which provides excursions, overnight tours and sightseeing, continues to expand. New offices have been opened
at both Vic Falls and in Windhoek.
Corporate Retail Travel
The corporate travel business is adjusting to the new dispensation in the airline world where commissions are being replaced by fee
paying structures.
Pentravel
Pentravel had a good year. It is a chain of leisure retail travel agents that is based in major shopping malls. This year 3 new shops
were opened and turnover and profits are expected to improve.
Manex
Manex supplies the yacht building business in South Africa which is an export driven activity that is very dependent on exchange
rates. Yacht building is well down because of the stronger rand. Efforts are being made to diversify out of the dependence on yacht
building.
Prospects
The new financial year has started well and indications are that the growth will continue.
AA Thompson
Chief Executive Officer
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M Ness
Chairman |
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