Peel Hotels PLC Final Results (7202W)

TIDMPHO

RNS Number : 7202W

Peel Hotels PLC

29 April 2016

PEEL HOTELS PLC

PRELIMINARY ANNOUNCEMENT

Derived from audited results for Financial Year Ended 31 January 2016.

HIGHLIGHTS

   #          Turnover increased 3.4% to GBP17,011,472 (2015: GBP16,454,241) 
   #          EBITDA increased 3.9% to GBP2,570,818 (2015: GBP2,473,196) 
   #          Operating Profit up 7.2% to GBP1,559,614 (2015: GBP1,454,481) 
   #          Net debt decreased GBP752,888 

# Profit before tax was GBP993,607 (2015: GBP800,342 excluding the previous year's fair value movement on the derivative, an increase of 24%)

   #          Earnings per share basic and diluted 5.70p (2015: 5.24p) 

# Expect to pay a dividend of 2.0p for year ended 31 January 2016. Details to be announced when we publish our Annual Report in May 2016

'Our results continue to improve on the back of Revpar growth and a lessening overall cost of finance due to sustained repayment of debt. Our cash resources allow continued investment in our product and this gives us confidence for future growth in the current year.'

Robert Peel

Chairman

0207 286 6823

Press Enquiries

Peel Hunt Ltd / Capel Irwin

0207 418 8907

Review of the business

RESULTS

The Group achieved a creditable improvement in the Financial Year ended 31 January 2016 with hotel revenues increasing by 3.4% to GBP17,011,472 (2015: GBP16,454,241). Hotel gross profit before depreciation and Group administration increased 1.5% to GBP3,244,401 (2015: GBP3,196,325). EBITDA increased 3.9% to GBP2,570,818 (2015: GBP2,473,196).

Profit before tax was GBP993,607 (2015: GBP800,342 excluding the fair value movement on derivative).

Revpar (accommodation revenue per available room) increased 5.6% with occupancy up 0.8% and average room rate up 4.7%

Administration expenses decreased 6.9%. Depreciation and amortisation decreased 0.7%.

FINANCE

As at 31 January 2016 net debt stood at GBP10,134,856 (2015: GBP10,887,744) representing loans totalling GBP10,196,846 (2015: GBP10,839,915) and an overdraft of GBP220,776 (2015: GBP194,659) less GBP282,766 (2015: GBP146,830) cash at bank. Gearing on Shareholders' funds was 42.1% with interest covered 2.8 times. Net debt decreased by GBP752,888 compared with the previous year.

The reduction in overall debt resulted in GBP88,132 less finance expense compared with the previous year.

CAPITAL EXPENDITURE

GBP690,900 (2015: GBP603,295) was spent in the year. We are in the process of changing our central accounting system to a seamless Windows based system fully integrated to each one of our hotels and this will go live in May 2016. External refurbishment continued at the Midland Hotel. Refurbishment was ongoing at the Crown and Mitre Hotel with the renovation of the front hall areas. Improvements were made to the furnishings in the lobbies of the Bull and Cosmopolitan Hotels. Bedroom refurbishment was ongoing at the George, The Norfolk and the Caledonian Hotels. We are shortly to open Bistro George at the George Hotel, a new food operation aimed at the patronage of local people as well as our residents.

We continue to invest in our internet access throughout all our Hotels giving our Guests faster connection. This service is absolutely free to our Guests and is a vital component to their having a satisfactory stay with us.

In addition to Capital Expenditure GBP671,791 (2015: GBP646,520) was spent on repairs and renewals which help us ensure that we are constantly and consistently maintaining and improving our product.

Group Statement of Comprehensive Income

for the year ended 31 January 2016

 
 
 
 
                                                2016                       2015 
                                                 GBP                        GBP 
 
Revenue                                   17,011,472                 16,454,241 
Cost of sales                           (13,767,071)               (13,257,916) 
                                        ------------               ------------ 
Gross profit                               3,244,401                  3,196,325 
 
Administration 
 expenses                    (673,583)                  (723,129) 
Depreciation               (1,011,204)                (1,018,715) 
Total administration 
 expenses                                (1,684,787)                (1,741,844) 
 
Operating profit                           1,559,614                  1,454,481 
 
Finance income                                     -                     12,539 
Finance expense                            (566,007)                  (666,678) 
Fair value movement 
 on derivative                                     -                    159,061 
Profit before tax                            993,607                    959,403 
Income tax                                 (195,341)                  (224,939) 
                                        ------------               ------------ 
 
Profit and total 
 comprehensive income 
 for the period 
 attributable to 
 owners                                      798,266                    734,464 
                           ===========  ============  ===========  ============ 
 
 
Earnings per 
 share 
 
Basic & diluted 
 (pence)                                        5.70                       5.24 
                                        ------------               ------------ 
 
 

Group statement of changes in equity

for the years ended 31 January 2016 and 1 February 2015

 
 
 
 Year ended 31 January       Share       Share       Profit       Total 
  2016                      Capital     premium        and 
                                        account       loss 
                                                     account 
                              GBP         GBP         GBP          GBP 
 
 Balance brought 
  forward at 2 February 
  2015                     1,401,213   9,743,495   12,032,823   23,177,531 
 Profit and total 
  comprehensive income 
  for the period                   -           -      798,266      798,266 
 Transactions with 
  owners 
 Dividend                          -           -    (210,182)    (210,182) 
 Balance at 31 January 
  2015                     1,401,213   9,743,495   12,620,907   23,765,615 
                          ==========  ==========  ===========  =========== 
 
 
 
 
Year ended 1 February                    Share         Profit 
 2015                       Share       premium        and loss 
                           Capital      account        account           Total 
                             GBP          GBP            GBP              GBP 
 
 Balance brought 
 forward at 3 February 
 2014                      1,401,213    9,743,495       11,298,359       22,443,067 
Profit and total 
 comprehensive income 
 for the period                    -            -          734,464          734,464 
Balance at 1 February 
 2015                      1,401,213    9,743,495       12,032,823       23,177,531 
                         ===========  ===========  ===============  =============== 
 
 

Group Balance Sheet

at 31 January 2016

 
 
                                         2016         2015 
                                          GBP          GBP 
 Assets 
 Non-current assets 
 Property, plant and equipment     35,772,573   36,092,877 
 
 Total non-current assets          35,772,573   36,092,877 
 
 Current assets 
 Inventories                          112,585      103,288 
 Trade and other receivables        1,240,178    1,016,130 
 Cash and cash equivalents            282,766      146,830 
 Total current assets               1,635,529    1,266,248 
 
 Total assets                      37,408,102   37,359,125 
 
 
 Equity and liabilities 
 Equity attributable to owners 
  of the parent 
 Share capital                      1,401,213    1,401,213 
 Share premium                      9,743,495    9,743,495 
 Retained earnings                 12,620,907   12,032,823 
                                  -----------  ----------- 
 Total equity                      23,765,615   23,177,531 
 
 Liabilities 
 
 
 Non-current 
 Borrowings                         9,490,792   10,133,861 
 Deferred tax liabilities             919,308      962,730 
                                  -----------  ----------- 
 Non-current liabilities           10,410,100   11,096,591 
 
 Current 
 Trade and other payables           2,159,583    1,971,414 
 Borrowings                           926,830      900,713 
 Current tax liabilities              145,974      212,876 
 Current Liabilities                3,232,387    3,085,003 
                                  -----------  ----------- 
 
 
 Total liabilities and equity      37,408,102   37,359,125 
                                  ===========  =========== 
 

Group Cash Flow Statement

for the year ended 31 January 2016

 
 
                                                 2016          2015 
                                                  GBP           GBP 
 Cash flows from operating activities 
 Profit for the year                          798,266       734,464 
 Adjustments for: 
 Financial income                                   -      (12,539) 
 Financial expense                            566,007       666,678 
 Fair value movement on derivative                  -     (159,061) 
 Income tax                                   195,341       224,939 
 Depreciation                               1,011,204     1,018,715 
                                         ------------  ------------ 
 Cash flows before changes in 
  working capital and provisions            2,570,818     2,473,196 
 
 
 UK corporation tax paid                    (305,666)      (83,275) 
 (Increase)/decrease in trade 
  and other receivables                     (223,368)       137,826 
 Increase/(decrease) in trade 
  and other payables                          192,753     (305,381) 
 (Increase)/decrease in inventories           (9,297)         5,382 
                                         ------------  ------------ 

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 Net cash from operating activities         2,225,240     2,227,748 
                                         ------------  ------------ 
 
 Cash flows from investing activities 
 Acquisition of property, plant 
  and equipment                             (690,900)     (603,295) 
                                         ------------  ------------ 
 Net cash from investing activities         (690,900)     (603,295) 
                                         ------------  ------------ 
 
 
 
 Cash flows from financing activities 
 Interest paid                              (508,285)     (696,747) 
 Loan repayments                            (706,054)     (686,054) 
 Equity dividends paid                      (210,182)             - 
 
 Net cash from financing activities       (1,424,521)   (1,382,801) 
                                         ------------  ------------ 
 
 Net increase in cash and cash 
  equivalents                                 109,819       241,652 
                                         ------------  ------------ 
 
 Cash and cash equivalents at 
  the beginning of the period                (47,829)     (289,481) 
                                         ------------  ------------ 
 
 Cash and cash equivalents at 
  the end of the period                        61,990      (47,829) 
                                         ============  ============ 
 
 For the purposes of the cash 
  flow statement, cash and cash 
  equivalents comprise: 
 Cash and bank balances                       282,766       146,830 
 Bank overdrafts                            (220,776)     (194,659) 
 
 
 
 

Notes

(forming part of the financial statements)

    1          Basis of preparation 

The financial statements, from which this preliminary announcement has been extracted, have been prepared and approved by the Directors in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs"). The financial statements have been prepared under the historical cost convention.

The IFRS accounting policies have been applied consistently to all periods presented in these financial statements. The financial statements are presented in sterling.

   2          Publication of non-statutory financial statements 

The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in Section 434 and 435 of the Companies Act 2006.

The Group statement of comprehensive income, the Group statement of changes in equity, the Group balance sheet and the Group cash flow statement have been extracted from the Group's financial statements for the year ended 31 January 2016 upon which the auditors' opinion is unqualified and does not include any statement under section 498(2) or 498(3) of the Companies Act 2006. Those financial statements have not yet been delivered to the Registrar.

   3         Earnings per share 

Basic earnings per share

The calculation of basic earnings per share at 31 January 2016 was based on the profit attributable to ordinary shareholders of GBP798,266 (2015: GBP734,464) and a weighted average number of ordinary shares outstanding of 14,012,123 (2015: 14,012,123). No shares were issued in 2016 or 2015.

Diluted earnings per share

There were no potentially dilutive options in issue in 2016 and 2015 and consequently there is no difference between basic and diluted earnings per share.

This information is provided by RNS

The company news service from the London Stock Exchange

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