Source - RNS
RNS Number : 1671M
Peel Hotels PLC
11 October 2016
 

 

PEEL HOTELS PLC

 

 

INTERIM RESULTS

 

 

For 28 weeks ended 14 August 2016

 

 

·         Sales up 1.8% to £9,115,526 (2015: £8,951,062)

 

 

·         Operating Profit up 9.1% to £880,119 (2015: £806,605)

 

 

·         Revpar increased 2.9%. Occupancy down 2.3%  and average room rate up 5.3%

 

 

·         Profit before tax up 19.2% to £592,807 (2015: £497,429)

 

 

·         Net Debt decreased by £732,854

 

 

·         Earnings per share

 

                                  Basic     3.4p      (2015: 2.8p)

                                  Diluted  3.4p      (2015: 2.8P)

 

 

 

Chairman Robert Peel said 'Our challenge is to control our overall costs of doing business in line with modest overall turnover growth. Revpar growth is key to increasing our profits and we have made solid progress in this area albeit at the expense of volume. It is difficult to be certain post Brexit but a low pound certainly should encourage incoming volume as well as serving as an incentive for British residents to spend more of their leisure time at home. Net debt continues to fall with the consequential reduction of finance costs on an ongoing basis. We look forward to another year of progress.'

 

 

Press enquiries:                          0207 266 1100

Nominated advisor and Broker:    0207 418 8900

Peel Hunt LLP

Capel Irwin



 

CHAIRMAN'S STATEMENT

 

 

Results

In the 28 weeks to 14 August 2016 hotel revenues increased 1.8% to £9,115,526 (2015: £8,951,062). Hotel gross profit before depreciation and Group administration increased 2.7% to £1,771,160 (2015: £1,724,721).  Over the same period EBITDA (earnings before interest, tax and depreciation) increased 4.2% to £1,394,871 (2015: £1,338,073) and operating profit increased 9.1% to £880,119 (2015: £806,605)

Revpar (accommodation revenue per available room) increased 2.9% with occupancy down 2.3% and average room rate up 5.3%.

Administration expenses decreased 2.7% and depreciation decreased 3.2% to £514,752. 

Financial charges decreased by 7.1% to £287,312

Profit before tax was £592,807 compared to a profit of £497,429 last year; an increase of 19.2%

Corporation tax has been provided at an effective rate of 20%. Basic earnings per share were 3.4p compared with 2.8p in the comparative period on a weighted average of 14,012,123 (14,012,123) shares in issue.

Finance

 

On 14 August 2016 net debt stood at £9,402,002 representing loans totalling £9,990,747 less £588,745 cash at bank. Gearing on Shareholders' funds was 39.2% with interest covered 3.1 times. Net debt decreased by £732,854 compared with the previous year end.

The balance of the Company's loan currently £8,557,422 becomes due on 31 August 2017 and we will begin the process of negotiating a suitable long term solution over the coming months.

Capital expenditure

 

We spent £421,216 in the period (2015: £387,522), mainly on the restructuring of certain bedrooms at the Crown & Mitre Hotel in Carlisle and on the completion of Bistro George at the George Hotel in Wallingford. We plan to spend a total of £700,000 in this Financial Year on our continuing strategy of improving the standards offered in our portfolio of hotels and maintaining the fabric of our buildings. This sum is in addition to a significant sum expensed to the Income Statement.

 

Shareholders

 

We are always delighted to welcome Shareholders to our Hotels where they can see for themselves the progress we have made, whilst enjoying a beneficial discount of 50% of our rack rate tariff, using a special reservations number 0207 266 1100 or e-mail [email protected]   Shareholders can keep in touch with progress in the company and various promotional activities by visiting our website www.peelhotels.co.uk

Non-executive Director

 

We are delighted to welcome Haydn Fentum to the Board of Directors and Shareholders will be pleased to note that he brings a wealth of hotel experience to the Company. He is Co-Founder and Chief Executive of Bespoke Hotels a very successful Hotel Management and Marketing Company.

Having been appointed by the Board Haydn's Directorship will be put to the Shareholders for approval at the 2017 Annual General Meeting.

 

 

 

The Future

 

Our challenge is to control our overall costs of doing business in line with modest overall turnover growth. Revpar growth is key to increasing our profits and we have made solid progress in this area albeit at the expense of volume. It is difficult to be certain post Brexit but a low pound certainly should encourage incoming volume as well as serving as an incentive for British residents to spend more of their leisure time at home. Net debt continues to fall with the consequential reduction of finance costs on an ongoing basis. We look forward to another year of progress.

 

 

 

 

Robert Peel

Chairman

10 October 2016

 

 



DIRECTORS AND ADVISORS

 

 

Directors

 

                   Robert Edmund Guy Peel                      Executive Chairman

                     Nicholas David Lawton Parrish           Financial Director

                   Keith Peter Benham                              Non-executive Director

                   Norbert Paul Gottfried Petersen             Non-executive Director

                   Haydn Herbert James Fentum                Non-executive Director

 

Secretary

Thrings LLP

Kinnaird House, 1 Pall Mall East, London SW1Y 5AU

Registered Office

5th Floor, Kinnaird House, 1 Pall Mall East, London SW1Y 5AU

Company registration number 3473990

Auditor

Grant Thornton UK LLP

No. 1 Whitehall Riverside, Leeds, LS1 4BN

Bankers    

Royal Bank of Scotland Plc

280 Bishopsgate, London EC2M 4RB

Registrars

Computershare Services Plc

PO Box No 82, The Pavilions, Bridgewater Road, Bristol BS99 7NH

Solicitors

Thrings LLP

Kinnaird House, 1 Pall Mall East, London SW1Y 5AU

Stockbroker

Peel Hunt LLP

Moor House, 120, London Wall, London EC2Y 5ET

 

 

 

 



GROUP STATEMENT OF COMPREHENSIVE INCOME

for the 28 weeks ended 14 August 2016

 

 

 

 

 

Note


Unaudited 28 weeks ended

14/08/2016

£


Unaudited

28 weeks ended 16/08/2015

£


Audited

Year

ended

31/01/2016

£

Revenue

 

Cost of sales


9,115,526

 

(7,344,366)


8,951,062

 

(7,226,341)


17,011,472

 

(13,767,071)

 

Gross profit

 

Administration expenses

Depreciation

 

 

 

(376,289)

(514,752)

 

1,771,160

 

 

 

(386,648)

(531,468)

 

1,724,721

 

 

 

(673,583)

(1,011,204)

 

3.244,401

Operating profit

 

Finance expense


880,119

 

(287,312)


806,605

 

(309,176)


1,559,614

 

(566,007)

Profit before tax

 

Income tax                     2


592,807

 

(118,561)


497,429

 

(140,460)


993,607

 

(195,341)

 

Profit and total comprehensive

income for the period attributable

to owners

 

 

 

474,246


 

 

 

392,969


 

 

 

798,266

 

Earnings per share

Basic & diluted (pence)   3


 

 

3.4


 

 

2.8


 

 

5.7



GROUP STATEMENT OF CHANGES IN EQUITY

for the 28 weeks ended 14 August 2016

 

28 weeks ended 16 August 2015

 

Unaudited

 

 

Share

Capital

£

 

Share

Premium

Account

£

 

Profit

and loss

account

£

 

 

 

Total

£

Balance brought forward

at 2 February 2015

Profit and total comprehensive income for the period

Transactions with owners

Dividend

 

1,401,213

 

-

 

-

 

9,743,495

 

-

 

-

 

12,023,823

 

392,969

 

(210,182)

 

23,177,531

 

392,969

 

(210,182)

Balance at 16 August 2015

1,401,213

9,743,495

12,215,610

23,360,318

 

12 months ended 31 January 2016

 

Audited

 

 

 

Share

Capital

£

 

 

Share

Premium

Account

£

 

 

Profit

and loss

account

£

 

 

 

 

Total

£

Balance brought forward

at 2 February 2015

Profit and total comprehensive income for the period

Transactions with owners

Dividend

 

1,401,213

 

-

 

-

 

9,743,495

 

-

 

-

 

12,032,823

 

798,266

 

(210,182)

 

23,177,531

 

798,266

 

(210,182)

Balance at 31 January 2016

1,401,213

9,743,495

12,620,907

23,765,615

 

28 weeks ended 14 August 2016

 

Unaudited

 

 

 

Share

Capital

£

 

 

Share

Premium

Account

£

 

 

Profit

and loss

account

£

 

 

 

 

Total

£

Balance brought forward

at 1 February 2016

Profit and total comprehensive income for the period

Transactions with owners

Dividend

 

1,401,213

 

-

 

-

 

9,743,495

 

-

 

-

 

12,620,907

 

474,246

 

(280,242)

 

23,765,615

 

474,246

 

(280,242)

Balance at 14 August 2016

1,401,213

9,743,495

12,814,911

23,959,619

 



GROUP BALANCE SHEET

at 14 August 2016


14/08/2016

Unaudited

£

16/08/2015

Unaudited

£

31/01/2016

Audited

£

Assets

Non-current assets

Property, plant and equipment

 

 

35,679,921

 

 

35,948,930

 

 

35,772,573

Total non-current assets

 

Current assets

Inventories

Trade and other receivables

Prepayments

Cash at bank and in hand

35,679,921

 

 

119,243

434,939

874,584

588,745

35,948,930

 

 

110,015

485,168

902,215

215,931

35,772,573

 

 

112,585

426,203

813,975

282,766

 

Total current assets

 

2,017,511

 

1,713,329

 

1,635,529

 

Total assets

 

37,697,432

 

37,662,259

 

37,408,102

 

Equity and liabilities

Equity attributable to owners

Share capital

Share premium

Retained earnings

 

 

 

1,401,213

9,743,495

12,814,911

 

 

 

1,401,213

9,743,495

12,215,610

 

 

 

1,401,213

9,743,495

12,620,907

 

Total equity

 

Liabilities

Non-current

Borrowings (due after one year)

Deferred tax liabilities

 

23,959,619

 

 

 

9,730,747

919,308

 

23,360,318

 

 

 

9.804,749

962,730

 

23,765,615

 

 

 

9,490,792

919,308

 

Non-current liabilities

 

Current

Trade and other payables

Borrowings (due within one year)

Current tax liabilities

 

10,650,055

 

 

2,632,973

260,000

194,785

 

10,767,479

 

 

2,511,072

706,054

317,336

 

10,410,100

 

 

2,159,583

926,830

145,974

Current liabilities

3,087,758

3,534,462

3,232,387

Total liabilities and equity

37,697,432

37,662,259

37,408,102

 



GROUP CASH FLOW STATEMENT

for the 28 weeks ended 14 August 2016


Unaudited

28 weeks

ended

14/08/2016

£

Unaudited

28 weeks

ended

16/08/2015

£

Audited

Year

ended

31/01/2016

£

Cash flows from operating activities

Profit for the period

 

Adjustment for:

Finance expense

Income tax expense

Depreciation

 

474,246

 

 

287,312

118,561

514,752

 

392,969

 

 

309,176

104,460

531,468

 

798,266

 

 

566,007

195,341

1,011,204

 

Operating profit before changes in working capital and provisions

 

UK corporation tax paid

Increase in trade and other receivables

Increase in trade and other payables

Increase in inventories

 

 

1,394,871

 

(69,750)

(62,327)

459,064

(6,658)

 

 

1,338,073

 

-

(363,733)

523,583

(6,727)

 

 

2,570,818

 

(305,666)

(223,368)

192,753

(9,297)

Net cash from operating activities

1,715,200

1,491,196

2,225,240

 

Cash flows from investing activities

Acquisition of property, plant and equipment

 

 

(421,216)

 

 

(387,522)

 

 

(690,900)

Net cash from investing activities

(421,216)

(387,522)

(690,900)

 

Cash flows from financing activities

Interest paid

Loan repayments

Equity dividends paid

 

 

(246,987)

(240,000)

(280,242)

 

 

(266,705)

(363,027)

(210,182)

 

 

(508,285)

(706,054)

(210,182)

Net cash from financing activities

(767,229)

(839,914)

(1,424,521)

 

Net increase in cash

and cash equivalents

 

 

526,755

 

 

263,760

 

 

109,819

 

Cash and cash equivalents at the

beginning of the period

 

 

61,990

 

 

(47,829)

 

 

(47,829)

 

Cash and cash equivalents at the

end of the period

 

 

588,745

 

 

215,931

 

 

61,990

 

For the purposes of the cash flow statement, cash and cash equivalents comprise:

 

Cash and bank balances

Bank overdraft

 

 

 

 

588,745

-

 

 

 

 

215,931

-

 

 

 

 

282,766

(220,776)

 

 

 

 

 

NOTES TO THE INTERIM RESULTS

for the period ended 14 August 2016

 

1. Basis of accounting

The interim financial information has been prepared on the basis of the recognition and measurement requirements of adopted IFRSs as at 14 August 2016 that are effective (or available for early adoption) at 29 January 2017. Based on these adopted IFRSs, the Directors have applied the accounting policies, which they expect to apply when the annual IFRS financial statements are prepared for the year ending 29 January 2017.

 

The group has chosen not to adopt IAS 34 (Interim Financial Statements) in preparing these interim financial statements and therefore the interim financial information is not in full compliance with International Financial Reporting Standards.

 

The financial information set out in this interim report does not constitute statutory accounts as defined in sections 434 and 435 of the Companies Act 2006.  The figures for the year ended 31 January 2016 have been extracted from the statutory financial statements which have been filed with the Registrar of Companies.  The auditor's report on those financial statements was unqualified and did not contain a statement under section 498(2) and 498(3) of the Companies Act 2006.

 

The group's accounting policies remain as stated in the group's full annual accounts for the year ended 31 January 2016.

 

2. Taxation

Tax has been provided at a rate of 20% which represents the expected effective rate for the full year. 

 

3. Earnings per share

Earnings per share are based on the profit after taxation and on the weighted average number of shares in issue during the period.

 


28 weeks

ended

 14/8/2016

Unaudited

28 weeks

ended

 16/8/2015

Unaudited

Year

ended

 31/1/2016

Audited

 

Average No.shares         -Basic

                                    -Diluted

 

 

14,012,123

14,012,123

 

14,012,123

14,012,123

 

14,012,123

14,012,123

 

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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