PRECISION AIRWAYS LIMITED

SUMMARY AUDITED GROUP RESULTS

FOR THE YEAR ENDED 31 MARCH 2016
SUMMARY CONSOLIDATED INCOME STATEMENT

SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION

SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SUMMARY CONSOLIDATED STATEMENT OF CASH FLOWS

PW REDUCES OPERATING COST BY 52% IN FY 2015/2016, TURNAROUND STRATEGY

BEARING FRUIT

Operating result improved in a difficult operational context.

Operating loss reduced by 52 per cent in FY 2015/16, with overheads down by
48% from Tshs 87 billion prior year to Tshs 44 billion.
Gross profit reduced by 37% to 19.4 billion
Overall reduction of ASKs by 11 Million due to unavailability of aircraft led to;o
o
o
o

A drop in passenger numbers by 17% and cabin factor by 9%

Finance costs and impact of exchange rate more than doubled
Loss before tax increased by 12%
PW reviewing long term options in relation to its capital structure in
order to underpin the turnaround.

The Group will continue focusing on improving profitability and liquidity by increasing revenues
and maintaining costs at reasonable levels. The Key focus areas will be:
Network and route restructuring to suit the needs of our customers
Cooperation with international airlines especially partner Kenya Airways to encourage
additional feed and de-feed.
Continued tight focus on cost and elimination of wastage
Increase in ancillary revenues
Additional recovery of aircraft to service to achieve full compliment
Debt restructuring.

Dar es Salaam August 22, 2016 Precision Air Services Plc (PW) today reaffirmed its progress
towards recovery after it recorded a more than 50 per cent drop in operating loss from Tshs 53B
to Tshs 25B as per the group financial statements for the year to 31 March 2016.
Group turnover for the year reduced by 16% as a result of the unavailability of aircraft awaiting
engine overhaul. The company was only able to fly 374, 877 Passengers compared to last
years 451,769 as cashflow constraints meant 13 engines requiring overhaul were progressively
repaired. This meant that on average during the year only 4 aircraft were available for
scheduled operations vs the previous year. Despite the above constraints, the operating loss
improvement by Tshs 28 billion was underpinned by company efforts in cost reduction and cost
control measures and improved ancillary revenue by more than 100 per cent compared to the

prior year. Even with this improvement, the group incurred a loss before tax of Tshs 91.6 billion
compared to Tshs 83.8billion the prior year. Significant items negatively impacted the financials
including the weakening of the Tanzania shillings against major currencies resulted in an
increased forex loss of 28.7 Billion, and financing costs by 6.6billion compared to last year. This
adversely affected the final after tax loss which increased by 7.8Billion compared to prior year.
The group had no new borrowing during the year.
Sauda Rajab, Precision Air CEO said: These results were achieved in an extremely tough
aviation context in which airlines are confronted by unpredictable currency fluctuations, volatile
fuel prices and insecurity. An industry forecast by IATA indicates that African carriers will
continue to be loss making in 2016 even with the overall improvement in performance. Indeed
the biggest challenges yet to come will be the authorities imposition of additional charges and
the charging of VAT on leased aircraft.
Operation Precise Way
As part of the airlines turnaround strategy, Operation Precise Way was created to focus in
closing the profitability gap, reviewing the business model and creating a sustainable financial
structure. Its slogan being Positive Cashflow through increased revenues and reduced
costs the turnaround strategys key mandate has therefore been to bring back reliability into
operation so as to create a better product for our passengers. With this in mind; the group has
managed to put back into operation 6 aircraft with the 7th one to be released into service in
September bringing the total to 7. All this was made possible by funds from operations.
Precision Air Services continued to maintain its standards in safety, and just gone through
another IOSA Audit, which was this time around observed by an IATA staff. In addition a staff
right sizing exercises is ongoing so as to increase staff productivity all round.
Ms Sauda commented our reliable operations with an on time performance of 88% at zero
minute plus continuous focus on the product offering and our customers has already started
yielding positive results. We have revised our network by increasing frequencies on our popular
routes and introduced new routes within the domestic market and the region. I wish to thank all
our employees, passengers, shareholders, partners, travel agents and associates for supporting
us through these difficult times.
Stakeholders Support
The Key Stakeholders

Michael Shirima and Kenya Airways in their capacity as major investors in Precision Air
Services have expressed their satisfaction and strong support of the companys turnaround
progress, and continue to be closely involved with the process, they have affirmed their
commitment to continue being major stakeholders in the company over the long term.

About Precision Air Services

Precision Air Services Plc is a fast growing private Tanzanian airline which operates in
Partnership with Kenya Airways, with its strategies to expand wings beyond East Africa and
Africa

10