Peel Hotels PLC Final Results (5144L)

TIDMPHO

RNS Number : 5144L

Peel Hotels PLC

20 July 2017

PEEL HOTELS PLC

PRELIMINARY ANNOUNCEMENT AND BOARD CHANGE

Derived from audited results for Financial Year Ended 29 January 2017.

HIGHLIGHTS

   #          Turnover decreased 1.3% to GBP16,790,320 (2016: GBP17,011,472) 
   #          EBITDA before exceptional expense decreased 12.5% to GBP2,250,328 (2016: GBP2,570,818) 

# Operating Profit before exceptional expense down 18.7% to GBP1,268,734 (2016: GBP1,559,614)

   #          Net debt decreased GBP580,087 

# Profit before tax, (including the exceptional expense GBP170,500 re the Strathdon Hotel) was GBP575,387 (2016: GBP993,607)

   #          Earnings per share basic and diluted 3.1p (2016: 5.7p) 

# In light of the benefits that will accrue from the repayment of the Loan Notes and the Director's Loan the Directors recommend that no dividend be paid.

   #          Keith Benham leaves the Board after 19 years service. 

'It is very difficult to forecast the current year's outcome as so much depends on staycation and increased Tourist activity stimulated by the weak pound. However our refinancing with Allied Irish Bank and the repayment of the Director's Loan and Loan Notes will provide significant savings in the costs of finance and the subsequent benefits of improved cash flow and lessening net debt.'

Robert Peel

Chairman

0207 286 6823

Press Enquiries

Peel Hunt Ltd / Capel Irwin

0207 418 8907

Review of the business

RESULTS

The Financial Year ended 29 January 2017 has been a very challenging year for the Group with hotel revenues decreasing by 1.3% to GBP16,790,320 (2016: GBP17,011,472). Hotel gross profit before depreciation and Group administration expenses decreased 9.4% to GBP2,938,211 (2016: GBP3,244,401). EBITDA before exceptional expense decreased 12.5% to GBP2,250,328 (2016: GBP2,570,818).

The Company has also had to bear an exceptional expense of GBP170,500 to its profit due to a charge for back land rent re the Strathdon Hotel, Nottingham.

Profit before tax, (including the exceptional expense re the Strathdon Hotel) was GBP575,387 (2016: GBP993,607).

However, Revpar (accommodation revenue per available room) was maintained with occupancy down 3.2% and average room rate up 3.4%

Administration expenses increased 2.1%. Depreciation and amortisation decreased 2.9%.

FINANCE

As at 29 January 2017 net debt stood at GBP9,554,769 (2016: GBP10,134,856) representing loans totalling GBP9,847,422 (2016: GBP10,196,846) and an overdraft of GBPnil (2016: GBP220,776) less GBP292,653 (2016: GBP282,766) cash at bank. Gearing on Shareholders' funds was 39.9% with interest covered 2.1 times. Net debt decreased by GBP580,087 compared with the previous year.

Subsequent to the Financial Year End the Company has negotiated a new long term financing facility with Allied Irish Bank. The terms of this new facility, which will enable the Company to repay the outstanding Loan Notes and Director's loan, will result in a significant reduction in our financial charges going forward. Savings in the financial year 2018/19 are estimated to be not less than GBP160,000, providing that interest rates remain unchanged.

CAPITAL EXPITURE

GBP710,701 (2016: GBP690,900) was spent in the year. We have completed the restructuring of certain bedrooms at the Crown and Mitre in Carlisle. The conference and banqueting facilities have been refurbished at the George Hotel in Wallingford. Bedroom refurbishment continues at the Caledonian in Newcastle.

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 them having a satisfactory stay with us.

In addition to Capital Expenditure, GBP661,317 (2016: GBP671,791) was spent on repairs and renewals which help us ensure that we are constantly and consistently maintaining and improving our product, proof of which is the continuing improvements in ratings of each Hotel assessed by the Automobile Association.

DIRECTORS

Keith Benham, as indicated last year, will retire at the AGM. Keith's contribution to Peel Hotels over the years has been exceptional and he will be greatly missed. We wish him a healthy and happy retirement.

Group Statement of Comprehensive Income

for the year ended 29 January 2017

 
 
 
 
                                              2017                       2016 
                                               GBP                        GBP 
 
Revenue                                 16,790,320                 17,011,472 
Cost of sales                         (13,852,109)               (13,767,071) 
                                      ------------               ------------ 
Gross profit                             2,938,211                  3,244,401 
 
Administration 
 expenses                  (687,883)                  (673,583) 
Exceptional expense        (170,500)                          - 
Depreciation               (981,594)                (1,011,204) 
Total administration 
 expenses                              (1,839,977)                (1,684,787) 
 
Operating profit                         1,098,234                  1,559,614 
 
 
Finance expense                          (522,847)                  (566,007) 
Profit before tax                          575,387                    993,607 
Income tax                               (140,665)                  (195,341) 
                                      ------------               ------------ 
 
Profit and total 
 comprehensive income 
 for the period 
 attributable to 
 owners                                    434,722                    798,266 
                           =========  ============  ===========  ============ 
 
 
Earnings per 
 share 
 
Basic & diluted 
 (pence)                                       3.1                        5.7 
                                      ------------               ------------ 
 
 

Group statement of changes in equity

for the years ended 29 January 2017 and 31 January 2016

 
 
 
 Year ended 29 January       Share       Share       Profit       Total 
  2017                      Capital     premium        and 
                                        account       loss 
                                                     account 
                              GBP         GBP         GBP          GBP 
 
 Balance brought 
  forward at 1 February 
  2016                     1,401,213   9,743,495   12,620,907   23,765,615 
 Profit and total 
  comprehensive income 
  for the period                   -           -      434,722      434,722 
 Transactions with 
  owners 
 Dividend                          -           -    (280,242)    (280,242) 
 Balance at 29 January 
  2017                     1,401,213   9,743,495   12,775,387   23,920,095 
                          ==========  ==========  ===========  =========== 
 
 
 
 
Year ended 31 January                    Share         Profit 
 2016                       Share       premium        and loss 
                           Capital      account        account           Total 
                             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 
Transaction with 
 owners 
Dividend                           -            -        (210,182)        (210,182) 
Balance at 31 January 
 2016                      1,401,213    9,743,495       12,620,907       23,765,615 
                         ===========  ===========  ===============  =============== 
 
 

Group Balance Sheet

at 29 January 2017

 
 
                                         2017         2016 
                                          GBP          GBP 
 Assets 
 Non-current assets 
 Property, plant and equipment     35,502,564   35,772,573 
 
 Total non-current assets          35,502,564   35,772,573 
 
 Current assets 
 Inventories                          114,034      112,585 
 Trade and other receivables        1,095,481    1,240,178 
 Cash and cash equivalents            292,653      282,766 
 Total current assets               1,502,168    1,635,529 
 
 Total assets                      37,004,732   37,408,102 
 
 
 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                 12,775,387   12,620,907 
                                  -----------  ----------- 
 Total equity                      23,920,095   23,765,615 
 
 Liabilities 
 
 Non-current 
 Borrowings                         1,030,000    9,490,792 
 Deferred tax liabilities             861,330      919,308 
                                  -----------  ----------- 
 Non-current liabilities            1,891,330   10,410,100 
 
 Current 
 Trade and other payables           2,259,437    2,159,583 
 Borrowings                         8,817,422      926,830 
 Current tax liabilities              116,448      145,974 
 Current Liabilities               11,193,307    3,232,387 
                                  -----------  ----------- 
 
 
 Total liabilities and equity      37,004,732   37,408,102 
                                  ===========  =========== 
 

Group Cash Flow Statement

for the year ended 29 January 2017

 
 
                                                 2017           2016 
                                                  GBP            GBP 
 Cash flows from operating activities 
 Profit for the year                          434,722        798,266 
 Adjustments for: 
 Financial income                                   -              - 
 Financial expense                            522,847        566,007 
 Fair value movement on derivative                  -              - 
 Income tax                                   140,665        195,341 
 Depreciation                                 981,594      1,011,204 
                                         ------------  ------------- 
 Cash flows before changes in 
  working capital and provisions            2,079,828      2,570,818 
 
 
 UK corporation tax paid                    (228,168)      (305,666) 
 Decrease/(increase) in trade 
  and other receivables                       149,237      (223,368) 
 Increase in trade and other 
  payables                                    112,381        192,753 
 (Increase) in inventories                    (1,449)        (9,297) 
                                         ------------  ------------- 
 Net cash from operating activities         2,111,829      2,225,240 
                                         ------------  ------------- 
 
 Cash flows from investing activities 
 Acquisition of property, plant 
  and equipment                             (710,701)      (690,900) 
                                         ------------  ------------- 
 Net cash outflow from investing 
  activities                                (710,701)      (690,900) 
                                         ------------  ------------- 
 
 
 
 Cash flows from financing activities 
 Interest paid                              (480,223)      (508,285) 
 Loan repayments                            (410,000)      (706,054) 
 Equity dividends paid                      (280,242)      (210,182) 
 
 Net cash outflow from financing 
  activities                              (1,170,465)    (1,424,521) 
                                         ------------  ------------- 
 
 Net increase in cash and cash 
  equivalents                                 230,663        109,819 
                                         ------------  ------------- 
 
 Cash and cash equivalents at 
  the beginning of the period                  61,990       (47,829) 
                                         ------------  ------------- 
 
 Cash and cash equivalents at 
  the end of the period                       292,653         61,990 
                                         ============  ============= 
 
 For the purposes of the cash 
  flow statement, cash and cash 
  equivalents comprise: 
 Cash and bank balances                       292,653        282,766 
 Bank overdrafts                                    -      (220,776) 
 
 
 
 

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 29 January 2017 upon which the auditors' opinion is anticipated to be 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 29 January 2017 was based on the profit attributable to ordinary shareholders of GBP434,722 (2016: GBP798,266) and a weighted average number of ordinary shares outstanding of 14,012,123 (2016: 14,012,123). No shares were issued in 2017 or 2016.

Diluted earnings per share

The potentially dilutive options in issue in 2017 and 2016 do not cause a 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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July 20, 2017 02:00 ET (06:00 GMT)