Directors' Report and Financial Statements 31 March ... - Precision Air

DIRECTOR’S REPORT (Continued)
FOR THE YEAR ENDED 31 MARCH 2012
6. PERFORMANCE FOR THE YEAR (Continued)
Capacity Utilised
Total passengers carried in the network during the financial year amounted to 825,159
compared to a prior year level of 666,537 thus a growth of 24% compared to prior.
The Revenue Passenger per Kilometre (RPK) achieved from the market amounted to 424
Million against prior year level of 318 Million; thus a growth of 33% compared to prior year.
Yields
Yield achieved on passenger revenue during the financial year was Yield per RPK 19.38 US
Cents (USc) compared to a prior year level of USc 19.83.
Profitability
Detailed financial highlights are on page 2 and the results of the Group and Company for the
year are set out on page 15.
7. FUTURE DEVELOPMENTS AND PLANS
The Group will continue to improve its profitability and grow market share through the
consolidation of current operations, improve efficiency and introduction of new routes to meet
customer needs. The Group will continue focusing on improving productivity and customer
service so as to retain and grow its market share. However the impact of increased competition
through the entry of new players in the market, accelerating fuel prices, and depreciation of
Tanzania Shillings over major currencies will be amongst the main challenges the Company
will face during 2012.
8. STOCK EXCHANGE INFORMATION
During the year, the Company issued new shares through Initial Public Offering (IPO) at the
Dar es Salaam Stock Exchange (DSE). The Company had aimed to raise about TZS 28 billion
from the IPO but managed to raise TZS 12,092 Million only. The additional capital raised was
used mainly for enhancing capital base, investment and operational improvements.
Whereas the Company’s initial offer price was TZS 475 per share, the year end quoted price at
the Dar es Salaam Stock exchange remained at TZS 475 per share.
9. DIVIDENDS
The Directors do not recommend payment of dividend (2011: Nil).
10. SUBSEQUENT EVENTS
There are no subsequent events that have occurred which are either to be disclosed or to be
adjusted in the financial statements that could materially affect the financial statements.
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DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 31 MARCH 2012