SUMMARY OF AUDITED GROUP FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2012

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We’re g ing places

NOTICE IS HEREBY GIVEN THAT THE 1st ANNUAL GENERAL MEETING of the company will be held

at Blue Pearl Hotel Ubungo Plaza on Wednesday 3rd October 2012 at 11:00am to transact the

following business:

1. To table proxies and note the presence o a quorum.

2. To read the Notice convening the meeting.

3. To receive, consider and i approved, adopt the consolidated audited nancial statements or the nancial year

ended 31st March 2012, together with the Directors and Auditors reports thereon.

4. To elect one director o the Board

5. To approve the remuneration o the directors or the year ended 31st March 2013

6. To appoint auditors and to authorise the directors to x their remuneration

7. To consider any other business or which due notice has been given.

By order of the Board

Elias Mwashiuya

Company Secretary

Notes

1. Any member may by notice duly signed by him or her and delivered to the oce o the Company Secretary Quality

Plaza, 1st Floor Pugu road Dar es salaam, P. O. Box 70770 Dar es Salaam, not less than 7 and not more than 21 days

beore the date appointed or the annual general meeting, give notice o his or her intention to propose person or

election to the Board o Directors. Such Notice must be accompanied by a notice signed by the person proposed o 

his or her willingness to be elected as well as a copy o his or her curriculum vitae. The proposed person need not

be a member o the company.

2. A member entitled to attend and vote at the meeting and who is unable to attend is entitled to appoint a proxy

to attend and vote on his or her behal. A orm o proxy may be obtained rom the company website www.

precisionairtz.com or rom the company secretary. A proxy need not be a member o the company. To be valid, a

orm o proxy must be duly completed and signed by the member and must either be lodged at the oce o the

company secretary or be posted so as to reach the company secretary not later than 25th September 2012 at 10:00

am.

3. A copy o this notice, proxy orm and the entire annual report and accounts may be viewed on the company website

at www.precisionairtz.com.

“ We are pleased to report that despite the many challenges aced by the aviation industry, Precision Air Services Plc

recorded impressive perormance during the 2011/2012 nancial year. The airline has not been immune rom external

actors creating turbulence in the industry that have resulted in many airlines worldwide returning operating losses

and shrinking their operations, but despite many challenges the Precision Air Group Operating prot grew by 13%. It

is also note worthy to mention that despite oreign currency exchange losses increasing by 38% due to the weakening

o the Tanzanian Shilling against hard currencies, the airline still managed to post a 4% growth in prot beore tax.

Passengers uplited during the n ancial year grew by an impressive 24% compared to the prior year. The deployment o 

larger aircrat on regional routes, and increased requencies on domestic routes resulted in a 46% increase in capacity

oered to the market. This capacity has been taken up very well thus bolstering the company’s perormance and

reinorcing the company’s position in the industry.

 The company has embarked on a feet expansion program that will see the entry o 5 brand new ATR 600 series into the

feet and exit o the two older ATR 42-320 over the next three years. The increase in capacity is required to acilitate the

execution and achievement o the airlines 5 year strategic plan.”

PRECISIONAIRSERVICES LIMITED

CONSOLIDATED STATEMENTOF OTHER

COMPREHENSIVE INCOME

FORTHE YEARENDED 31 MARCH 2012

 

Group Group

31 -Ma r- 12 3 1- Ma r- 11

TZS ‘000 TZS ‘000

Prot or the year 633,797 862,546

Othercomprehensive income

Revaluation o aircrats - 5,370,250

Income tax eect - (1,611,075)

- 3,759,175

Net movement on cash fow hedges (10,095,867) (14,543, 635)

Income tax eect 2,523,967 4,363,091

(7,571,900) (10,180,544)

Othercomprehensive income orthe year, netotax (7,571,900) (6,421,369)

Total comprehensive (loss)/income or the year,

net o tax (6,938,103) (5,558,823)

PRECISION AIR SERVICES LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL POSI-

TION

AS AT 31 MARCH 2012 Group Group

31 -Ma r- 12 3 1- Ma r- 11

TZS ‘000 TZS ‘000

ASSETS

Non-current assets

Property and equipment 200,668,615 208,534,265

Intangible assets 262,003 260,205

200,930,618 208,794,470

Current assets

Inventories 8,186,377 6,974,249

 Trade and other receivables 14,685,762 14,834,089

Prepayments 559,151 865,557

Other nancial assets 10,439,041 5,255

Cash and short-term deposits 6,618,856 8,857,140

40,489,187 31,536,290

TOTAL ASSETS 241,419,805 240,330,760

EQUITY AND LIABILITIES

Equity

Issued capital 3,209,396 2,700,300

Share premium 10,490,987 -

Revaluation reserves 8,438,348 8,438,348

Cashfow hedging reserve (17,752,445) (10,180,545)

Retained earnings 14,695,694 14,061,897

19,081,980 15,020,000

Non-current liabilities

I nt er es t b ea ri ng l oa ns a nd b or ro wi ng s 1 48 ,7 07 ,7 35 1 55 ,1 36 ,7 49

Deerred tax liability 2,102,695 3,419,806

150,810,430 158,556,555

Current liabilities

I nt er es t b ea ri ng l oa ns a nd b or ro wi ng s 3 2, 80 5, 94 0 3 0, 55 7, 96 3

 Trade and other payables 38,667,806 36,077,593

 Tax payable 53,649 118,649

71,527,395 66,754,205

TOTAL EQ UI TY AN D LI AB ILI TI ES 2 41 ,4 19, 805 2 40, 330 ,7 60

PRECISION AIR SERVICES LIMITED

CONSOLIDATED STATEMENT OF CHANGESIN EQUITY

FOR THE YEAR ENDED 31 MARCH 2012

Issued Share Revaluation Cash ow Retained Total

capital premium reserve hedging reserve earnings equity

TZS ‘000 TZS ‘000 TZS ‘000 TZS ‘000 TZS ‘000 TZS ‘000

Group

At 1 April 2011 2,700,300 - 8,438,348 (10,180,545) 14,061,897 15,020,000

Initial Public Oer 509,096 10,490,987 - - - 11,000,083

Prot or the year - - - - 633,797 633,797

Total comprehensive income - - - ( 7, 57 1, 90 0) 6 33 ,7 97 ( 6, 93 8, 10 3)

At 31 March 2012 3,209,396 10,490,987 8,438,348 (17,752,445) 14,695,694 19,081,980

Group

At 1 April 2010 2,700,300 - 4,679,173 - 13,199,351 20,578,824

Prot or the year - - - - 862,546 862,546

Other comprehensive income - - 3,759,175 (10,180,545) - (6,421,370)

Total comprehensive income - - 3 , 75 9, 17 5 ( 10 ,1 80 ,5 45 ) 8 62 ,5 46 ( 5, 55 8, 82 4)

At 31 March 2011 2,700,300 - 8,438,348 (10,180,545) 14,061,897 15,020,000

DAR ES SALAAM

Zanzibar

Lumbubashi

Kigoma

Kilimanjaro

Mombasa

Musoma

Connectto

Guangzhou

Connectto

Dubai

Connectto

LondonConnectto

Paris

Connectto

New York 

Connectto

Lagos

Nairobi

Mwanza

Bukoba

Mtwara

HahayaLusaka

Entebbe

Arusha

PRECISION AIR SERVICES LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2012

Group Group

3 1- Ma r- 12 3 1- Ma r- 11

 Notes TZS ‘000

Operating activities

Prot beore tax 1,840,653 1,555,524

Non-cash adjustment to reconcile prot beore tax to

net cash fows

D ep re ci at io n o p ro pe rt y a nd e qu ip me nt 1 6, 79 4, 57 3 1 4, 77 1, 46 1

Prot on disposal o property and equipment (70,791) -

Amortisation o intangible assets 36,563 168,439

I nt er es t o n d ebt s a nd bo rr ow ing s 7, 65 2, 711 7 ,3 18 ,5 24

Working capital adjustments:

Decrease/ (increase) in inventories (1,212,128) 571,180

Decrease/ (increase) in trade and other receivables 148,327 8,097,396

Decrease in prepayments 306,406 169,429

I nc rea se i n t ra de a nd o th er pa ya bl es 2, 59 0, 213 6 97 ,1 99

28,086,527 33,349,152

Income tax paid (65,000) -

N et c a sh ow s ro m o pe ra t in g a c ti vi ti es 2 8, 02 1, 52 7 3 3, 34 9, 15 2

Investing activities

Acquisition o computer sotware (38,361) (293,517)

Aircrat security deposit paid (10,433,786) -

Aircrat security deposit reunded - 1,526,938

Proceeds rom sale o unquoted investment - 3,000

P ro ce ed s ro m s al e o p ro pe rt y a nd e qu ip me nt 7 1, 24 9 -

Purc hase o propert y and equipment (8,929,380) (88,395,201)

Net cash ows used in investing activities

 

( 19 ,3 30 ,2 78 ) ( 87 ,1 58 ,7 80 )

Financing activities

Proceeds rom borrowings 7,454,941 86,983,330

Repayment o borrowings (23,179,103) (24,496,403)

Proceeds rom Initial Public Oer 11,000,083 -

Interest paid (7,600,447) (7,318,524)

Net cash ows rom/(used in) fnancing activities

 

( 12 ,3 24 ,5 26 ) 5 5, 16 8, 40 3

N et in cr ea se /( de cr ea se ) i n c as h a nd ca sh eq ui va le nt s ( 3, 63 3, 27 7) 3 ,6 05 ,8 83

Net oreign currenc y exchange dierence (52,264) (2,247,108)

Cash and cash equivalents at 1 Apr il 138,636 (1,220,139)

Cash and cash equivalents at 31 March (3,546,905) 138,636

PRECISIONAIR SERVICES LIMITED

CONSOLIDATED INCOME S TATEMENT

FORTHE YEAR ENDED 31 MARCH 2012

Group Group

3 1- Ma r- 12 31 -M ar -11

TZS ‘000 TZS ‘000

Revenue 163,061,452 113,605,908

Cost of sales (117,059,260) (70,121,988)

Gross Proft 46,002,192 43,483,920

Other income 3,308,578 405,440

Marketing expenses (1,300,912) (1,164,090)

Impairment of receivables (385,272) (30,881)

Administrative expenses (35,060,382) (31,573,233)

( 33 ,4 37 ,9 88 ) ( 32 ,3 62 ,7 64 )

Operating Proft 12,564,204 11,121,156

Finance costs (7,652,711) (7,318,524)

P r of t b e or e l os s o n or ei gn c u rr en c y a nd t ax 4 ,9 11 ,4 93 3 ,8 02 ,6 32

Loss on foreign currency exchange (3,070,840) (2,247,108)

Proft beore tax 1,840,653 1,555,524

Income tax (expense)/credit (1,206,856) (692,978)

Proftorthe yearattributable to the ownerso 

the Parent 633,797 862,546

Earning per share - Basic and Diluted ( TZS) 3.95 5.38