Elegant Hotels Share Discussion Threads

[lbo] 29/1/2019 15:55

https://www.bloomberg.com/opinion/articles/2019-01-24/patisserie-valerie-is-yet-another-pie-in-the-face-for-auditorsAuditors provide "reasonable assurance," but no cast-iron guarantee, that the accounts are free of material misstatement. Their work is inherently backward-looking and cannot entirely preclude fraud, or future insolvency, the industry says. "While a company might fail following issuance of an unqualified audit opinion, this does not automatically mean the auditor did a bad job," KPMG's U.K. chairman Bill Michael told the Carillion inquiry. This so-called "expectations gap" is a decades-old excuse for auditors when companies run into trouble.In fairness, company directors are the ones who bear legal responsibility for preparing financial statements, not the auditors, who provide an opinion on whether the accounts give a true and fair view. Indeed, Britain's cosy boardrooms could probably do with a reminder of that fact. Sarbanes-Oxley obliged their American peers to personally certify the accuracy of financial reports (deliberately signing off on a false set of U.S. accounts is punishable by up to 20 years of imprisonment). Deloitte and EY are among those calling for a Sarbanes-Oxley equivalent in the U.K.

[lbo] 29/1/2019 15:14

https://www.thetimes.co.uk/article/brighton-pier-takes-dive-before-alert-9gsm8fxsh

[shauney2] 29/1/2019 13:24

Good to see Hodges Bay up and running.Just in time for the second cricket test.What could be better,leave the mrs by the pool while you spend all day watching sport with a cool drink.



Should help the Barbados resorts also.

[lbo] 29/1/2019 09:22

Wonder what they alluding to!?Glass Lewis said in a report ahead of Elegant Hotel's AGM next month that investors 'should be concerned with any type of accounting irregularity or legal/ regulatory investigation involving a director of the company, as such matters could potentially expand in scope and prove to dampen shareholder value'

[boonkoh] 28/1/2019 16:01

I'm not happy.Reports say Valerie finance staff pressured to falsify, in order to hit hard nosed senior management targets. Probably directives from Luke Johnson. Why has he not been hard nosed with EHG management? This company has made very slow progress at best, with share price decline YoY.

[lbo] 28/1/2019 15:01

Not the first warning. ISS made warnings before the Patisserie scandalhttps://www.telegraph.co.uk/business/2018/02/17/iss-urges-johnson-check-elegant-hotels-board/And Luke's response at the time and in light of whats happened at Patisserie only reads worse nowhttps://www.thetimes.co.uk/article/luke-johnson-bungling-box-ticking-hypocrites-who-tried-to-kick-me-off-a-board-69rmqtflq

[lbo] 23/1/2019 08:48

https://www.thisismoney.co.uk/money/comment/article-6621191/ALEX-BRUMMER-Patisserie-Valerie-chairman-Luke-Johnson-leaves-baleful-legacy.html

[lbo] 21/1/2019 08:47

https://www.thetimes.co.uk/article/wish-you-were-here-tough-call-for-a-finance-chief-cv8kgghrk

[lbo] 17/1/2019 11:24

https://www.telegraph.co.uk/business/2019/01/16/patisserie-valerie-hires-kpmg-prepare-potential-collapse/

[cmackay] 16/1/2019 11:07

Ok admittedly I didn't predict those numbers but I did say Barbados would not be hit by an economic uncertainty in the same way that cheaper destinations would be.

[cmackay] 16/1/2019 11:05

Just as I predicted, Barbados tourism numbers up by 3% and UK-specific numbers up by 1%.

[mortimer7] 16/1/2019 10:34

FWIW, Inv3stors Chronicle (Simon Thompson) did a favourable piece yesterday on the prospects
after the results.

[stemis] 16/1/2019 09:42

Interviews with CEO, Sunil Chatrani, and Mike Allen, Zeus Capital (broker), on results

hxxps://www.directorstalk.net/interview-elegant-hotels-group-a-strong-operator-in-an-interesting-market/

[cmackay] 15/1/2019 12:05

I've added to my holding this morning, which admittedly was underwater but looks good for a re-rate. My partner is over there on the west coast at the moment attending to business, while I'm holding the fort in England. I've been done once again.

[shauney2] 15/1/2019 11:52

I have bought some back this morning on those results.The NAV intrigues me.Its probably overstated but is 120% above the current price.Got to be still in play for a larger group at the current price.

‘Occupancy fell in the period by 1.6 percentage points to 62.3% from 63.9%’

They do give a reason for that in the results.Maybe LBO could finish off that paragraph.

[cmackay] 15/1/2019 11:19

I came here just to see what kind of contortions LBO would be pulling off to make this into a negative set of results.

[lbo] 15/1/2019 09:45

'Occupancy fell in the period by 1.6 percentage points to 62.3% from 63.9%'and these results were during a time when they were not worried about macroeconomic conditions which they now seem to be warning on

[lbo] 15/1/2019 09:32

'Several properties have not been refurbished for a number of years. Historically, the Group has been able to significantly enhance profitability of properties as a result of refurbishment programmes. We are currently reviewing our refurbishment plans to focus capital expenditure on the areas providing the most compelling return on investment'

[stemis] 15/1/2019 08:51

Revenue +5%
Adjusted EBITDA + 10.6%
Adjusted EPS + 15.9%

Leaving

P/E - 7.9
Yield - 5.8%
Discount to NAV - 54.6%
Debt - down $0.9m

You must be gutted LBO

[stemis] 15/1/2019 08:36

You must have been up early, LBO, to try and suck the negatives out of a pretty solid set of results. Clearly this was all you could come up with

The actual statement is

" In the 2018/19 financial year, the Group expects to commence a refinancing exercise with a view to reducing the amortisation on the secured loans. Initial discussions with the Group's finance partners indicate that the loans will be renewed at similar commercial terms to those currently in place. "

Doesn't suggest a fund raising at all.

[shauney2] 15/1/2019 08:33

A good move.

Not holding but it seems the results are better than the doomsters predicted especially considering the low pound and increased local taxes.
Revenue up 5% PBT up 3.5% Diluted EPS up 15.9% The new year has started in-line.