Established in 1957, Gooderson Leisure is a holding company with a history of investing in the leisure industry through active involvement in hotels, game lodges, tour companies and timeshare development ventures, with other interests in management and financing. The company decided to buy into the timeshare industry in 1981, and success with development, sales and management of timeshare properties prompted the establishment of Goodfin, a subsidiary which offers finance to prospective timeshare owners.

Today, the company owns and manages a portfolio of 10 hotels across South Africa, with seven in KwaZulu-Natal and one each in Mpumalanga, Limpopo and Gauteng. These assets are valued at over R 300 million. The group employs 460 staff and outsources to a further 190 people.

Gooderson shares were first listed on the AltX of the Johannesburg Stock Exchange (JSE) in 2006.

Gooderson’s strategic intent is to expand its footprint in South Africa, transform the group in terms of B-BBEE standards and implement and maintain an innovative technology platform. Revenue for the year ended 29 February 2016 stood at R150 million, with the company boasting a market cap of R75 million and a dividends yield of 3.38%.

Gooderson’s latest financial report highlighted a difficult year of trade for the group. New visa regulations saw international visitor numbers for the group declining by 21%. This was exacerbated by the tough economic climate, which resulted in a decrease in occupancies to just 36%. The profit impacts were slightly offset by the purchase of a new hotel lease for the Beach Hotel in KZN and a good performance from the timeshare division. With the hotel acquisition, the group has increased its occupancy to 583 rooms and 83 self-catering units. The two properties in Limpopo and Gauteng are currently up for sale, as they have been under performers for the group. The proceeds of the sales will be used to reduce outstanding loans.

The timeshare division has been growing steadily, with profits up by 19% in 2016, but this has been the only tangibly positive data for the group. Overall, net operating costs were up by 22% to R107 million, due to operating costs of the new Beach Hotel and the maintenance of the group’s other properties. Profits decreased substantially, from R7.5 million in 2015 to R4.1 million in 2016.

The live online stocks chart shows that Gooderson share price has remained stagnant at around 60 cents for the past year. The executive team believes that trading conditions will remain tough for the foreseeable future, meaning that the forecast isn’t particularly good for investors who buy Gooderson shares.

Substantial focus and capital investment is being targeted for the timeshare division, which has been carrying the group’s performance of late. Meanwhile, the group’s majority shareholder ALJU Family Trust is looking to buy all Gooderson shares and delist the company to make it easier to conclude BEE deals. There has been little trade in Gooderson shares, as the trust already owns 72% of them. With the company set to become private, there is little point in investing in Gooderson shares.

Consumer Discretionary

Gaming, Lodging & Restaurants

Lodging

We have made it simple to buy JSE listed firm shares online. The easiest way to buy Gooderson Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Gooderson Group and assist you with the setup and management of your stock portfolio account.

1. Start by Filling in the BUY THIS SHARE form.
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