Page 77 - Gondwana Collection Namibia Value Creation Report 2021

REFLECTING ON 2021

2021 was a lesson in endurance. Despite the financial

and operational challenges, we are not defeated yet.

We have hope, plans, energy, resources, people

and spirit.
Profit: While 2020 was about survival, this year Financial performance

was about protecting our capacity for
While we generated sufficient cash flows to survive, we ended the
renewal. We spent time considering
sustaining our revenues. This was a year of 33% of our recovery budget, and this underperformance is evident
year with a loss of N$83 499 million. We only achieved around
future initiatives to grow and diversify
throughout the balance sheet. Fortunately, our cash flow was enough
incredible creativity. The kind of
to accommodate the loss, and we did not require additional debt
creativity that emerges when you
facilities. This meant we could protect shareholder value.
do not have the backing of cash
resources. We encouraged our
The first half of our financial year was dominated by continued travel
our impact and technology skills. This will ensure holidays. In 2021, after so much time had passed, many customers
people to take ownership and risks.
restrictions. In 2020, many international customers postponed their
I am proud of our transition from a
company that backs entrepreneurial
wanted their money back. There is a long value chain of tourism players
thinking to one that actively
between Gondwana and the end customer. This means that payments
encourages it. Despite a limited
for holidays were largely dispersed before they could reach Gondwana.
budget, we developed our human
A dramatic level of cancellations, where customers did not get their
money back in full, resulted in trust lost in the system. We continue to
that we can act quickly when the
market turns.
being closer to the customers. We opened a German bank account to
provide our European customers with an additional payment method
We tried to strike a balance between face this challenge, but hope to mitigate it through communication and
being too bullish and too cautious. and less exposure to exchange rate risks.
We took advantage of the massive Our financial performance was hampered by lower occupancy levels
depletion of rental cars in the local and a high proportion of local and regional travellers. These travellers
market to build our fleet. This proved to do not produce the volumes the company was designed for. Much
be a smart decision as we experienced of what Gondwana offers is still luxury travel and out of reach for
strong demand for our additional vehicles.
most regional travellers. These travellers tend to enjoy a high level of
Despite the challenges faced by the tourism discounting, with a resulting lower yield.
and hospitability sector, we were the second We remain bullish that tourism will recover. The world wants to travel.
most valuable share on PSG Namibia’s People wish to re-experience freedom and a connection to humanity
private placement platform. This demonstrates and nature. While we have budgeted for a profit in 2022, we do not
confidence in our ability to rebound more swiftly know what the year will bring. We have registered a bond with the
than our competitors.
Namibian Stock Exchange to manage this uncertainty. We also have the
Ultimately, it is our resilient spirit, rather than cash option of issuing a rights issue to raise capital through shareholders. We
flows or large cash injections, which will win the day. will only seek additional debt or equity funding if absolutely necessary.
We are also thankful for the continued support from We are committed to rewarding our employees, who have remained
Namibia and regional travellers. They have kept us going steadfastly loyal throughout the pandemic. We have approved two employee
during some tough months.
incentive schemes that we will activate when the sector rebounds.

72 VALUE CREATION REPORT 2021 GONDWANA COLLECTION NAMIBIA 73