Annual Report to Shareholders
Sydney, Aug 28, 2014 AEST (ABN Newswire) - Indoor Skydive Australia Group Ltd (
ASX:IDZ) Annual Report to Shareholders including the Chairman's letter to shareholders.
The 2014 financial year has been a remarkable year for Indoor Skydive Australia Group Limited (ISA Group) with the stand out event being the opening of our first indoor skydiving facility in Penrith NSW.
The facility is a state of the art complex that showcases human flight and provides world class training facilities.
The year was also extremely successful at a corporate level. The successful completion of the October 2013 Capital Raising and Rights Issue, the establishment of an exclusive territory development agreement with our principle equipment supplier and agreements for the specialised vertical wind tunnel equipment for four additional facilities are particular highlights.
Throughout the year our share price has reflected the continued investor interest in the Company.
The introduction of a number of institutional investors onto our register has promoted stability and additional access to capital as required. On behalf of the Directors I would like to thank you for your continued support of ISA Group.
The ISA Group results are detailed in the Financial Report and I encourage you to read them. The results reflect the excellent customer support achieved in just over two months of full operation. They also include the impact of a number of accounting treatments that resulted from agreements and actions taken to consolidate the Company during its initial stages.
During the year we positioned ourselves for expansion. Our focus has been on a roll out plan to deliver further Australian facilities over the next two to five years utilising the agreements for vertical wind tunnel technology for four additional sites and bolstering our corporate capability.
OUR PENRITH OPERATIONS
The highlight of the 2014 financial year was, without doubt, the opening of our Penrith facility.
The Penrith facility commenced limited operations on 24 March 2014 and opened to the general public on 26 April 2014.
The initial utilisation rates and revenue generated has exceeded management expectations. The utilisation of the facility by weekend first time users has been particularly strong, and mid-week utilisation has been solid and improving in line with expectations.
The Penrith operations (excluding corporate costs) generated revenue of $1.2 million and EBITDA of $0.4 million for the 2014 financial year. This was a very pleasing performance as the period was characterised by nonrevenue generating activities, early adoption enthusiasm, utilisation of discounted early bird pre-sales and the ramp up of operations.
The Penrith facility performance provides a strong foundation for future performance.
Since the end of the 2014 financial year, we have witnessed an increase in public awareness. This has been achieved through an intensive marketing campaign, strong social media support and 'word of mouth' channels.
During the recent NSW school holiday period the Penrith facility performed at an average occupancy rate in excess of 85%.
The ramp up of daily occupancy since opening continues and while we anticipate some continued early volatility and seasonal influences, we expect revenues and occupancies to stabilise after 12 months of operations.
THE GOLD COAST PROJECT
In the last quarter of the financial year ISA Group signed an agreement for lease and lodged a Development Application of ISA Group's second indoor skydiving facility on the Gold Coast QLD which was approved on 26 August 2014. Construction of the Gold Coast facility will commence in the final quarter of 2014 with a target completion date of mid to late 2015.
The facility will comprise a 12 foot vertical wind tunnel with spectator areas and ancillary services catering to the high local traffic and tourist market.
OUTLOOK
2015 will be another busy year for ISA Group as the focus on growth continues. The Gold Coast construction will be underway during the year and we will continue to work on the site identification and approval plans for facilities in Adelaide, Perth and Melbourne.
We anticipate that the growth of indoor skydiving will continue and that Penrith will be the flagship facility in Australia for years to come.
I look forward to your continued support as we pioneer indoor skydiving in Australia and deliver ongoing shareholder value.
To view the Annual Report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-IDZ-814501.pdf
About Indoor Skydive Australia Group Ltd
Indoor Skydive Australia Group (
ASX:IDZ) was established on 04 Nov 2011 as the parent company to facilitate a number of indoor skydiving facilities to cross our region in the next 3-5 years. These facilities allowing human flight within a safe environment are currently used by tourists, enthusiasts and military throughout the world including the Australian Military and active Skydivers. Flexible operating hours, low overheads and proven technology are just a few of the highlights that support the company’s business model.
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