| 6. |
SEGMENTAL ANALYSIS
In terms of IFRS 8 Operating Segments, the chief operating decision maker (‘CODM’) has been identified as the group’s
Chief Executive Officer and the senior management team. Management has determined the operating segments based
on the reports reviewed by the CODM. There has been no change in the basis of segmentation or in the basis of
measurement of segment profit or loss from the pre-listing statement. Since the group’s listing, the CODM has refined
the basis on which it assesses the operating segments, resulting in reallocations between segments for comparability
purposes as outlined in further detail below.
The CODM considers the business from both a business type and geographical basis. The following are the four segments identified and monitored by the CODM:
- Manco consists of the group’s management company division which manages the hotels in South Africa.
- Rental income – HPF consists of the rentals received by HPF from the 12 hotel properties leased to external third-party operators.
- Internally managed consists of the South African hotel operations which are owned within the group and are managed and reported on based on the geographical area in which the hotel is located.
- Offshore consists of the group’s non-South African hotels division which owns, operates and manages hotels in other African countries, the Middle East and the Seychelles.
The group’s CODM assesses the performance of the operating segments based on earnings before interest, income tax,
depreciation, amortisation, property rentals, long-term incentives and exceptional items (‘Ebitdar’). The measure excludes
the effects of long-term incentives and the effects of non-recurring expenditure. The measure also excludes all headline
earnings adjustments, impairments and fair value adjustments on non-current and current assets and liabilities. Finance
income and finance costs are not included in the results for each operating segment as this is driven by the group
treasury function which manages the cash and debt position of the group.
|
|
Revenue(1) |
Ebitdar(2) (3) |
Ebitdar margin |
|
|
2019
Rm |
2019
Rm |
2019
% |
| Manco |
|
266 |
|
289 |
154 |
|
171 |
58 |
|
59 |
| Rental income – HPF(5) |
|
310 |
|
337 |
310 |
|
337 |
100 |
|
100 |
| Internally managed |
|
3 501 |
|
3 329 |
787 |
|
839 |
22 |
|
25 |
| Coastal |
|
1 885 |
|
1 906 |
463 |
|
505 |
25 |
|
27 |
| Inland |
|
1 344 |
|
1 150 |
262 |
|
253 |
20 |
|
22 |
| Other(6) |
|
272 |
|
273 |
62 |
|
81 |
23 |
|
30 |
| Offshore |
|
569 |
|
605 |
101 |
|
144 |
18 |
|
24 |
| Internal management fees(4) |
|
(183) |
|
(181) |
– |
|
– |
– |
|
– |
| Total |
|
4 463 |
|
4 379 |
1 352 |
|
1 491 |
30 |
|
34 |
| (1) |
All revenue and income from hotel operations is derived from external customers. No one customer contributes more than 10% to the group’s
total revenue. |
| (2) |
Refer reconciliation of operating profit to Ebitdar. |
| (3) |
The adoption of IFRS 16 had no significant impact on Ebitdar. |
| (4) |
Included in Manco. |
| (5) |
Subsequent to the company’s listing, the CODM refined its assessment of the operational segments to allow for comparability. The CODM
now reviews rental income net of rates and taxes expensed by the lessor for segmental reporting purposes. Rates and taxes of R10 million
relating to the 2019 financial year has been reallocated from Manco to Rental income – HPF. |
| (6) |
Internal management fees amounting to R13 million and relating to the 2019 financial year was reallocated from Internally managed – Other
to Manco. |
|
