We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Easyhotel Plc | LSE:EZH | London | Ordinary Share | GB00BN56KF84 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 76.00 | 70.00 | 82.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMEZH
RNS Number : 8966F
easyHotel PLC
23 May 2017
23 May 2017
easyHotel plc
Interim results for the six months ended 31 March 2017
Revenue up 21.2%, 13.2% growth in Adjusted EBITDA
and strong development pipeline in place
easyHotel plc ("easyHotel" or the "Company") (AIM:EZH), the owner, developer, operator and franchisor of "super budget" branded hotels, today announces its interim results for the six months ended 31 March 2017 with trading slightly ahead of the Board's expectations.
Financial highlights
-- Total system sales(1) up 24.7% to GBP12.05m (31 March 2016: GBP9.66m) -- Total revenue up 21.2% to GBP3.14m (31 March 2016: GBP2.59m) -- Adjusted EBITDA(2) up 13.2% to GBP0.65m (31 March 2016: GBP0.58m)
-- Profit before tax down to GBP0.06m (31 March 2016: GBP0.14m), reflecting increased costs associated with the expanding development pipeline
-- Interim dividend of 0.11p per share (31 March 2016: 0.11p) on the enlarged share base
Business highlights
-- Like-for-like revenue for owned hotels increased by 17.4% and for franchised hotels by 6.8% -- Owned hotels significantly outperforming competitor set (source: STR Global)
-- Three hotels opened during the period with occupancy of 85%. Two new hotels opened in the last four weeks
-- Further expansion of the development pipeline in line with the Group's strategy
-- Investment in new hotel management system on track and due to complete by the end of current financial year
-- Strategic decision regarding easyHotel Old Street due by the end of the financial year
Commenting on the results, Guy Parsons, Chief Executive Officer said:
"These results reflect the continued good progress the Group is making against our long-term growth strategy to develop the easyHotel brand as a market leader in "super budget" hotels.
The strong like-for-like performance from our owned and franchised hotels over the period is very encouraging. Our new hotels opened during the period, under our 'new-look' format, have traded strongly.
We have a number of exciting opportunities in our development pipeline and the Board believes that the strength of the brand and our leading position in the branded super budget market means we are well positioned to capitalise on consumer desire to seek out the best value.
Whilst we are mindful of the broader political and economic uncertainty and the impact this is having on consumer confidence, full year trading is on track to meet the Board's expectations."
(1) Total system sales is the full amount that the customer pays for owned and franchised hotels, including initial sign-on fees paid by franchisees to the Company
(2) Adjusted EBITDA represents Earnings before Interest, Taxation, Depreciation and Amortisation, adjusted for pre-opening costs related to the development of hotels, organisational restructuring costs, share based payments and other non-recurring items (see Group Statement of Comprehensive Income statement)
Enquiries:
easyHotel plc www.easyhotel.com Guy Parsons, Chief Executive Officer Marc Vieilledent, Chief http://ir.easyhotel.com Financial Officer Investec (Nominated Adviser and Broker) +44 (0) 20 7597 5970 Chris Treneman / David Anderson Hudson Sandler (Financial PR) +44 (0) 20 7796 4133 Wendy Baker / Emily Dillon
Notes to Editors:
easyHotel is the owner, developer, operator and franchisor of branded hotels. Its strategy is to target the "super budget" segment of the hotel industry by marketing "clean, comfortable and safe" hotel rooms to its customers.
Operating hotels
easyHotel's five owned hotels currently comprise 590 rooms, and it has a further 20 franchised hotels with 1,750 rooms.
Owned hotels:
Old Street (London), Glasgow, Croydon, Birmingham, Manchester
Franchise locations:
Belgium (Brussels), Bulgaria (Sofia), Germany (Berlin, Frankfurt), Hungary (Budapest), The Netherlands (Amsterdam: City, Arena & Zaandam, Rotterdam, The Hague), Switzerland (Basel, Zurich), UAE (Dubai), United Kingdom (Edinburgh, London Heathrow, Central London, Luton).
Hotel development pipeline
The Company's committed development pipeline of owned and franchised hotels currently consists of:
Owned hotels:
United Kingdom (Liverpool, Ipswich, Sheffield), Spain (Barcelona)
Subject to planning consent: United Kingdom (Leeds)
Franchise hotels:
UAE (Dubai), Germany (Bernkastel-Kues), Portugal (Lisbon), Turkey (Istanbul), Nepal (Kathmandu), UK (Belfast, Reading)
Website: www.easyHotel.com
Overview
easyHotel has delivered a good performance in the first six months of the financial year with trading slightly ahead of the Board's expectations. Total revenue rose by 21.2% to GBP3.14m (31 March 2016: GBP2.59m) These improved results reflect the continued good progress the Company is making in the execution of its strategy to develop the easyHotel brand as a market leader in "super budget" hotels.
Like-for-like owned hotel revenue grew by 17.4%, and like-for-like franchise revenue grew by 6.8% as the Group continued to benefit from the revenue management strategy implemented in December 2015. Furthermore, owned hotels once again significantly outperformed their competitive sets, according to STR Global.
Adjusted EBITDA(2) increased by 13.2%, reflecting the strong trading performance across both owned and franchised hotels and adjusted profit before tax was up slightly at GBP0.34m (31 March 2016: GBP0.32m). The increase in pre-opening and depreciation and amortisation costs relating to the increased development of new hotels adversely impacted reported profit before tax which was down at GBP0.06m (31 March 2016: GBP0.14m).
In line with its investment strategy and following a successful equity placing in October 2016, easyHotel has continued to expand its network with new hotel openings and further additions to the Group's development pipeline to underpin long term growth.
A new owned hotel (Birmingham) and two franchise hotels (Brussels and Amsterdam Arena) opened during the period and have traded strongly, achieving 85% occupancy. One new owned hotel (Manchester) and one new franchise hotel (Amsterdam Zaandam) opened in the last 4 weeks. In total, the new hotels have added a further 535 rooms to the network.
In addition, continued progress was made in the execution of the Group's strategy to further grow its hotel network including new owned hotel development projects in Sheffield and Leeds and signed franchise projects in Belfast, Reading and Nepal.
Strategy
easyHotel's growth strategy remains focused on the rollout of owned hotels, in the United Kingdom and key cities in Europe, through the identification and acquisition of suitable sites for new build hotels and buildings for conversion. Alongside growth of the owned hotel portfolio, the Group continues to leverage the strength of the brand to attract partners and extend the franchise network, without direct capital investment by the Group.
The successful equity placing in October 2016, which raised GBP38m (gross) additional equity capital, and the GBP12m refinancing of an existing bank facility in the period, provide funds to finance further growth of the Group's identified owned hotel development pipeline, in line with the Board's strategy.
Financial Performance
Overall trading for the first six months to 31 March 2017 was slightly ahead of the Board's expectations.
Revenue
Total revenue was up 21.2% to GBP3.14m (31 March 2016: GBP2.59m).
Owned hotel revenue increased 20.5% during the period to GBP2.44m (31 March 2016: GBP2.02m), reflecting strong trading at Old Street, London, Croydon and Glasgow hotels as well as the successful opening of Birmingham in February 2017.
Like-for-like owned hotel revenue was up 17.4%, outperforming the competitive set (source: STR Global), as the Company fully benefited from the new revenue strategy first implemented in December 2015.
Total franchise revenue increased by 23.4%, to GBP0.70m (31 March 2016: GBP0.57m), primarily as a result of the strong performance of existing hotels and the successful openings of Brussels (October 2016) and Amsterdam-Arena (November 2016) hotels.
Like-for-like franchise revenue increased by 6.8%.
Adjusted EBITDA and profit before tax
Adjusted EBITDA(2) was up 13.2% at GBP0.65m (31 March 2016: GBP0.58m), reflecting the strong trading of both owned and franchised hotels, partially offset by additional investment necessary to support the growth of the Company.
After taking into account the increase in depreciation and amortisation costs to GBP0.27m (31 March 2016: GBP0.22m) and net finance expense to GBP0.05m (31 March 2016: GBP0.03m), all relating to the progress made in the Company's hotel development strategy, adjusted profit before tax stated before pre-opening costs, share based payments and other non-recurring items was up marginally to GBP0.34m (31 March 2016: GBP0.32m),
The owned hotel profit before tax was broadly flat at GBP0.78m (31 March 2016: GBP0.81m), franchised hotel profit before tax was up to GBP0.42m (31 March 2016: GBP0.32m) and corporate office expenses and interest were GBP0.86m (31 March 2016: GBP0.81m).
Reported profit before tax was GBP0.06m (31 March 2016: GBP0.14m), after taking into account pre-opening costs of GBP0.11m (31 March 2016: GBP0.05m) as well as share based payments and other non- recurring items of GBP0.16m (31 March 2016: GBP0.13m).
Cash flows and Balance Sheet
During the first half of the year, cash and cash equivalents increased to GBP36.31m (30 September 2016: GBP13.66m), primarily due to receipt of proceeds from the equity placing of GBP36.72m (net of expenses), net bank debt refinancing of GBP3.94m, net cash generated from operations of GBP0.63m, less net cash used in investing activities of GBP18.23m, and dividend payments of GBP0.22. Total non-current assets increased to GBP47.20m (30 September 2016: GBP30.61m).
Earnings per share and dividend
Basic earnings per share was 0.01p (31 March 2016: 0.14p).
The Board has announced an interim dividend of 0.11p per ordinary share (31 March 2016: 0.11p) on the enlarged share base. The interim dividend will be paid on 30 June 2017 to those shareholders on the register at the close of business on 2 June 2017. The shares will go ex-dividend on 1 June 2017.
Review of operations
Revenue management & distribution
During the period the performance of the Group's hotels continued to significantly benefit from the Group's marketing initiatives and dynamic pricing strategy. It remains focused on driving sales via the Group's own website and improving the customers' web journey to further drive RevPAR growth. Additionally, the Group sells a controlled number of rooms via online travel agents. The benefits of this strategy has been reflected in the strong like-for-like owned and franchise hotel revenue performance.
As previously announced, the Group is investing in a new hotel management system which will support the Group's positive trading momentum. The new booking engine and yield management system are on schedule to be rolled out to the whole network by the end of the current financial year.
Owned hotels
The Group's owned hotels in Old Street London, Croydon and Glasgow all performed strongly during the period, reporting like-for-like revenue growth of 17.4%. These hotels have continued to significantly outperform their competitive sets (Source: STR Global).
Whilst the Group believes it will continue to deliver like-for-like revenue growth above the wider budget sector in the UK, this outperformance is likely to be less significant as the Group's results start to reflect the annualised benefits of its revenue management strategy.
In addition, the Group benefited from a revenue contribution from its new hotel in Birmingham which opened in February 2017. The new 86-room hotel has traded strongly since opening with occupancy at 85% reflecting positive guest feedback. This is the first owned hotel to open with the 'new look' format. The fresher and more contemporary design for both bedrooms and public areas has been developed to maximise the use of space with the customers' needs in mind.
Following the unsuccessful appeal against Islington Borough Council's refusal of retrospective planning permission at its Old Street Hotel, the Group is considering its options. These include the continuing to operate the (remaining) 92 bedroom hotel and a sale or partial sale of the building to release capital to fund future higher yielding development projects. Any sale will be above the current Net Book Value of the asset of GBP12.9m at 31 March 2017. The Group will close the third and fourth floors of the hotel, removing those rooms from the inventory from 3 October 2017. The Board expects to reach its decision by the end of the current financial year, regarding its strategic plan for the site.
Since the half year end, the Group opened easyHotel Manchester, a 115-room hotel in the heart of the city. In line with its other recent openings, guest feedback has been very positive and the hotel is trading strongly.
Franchise partners
Franchise hotels have continued to trade strongly with like-for-like revenue for the first six months up 6.8% year on year reflecting the strength of the easyHotel brand across Europe.
Total franchise revenues benefited from two new hotel openings in the period, adding a further 238 rooms to the easyHotel network. Both Brussels and Amsterdam Arena have traded strongly since opening.
Amsterdam-Zaandam, a 96-room hotel in The Netherlands opened on 22 May 2017.
Development pipeline
The Group's total committed pipeline of development projects now comprises 1,837 rooms under development, 601 of which are owned and 1,236 are being developed by franchise partners. The Group is currently in discussions with a number of parties regarding further owned development opportunities with 2,000 rooms under negotiation, of which 700 have Board approval, and franchise opportunities (1,000 rooms).
Owned development pipeline
Following the equity placing in October 2016, the Group has continued to make progress against its disciplined investment strategy. In the first half of the financial year, a record number of properties and sites were identified and assessed for their suitability for conversion to or development of an easyHotel, and two new projects in target northern powerhouse cities in the United Kingdom were added to our development pipeline.
In Sheffield, a long leasehold property has been acquired and planning permission obtained for conversion of the building into a 131-room hotel. In Leeds, a 250-year leasehold property was conditionally acquired and, subject to planning permission, the Group plans to convert the building into a 94-room hotel. Both hotels are expected to open in 2018.
The official commencement of construction for the 204-room new build hotel in L'Hospitalet de Llobregat, Barcelona was marked by a first stone laying ceremony in early March 2017. Construction is progressing to plan and the new hotel is expected to open in 2018.
Conversion of the freehold property in Northgate Street, Ipswich is progressing and, following improvements in the design, the hotel is now expected to open in 2018.
Conversion of 47 Castle Street in Liverpool to a 78-room hotel is almost complete and the hotel is expected to open during the summer of 2017.
15 further projects have been identified and approved by the Board during the period. Some of these have subsequently been rejected following detailed surveys as the projects were not likely to meet the Group's target of 15% unlevered return on capital employed at maturity. A number of projects are currently progressing towards exchange and the Board continues to assess further opportunities.
In a limited number of specific locations where land costs are prohibitively high but demand for a hotel is strong, which means that the acquisition of the site would not meet the Group's target returns, the Board is considering developing hotels using an operating lease model.
Franchise development pipeline
The Group's franchise hotel model enables easyHotel to leverage the strength of its brand, increase brand awareness and extend its network without direct capital investment from the Group.
Two franchise hotel projects In the United Kingdom, were announced during the period - a 54-room hotel in Reading and an 81-room hotel in Belfast. Both hotels are expected to open in early 2018.
Other franchise projects under development are progressing well. Bernkastel-Kues, a 100-room hotel, and Lisbon, a 101-room hotel, are both expected to open by the end of 2017. Franchise hotels in Dubai and Istanbul should open in 2018.
Post the period end, the Group announced a Master Development Partnership with IGC Group UK to develop easyHotels in Nepal. Recognising the strength of the easyHotel brand, IGC approached the Company and expressed its interest in a franchise agreement to develop easyHotels in Nepal and North India. The franchise agreement is for 300 rooms to be opened in the next three years, with the first hotel to be located in the capital Kathmandu.
The Board is also working on a number of franchise partnership opportunities in the UK, Europe and the Middle East.
Outlook
Trading in the first half of the financial year ending 30 September 2017 was slightly ahead of Board expectations, driven primarily by the Group's strong hotel like-for-like revenue performance.
The Board remains focused on making further progress against its strategy and anticipates adding new, exciting projects to the development pipeline in the second half.
Whilst we are mindful of the broader political and economic uncertainty and the impact this is having on consumer confidence, full year trading is on track to meet the Board's expectations, and the Board continues to believe that the strength of the brand and our leading position in the branded super budget market means we are well positioned to capitalise on consumer desire to seek out the best value.
GROUP STATEMENT OF COMPREHENSIVE INCOME
for the period ended 31 March 2017
Hot Features
Premium
Unaudited Unaudited Audited
6 months 6 months year ended
Note ended 31/03/2017 ended 31/03/2016 30/09/2016
GBP GBP GBP
================================== ====== ================= ================= ===========
System Sales 12,050,275 9,663,283 21,315,210
---------------------------------- ------ ----------------- ----------------- -----------
Revenue 2 3,136,817 2,589,057 6,024,255
Cost of sales (1,353,264) (966,625) (2,150,528)
================================== ====== ================= ================= ===========
Gross profit 1,783,553 1,622,432 3,873,727
Administrative expenses (1,674,342) (1,452,893) (2,832,382)
Operating profit 3 109,211 169,539 1,041,345
---------------------------------- ------ ----------------- ----------------- -----------
Analysed as:
Adjusted EBITDA* 650,778 575,013 1,551,092
Non-recurring items (79,790) (8,479) 187,105
Hotel pre-opening and
development costs (110,941) (48,965) (89,157)
Depreciation and amortisation (266,249) (224,048) (446,518)
Share based payments (84,587) (123,982) (161,177)
---------------------------------- ------ ----------------- ----------------- -----------
109,211 169,539 1,041,345
---------------------------------- ------ ----------------- ----------------- -----------
Finance income 4 130,947 80,241 248,934
Finance expense 4 (181,077) (109,260) (200,078)
Profit before taxation 59,081 140,520 1,090,201
Taxation (53,703) (57,448) (213,429)
================================== ====== ================= ================= ===========
Profit for the period
attributable to equity
holders of the company 5,378 83,072 876,772
================================== ====== ================= ================= ===========
Other comprehensive income
Items that will or may
be reclassified to profit
or loss
Exchange gains/(losses)
arising on retranslation
of foreign operations (286,444) 41,479 -
================================== ====== ================= ================= ===========
Total comprehensive income/(loss)
attributable to equity
holders of the company (281,066) 124,551 876,772
================================== ====== ================= ================= ===========
Earnings per share
Basic (pence) 9 0.0 0.1 1.4
---------------------------------- ------ ----------------- ----------------- -----------
Diluted (pence) 9 0.0 0.1 1.4
================================== ====== ================= ================= ===========
*Adjusted EBITDA represents Earnings before Interest, Taxation, Depreciation and Amortisation adjusted for pre-opening costs related to the development of hotels, organisational restructuring costs, share based payments and other non-recurring items.
GROUP STATEMENT OF CHANGES IN EQUITY
for the period ended 31 March 2017
6 months ended 31
March 2016
Unaudited
Currency
Share Share Merger EBT Translation Retained
Capital Premium Reserve Reserve Reserve Earnings Total
GBP GBP GBP GBP GBP GBP GBP
--------------------- -------- ----------- ---------- ------------ ------------ ---------- -----------
At 30 September
2015 625,000 28,592,036 2,750,001 (1,067,405) - 1,542,236 32,441,868
Profit - - - - - 83,072 83,072
Other comprehensive
income - - - - 41,480 - 41,480
--------------------- -------- ----------- ---------- ------------ ------------ ---------- -----------
Total comprehensive
income
for the period - - - - 41,480 83,072 124,552
Share based
payment charge - - - - - 123,982 123,982
Dividends - - - - - (202,538) (202,538)
--------------------- -------- ----------- ---------- ------------ ------------ ---------- -----------
Balance at
31 March 2016 625,000 28,592,036 2,750,001 (1,067,405) 41,480 1,546,752 32,487,864
--------------------- -------- ----------- ---------- ------------ ------------ ---------- -----------
Year ended 30 September
2016
Audited
Currency
Share Share Merger EBT Translation Retained
Capital Premium Reserve Reserve Reserve Earnings Total
GBP GBP GBP GBP GBP GBP GBP
--------------------- -------- ----------- ---------- ------------ ------------ ---------- -----------
At 30 September
2015 625,000 28,592,036 2,750,001 (1,067,405) - 1,542,236 32,441,868
Profit - - - - - 876,772 876,772
Other comprehensive - - - - - - -
income
--------------------- -------- ----------- ---------- ------------ ------------ ---------- -----------
Total comprehensive
income
for the period - - - - - 876,772 876,772
Share based
payment charge - - - - - 161,177 161,177
Dividends - - - - - (270,049) (270,049)
--------------------- -------- ----------- ---------- ------------ ------------ ---------- -----------
Balance at
30 September
2016 625,000 28,592,036 2,750,001 (1,067,405) - 2,310,136 33,209,768
--------------------- -------- ----------- ---------- ------------ ------------ ---------- -----------
6 months ended 31
March 2017
Unaudited
Currency
Share Share Merger EBT Translation Retained
Capital Premium Reserve Reserve Reserve Earnings Total
GBP GBP GBP GBP GBP GBP GBP
--------------------- ---------- ----------- ---------- ------------ ------------ ---------- -----------
At 30 September
2016 625,000 28,592,036 2,750,001 (1,067,405) - 2,310,136 33,209,768
Profit - - - - - 5,378 5,378
Other comprehensive
income - - - - (286,444) - (286,444)
--------------------- ---------- ----------- ---------- ------------ ------------ ---------- -----------
Total comprehensive
income
for the period - - - - (286,444) 5,378 (281,066)
Share based
payment charge - - - - - 84,587 84,587
Dividends - - - - - (218,625) (218,625)
Share premium - - - - - - -
Issue of shares 380,000 36,183,756 - - - - 36,563,756
--------------------- ---------- ----------- ---------- ------------ ------------ ---------- -----------
Balance at
31 March 2017 1,005,000 64,775,792 2,750,001 (1,067,405) (286,444) 2,181,476 69,358,420
--------------------- ---------- ----------- ---------- ------------ ------------ ---------- -----------
GROUP STATEMENT OF FINANCIAL POSITION
at 31 March 2017
Unaudited Unaudited Audited
6 months ended 6 months year
Note 31/03/2017 ended ended
GBP 31/03/2016 30/09/2016
GBP GBP
========================== ====== =============== =========== ===========
Assets
Non-current assets
Intangibles 410,235 84,185 149,433
Property, plant
and equipment 46,363,433 25,338,970 30,463,074
Long-term deposits 429,037 - -
Total non-current
assets 47,202,705 25,423,155 30,612,507
Current assets
Trade and other
receivables 5 4,102,718 711,521 1,243,243
Cash and cash equivalents 6 36,313,581 17,613,846 13,659,018
Corporate taxation - - -
========================== ====== =============== =========== ===========
Total current assets 40,416,299 18,325,367 14,902,261
========================== ====== =============== =========== ===========
Total assets 87,619,004 43,748,522 45,514,768
-------------------------- ------ --------------- ----------- -----------
Liabilities
Non-current liabilities
Trade and other
payables 7 98,167 138,381 85,679
Bank borrowings 11,541,049 - -
Deferred tax liability 238,239 142,145 193,792
========================== ====== =============== =========== ===========
Total non-current
liabilities 11,877,455 280,526 279,471
Current liabilities
Trade and other
payables 7 6,304,783 3,743,266 4,706,215
Bank borrowings - 7,200,000 7,200,000
Corporate taxation 78,346 36,865 119,314 Total current liabilities 6,383,129 10,980,131 12,025,529 ========================== ====== =============== =========== =========== Total liabilities 18,260,584 11,260,657 12,305,000 -------------------------- ------ --------------- ----------- ----------- Total net assets 69,358,420 32,487,864 33,209,768 -------------------------- ------ --------------- ----------- ----------- Equity Equity attributable to owners of the Company Share capital 1,005,000 625,000 625,000 Share premium 64,775,792 28,592,036 28,592,036 Merger reserve 2,750,001 2,750,001 2,750,001 Employee benefits trust (EBT) reserve (1,067,405) (1,067,405) (1,067,405) Currency translation reserve (286,444) 41,480 - Retained earnings 2,181,476 1,546,752 2,310,136 Total equity 69,358,420 32,487,864 33,209,768 ========================== ======================= =========== ===========
GROUP STATEMENT OF CASH FLOWS
for the period ended 31 March 2017
Unaudited Unaudited Audited
6 months 6 months year ended
ended 31/03/2017 ended 31/03/2016 30/09/2016
GBP GBP GBP
Cash flows from operating
activities
Profit before taxation for
the period 59,081 140,520 1,090,201
Adjustments for:
Profit on disposal of Property,
plant and equipment - - (282,675)
Depreciation of property,
plant and equipment 266,249 224,048 446,518
Share based payment charge 84,587 123,982 161,177
Finance income (130,947) (80,241) (248,934)
Finance expense 181,077 109,260 200,078
Operating cash flows before
movements in working capital 460,047 517,569 1,366,365
(Increase)/decrease in trade
and other receivables (1,569,821) (3,936) 48,692
Increase/(decrease) in trade
and other payables 1,837,280 (715,784) (503,052)
Cash generated from/(utilised
by) operations 727,506 (202,151) 912,005
Corporation tax paid (50,224) - (21,887)
---------------------------------- ----------------- ----------------- -----------
Net cash flows from operating
activities 677,282 (202,151) 890,118
Finance income 130,947 80,241 156,351
Finance expense (181,077) (109,260) (200,078)
---------------------------------- ----------------- ----------------- -----------
Net cash generated from/(utilised
by) operations 627,152 (231,170) 846,391
Investing activities
Purchase of property, plant
and equipment (16,514,068) (4,397,865) (9,121,952)
Purchase of intangibles (294,288) (26,299) (105,622)
Disposal of Property - - 590,009
VAT on investing activities (1,426,631) (166,135) (1,007,908)
---------------------------------- ----------------- ----------------- -----------
Net cash utilised in investing
activities (18,234,987) (4,590,299) (9,645,473)
Financing activities
Proceeds from issue of ordinary
share capital 38,000,000 - -
Capitalised costs related
to issue of ordinary share
capital (1,281,522) - -
Dividend Paid (218,625) (202,538) (270,049)
Net proceeds in bank loan 3,935,050 - -
Repayment of bank loan (180,000) - -
Net cash utilised by financing
activities 40,254,903 (202,538) (270,049)
================================== ================= ================= ===========
Net increase/(decrease)
in cash and cash equivalents 22,647,068 (5,024,007) (9,069,131)
Cash and cash equivalents
at the beginning of the
period 13,659,018 22,635,566 22,635,566
Exchange gains on cash and
cash equivalents 7,495 2,287 92,583
================================== ================= ================= ===========
Cash and cash equivalents
at the end of the period 36,313,581 17,613,846 13,659,018
================================== ================= ================= ===========
NOTES TO THE INTERIM FINANCIAL INFORMATION
for the period ended 31 March 2017
1. Basis of accounting
The interim financial information set out in this interim report has been prepared under the recognition and measurement requirements of IFRS as adopted by the European Union but does not contain all of the disclosures that are required under these standards. 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 ended 30 September 2017.
The group's accounting policies remain as stated in the group's full annual accounts for the year ended 30 September 2016.
These interim results have not been audited but they have been reviewed in accordance with ISRE 2410 by the Company's auditors BDO LLP. The financial information for the year ended 30 September 2016 does not constitute the company's statutory accounts for that year, these have been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006. Copies of this report have been posted or provided electronically to shareholders. Further copies are available free of charge on request from the Company Secretary at the Company's registered office, easyHotel House, 80 Old Street, London EC1V 9AZ.
Basis of preparation - going concern
After making appropriate enquiries and having reviewed the Group's expenditure commitments, current financial projections and future cash flows, together with available cash resources and undrawn committed borrowing facilities, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For these reasons, the Directors continue to adopt the going concern basis in preparing these interim results.
2. Revenue
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
31/03/2017 31/03/2016 30/09/2016
GBP GBP GBP
-------------------------- ------------ ------------ ------------
Revenues arises from
Owned hotel revenue 2,437,289 2,021,985 4,678,253
Franchisee hotel revenue 699,528 567,072 1,346,002
--------------------------- ------------ ------------ ------------
3,136,817 2,589,057 6,024,255
Revenue by location
United Kingdom 2,632,477 2,215,165 5,144,034
Europe 446,599 287,444 774,413
Rest of the world 57,741 86,448 105,808
--------------------------- ------------ ------------ ------------
3,136,817 2,589,057 6,024,255
3. Operating Profit
The following have been included in arriving at operating profit:
Unaudited Unaudited Audited
6 months ended 6 months year ended
31/03/2017 ended 31/03/2016 30/09/2016
GBP GBP GBP
-------------------------------------------- --------------- ----------------- -----------
Staff costs:
* Wages and salaries 808,223 763,728 1,279,138
* Social security costs 110,375 108,448 169,944
* Staff recruitment and training 14,842 2,289 18,763
--------------------------------------------- --------------- ----------------- -----------
933,440 874,465 1,467,845
Depreciation and amortisation 266,249 224,048 446,518
Share based payments 84,587 123,982 161,177
Profit on disposal of
property, plant and equipment - - (282,675)
--------------------------------------------- --------------- ----------------- -----------
Non-recurring items are expenses that are unlikely to occur again in the normal course of business. Hotel pre-opening and development costs relate to expenses incurred or income received in running a property prior to commencement of trading as a hotel.
4. Finance Income and Expense
Unaudited Unaudited Audited
6 months 6 months year
ended ended 31/03/2016 ended
31/03/2017 GBP 30/09/2016
GBP GBP
Finance
income
includes
Interest
income on
financial
assets
measured at
amortised
cost 94,381 25,415 59,341
Interest
income on
amounts
due from
Benelux
franchisee - 14,287 189,593
Foreign
exchange
gain 36,566 40,539 -
130,947 80,241 248,934
Finance
expense
includes
Interest
expense on
financial
liabilities
measured
at amortised
cost (181,077) (109,260) (200,078)
(181,077) (109,260) (200,078)
5. Trade and other receivables
Unaudited Unaudited Audited
6 months 6 months year
ended ended 31/03/2016 ended
31/03/2017 GBP 30/09/2016
GBP GBP
--------------------------- ----------- ----------------- -----------
Trade receivables 19,696 8,345 20,941
Accrued Income 3,744 11,244 0
---------------------------- ----------- ----------------- -----------
Total financial
assets other than
cash and cash equivalents
classified as loans
and receivables 23,440 19,589 20,941
Prepayments 478,440 175,745 291,064
VAT receivables 2,199,898 169,140 931,238
Other receivables - 159 -
Amounts due from
franchisees in
future 1,400,940 346,888 -
Total trade and
other receivables 4,102,718 711,521 1,243,243
---------------------------- ----------- ----------------- -----------
Classified as follows:
Current portion 4,102,718 711,521 1,243,243
---------------------------- ----------- ----------------- -----------
There is no material difference between the net book value and the fair values of trade and other receivables due to their short-term nature.
6. Cash and cash equivalents
For the purpose of the cash flow statement, cash and cash equivalents comprise the following balances:
Unaudited Unaudited Audited
6 months 6 months year
ended ended 31/03/2016 ended
31/03/2017 GBP 30/09/2016
GBP GBP
-------------------- ----------- ----------------- -----------
Cash at bank and in
transit 36,313,581 17,613,846 13,659,018
--------------------- ----------- ----------------- -----------
7. Trade and other payables
Unaudited Unaudited Audited
6 months 6 months ended year
ended 31/03/2016 ended
31/03/2017 GBP 30/09/2016
GBP GBP
--------------------------------------- ----------- --------------- -----------
Trade payables 1,302,498 660,409 1,683,444
Other payables - 30,497 31,257
Amounts payable to franchisees
in future 441,756 366,468 450,964
Accruals 477,702 338,937 619,845
Total financial liabilities classified
as financial liabilities measured
as amortised cost 2,221,956 1,396,311 2,785,510
Other taxation and social security 100,011 49,692 49,276
VAT payable - 79,675 -
Bookings in advance 3,951,819 2,183,548 1,833,070
Deferred Income 129,164 172,421 124,038
---------------------------------------- ----------- --------------- -----------
Total trade and other payables 6,402,950 3,881,647 4,791,894
---------------------------------------- ----------- --------------- -----------
Classified as follows:
Non-current portion 98,167 138,381 85,679
Current portion 6,304,783 3,743,266 4,706,215
---------------------------------------- ----------- --------------- -----------
6,402,950 3,881,647 4,791,894
--------------------------------------- ----------- --------------- -----------
There is no material difference between the net book value and the fair values of current trade and other payables due to their short-term nature.
8. Segment Information
The Group has two main reportable segments:
-- Owned properties - This division is involved in hotel operations carried out in the Group's owned hotels and properties
-- Franchising - This division involves the Group's franchise hotel operations, in connection with the license of the Group's brand name
Owned Franchising Total
properties GBP GBP
GBP
31 March 2017
Total revenue from
external customers 2,437,289 699,528 3,136,817
Adjusted EBITDA 1,111,287 416,838 1,528,125
Profit before taxation 782,349 416,838 1,199,187
Segment assets 82,844,997 3,934,109 86,779,106
Segment liabilities (13,517,794) (3,934,109) (17,451,903)
-------------------------- ------------ ----------- -----------------------
Additions to non-current
assets 16,471,773 - 16,471,773
Finance income/(expense) (86,696) - (86,696)
Depreciation and
amortisation (242,242) - (242,242)
-------------------------- ------------ ----------- -----------------------
31 March 2016
Total revenue from
external customers 2,021,985 567,072 2,589,057
Adjusted EBITDA 1,087,197 261,776 1,348,972
Profit before taxation 814,938 316,602 1,131,540
Segment assets 40,864,435 2,417,028 43,281,463
Segment liabilities (8,323,791) (2,417,028) (10,740,819)
-------------------------- ------------ ----------- -----------------------
Additions to non-current
assets 3,787,394 - 3,787,394
Finance income/(expense) (64,725) 54,827 (9,898)
Depreciation and
amortisation (207,534) - (207,534)
-------------------------- ------------ ----------- -----------------------
30 September 2016
Total revenue from
external customers 4,728,151 1,296,104 6,024,255
Adjusted EBITDA 2,570,677 636,385 3,207,062
Profit before taxation 2,014,925 666,015 2,680,940
Segment assets 43,013,707 2,174,506 45,188,213
Segment liabilities (9,303,902) (2,174,506) (11,478,408)
-------------------------- ------------ ----------- -----------------------
Additions to non-current
assets 10,237,533 - 10,237,533
Disposals of non-current
assets (307,334) - (307,334) Finance income/(expense) (140,737) - (140,737) Depreciation and amortisation (415,015) - (415,015) -------------------------- ------------ ----------- ----------------------- 8. Segment Information (continued)
Reconciliation of reportable segment revenues, profit or loss, assets and liabilities to the Group's corresponding amounts is shown below:
Unaudited Unaudited Audited
6 months 6 months year ended
ended ended 31/03/2016 30/09/2016
31/03/2017 GBP GBP
GBP
----------------------------------- ------------------------- ------------------ ---------------
Adjusted EBITDA of reportable
segments 1,528,125 1,348,972 3,207,062
Adjusted EBITDA of corporate
office (877,347) (773,959) (1,655,970)
Total adjusted EBITDA 650,778 575,013 1,551,092
Profit before income tax
Total profit of reportable
segments 1,199,187 1,131,540 2,680,940
Corporate office expenses
and interest (864,788) (809,594) (1,497,880)
Other non-recurring income/(costs) (79,790) (8,479) 157,475
Hotel pre-opening and development
costs (110,941) (48,965) (89,157)
Share based payments (84,587) (123,982) (161,177)
------------------------------------ ------------------------- ------------------ ---------------
Profit before tax per statement
of comprehensive income 59,081 140,520 1,090,201
------------------------------------ ------------------------- ------------------ ---------------
Assets
Total assets for reportable
segments 86,779,106 43,281,463 45,188,213
Cash in Employee Benefits
Trust 1,693 234,075 1,693
Corporation tax - - -
Corporate office assets 838,205 232,984 324,862
------------------------------------ ------------------------- ------------------ ---------------
Total assets per statement
of financial position 87,619,004 43,748,522 45,514,768
------------------------------------ ------------------------- ------------------ ---------------
Liabilities
Total liabilities for reportable
segments (17,451,903) (10,740,819) (11,478,408)
Corporation tax (78,346) (36,865) (119,314)
Corporate office liabilities (492,096) (340,828) (513,486)
Deferred tax liability (238,239) (142,145) (193,792)
------------------------------------ ------------------------- ------------------ ---------------
Total liabilities per statement
of financial position (18,260,584) (11,260,657) (12,305,000)
------------------------------------ ------------------------- ------------------ ---------------
9. Earnings per share
Basic earnings per ordinary share is calculated using a weighted average number of ordinary shares in issue during the financial period, excluding those held by the Employee Benefit Trust (EBT), of 95,825,549 (31 March 2016: 61,375,000; 30 September 2016: 61,375,000). Diluted earnings per ordinary share is calculated using a weighted average number of ordinary shares in issue during the financial period, excluding those held by the EBT and adjusted for dilutive potential ordinary shares, of 95,825,549 (31 March 2016: 61,375,000; 30 September 2016: 61,375,000. The company has 1,323,829 (31 March 2016: 846,583; 30 September 2016: 846,583) potentially dilutive shares as a result of share options, issued or outstanding. None of these are considered to be dilutive as the performance conditions attached to them have not yet been met. Earnings consist of profit for the period attributable to the shareholders amounting to GBP5,378 (31 March 2016: GBP83,702; 30 September 2016: GBP876,772).
10. Events after the reporting date
There are no events after the reporting date of a material nature that require additional disclosure.
INDEPENDENT REVIEW REPORT TO EASYHOTEL PLC
Introduction
We have been engaged by the company to review the interim financial information in the interim results for the six months ended 31 March 2017 which comprises the Group Statement of Comprehensive Income, the Group Statement of Changes in Equity, the Group Statement of Financial Position, Group Statement of Cash Flows, and the related notes.
We have read the other information contained in the interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial information.
Directors' responsibilities
The interim results, including the interim financial information contained therein, are the responsibility of and have been approved by the directors. The directors are responsible for preparing the interim results in accordance with the rules of the London Stock Exchange for companies trading securities on AIM which require that the interim results be presented and prepared in a form consistent with that which will be adopted in the company's annual accounts having regard to the accounting standards applicable to such annual accounts.
Our responsibility
Our responsibility is to express to the company a conclusion on the interim financial information in the interim results based on our review.
Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on AIM and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorized to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim financial information in the interim results for the six months ended 31 March 2017 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on AIM.
BDO LLP
Chartered Accountants and Registered Auditors
55 Baker Street
London W1U 7EU
United Kingdom
22 May 2017
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEEFWEFWSEEI
(END) Dow Jones Newswires
May 23, 2017 02:00 ET (06:00 GMT)
1 Year Easyhotel Chart |
1 Month Easyhotel Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
