We’ve missed you. #Welcomeback - CLHG...Lockdown has kept us from doing what we love most –...

Integrated Report 2020

We’ve missed you.#Welcomeback

Lockdown has kept us from doing what we love most – providing a home away from home for our beloved guests. We truly have missed you all but

loving and even cleaner than before.

Group are for the safety and reassurance of all

outlined via the QR code below.

Screening of guests on arrival has become

disaster announced by President Cyril Ramaphosa

required to:

>>>> allow their temperature to be scanned

with a thermal scanner on arrival at the hotel

paramount importance to us. City Lodge Hotel Group looks forward to welcoming you back.

#Welcomeback

Caring comes from the heart

#staysafe

Scan the QR code for

Connect with us on

About this report 1

2020 AT A GLANCE 2

3

GROUP AT A GLANCEWho we are 5Vision and values 6

8Group structure

1012

Business model 14

LEADERSHIP REVIEWWho governs us 16Who leads us 18Top of mind issues: Leadership Q&A 20

STRATEGIC REVIEW2628

Strategy at a glance3030313233

– Environmental sustainability 3435

FINANCIAL REVIEW 36BRAND REVIEWS 42– Fairview 44– Courtyard Hotel 46– City Lodge Hotel 48– Town Lodge 50– Road Lodge 52SUSTAINABILITY REVIEW 54– Financial and manufactured capital 55– Natural capital 57– Intellectual capital– Human capital 63

66

GOVERNANCECORPORATE GOVERNANCE REPORT 68REMUNERATION REPORT 84– 84–

85– SOCIAL AND ETHICS COMMITTEE REPORT 101

104Shareholders’ analysis

161Form of proxy

IBC

CONTENTS

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City Lodge Hotel Group Integrated Report 2020

GROUP AT A GLANCE

•

•

•

•

•

• •

[email protected]

Scope and boundary

Statement by the board of directors

A C Widegger

B T Ngcuka

Forward looking statements

factors that could cause the actual

Report navigation

www

AFS

GROUP AT A GLANCE

REVENUE

R1.16bn

EARNINGSPER SHARE

NORMALISED DILUTED HEADLINE EPS

-181.1c

NORMALISED DILUTED HEADLINE EPS(excluding IFRS 16 Leases)

-26.3c

AVERAGEGROUP OCCUPANCIES

38%

CSISPEND

R3.5m

WATERCONSUMPTION

436 013 kl

TOTALROOMS

INFRASTRUCTURE INVESTMENTS

R102.6m

SKILLS DEVELOPMENTINVESTMENT

R10.1m

CUSTOMERSATISFACTION

TOTAL DIVIDENDSDECLARED

153.C

AVERAGE SA OCCUPANCIES

41%

2 City Lodge Hotel Group Integrated Report 2020

HIG

HLI

GH

TS

established as a rapid response group of

Delivering service excellence during lockdown

PRE-

LOCK

DOW

NHA

RD LO

CKDO

WN

EASI

NG LO

CKDO

WN

Gradually opening for business


GROUP AT A GLANCE

Keeping our people safe

•

•

• Social distancing signage and

•

•

•

•

•

•

•

•

Ensuring our long-term sustainability

www.clhg.com

55 421 11 740 2 611 468 4 086litres screens

installed

75

are in Kenya)

34 hotels 1041 decals 464 hours

tests

Social distancing

signage

Split shields

facing counters

Cloth

Responding to COVIDPROTECTIVE

The World Travel & Tourism Council (WTTC) issued the City Lodge Hotel Group its

‘safe travels’ stamp of

hygiene standard.

audits

Total spend

Ongoing

training


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City Lodge Hotel opened, the emphasis has always been on providing a ‘Tip-top, Loving and Clean’

a homely ambience and friendly service. These

it has achieved such stellar heights of success.

UPSCALE

ECONOMY

GROUP HOTEL PORTFOLIO


GROUP AT A GLANCE

CREDO >

for one another and

in which we live

especially the children who will represent us in the future and build on our legacy by the way they live

We

areordinary people. Every day we accomplish extraordinary things as ‘people caring for people.’

VISION >We will be recognised as the

hotel group

The secret to our success?

WE SERVE >

#safetravels


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We care about being

the safety and wellbeing of our guests

We care for our

earned money they

but also for the trust they have placed in us

and value their worth

business

We care for our

respect and trust to provide us with goods and services of the highest quality

In this we will not fail. We care too much!

says it is

we live that promise

Thanks to the passion, care and commitmentof our

business and leisure

consistently superior experiences.

for three and a half


GROUP AT A GLANCE

Brand overview

1 hotel127

5 hotels381

20 hotels3 531

14 hotels1 804

22 hotels

>> Gauteng 46.4%>> 11.7%>> 11.1%>> Eastern Cape

>> 4.8%>> 2.8%>> 2.5%

Geographic spread of rooms

>> 2.3%>>>>>>>> 1.3%>> 1.3%>> Northern Cape 1.1%

TOTALROOMS

>> 7 902


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A subsidiary of Property Lodging Investments Proprietary Limited.City Lodge Hotels Limited owns 0.01%.City Lodge Hotels Limited owns 1%.

#

RSA

RSA

RSA

#

#

#

100%

RSA

RSA

RSA

RSA

RSA

100%

100%

100%

100%

70%

100%

100%

100%

100%

100%

100%

100%

100%


GROUP AT A GLANCE

COVID

In South Africa

included the closure of all shops and

though four hotels in South Africa

were placing pressure on the African and global economy, including the tourism

to a grinding halt. Other African countries, including those in which we operate, soon followed with similar measures.

Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020(100)

(75)

(50)

(25)

0265

(%)

Source:


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Other tourism and travel trends

Beyond South AfricaBotswana is our oldest

situated close to the airport

Namibia

challenging to launch than

Kenya

in Tanzania


GROUP AT A GLANCE

STAKEHOLDER WHAT IS IMPORTANT TO THEM

Guests

••••••

Employees

••••• Career pathing••

Government

•••••••

Shareholders

•••••

Suppliers

•••

Communities

• Sponsorships• Bursaries and leadership•••

The media

•

HOW WE ENGAGE


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HOW WE ADDRESS STAKEHOLDER INTERESTS

••••• Guest preferences noted for regulars•

•••••••

•••••

••••••

•••

•••

•••

feeds directly into decision-making, and drives our business strategy.


GROUP AT A GLANCE

INPUTS

FINANCIAL CAPITAL MANUFACTURED CAPITAL

our business is conducted and guests

INTELLECTUAL CAPITAL

HUMAN CAPITAL SOCIAL AND RELATIONSHIP CAPITAL

built on our brands

NATURAL CAPITAL

• land

BUSINESS ACTIVITIES AND PROCESSES

Develop or refurbish hotels

Operate hotels

ACTIVITIESCLHG’S BUSINESS ACTIVITIES ARE GUIDED BY OUR VISION AND VALUES

STRATEGY AND RESOURCE ALLOCATION

Africa expansion

Environmental sustainability

CLHG’S BUSINESS ACTIVITIES ARE UNDERPINNED BY SOUND CORPORATE GOVERNANCE PRACTICES


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OUTPUTS OUTCOMES

• Dividends per share

••••••

Refer to the joint leadership message on page 20

• Group occupancy rate 38%• South Africa occupancy rate 41% • Two new hotels opened during FY20• Refurbishments to the value of R4 m

• Conferencing• Restaurants• Bars

•

•

•

••

• Awards

• Excellent service and hospitality• Health and safety

• Broad-based black economic

• Enterprise and supplier development• Socio-economic development• CSI spend of R3.5 million

• The trust and respect of our stakeholders

• Social licence to trade

• Reduced carbon footprint

• Renewable energy generated (1.6 million kWh)


LEADERSHIP REVIEW

BULELANI NGCUKA 66 FRANK KILBOURN

DEON HUYSAMER SIZAKELE MARUTLULLE

NDUMI MEDUPE

VINCENT RAGUE

STUART MORRIS

LINDIWE SIDDO

ANDREW WIDEGGER

DHANISHA NATHOO

Our custodians of governanceThe board members accept responsibility as the custodians of corporate governance within the group and are therefore accountable to stakeholders for provision of value-enabling governance. The board is

company’s Memorandum of

with King IV. The majority of the board are independent non-

and create sustained value

management.


LEAD

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BULELANI NGCUKA 66 FRANK KILBOURN ANDREW WIDEGGER

Appointed to the board in 2008

Serves on the boards of the

CSG Holdings Limited (chairman)

Vuwa Investments Proprietary Limited

LimitedAmadlelo Agri Proprietary Limited

Leapfrog Property Group Proprietary Limited

and tourism

Serves on the boards of the following

Bright Resources Investments Proprietary Limited

LEAD INDEPENDENTCHAIRMAN

DEON HUYSAMER SIZAKELE MARUTLULLE NDUMI MEDUPE

Appointed to the board in 2015 Appointed to the board in 2016 Appointed to the board in 2006


Eco Children NPC (chairman)Klaserie Private Nature Reserve (chairman)

services and enterprise growth

STUART MORRIS VINCENT RAGUE LINDIWE SIDDO

Appointed to the board in 2006 Appointed to the board in 2016 Appointed to the board in 2018

resources and general management


Rolex Watch (South Africa) Proprietary LimitedEpoch Two Trust


Catalyst Principal Partners: Financial Sector Deepening Africa

Jambojet

hotel industry

South African TourismTourism Charter Council (chairman)

Kenyan

DHANISHA NATHOO

Appointed to the board in 2020


LEADERSHIP REVIEW

ANDREW WIDEGGER

CHIEF EXECUTIVE OFFICER Chartered Accountant (SA)

NAYNESH PARBHOO

DIVISIONAL DIRECTOR

Chartered Accountant (SA)

NEDA SMITH

DIVISIONAL DIRECTOR

Three years with the company

LINDIWE SIDDO

CHIEF OPERATING OFFICER

BSc (Penn State University)

Five years with the company

PATRICK TATE 64

DIVISIONAL DIRECTOR

DHANISHA NATHOO

CHIEF FINANCIAL OFFICERChartered Accountant (SA)

Seven months with the company

»

»

»

»

»

»


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SHIP

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MELANIE VAN HEERDEN 44

GROUP COMPANY SECRETARYBCom LLB

TONY BALABANOFF

DIVISIONAL DIRECTOR

Programme (Cornell)

34 years with the company

ROSS PHINN

DIVISIONAL DIRECTOR

ZUKI JANTJIES

DIVISIONAL DIRECTOR

HNDip Business and Finance

BA Honours (Business Studies)

Three years with the company

»»

MARCEL KOBILSKI

DIVISIONAL DIRECTOR human resources

BBA

»

»

»


LEADERSHIP REVIEW

In this interview, the CLHG leadership team, comprising Bulelani Ngcuka (chairman), Andrew Widegger (CEO), Lindiwe Siddo (COO) and Dhanisha Nathoo (CFO) share their insights on the 2020

how the group is

towards long-term sustainability.

Bulelani NgcukaChairman

Andrew Widegger Lindiwe Siddo

COVIDThe tourism and travel industry took a major blow. What was the impact of

performance?

Dhanisha Nathoo


LEAD

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entering business rescue and grounding

grace for the group to trade back into

the BEE preference shares and accrued

The pandemic has two major

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LEADERSHIP REVIEW

what’s next for City Lodge Hotel Group?

secured for the near future, what are the primary risks to be managed?

interest

on discount rates applied across the

Performance at a glanceHow did CLHG perform during FY2020?


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3CUSTOMERPROMISES

WE’RE PROUD TO OFFER YOU GREAT VALUE.

WE’RE HERE TO HELP YOU AT ANY TIME.

WE’VE GOT EVERYTHING COVERED.

QUALITY SERVICE RELIABILITY

What are CLHG’s real

are you leveraging them? LE

ADER

SHIP

REV

IEW


LEADERSHIP REVIEW

B T Ngcuka

A C Widegger

L G Siddo

D Nathoo

talk

Link to City Lodge’s LinkedIn profi le:http://www.linkedin.com/company/citylodge

Link to City Lodge’s Facebook page:http://www.facebook.com/company/citylodge


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ADER

SHIP

REV

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Life as a quarantined GM

strict

Dean SamouilhanGeneral ManagerCity Lodge Hotel GrandWest

For the last 35 years, the City Lodge Hotel Group has operated

of TLC ‘Tip-top, Loving and Clean’.

WORDS ARE NOT ENOUGH TO RELATE THE SINCERE WARMTH AND GRATITUDE I FEEL TOWARD YOU AND YOUR TEAM MR VON WILLIGH.– MAGGIE LLOYD

UNDER THE CIRCUMSTANCES WE FELT SAFE AND PAMPERED, FET TLED AND CARED FOR. AMAZING!– ANDREW AND SOLEDAD CARTER

THANK YOU ONCE AGAIN FOR THE OUTSTANDING CARE I HAVE RECEIVED AS YOUR GUEST. – ETHEL JOHNSON


STRATEGIC REVIEW

Cyber security.

Over-supply.

Loss of travel supply.

RISKS OVERVIEW 2020

It is clear that these global impacts and risks are highly interdependent and are changing the current

and society risks

economic

Technological Cyber security

and price wars

Loss of travel supply


STRA

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OPPORTUNITIES OVERVIEW

City Lodge Hotel Group as a safe haven.

Food, socialising and merchandising.

experience

City Lodge Hotel Group as a safe

haven

and

and cost and

merchandising

and distressed

assets


STRATEGIC REVIEW

•

•hotels

•

•

•

of internal and external factors, as well as the concerns raised by our stakeholders.

follow a rigorous and ongoing assessment process, which includes extensive

CLHG’s strategy.

Remaining viable

•

•

•

challenges•

•

•

•channels

•

•the cash burn

•

•

•

•

•

•

Establishing

in the short term

Ringing in the changes – preparing CLHG for the

‘new normal’


STRA

TEG

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environment

Brand Environmental sustainability technology

Looking ahead

•

•

• embrace technology − booking channels − property management system − relaunching the loyalty programme

• pricing strategy • gain market share • refurbishing and modernising •


STRATEGIC REVIEW

Maintaining a great guest experience

•

•

•

•

colleagues safe•

hotel•

•

•

•

•

•

Delivering safe and healthy meals

distanced tables at our restaurants

Agile response planning

COVID

• Screening guests•• Rolling out

guest areas •

• Reinforcing personal hygiene• of public areas • at our hotel entrances • Issuing

• Avoiding close contact

• Replacing the

• Pizza to go

Operating in a COVID-19 environment


STRA

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Financial integrity

that include: •

•

•

•

•

••

•

Brand identity


STRATEGIC REVIEW

Driving online bookings

•••••

South Africa

Southern Africa

Consolidation

Embedding success through the WOW campaign

•

•


STRA

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IC R

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Maputo

BBBEE

pool of leadership talent to facilitate our

Transformation

Occupancy and market share


STRATEGIC REVIEW

Environmental responsibility

designated groups at senior and

and development

Solar energy


STRA

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Departure

The Guest 2.0 experience

performance

Browsing for

Booking process

Pre-arrival(day before)

Pre-departure

Arrival process

In house

Information technology

Cyber security

Post-departure


PERFORMANCE

R’mReported

2020

Norm-alised

adjust-ments*

Norm-alised

IFRS 16adjust-ments*

Norm-alised

(ex IFRS 16)2020

Normalised

2018 2017 2016 2015 2014Consolidated normalised

– –330.4 228.6

(131.1) – – (131.1) – – – – – – – –

Operating profit 107.0(488.4) – – (488.4) – – – – – –(201.3) (31.7)

– – – – – – – –– – – – – – – –

(582.7) (422.6)66.7

(486.6)

headline earnings(486.6)

– – – – – – – –Gain on bargain purchase – – – – – – – – –

– – – – –

assets 488.4 – – 488.4 – – – – – –– – – –

(142.1) (11.4)Number of shares for

36 606 – – 36 606

shares – –

shares – – 507

36 606 – 43 503Restricted share plan – – – –

– – – – – –– – – – – – –

Normalised diluted weighted average shares in issue 36 606 – 43 503


PERF

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R’mReported

2020

Norm-alised

adjust-ments*

Norm-alised2020

Normalised

2018 2017 2016 2015 2014Consolidated normalised

AssetsNon-current assets 3 617.3 3 637.8

––

57.4 – 57.40.8 34.8

– – – – – –56.4

Current assets 241.1 288.1Total assets 3 858.4

Total shareholders’ funds 568.3–

(514.4)1 282.0

2 260.1 2 245.4750.0 – 750.0

– – – – – – – – –BEE preference shares – – – – – – – – –

– – – – – – – – –– – – – – – – – –

1 376.1 – 1 376.1 – – – – – –– – –

134.01 030.0 228.63 858.4


PERFORMANCE

2020 2018 2017 2016 2015 2014

Ordinary share performance

000 43 574

000 43 503

cents (818.1)

cents (181.1)

per share cents (181.1)

cents (26.3)

cents 153.0

(0.2)

cents 3 332

cents 8 878

8.4

(15.8)

(0.7)

1.3

Stock exchange performance

– Closing Rand 23.75

Rand 117.23

Rand

1 035

(13.1)

000 37 071

Other

62

38

41


PERF

ORM

ANC

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Normalised shares in issue

Normalised weighted average number of shares in issue

Normalised earnings

Normalised earnings excluding IFRS 16

Normalised earnings per share

Normalised headline earnings

Normalised headline earnings excluding IFRS 16

Normalised headline earnings per share

Normalised headline earnings excluding IFRS 16 per share

Normalised diluted headline earnings per share

Normalised diluted headline earnings excluding IFRS 16 per share

Normalised dividend cover

Normalised net asset value per share

Normalised tangible asset value per share

Normalised EBITDA

Normalised EBITDA margin

Normalised EBITDAR

Normalised EBITDAR margin

Normalised interest-bearing debt (excluding IFRS 16 )



PERFORMANCE

GROUP

R000 2020

1 Normalised shares in issue (‘000s)Shares in issue 36 677

507

Normalised shares in issue 43 574

2 (142 082)

288 4 060

(37)

–

7 688 Normalised headline earnings

67 358 – (116 202) –

– 117 214 –

–

Normalised headline earnings excluding IFRS 16 (11 431)

3 Normalised headline earnings per share (cents)– undiluted (181.1)

(181.1) (26.3) (26.3)

4 Normalised interest-bearing debt (excluding IFRS 16 ) (R000)750 000

47 438 –


5 568 316

14 577 15 561

7 383 25 253

1 451 860


PERF

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GROUP

R000 2020 % %

1 333 483

(446 616)

886 867

100

2

– direct 284 358

– indirect 41 833

37

78 518

Rates 55 681

15

108 214

204 212

312 426 35

711 811

13

100

1 488

–

Total headcount 1 488

2

Providers of capitalReinvested to maintain/

develop operationsGovernmentEmployees


City Lodge Hotel Group's brand strategy is aimed at showcasing

the distinct attributes of each brand in the stable.

Much has been done since we moved on from the umbrella

brand strategy, and we continue building and growing each

of our unique brands.

PERFORMANCE

'City Lodge Hotel Group cares for YOU'


PERF

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Designed to impress

Comfort in the little things

Basically brilliant

A little extra can mean a lot

Comfort where you need it most


PERFORMANCE


Comfort whereyou need it most

PERF

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PERFORMANCE

Our rooms✓

✓

✓

✓ Irons and ironing boards

✓

✓

✓

The Fairview is a garden oasis of

Upper Hill suburb of Kenya, Nairobi,

as the perfect East African venue to relax or do business.

• Nairobi, Kenya

Our services✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

127 rooms

1 hotel

Free WiFi Gym

Designed to impress

PERF

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PERFORMANCE

Our Courtyard Hotel brand merges

conveniences and touches. These include WiFi, access to boardrooms

shopping service.

Our services✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

Our rooms✓

✓

✓

✓

✓

✓

✓

✓

• Johannesburg• Port Elizabeth• Tshwane

• Johannesburg

381 rooms

Clublounge

5 hotels

City Lodge Hotel Group Integrated Report 2020 City Lodge Hotel Group Integrated Report 2020

Comfort in thelittle things

PERF

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City Lodge Hotel brand is well entrenched in its market category.

Our rooms✓

✓

✓

✓

✓

✓

laptop✓

✓

Our services✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

– Bloemfontein – Cape Town – Durban – Johannesburg

– Port Elizabeth – Tshwane • Nairobi, Kenya• Dar es Salaam, Tanzania

PERFORMANCE

20 hotels#Cafe

3 531 rooms


A little extracan mean a lot

PERF

ORM

ANC

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PERFORMANCE

more in your life. Town Lodge is the

Lodge guests are more price-aware and may take a smaller room to save money.

Our rooms✓

✓

✓

✓

✓

✓

✓ laptop

✓

Our services✓

✓

✓

✓

✓

✓

✓

✓

– Bellville – George – Johannesburg

– Mbombela – Polokwane – Port Elizabeth – Tshwane – Umhlanga• Gaborone, Botswana• Nairobi, Kenya• Windhoek, Namibia

Free WiFi

1 804 rooms

14hotels

City Lodge Hotel Group Integrated Report 2020 City Lodge Hotel Group Integrated Report 2020

PERFORMANCE

Basicallybrilliant

PERF

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PERFORMANCE

fuss. The Road Lodge brand seeks to

Africa by providing guests with basic

guests to keep costs low while

those with simple needs and a lower budget.

Our services✓

✓

✓

✓

✓

Our rooms✓

✓

✓

✓

✓

• Bloemfontein Airport• Cape Town • Centurion• Durban • East London• Johannesburg

• Kimberley• Mbombela• Pietermaritzburg• Port Elizabeth• Potchefstroom• Richards Bay• Rustenburg

roomsFreeWiFi

22 hotels


PERFORMANCE

Our approach to sustainabilityThe six capitals

To maintain and grow a sustainable business for the future, we deployed our various capitals to drive and generate superior returns for our stakeholders. We allocate and mix our capital inputs in line with

outputs from leveraging our capital inputs create value for stakeholders and result in certain outcomes,

the capitals.

MANUFACTURED CAPITAL

HUMAN CAPITAL

SOCIAL AND RELATIONSHIP

CAPITAL


NATURAL CAPITAL

FINANCIAL CAPITAL

NO POVERTY

ZEROHUNGER

GOOD HEALTHAND WELL-BEING

QUALITYEDUCATION

GENDEREQUALITY

CLEAN WATERAND SANITATION

AFFORDABLE AND CLEAN ENERGY

DECENT WORK AND ECONOMIC GROWTH

INDUSTRY, INNOVATIONAND INFRASTRUCTURE

REDUCEDINEQUALITIES

SUSTAINABLE CITIES AND COMMUNITIES

RESPONSIBLECONSUMPTION AND PRODUCTION

LIFE ON LAND

PEACE, JUSTICEAND STRONGINSTITUTIONS

CLIMATEACTION

LIFE BELOW WATER

PARTNERSHIPSFOR THE GOALS

Environmental-related statutory compliance

•

•

•

••

•


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FINANCIAL AND MANUFACTURED CAPITALOccupancy performance

30 June 2020

30 June 30 June 2018

occupancies38%

South African occupancies

41%

Average daily rates (ADR)

Expanding our footprint


PERFORMANCE

BrandNumber of hotels Future development

Fairview Hotel

Courtyard Hotel South Africa

City Lodge Hotel 20

Town Lodge

Road Lodge 22 South Africa

Keeping our hotels in great shape


PERF

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NATURAL CAPITALEnvironmental sustainability

Brand

kWh peroccupied

room 2020

occupied

Cost per occupied

room R

2020

Cost per occupied

R

kWh per available

room 2020

Cost per available

roomR

2020

Cost per

R

35.1 70.58 10.5 21.0422.6 36.71 8.7 15.35

43.65 7.5 14.6615.0 32.40 6.8 14.71

Renewable energy

2

Environmental sustainability


PERFORMANCE

Waste and recycling

Compliance

Brand

occupiedroom 2020

occupied

Cost per occupied

roomR

2020

Cost per occupied

R available

room 2020

Cost per available

room R

2020

Cost per

R

1.14 37.10 0.34 11.060.35 13.30 0.13 5.560.37 0.12 4.300.32 8.66 0.14

Our goals for the year ahead


PERF

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guests want

Fairview Hotel

Courtyard Hotels

City Lodge Hotels

Town Lodge

Road Lodge

Pricing and revenue strategy

Monitoring and building our brands

LESS SPENDY, MORE WEEKENDY.

Brand identity


PERFORMANCE

www.clhg.com


PERF

ORM

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WOW

Leveraging technology

The CLHG mobile App

Reducing physical touchpoints


PERFORMANCE

Business Intelligence (BI) capability

The Guest 2.0 experience

Cyber security


PERF

ORM

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HUMAN CAPITAL

Leading Improving

LEADING

• • • • • Encourage the heart

Year Voluntaryturnover

Involuntaryturnover

% of totalheadcount

41 22 5.52

SUPPORTINGEmployee engagement

• • •

Health and safety


PERFORMANCE

Male FemaleYear African Coloured Indian White African Coloured Indian White Male Female Total

Top 2

2020 1 5 2 1 1 1 11

Senior 20

2020 6 5 32 3 1 22

2 2 2

2020 8 2 2 11 7 3 15 1 78

20 20 2 222

2020 52 11 4 18 110 21 3 12 2 233

2020 114 16 4 12 8 48 1 4252

2020 121 10 5 186 28 2 352

2020 301 44 11 83 523 87 15 3 3 1 16820 2 2

2020 1 11 1 1 2 1 26Grand total

2020 310 44 12 83 534 87 16 5 4

IMPROVINGService excellence WOW

Training and development

areas: •

•

•

• • • •

2020

African 23

Coloured 1

Indian 1 –

7

Total 32

Consolidation


PERF

ORM

ANC

E

1 January

31 December

1 January2018 to

31 December2018

1 January2017 to

31 December2017

1 January2016 to

31 December2016

3.53

2.13

14 870

Total spend on training and development R10.1 million

BBBEE ownership

Scorecard elementScore

17.68

Enterprise and supplier

34.35

7.24

Total BBBEE score

•

•

•

•

Broad-based black economic empowerment (BBBEE)

Transformation


PERFORMANCE

SOCIAL AND RELATIONSHIP CAPITAL

Addressing stakeholders’ interests

Employee engagement

Enterprise and supplier development


PERF

ORM

ANC

E

Awards

• • • •

Cannes

One Show Awards

D&AD Awards 2020

Loeries

Pendoring Awards


GOVERNANCE

Governance framework and statement of compliance

••••

••

•

•

•

•

•

www.clhg.com

Ethical leadershipThe group:•

•

www.clhg.com

www.clhg.com


GO

VERN

ANC

E

Audit (statutory and board)

Risk (board) Management Development and Succession

Social and ethics (statutory and board)

Governance structure

F W J Kilbourn , G G Huysamer, M S P Marutlulle, N Medupe, S G Morris, V M Rague

A C Wideggar D Nathoo L G Siddo

Board and statutory Management

Unitary board

chairman B T Ngcuka

Six independent

directors

Three

directors


GOVERNANCE

The board

•

stakeholders • •

•

•

Independence

•

shareholders


GO

VERN

ANC

E

•

Board leadership


GOVERNANCE

CEO

•

•and budget

• •

•

Board AGM AC R&NC RC SEC

Ad hoc – Rights

5 1 3 3 3 2 11+ + + – 2+ – +

– ––

– – –B T Ngcuka – – – –

0 – – – 2 ––

– – – –+ 0+ – – + 0+ –

– – – 2 –2

2# 0# # – # – #

– Apologies

+ Resigned#


GO

VERN

ANC

E

Succession planThe board:

•

•

•

•

Group strategy

•

•

• •

•

secretary

responsible for guiding the board in discharging its


GOVERNANCE

•

• • •

•

•

•

•

•

•

•

•

•


GO

VERN

ANC

E

•

•

•

•

audit partner •

•

•

•

•

•

•

•

•

•

•

•

progress against it •

Remcom

•

−

− ensuring that the appropriate succession plans are in place •


GOVERNANCE

•

•

•

•

•

•

•

•

•

•

•

•

•

−

−

−

•

•

and unbiased •

•

•


GO

VERN

ANC

E

•

the board •

•

•

•

•

•

•

•

•

•

•

in place •

Integrated Report •

•the group

•

• •

•

•

•

•

•


GOVERNANCE

•

•

•

•

•

•

• •

SEC)

BEE

•

•

Exco


GO

VERN

ANC

E

• • •

•standards

•

•

• •

•

• • •

• •

•

•

•

for the group •

•on:

−

−

− −

•

•

•

(Mandasco)

•

are in place •

•

• •

Governance processes


GOVERNANCE

Combined assurance

•••

First line of defence

Second line of defence

Third line of defence

Fourth line of defence

Independent assurance –

actuaries as is appropriate to

assurance to the board

internal control units

Risk management system

Internal control system

••• agreed policies and processes•

Internal audit


GO

VERN

ANC

E

•

•

•

•

• upon assessing the independence of the internal audit

Non-audit services

• •

•

•


GOVERNANCE

www.clhg.com

Compliance

• −

−

•

• • • •


GO

VERN

ANC

E

Areas of focus included: •

• •

•

•

• •digital based processes

•

•

Sponsor

Stakeholder engagement


GOVERNANCE

PART 1 – BACKGROUND STATEMENT

Dear shareholders

• • •

period included: • •

•

•

•

•

•

place • •

•

•

• • •


GO

VERN

ANC

E

•

•

stakeholder interests • the principles adopted are appropriate for guiding its decisions

F W J Kilbourn

PART 2 – OVERVIEW OF THE REMUNERATION PHILOSOPHY AND POLICY

online at www.clhg.com

Governance and the role of the Remcom

Reward philosophy and strategy statement

•

•

•

• •

•


GOVERNANCE

•

Total reward strategy

•

•

•

Element of pay type Purpose

Performance period Performance measures

FixedTotal guaranteed

funding based on pensionable

The basis of the •

• • Senior and head

• •

Variable

appraisal linked culture and

business

capped at a

depending on

The standard

percentage of

• Assistant general

• • Senior and head


GO

VERN

ANC

E



Variable

culture and

of business

so doing aligns

through share

• • • •

August

•


GOVERNANCE



Variable

director culture and

business

so doing aligns

through share

The percentage target

•

− −

•

− −

• Threshold target percentage

•

• Stretch target percentage

August •


GO

VERN

ANC

E



Variable

periods and

place as directed • General

• Senior

•

• •

SAR: • Senior

• • E

Bonus tables

Bonus achievable percentage – PAL

Scale (total PAL score of 100%)

General managers – bonus % – half-yearly annual salary – half-yearly

Bonus achievable – ECPMS

Overall PAL scale Bonus % of half-annual TGP Exco – bonus %

• •

•

•

•

•


GOVERNANCE

Bonus achievable – EDIS – CEO, CFO and COO • • • •

SAR Scheme RSP

Purpose

Eligibility

Company limit

Individual limit

• •

employment


GO

VERN

ANC

E

SAR Scheme RSP

Change of control

capital

methodology

Grant price

Lapse periodPerformance

•

•


GOVERNANCE

CEO (R000)

4 0000 8 000 12 000 16 000 20 000

TGP STI LTI

6 8645 720

4 8625 720

2 088

3 432

2 431

1 0445 720Threshold performance

On-target performance

Stretch performance

5 720

5 720

5 720

CFO (R000)

1 0000 2 000 3 000 4 000 5 000 6 000 7 000 8 000

28002 800

2 3802 800

1 022

1 400

1 190

5112 800

TGP STI LTI

Threshold performance


Stretch performance

COO (R000)

2 8652 865

2 4352 865

1 046

1 433

1 218

2 865 523

TGP STI LTI

1 0000 2 000 3 000 4 000 5 000 6 000 7 000 8 000

Threshold performance


Stretch performance


GO

VERN

ANC

E

• •

•

• −

bonus

−

Appointment and term • •

Expenses


GOVERNANCE

PART 3 – IMPLEMENTATION REPORTGuaranteed pay review and increases

Achievement of STI outcomesPAL bonus

ECPMS

EDIS

LTIsGranted and awarded

SAR Scheme

• •

RSP

LTI


GO

VERN

ANC

E

Actual(R000)

8 000

2 721

6002 760

5 727

TGP STI

1 0000 2 000 3 000 4 000 5 000 6 000 7 000

CEO

CFO

COO

R000Basic

salary

Perform-ance and

other bonus

Fringe

and allowances

Pension fund

contri-

Total annual

remuner- LTI 1,2

Total single

remuner-

2

2020

R000Basic

salary

Perform-ance and

other bonus3

Fringe

and allowances

Pension fund

contri-

Total annual

remuner- LTI 4,5

Total single

remuner-

1 778 – 21 181 – – 215 2 721 – 2 721

763 600 17 – 1 380 – 1 380 5 054 – 32 641 5 727 – 5 727

600 1 037 11 808 – 11 808


GOVERNANCE

8

10

11

12

being met.

being met.

Name

Opening number on 1 July 2018

Granted during lapsed during

Closing number on

Cash value during

the year

Closing

fair value at

Number of awards

Number of awards

Number of awards

Number of awards

Number of awards ZAR ZAR

A C Widegger

– – – – – – – – –

– – – – – – – – – – – – – – – – – – –

– – –

– – – – – – – – – –

– –

Total


GO

VERN

ANC

E

being met.18

being met.

being met.20

being met.21

being met.22

2020

Granted during

2020lapsed during

2020 2020

Closing number on

30 June 2020

Cash value during

the year

Closing

fair value at 30 June 2020

Number of awards

Number of awards

Number of awards


– (62 110) – – – –– – – 26 136 – –– – – – –– – – – – –– (23 633) – – – –– – – 30 245 – –– – – 45 360 –

– – – 153 040

– – – – – –– – – –– – – 4 882 14 158– – – 7 276 66 640

7 204 – – 7 204 11 022


GOVERNANCE

Name

Opening number on 1 July 2018

Granted during lapsed during

Closing number on

Cash value during

the year

Closing

fair value at

Number of awards

Number of awards

Number of awards

Number of awards


A Dooley – Resigned

– – – – –– – – – –– – – –

– – –

– – – –– – –– – –

– –

Total

L G Siddo

– – – – –– – – –

– – – –

– – –– – –

– –

Total


GO

VERN

ANC

E

2020

Granted during

2020lapsed during

2020 2020

Closing number on

30 June 2020

Cash value during

the year

Closing

fair value at 30 June 2020

Number of awards

Number of awards

Number of awards


– – – – – – – (4 268) – – – – – (5 462) – – – – – (18 720) – – – –

20 074 (20 074) – – – –

– – – – – –– – (1 085) – –– (1 661) – – – –– – – – –

3 568 (3 568) – – – –

–

– (8 136) – – – – – – – 5 535 – – – – – 18 360 –

– – – 76 654

– – – – – – – 2 775 25 418 – – – 2 010 18 406

– – 4 120

58 510


GOVERNANCE

per annum(R)

1 July 2020per annum*

(R) (%)

1 060 000 0.0343 000 0.0262 000 0.0184 000 0.0

84 500 0.0162 000 0.0

73 000 0.0126 000 0.0

57 500 0.083 000 0.0

2 100 per hour capped at 60 000 0.0

2 435 000 0.0

Stakeholder engagement

• •

• − − −

•

Statement of compliance

• •


GO

VERN

ANC

E

• • • •

• • • •

to consider: •

−Compact Principles

− Human rights


GOVERNANCE

−

− Forced or compulsory labour

−

−

In this regard it is to be noted that:

•

•

•

•

•

•

•

•

•

M S P Marutlulle


35th anniversaryOn our

Waterfall City and City Lodge Hotel Maputo to the CLHG family.

Courtyard Hotel Waterfall City

City Lodge Hotel Maputo


Directors’ responsibility statement 105

105

106

107

Directors’ report 108

Independent auditor’s report 110

115

123

Statements of comprehensive income 124

125

126

128

Segment analysis 158

CONTENTS

published on 13 November 2020, were audited

Companies Act, 71 of 2008, and prepared under

Dhanisha Nathoo CA(SA).

ANNUAL FINANCIAL STATEMENTS

The directors are also responsible for such internal control

•

•

M C van Heerden

:

A C Widegger D Nathoo

FIN

ANC

IAL

STAT

EMEN

TS


A C Widegger D Nathoo



Membership

Mandate and terms of reference

Internal control

• corporate report • • social and ethics report • • •

S G Morris

FIN

ANC

IAL

STAT

EMEN

TS




Nature of business

Financial results

totalled

Interest-bearing borrowings

Dividends

Share capital

The City Lodge 10th anniversary employees’ share trust

Shares per employee

Total shares

Subsidiaries

Directorate and secretary

Directors’ interest

Direct Indirect2020 2020

– – – –17 000 15 583

– – – –– – – –– – – –

B T Ngcuka – – 444 521*– – – –– – –– – – –

4 680 – –– – – –

– –

Total 238 177 460 104

Direct Indirect

– –

– – – – – – – – –

– –

– –

–

– ––

Total 3 334 478 2 680 053

Going concern

interest

The directors therefore considered it appropriate to adopt the

FIN

ANC

IAL

STAT

EMEN

TS




Report on the audit of the consolidated and

Opinion

Basis for opinion

standards are further described in the

for Registered Auditors

•

; •

•

•

•

•

•

•

; •

•

•

•

•

FIN

ANC

IAL

STAT

EMEN

TS




Concluding on the appropriateness of the use of the going

•

•

•

•

•

of users taken on the basis of these consolidated and separate

•

•audit in order to design audit procedures that are

•

•

report to the related disclosures in the consolidated and

FIN

ANC

IAL

STAT

EMEN

TS




•

•

KPMG Inc.Registered Auditor

Per Dwight Thompson

Registered Auditor

Basis of measurement

• • • •

•

Statement of compliance

New and amended standards adopted by the group

and adopted the

IFRS 16

Measurement of right-of-use assets

FIN

ANC

IAL

STAT

EMEN

TS




GROUP COMPANY

R000

Right-of-use asset recognised under IFRS 16 1 310 708 1 123 445

GROUP COMPANY

R000

Lease liability recognised under IFRS 16 1 181 551

1 181 551

Impact for the year ended 30 June 2020GROUP COMPANY

R00030 June

202030 June 30 June

202030 June

– –874 775

(1 388 440) (1 167 770)

GROUP COMPANY

R000

Year ended 30 June

2020

Year ended 30 June

Year ended 30 June

2020

Year ended 30 June

80 806167 864

117 214

452 405 346 578

(116 202)

336 203

Leases

Measurement of share-based payments

in

•

•

•

FIN

ANC

IAL

STAT

EMEN

TS




use assets

Impairment of goodwill

Subsidiaries

Goodwill

currencies other than the South African rand are translated to

and leasehold buildings are stated at cost and depreciated

Leases –

the lease period so as to produce a constant periodic rate of

Leases –

Intangible assets

FIN

ANC

IAL

STAT

EMEN

TS




Impairments

Pre-opening expenses

Inventories

•

•

•

Financial instruments

•

•

Preference shares

Provisions

Revenue from contracts with customers

sources: • • •

FIN

ANC

IAL

STAT

EMEN

TS




Interest income and expense

Earnings per share

GROUP COMPANY

R000 Note 2020 2020

AssetsNon-current assets 3 617 316

2 – 874 775 –57 422 56 641

Interest in subsidiaries 386 55262 800

800 800– –

40 02056 428 – –

Current assets 241 088

5 540 2 60118 877 18 733

137 60242 756 36 881

28 413 –

Total assets 3 858 404 2 850 838

Capital and reserves 568 316

(514 381)113 262

Retained earnings 712 683 642 525

2 260 101

750 000 – –– –

BEE preference shares – –– –– –

1 376 063 – –– –

134 038

1 134 347

170 336 270 83412 377 – 10 846 –44 120 – 44 120 –

BEE preference shares – –50 000 – 50 000 –

356 416 – 356 416 –47 438 – 52 831 –

2 411 251

3 858 404 2 850 838

FIN

ANC

IAL

STAT

EMEN

TS




GROUP COMPANY

R000 Note 2020 2020

Revenue from contracts with customers 1 047 3484 550

(288) (288)(268) 1 711

(735 848) (715 204)

(131 156) (101 717)2 – (80 806) –

20 61 670(245 464) – –

– (167 864) ––

11 567(204 212) (152 155)

(582 715)61 646

(486 632) (236 608)Other comprehensive income

52 128

Total comprehensive income for the year (434 504) (236 608)

GROUP COMPANY

R000 Note 2020 2020

273 258 276 23411 567

Interest paid (77 114) (14 060)Interest paid – leases (117 214) –

(30 303)(108 214) (107 832)

(102 642) (80 757)

– –– 7 000

142 142

66 355 (22 421)

(15 005) – (13 781) –

– – –(5 700) (5 700)

(100 186) (65 480)71 046

6 577 –

(2 727)6 265

(52 831)

FIN

ANC

IAL

STAT

EMEN

TS




R000 NoteShare capital

and premium

BEE investment

scheme shares

Otherreserves

Retained earnings Total

GROUPBalance at 30 June 2018Total comprehensive income for the year – –

– – –

– – –

–

–– – –– – –

Total comprehensive income for the year – – 52 128 (486 632) (434 504)

– – – (486 632) (486 632)

– – 52 128 – 52 128

– 3 633 700 (108 214) (103 881)

– 3 633 (6 573) –– – 7 273 – 7 273– – – (108 214) (108 214)

Balance at 30 June 2020 (514 381) 712 683 568 316

R000 NoteShare capital

and premium

BEE investment

scheme shares

Other reserves

Retained earnings Total

COMPANYBalance at 30 June 2018Total comprehensive income for the year

– – –

–

–– – –– – –

Total comprehensive income for the year

– – – (236 608) (236 608)

– 3 633 700 (107 832)

– 3 633 (6 573) –– 7 273 – 7 273– (107 832) (107 832)

Balance at 30 June 2020 113 262 642 525

FIN

ANC

IAL

STAT

EMEN

TS




GROUP COMPANY

R000 2020 2020

1.At cost

1 178Buildings 2 474 402 1 644 413– freehold 1 837 025 1 304 427– leasehold 637 377

261 258 1 262431 500 264 755

Buildings 504 228– freehold– leasehold 387 266 245 260

632 208

1 178Buildings 1 716 233 1 140 185– freehold 1 466 122– leasehold 250 111

261 258 1 262136 775

R000 Land BuildingsFurniture and

Total

Group – carrying amountOpening balance – 30 June 2018

– –– –––

57 176 123 114– 5 700 – 5 700– – (136) (136)– (57 774) (66 741) (124 515)– (222 853) (22 611) (245 464)

3 311 105 278 12 053 120 642

Closing balance – 30 June 2020

R000 Land BuildingsFurniture and

Total

1.Company – carrying amountOpening balance – 30 June 2018

–– –– ––

– 20 325 61 747 82 072– 5 700 – 5 700– – (136) (136)– (45 385) (50 023)– (25 808) (3 684)

Closing balance – 30 June 2020 1 178 1 141 447 136 775

R000 2020

5 700(1 176)

4 524

R000 2020

5 827(4 524)(1 303)

Gain on bargain purchase –

Impairment

FIN

ANC

IAL

STAT

EMEN

TS




Group 2020

R000Property, plant Right-of-use

asset Total

South Africa 167 864Rest of Africa 75 025

245 464 488 353

GROUP COMPANYR000 Increase Increase

2. Right-of-use assets

GROUP COMPANY

R000 2020 2020

1 310 708 1 123 445(80 806)

(167 864)

Closing balance – 30 June 2020 874 775

Cost 1 310 708 1 123 445(248 670)

874 775

3. Intangible assets and goodwillGROUP COMPANY

R000 2020 2020

At cost

82 365 80 580

– – – –

37 180

57 422 56 641

R000

Software development

cost Goodwill Total

3. Intangible assets and goodwill Movements for the yearGroup – carrying amountOpening balance – 30 June 2018

––

58 8 512 8 570(6 641) – (6 641)

135 – 135

Closing balance – 30 June 2020 57 422

Company – carrying amountOpening balance – 30 June 2018

–

– 8 512 8 512–

Closing balance – 30 June 2020 37 180 56 641

R000 Increase

FIN

ANC

IAL

STAT

EMEN

TS




COMPANY

R000Issued share

capital % held 2020

4. Subsidiaries4.1 Interest in subsidiaries

Shares at cost less accumulated impairment losses*

1 073**3**

383 4651

343

#

#

2 000 2 000#

386 552

#

4.2 Loan to subsidiary62 800

(137 617)

5. Loan receivable12 02028 00040 020

GROUP COMPANY

R000 2020 2020

6.

22 713

(10 744) 3 320

56 428

81832 608 –

–(46)

(22 142)56 428

173 028 (61 652) (61 670)

1 176 1 176 7 446 – 7 446 –

(10 744) –

134 038

233 144

– ––

582 582(2 860) (2 860)(3 125) (3 125)(8 567) (8 567)

–134 038

• • • • •

FIN

ANC

IAL

STAT

EMEN

TS




GROUP COMPANY

R000 2020 2020

7. Inventories5 540 2 601

8. Other receivables

7 617 6 560

7 400 7 400

81 681 – –

137 602

GROUP

R000 2020

Other investments

–(6 577)2 727

15 800

15 800

GROUP COMPANY

R000 2020 2020

10. Share capital and premiumShare capitalAuthorised

5 000 5 000

4 357 4 357175 146 175 146

GROUP COMPANY

R000 2020 2020

11. Other reservesShare-based payment reserve 86 321 86 321

85 621 85 621

7 273 7 273

(6 573) (6 573)

25 12152 128

113 262

12. Interest-bearing borrowingsSecured bank loan

–

– 200 000

300 000

450 000 –

750 000 – –

FIN

ANC

IAL

STAT

EMEN

TS




12. Interest-bearing borrowings

GROUP COMPANY

R000 2020 2020

660 000 –– –

– – –Interest charged –Interest paid –

– –5 488

750 000 – –

13. BEE interest-bearing borrowings

44 120 44 120

44 120 44 120

(44 120) – (44 120) –

– –

44 120 44 120Interest charged 4 060 4 060Interest paid (4 034) (4 034)

44 146 44 146

44 120 44 120

14. BEE preference shares440 700 440 700(85 700) (85 700)

(5 700) (5 700)

– –

– –

14. BEE preference shares

GROUP COMPANY

R000 2020 2020

– –– –

15. BEE shareholder’s loanVuwa Investments Proprietary Limited

50 000 50 000(37 418) (37 418)37 418 37 418

50 000 50 000

– –50 000 – 50 000 –

Total 50 000 50 000

16.1 181 551

Interest costs 117 214

13 838

Closing balance – 30 June 2020 1 388 440 1 167 770

1 376 06312 377 10 846

1 388 440 1 167 770

15 005 13 781117 214

FIN

ANC

IAL

STAT

EMEN

TS




GROUP COMPANY

R000 2020 2020

17.– –

18. Trade and other payables8 383

137 617Accruals 117 741

34 130 26 622

170 336 270 834

Revenue from contracts with customers

154 316 127 10814 411

1 047 348

Primary geographical marketsSouth Africa 1 047 348 1 047 348Rest of Africa

1 047 348

GROUP COMPANY

R000 2020 2020

20.

5 722 3 523

Audit fees 4 4461 276 864

288 28828 750 28 750

131 156 101 717

– buildings 57 774 45 38566 741 50 023

6 641

– 80 806 –57 235 45 858

– – –

–

245 464 – –

– buildings 222 853 – 25 808 –22 611 – 3 684 –

– 167 864 –

– land – –– hotel buildings – –

– –

– 33 047 –11 163 2 424

(6) (6)385 251 338 677

343 418– subcontracted 41 833 40 361

7 273 7 273

3 453 3 453

FIN

ANC

IAL

STAT

EMEN

TS




R000Basic

salary

Performance and other

bonus

Fringe

and allowances

Pension fund Total annual

Current year share-based

payment expense* Total

21. Directors’ emoluments

2020

1 778 – 21 181 –– 215 2 721 3 150

763 600 17 – 1 380 – 1 380

5 054 – 32 641 5 727 6 705600 1 037 11 808 1 407 13 215

Fees

R000 2020

416

327

5801 007

303

21. Directors’ emoluments

rights Date of grant

Grant price

(R)

Holding at 30 June

Granted forfeited

Holding at 30 June

2020 Lapse date

Number

30 June 2020

– (62 110) – –– – 26 136 26 136– –– (23 633) – –– – 30 245 –

– 45 360 –– –

– (4 552) – –– (4 268) – –– (5 462) – –

(18 720) – –– 20 074 (20 074) –

– (8 136) – –– – 5 535 –

– 18 360 –

53 675

Restricted share plan – bonus shares

Date of award

Share

price (R)

Holding at 30 June

Granted forfeited

Holding at 30 June

2020 Vesting date

– – – – – – 4 882 – – –

7 204 – – 7 204

– –– – – –

3 568 –

– – – – – – – – –

– –

FIN

ANC

IAL

STAT

EMEN

TS




GROUP COMPANY

R000 2020 2020

22. Interest22.1 Interest income

BankSubsidiaries 10 331Other 545 545

11 567

22.2 Interest expense63 885

117 214 – –

230 426 152 155(26 214) –

204 212 152 155

23.6 784 24

(76)(147 362) (61 670)

47 073 – – –(2 502) – – –

(61 646)

28 28

(2.5) (5.0)(10.5) –

1.4(0.2) (0.3)

– – (2.0) –– – –

– rate change 0.3 – – –– –

16.5 20.7

24. Dividends

66 668 66 668(18 150) (18 532)

108 214 107 832

GROUP COMPANY

R000 2020 2020

25. CommitmentsCapitalAuthorised– contracted 66 438 53 337– not contracted 52 354

Guarantees

757 757– –

203 203

Medical aid

Share-based payments

FIN

ANC

IAL

STAT

EMEN

TS




2020

Number of SARs

Weighted average

strike price (R)

Number of SARs

Weighted average

strike price (R)

26.Share-based payments

458 805228 606

(176 723) 141.31(68 110) 85.66

442 578 112.13

113 507 122.03

2020

3.00

277.103.45

7

27.46

2020 Number of shares

Number of shares

506 124–

506 124

2020Per

shareTotal Per

shareTotal

portfolio

26.

26 266.72 6.723.34 3.34

1 1102.71102.71

5.78

2020

Number of shares granted

Weightedaverage

share price (R)

Number of SARs

Weighted average

share price (R)

33 847(7 474) 125.21

(31 613)

125.21

27. Borrowing powers

FIN

ANC

IAL

STAT

EMEN

TS




GROUP COMPANY

R000 2020 2020

28.28.1

(582 715)

131 156 101 717– 80 806 –

– ––

245 464 – –– 167 864 –

(11 567)54 247

117 214 – –(6) (6)–

7 273 7 273

238 238

264 0042 438 1 502

36 784(42 542) (13 750)

273 258 276 234

28.26 602

(6 708) (24)(42 756) (36 881)

(30 303)

28.3

– land and buildings (738) (168)(51 422)

(58) –

142 142

(53 607) (51 448)

28.4

– land and buildings (32 883) (20 157)(5 827) (5 827)

(10 325) (10 325)

28.5 Investments and loans– –– – 7 000

– 7 000

GROUP

R000 2020

Headline earnings

(486 632) (6)

488 353 –

Headline earnings (142 082)

36 677

36 606

36 606

– undiluted (388.1) (388.1)

FIN

ANC

IAL

STAT

EMEN

TS




GROUP COMPANY

R000 2020 2020

30. Financial instruments30.1

Financial assets62 800

– 40 02018 877 18 73348 304 85 07515 800 – –28 413 –

Non-derivative financial liabilities(750 000) – –

(44 120) (44 120)BEE preference shares

(50 000) (50 000)(356 416) (356 416)(170 336) (270 834)

(47 438) – (52 831) –

30.2 Market risk

(a) Interest rate risk

R000 2020 2020

750 00044 120 44 120

753 154 758 547

1 547 274 802 667

R000 2020 2020

28 000

44 213 –

44 213 28 000

442 2815 473 8 027

(b) Currency risk

30. Financial instruments 30.2 Market risk

FIN

ANC

IAL

STAT

EMEN

TS




30. Financial instruments 30.2 Market risk

Carryingamount

Contractual undiscounted Less than

one year

Betweenone and Later than

GROUPAt 30 June 2020

750 000 840 540 32 833 807 707 –44 120 47 141 47 141 – –

BEE preference shares – –50 000 50 000 50 000 – –

BEE B preference share 356 416 – –

1 388 440 3 151 826 138 631 634 361 2 378 83447 438 47 438 47 438 – –

170 336 170 336 170 336 – –

3 156 050 5 032 548 1 211 646 1 442 068 2 378 834

––

BEE preference shares –– –

BEE B preference share – –

– –

–

COMPANYAt 30 June 2020

44 120 47 141 47 141 – –BEE preference shares – –

50 000 50 000 50 000 – –BEE B preference share

356 416 – –1 167 770 117 020 533 583 1 815 311

52 831 52 831 52 831 – –270 834 270 834 270 834 – –

533 583 1 815 311

–BEE preference shares –

– –BEE B preference share

– –– –

–

30. Financial instruments

GROUP COMPANY

R000 2020 2020

Assets 28 413 28 000(1 547 274) (802 667)

Assets 62 800(50 000) (50 000)

GROUP COMPANY

R000 2020 2020

6 326 221(6 308) (221)

30.4 Credit risk

FIN

ANC

IAL

STAT

EMEN

TS




30.4 Credit risk

GROUP COMPANY

R000 2020 2020

62 80040 020

48 304 85 07518 877 18 73315 80028 413 –

206 628

Not past due 12 41835 40

6 303 6 275Gross 11 875

(7 625) (5 600)

18 877 18 733

16 6652 068

18 877 18 733

18 733 18 733–

6381

–

18 877 18 733

R000 Current30 to

60 days60 to More than More than

120 days Total

30 June 2020GROUP

0.20 2.34 8.61 20.64 28.7712 538 35 80 4 132 26 502

25 1 7 852 6 740 7 625

COMPANY0.18 2.34 8.46 20.54 61.57 23.01

12 432 34 80 4 111 7 676 24 33322 1 7 844 4 726 5 600

GROUP

COMPANY

30. Financial instruments 30.4 Credit risk

GROUP COMPANY

R000 2020 2020

7 337 7 3115 164 3 185

– –20 – –

7 625 5 600

30.5 Capital management

FIN

ANC

IAL

STAT

EMEN

TS




COMPANY

R000 2020

31.3Subsidiary companiesManagement fees paid to related parties

1 747Management fees received from related parties

576

Lease payments paid to related parties1 745

27 254

Interest received from related parties

7 53610 331

Interest paid to related parties863

Licence fees received from related parties611

31.4 Loan to subsidiaries28 00062 800

31.5 Amounts due to subsidiary companies17 230

104 7424 065

1343

137 617

31.6 Amounts due by subsidiary companies

31.7 Loan to employee share trust12 020

GROUP COMPANY

R000 2020 2020

31.31.8

and bonuses 11 808 11 8081 407 1 407

13 215 13 215

• •

•

• •

•

• • •

FIN

ANC

IAL

STAT

EMEN

TS




35. Going concern

• •

•

• •

Effective date

• •

•

• • • •

FIN

ANC

IAL

STAT

EMEN

TS


City Lodge Town Lodge Road Lodge Courtyard Hotel and other Total

R000 2020 2020 2020 2020 2020 2020

171 107 51 176

73 467 1 148

20 853 11 410 3 524 86 378 131 156

asset – – – – – – – – – –

84 877 4 672 (61 003)

building rental – – – – – – – –

84 877 4 672 (55 210) 336 187

Leases Leases

South Africa Rest of Africa Total

R000 2020 2020 2020

1 047 348

1 110 867

assets 874 775 – – –



Shareholder spreadNumber of

shares owned% of total

issued shares

Oasis

Nedbank GroupAegon

Total

Fund managers with a holding greater than 2% of the issued sharesNumber

of shares% of issued

capital

Total

Shareholder spreadNumber

of holders% of total

shareholdersNumber


capital

Total

FIN

ANC

IAL

STAT

EMEN

TS


Public and non-public shareholdings

Shareholder typeNumber

of holders% of total

shareholdersNumber


capital

– Other

Total

RegionTotal

shareholding% of issued

capital

South Africa

Rest of Europe

Total

Members’ diary

Reports

Dividends



FIN

ANC

IAL

STAT

EMEN

TS


CITY LODGE HOTELS LIMITED

IMPORTANT DATES, PROXIES AND VOTING

• • •

• •

NoteTo adopt:

• •

ELECTRONIC PARTICIPATION



• •

•

AS ORDINARY BUSINESS

applicable: •

• • •

•

• • •

FIN

ANC

IAL

STAT

EMEN

TS


Annual fee payable

1 July 2020

Hourly rate payable

1 July 2020

1 060 000343 000262 000184 000

84 500162 000

73 000126 000

57 50083 000



• •

FIN

ANC

IAL

STAT

EMEN

TS


Directors’ responsibility statement

Material changes

RESOLUTIONS PERTAINING TO THE UNWIND OF THE COMPANY’S 2008 B-BBEE TRANSACTION



exercising their Appraisal Rights

REQUIREMENTS FOR THE PASSING OF RESOLUTIONS UNDER SECTION 114 AND SECTION 115 OF THE COMPANIES ACT AND APPLICATIONS TO COURT IN TERMS OF SECTION 115 OF THE COMPANIES ACT

APPRAISAL RIGHTS FOR DISSENTING SHAREHOLDERS

OTHER BUSINESS

M C van Heerden

FORM OF PROXY – FOR USE BY CERTIFICATED AND OWN NAME DEMATERIALISED SHAREHOLDERS ONLY

of

In favour of Against Abstain

Signature

FIN

ANC

IAL

STAT

EMEN

TS


City Lodge Hotels LimitedIncorporated in the Republic of South Africa

Directors

+

+

Company secretary

Transfer secretaries

Auditors

Bankers

ENS Africa

Sponsor

www.clhg.com

We’ve missed you. #Welcomeback - CLHG...Lockdown has kept us from doing what we love most –...

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