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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Safestay Plc | LSE:SSTY | London | Ordinary Share | GB00BKT0J702 | 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% | 19.00 | 18.00 | 20.00 | 19.00 | 19.00 | 19.00 | 0.00 | 08:00:22 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Hotels And Motels | 19.15M | -282k | -0.0043 | -44.19 | 12.35M |
From Apr 2019 to Apr 2024
TIDMSSTY
RNS Number : 7770B
Safestay PLC
25 September 2018
The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR")
STRICTLY EMBARGOED UNTIL 7am: 25 September 2018
Safestay plc
("Safestay" or "the Company" or "the Group")
Interim Results
For the Six Months to 30 June 2018
Safestay (AIM: SSTY), the owner and operator of an international brand of contemporary hostels, announces its unaudited interim results for the six months ended 30 June 2018
Financial Highlights
-- Good demand across the portfolio has led to a strong H1 trading performance
-- 60% increase in total revenues to GBP6.5m (2017: GBP4.1m) including acquisitions made in 2017
-- Group occupancy increased to 76.1% (2017: 71.6%) -- 50% increase in Hostels EBITDA to GBP2.4m (2017: GBP1.6m)
-- Group EBITDA stable at GBP1.3m (2017: GBP1.3m) reflecting planned investment in central organisation
-- Loss before tax of GBP0.8m including GBP0.4m of exceptional costs (2017: loss before tax GBP0.4m, after exceptional costs of GBP0.1m)
-- Net loss per share of -2.30p (2017 -1.08p)
Operating Highlights
-- UK hostel occupancy increased to 76.2% (2017: 71.6%) driven by particularly strong performances in Holland Park and York
-- Achieved 4% growth in UK revenues only held back by impact of extension works in Elephant & Castle
-- 6 European hostels (acquired within the last 12 months), including a 351 bed Hostel Barcelona acquired in March 2018
o All trading to plan
o Contributed GBP2.6m of revenue
o Average occupancy of 76.1%
o Re-branding complete
-- Mainland Europe now represents 43% of our bed stock and 43% of the total turnover in the first 6 months of 2018
-- Operational efficiencies achieved in the UK to be extended into the European portfolio -- Opening of the rooftop bar in Madrid in May 2018
H2 2018 and beyond
-- Group trading in line with expectations
-- Full benefit expected in H2 from the 351 bed Barcelona Passeig de Gracia hostel acquired in March 2018
-- Expect to complete 80 bed extension in Elephant & Castle in December -- Construction of 226 bed Paris hostel due to complete end of 2019 -- Good prospects for further complementary acquisitions
Larry Lipman, Chairman of Safestay, said:
"This has been a successful six months. The Group is performing to plan and the new hostels have been quick to integrate under the Safestay brand and operating structure. Alongside benefitting from the continuing growth in awareness and popularity of modern hostels, we have significant opportunities internally to increase returns from our young portfolio and we will also shortly benefit from the investment we have made in expanding our Elephant & Castle and Madrid hostels. Safestay is therefore well positioned for further organic growth and to continue to pursue our acquisition programme."
Enquiries
Safestay plc +44 (0) 20 8815 1600 Larry Lipman Canaccord Genuity Limited (Nominated Adviser and Broker) +44 (0) 20 7523 8000 Chris Connors Martin Davison Novella +44 (0) 20 3151 7008 Tim Robertson Toby Andrews
For more information visit: www.safestay.com
Chairman's statement
Introduction
I am very pleased to present the results for the six months to 30 June 2018 which clearly show our success in improving the trading performance of our UK hostels whilst integrating the 6 new hostels all located in key European cities. Alongside this, we have invested in developing the operational systems and establishing a management structure to support an expanding portfolio, the benefits from which will come through in future operational efficiencies.
Financial review
For the period under review, the Group generated a 60% increase in revenues to GBP6.5 million (2017: GBP4.1 million) with GBP2.4m of the additional revenue coming from new acquisitions. This led to the hostels reporting a 50% increase in EBITDA to GBP2.4m (2017: GBP1.6m). All of the 5 properties acquired in 2017 have contributed positively adding GBP0.5 m in EBITDA. The 351 bed hostel in the centre of Barcelona acquired in March 2018 begun very strongly contributing GBP0.15m in its' first the three months within the Group.
Group EBITDA was level at GBP1.3m (2017: GBP1.3m) despite significant investment into the central organisation and hostel operating systems in the period under review. Abortive acquisition costs and costs incurred in relation to ongoing developments have increased the loss before tax to GBP0.8m loss (2017: loss of -GBP0.4m). As a consequence, the Company recorded a loss per share of 2.30p compared with a loss of 1.08p per share in the first half of 2017. As usual, reflecting the seasonality of our business, approximately 33% of our annual turnover and 50% of EBITDA is made in the third quarter.
Net asset value per share was 53.2p per share (2017: 56.9p per share).
Operating review
Safestay now operates 2,618 beds in 10 properties across 4 European and 3 UK cities, pending the opening of the Paris flagship site in 2019.
Following a year of acquisition in 2017, the first six months of 2018 have delivered significant growth. We have seen improvements in all UK properties, with the exception of Elephant and Castle where up to 30 beds are blocked while the hostel is undergoing an improvement plan which will complete by the end of 2018 and add 80 beds to the inventory.
Safestay sold a total of 284,000 nights in the first 6 months of 2018, increasing from 140,000 in the same period in 2017. Average occupancy was 76.1%, also improving from the 71.6% in 2017 despite the integration of 6 new hostels over the period. Hostel EBITDA have also significantly improved in the UK properties (+15% to GBP1.8m), partly due to efficiencies achieved in housekeeping. Margins achieved in the European hostels while ahead of budget are expected to benefit from the operating efficiencies being implemented in the UK. Guest satisfaction has reached 81% in the first 6 months with highest scores in cleanliness (92%) and service (95%).
We have now implemented a common Property Management System (Cloudbeds) in all properties to bring efficiencies and consistency in bookings, operation and data analytics. We are also building a strong revenue management expertise to release the full REVPAB (Revenue per Available Bed) potential in all properties. In addition, we have reinforced the corporate structure in compliance with our corporate governance policy.
Kensington Holland Park hostel, which offers a fantastic opportunity to stay in a historic Grade 1 listed building in the heart of Holland Park, has continued to grow revenues (+5%) after a record year in 2017. With occupancy now up to 82% (2017: 67%) the focus is to leverage our revenue management expertise and improve the rates to release the full potential of this unique site.
The Safestay Hostels in Edinburgh and York continue to contribute strongly to the operating profit of the group. They have grown revenue by 8% to GBP1.5m and 17% to GBP0.35m respectively. The tight control over the operating costs has helped to boost EBITDA to record levels, up to 0.8m in Edinburgh (+50%) and 0.15m in York (+79%).
At Elephant & Castle, the Company's first hostel, trading was disrupted by the extension works underway to develop an additional 80 beds over four floors. Total revenue was down 5% in 2018 to GBP1.2m but is expected to return to positive territory as soon as the works complete in December 2018.
Overall the 5 hotels acquired in 2017 and the Barcelona property opened in 2018 added GBP2.4m in turnover and GBP0.6m in EBITDA in 2018, in line with expectations. Lisbon and Prague markets have proved very strong and the Spanish properties have maintained occupancy levels in excess of 75% despite a challenging economic and political backdrop.
Acquisitions
In March 2018, we acquired Barcelona Passeig de Gracia from Equity point for EUR3m. This is our third hostel operating in Barcelona and it has already brought a positive net contribution of GBP0.1m to the Group profit in just 3 months of operation.
Outlook
The second half of the year has begun well, continuing on from the solid performance recorded across the portfolio in the first half. The Group will benefit from a full six months contribution from the strongly performing Barcelona Passeig de Gracia Hostel acquired in March 2018, improvements made to our online guest booking experience to support the growing proportion of direct and return bookings and the overall ongoing growth in the hostel sector. Taken together we are confident of recording a positive trading performance for the full year, in line with expectations.
Larry Lipman
Chairman
25 September 2018
Hot Features
Premium
Condensed consolidated statement
of comprehensive income Unaudited Unaudited Audited
6 months 6 months Year to
to 30 June to 30 June 31 December
2018 2017 2017
Note GBP000 GBP000 GBP000
------------ ------------ -------------
Revenue 2 6,509 4,058 10,547
Cost of sales (764) (513) (1,561)
Gross profit 5,745 3,545 8,986
Administrative expenses (5,303) (2,769) (7,520)
------------ ------------ -------------
Operating profit before exceptional
expenses 2 442 776 1,466
EBIT
Exceptional expenses 5 (437) (100) (495)
------------ ------------ -------------
Operating profit after exceptional
expenses 5 676 971
Finance costs 4 (795) (1,046) (1,833)
Loss before tax (790) (370) (862)
Tax - - (11)
------------ ------------ -------------
Total comprehensive loss for
the period attributable to owners
of the parent company 3 (790) (370) (873)
============ ============ =============
Condensed consolidated statement
of
financial position Unaudited Unaudited Audited
30 June 30 June 31 December
2018 2017 2017
Note GBP000 GBP000 GBP000
---------- ---------- ------------
Non-current assets
Property, plant and equipment 6 46,262 46,381 45,971
Intangible assets 7 1,325 8,492 1,410
Goodwill 7 9,265 525 7,301
Total non-current assets 56,852 55,398 54,682
---------- ---------- ------------
Current assets
Stock 30 97 25
Trade and other receivables 1,053 854 903
Derivative financial instruments - 9 -
Cash and cash equivalents 2,960 4,195 4,504
Total current assets 4,043 5,155 5,432
---------- ---------- ------------
Total assets 60,895 60,553 60,114
Current liabilities
Borrowings 8 423 100 168
Finance lease obligations 9 27 36 49
Trade and other payables 2,408 1,697 1,625
Total current liabilities 2,858 1,833 1,842
---------- ---------- ------------
Non-current liabilities
Borrowings 8 17,655 28,982 17,990
Finance lease obligations 9 21,187 10,222 21,179
Other payables 11 971 - -
Deferred tax - - 105
Derivative financial instruments - 33 -
---------- ---------- ------------
Total non-current liabilities 39,813 39,237 39,274
---------- ---------- ------------
Total liabilities 42,671 41,070 41,116
---------- ---------- ------------
Net assets 18,224 19,483 18,998
---------- ---------- ------------
Equity
Share capital 10 342 342 342
Share premium account 14,504 14,504 14,504
Merger reserve 1,772 1,772 1,772
Share-based payment reserve 107 73 91
Revaluation reserve 4,218 4,218 4,218
Retained earnings (2,719) (1,426) (1,929)
---------- ---------- ------------
Total equity attributable to owners
of the parent company 18,224 19,483 18,998
========== ========== ============
Condensed consolidated statement of changes in equity
For the six months to 30 June 2018 (unaudited)
Share Share Merger Share-based Revaluation Retained Total
capital premium reserve payment reserve earnings equity
GBP000 account GBP000 reserve GBP000 GBP000 GBP000
GBP000 GBP000
-------- -------- -------- ----------- ----------- --------- -------
Balance at 1 January
2018 342 14,504 1,772 91 4,218 (1,929) 18,998
Comprehensive income
Loss for the period - - - - - (790) (790)
Total comprehensive
income - - - - - (790) (790)
-------- -------- -------- ----------- ----------- --------- -------
Transactions with
owners
Share-based payment
charge for the
period - - - 16 - - 16
-------- -------- -------- ----------- ----------- --------- -------
Balance at 30 June
2018 342 14,504 1,772 107 4,218 (2,719) 18,224
======== ======== ======== =========== =========== ========= =======
For the six months to 30 June 2017 (unaudited)
Share Share Merger Share-based Revaluation Retained Total
capital premium reserve payment reserve earnings equity
GBP000 account GBP000 reserve GBP000 GBP000 GBP000
GBP000 GBP000
-------- -------- -------- ----------- ----------- --------- -------
Balance at 1 January
2017 342 14,504 1,772 57 4,218 (1,056) 19,837
Comprehensive income
Loss for the period - - - - - (370) (370)
Total comprehensive
income - - - - - (370) (370)
-------- -------- -------- ----------- ----------- --------- -------
Transactions with
owners
Share-based payment
charge for the
period - - - 16 - - 16
-------- -------- -------- ----------- ----------- --------- -------
Balance at 30 June
2017 342 14,504 1,772 73 4,218 (1,426) 19,483
======== ======== ======== =========== =========== ========= =======
Condensed consolidated statement of changes in equity
For the year ended 31 December 2017 (audited)
Share Share Merger Share-based Revaluation Retained Total
Capital premium Reserve payment Reserve earnings equity
GBP'000 account GBP'000 reserve GBP'000 GBP'000 GBP'000
GBP'000 GBP'000
-------- -------- -------- ----------- ----------- --------- --------
Balance at 1 January
2017 342 14,504 1,772 57 4,218 (1,056) 19,837
-------- -------- -------- ----------- ----------- --------- --------
Comprehensive income
Loss for the year - - - - - (873) (873)
Total comprehensive
income - - - - - (873) (873)
-------- -------- -------- ----------- ----------- --------- --------
Transactions with
owners
Share-based payment
charge for the
year - - - 34 - - 34
-------- -------- -------- ----------- ----------- --------- --------
Balance at 31 December
2017 342 14,504 1,772 91 4,218 (1,929) 18,998
======== ======== ======== =========== =========== ========= ========
Condensed consolidated statement
of cash flows Unaudited Unaudited Audited
Note 6 months 6 months Year to
to 30 June to 30 June 31 December
2018 2017 2017
GBP000 GBP000 GBP000
------------ ------------ -------------
Operating activities
Cash generated from operations 12 972 851 1,863
------------ ------------ -------------
Net cash generated from operating
activities 972 851 1,863
------------ ------------ -------------
Investing activities
Purchase of property, plant and
equipment (990) (1,032) (1,088)
Purchase of intangible assets (12) (7,350) (48)
Acquisition of business (617) - (7,298)
------------ ------------ -------------
Net cash outflow from investing
activities (1,619) (8,382) (8,434)
------------ ------------ -------------
Cash flows from financing activities
Proceeds from borrowings - 29,445 29,820
Repayment of borrowings (127) (17,600) (17,600)
Amounts paid under finance leases (480) - (916)
Interest paid (290) (856) (966)
(897) 10,989 10,338
------------ ------------ -------------
Cash and cash equivalents at beginning
of period 4,504 737 737
Net increase/(decrease) in cash
and cash equivalents (1,544) 3,458 3,767
------------ ------------ -------------
Cash and cash equivalents at end
of period 2,960 4,195 4,504
============ ============ =============
1. Basis of preparation and principal accounting policies
The condensed interim consolidated financial statements of the Company and its subsidiaries ("the Group") for the six months to 30 June 2018 ("the period") have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS) as adopted by the European Union. The financial information presented above does not constitute statutory financial statements as defined by section 435 of the Companies Act 2006.
Copies of this announcement are available from the Company's registered office at 1a Kingsley Way, London N2 0FW and on its website, www.safestay.com.
These condensed interim financial statements have not been audited, do not include all of the information required for full annual financial statements and should be read in conjunction with the Group's consolidated annual financial statements for the year ended 31 December 2017. While the financial figures included within this interim report have been computed in accordance with IFRS applicable to interim periods, this report does not contain sufficient information to constitute an interim financial report as set out in International Accounting Standard 34 Interim Financial Reporting.
New standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2017, except for the adoption of new standards effective as of 1 January 2018. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
The Group applies, for the first time, IFRS 15 Revenue from Contracts with Customers. As required by IAS 34, the nature and effect of these changes has been reviewed by the Directors but do not have an impact on the interim condensed consolidated financial statements of the Group.
Impacts of standards issued but not yet applied by the Group
IFRS 16 was issued in January 2016. It will result in almost all leases being recognised on the balance sheet, as the distinction between operating and finance leases is removed. Under the new standard,
an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The standard will affect primarily the accounting for the Group's operating leases. As at the reporting date, the Group has non-cancellable operating lease commitments of GBP19.7m. However, the Group has not yet determined to what extent these commitments will result in the recognition of an asset and a liability for future payments and how this will affect the group's profit and classification of cash flows.
Some of the commitments may be covered by the exception for short-term and low-value leases, and may relate to arrangements that will not qualify as leases under IFRS 16. The standard is mandatory for first interim periods within annual reporting periods beginning on or after 1 January 2019. The Group does not intend to adopt the standard before its effective date.
2. Segmental analysis
Unaudited Unaudited Audited
6 months 6 months Year to
to 30 June to 30 June 31 December
2018 2017 2017
GBP000 GBP000 GBP000
------------ ------------ -------------
Revenue
United Kingdom 3,942 4,058 8,496
Other Europe 2,567 - 2,051
------------ ------------ -------------
6,509 4,058 10,547
------------ ------------ -------------
Operating profit*
United Kingdom 1,155 1,312 2,570
Other Europe 454 25 49
Central costs (1,604) (661) (1,648)
------------ ------------ -------------
5 676 971
------------ ------------ -------------
Operating profit for the United Kingdom stated in the 2017 audited financial statements is GBP0.922 million. The above disclosure and division of costs has not been audited.
3. Loss per share Unaudited Unaudited Audited
6 months 6 months Year to
to 30 June to 30 June 31 December
2018 2017 2017
GBP000 GBP000 GBP000
------------ ------------ -------------
Loss for the period attributable
to equity holders of the company (790) (370) (873)
============ ============ =============
Number Number Number
'000 '000 '000
Weighted average number of ordinary
shares for the purposes of basic
loss per share 34,219 34,219 34,219
Effect of dilutive potential ordinary
shares 1,807 36 1,807
------------ ------------ -------------
Weighted average number of ordinary
shares for the purposes of diluted
loss per share ('000s) 36,026 34,255 36,026
------------ ------------ -------------
Basic and diluted loss per share (2.30p) (1.08p) (2.55p)
------------ ------------ -------------
There is no difference between the diluted loss per share and the basic loss per share presented. Due to the losses incurred in the reported periods the effect of the share options in issue is anti-dilutive.
4. Finance costs
Unaudited Unaudited Audited
6 months 6 months Year to
to 30 June to 30 June 31 December
2018 2017 2017
GBP000 GBP000 GBP000
------------ ------------ -------------
Interest on bank overdrafts and
loans 270 695 798
Amortised loan arrangement fees 41 - 73
Other interest costs - - 115
Lease finance (note 9) 465 349 831
Fair value of interest rate swaps 19 2 16
------------ ------------ -------------
795 1,046 1,833
------------ ------------ -------------
5. Exceptional expenses
The following costs are separately disclosed on the Condensed
Consolidated Income Statement as exceptional and outside the
underlying trading of the hostels:
Unaudited Unaudited Audited
6 months 6 months Year to
to 30 June to 30 June 31 December
2018 2017 2017
GBP000 GBP000 GBP000
------------ ------------ -------------
Administration costs relating to
incomplete acquisitions 369 - -
Administration costs relating to
the acquisition of businesses 23 100 201
Other 45 - 274
------------ ------------ -------------
437 100 495
------------ ------------ -------------
6. Property, plant and equipment
For the period from 1 January 2018 to 30 June 2018 (unaudited)
Freehold Leasehold Fixtures,
land and land and fittings Assets
buildings buildings and equipment Under Construction Total
GBP000 GBP000 GBP000 GBP000 GBP000
----------- ----------- --------------- --------------------- -------
Cost or valuation
At 1 January 2018 2,683 43,717 2,052 121 48,573
Transfer 18 231 (249) - -
Additions - 19 258 713 990
Business Combinations - - 103 - 103
Exchange Movements - - (7) (1) (8)
Disposals - - (48) - (48)
At 30 June 2018 2,701 43,906 2,109 833 49,610
----------- ----------- --------------- --------------------- -------
Depreciation
At 1 January 2018 261 1,031 1,310 - 2,602
Charge for the period 15 456 306 - 777
Released on Disposal - - (31) - (31)
At 30 June 2018 276 1,487 1,585 - 3,348
----------- ----------- --------------- --------------------- -------
Net book value
At 30 June 2018 2,425 42,480 524 833 46,262
=========== =========== =============== ===================== =======
7. Intangible Assets and Goodwill
For the period from 1 January 2018 to 30 June 2018 (unaudited)
Leasehold Goodwill
Software rights Total
GBP000 GBP000 GBP000 GBP000
--------- ---------- ---------- -------
Cost
At 1 January 2018 48 1,711 7,301 9,060
Additions 12 - - 12
Business Combinations
(note 9) - - 2,002 2,002
Exchange Movements - (7) (38) (45)
At 30 June 2018 60 1,704 9,265 11,029
--------- ---------- ---------- -------
Amortisation
At 1 January 2018 4 345 - 349
Charge for the period 9 81 - 90
At 30 June 2018 13 426 - 439
--------- ---------- ---------- -------
Net book value
At 30 June 2018 47 1,278 9,265 10,590
========= ========== ========== =======
8. Borrowings Unaudited Unaudited Audited
30 June 30 June 31 December
2018 2017 2017
GBP000 GBP000 GBP000
---------- ---------- ------------
At amortised cost
Bank loans 18,382 18,400 18,400
Unamortised borrowing costs (304) (738) (242)
---------- ---------- ------------
18,078 17,662 18,158
---------- ---------- ------------
Loans repayable within one year 423 90 168
Loans repayable after more than
one year 17,655 17,572 17,990
---------- ---------- ------------
18,078 17,662 18,158
---------- ---------- ------------
The repayment profile of the loans as at 30 June 2018 are as follows:
For the period ended 30 June 2018 (unaudited) Total
GBP000
-------------------------------
Due within one year 342
Due after more than one year 18,040
Balance at 30 June 2018 18,382
-------------------------------
9. Obligations under finance
leases Minimum lease payments
Unaudited Unaudited Audited
30 June 30 June 31 December
2018 2017 2017
GBP000 GBP000 GBP000
------------------- ---------- -----------------
Amounts payable under finance
leases:
Within one year 960 960 937
In the second to fifth years
inclusive 4,800 4,800 3,840
After five years 43,480 44,440 37,455
Less future finance charges (28,026) (28,906) (21,004)
------------------- ---------- -----------------
Present value of future lease
obligations 21,214 21,294 21,228
=================== ========== =================
Present Value of minimum lease
payments
Unaudited Unaudited Audited
30 June 30 June 31 December
2018 2017 2017
GBP000 GBP000 GBP000
------------------- ---------- -----------------
Amounts payable under finance
leases:
Within one year 27 27 49
In the second to fifth years
inclusive 128 127 223
After five years 21,059 21,140 20,956
------------------- ---------- -----------------
Present value of future lease
obligations 21,214 21,294 21,228
=================== ========== =================
The Group continues to treat the Holland Park lease as a finance lease on the basis that the present value of the lease payments constitutes the substantial part of a theoretical freehold valuation. The average effective borrowing rate was 6.55%. The lease is on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
On 31 March 2017 the group property refinancing transactions on its hostels in Edinburgh and Elephant & Castle, receiving gross proceeds of GBP5.32 million and GBP6.1 million respectively. The properties were independently valued at GBP14.3 million and GBP16.0 million; as the undervaluation matched by lease rentals is below the full market rate, the directors deem the transaction as outside the scope of IAS17 and treatment as finance leases is considered appropriate.
10. Obligations under operating leases
The total future minimum lease rental payments (discounted) under non-cancellable leases are as follows:
Unaudited
Unaudited Unaudited (Restated)
30 June 30 June 31 December
2018 2017 2017
GBP000 GBP000 GBP000
---------- ---------- ------------
Due within a year 1,755 1,055 1,359
Between one and five years 9,282 6,834 4,695
After five years 8,692 6,158 5,481
========== ========== ============
11. Business combinations (unaudited)
On 7(th) March 2018 the Group acquired its third Barcelona hostel through an asset purchase with seller, Equity Point Hostels for a total consideration of EUR3.0 million; EUR700,000 was paid on acquisition with 4 annual instalments of EUR575,000 due.
The hostel has been treated as a business combination as it was operating as a business at the point of purchase.
The provisional fair values of assets and liabilities acquired, translated at 1.13:
GBP000
-------
Property, plant and equipment 103
Current assets -
Deferred revenue, trade and other payables (50)
Goodwill 2,002
-------
Consideration (Net present value) 2,055
-------
The deferred consideration is presented in current and non-current payables at GBP460,597 and GBP971,192 respectively at the reporting date.
12. Notes to the condensed consolidated statement of
cash flows
Unaudited Unaudited Audited
6 months 6 months Year to
to 30 June to 30 June 31 December
2017 2017 2017
GBP000 GBP000 GBP000
------------ ------------ -------------
Loss before tax (790) (370) (862)
Adjustments for:
Depreciation of tangible assets 777 422 1,538
Amortisation of intangible assets 90 70 161
Finance costs 795 1,046 1,833
Loss on disposal of fixed assets 17 - -
Share-based payments 17 17 34
Exchange movements 53 - (147)
Changes in working capital
Stock (7) (74) 2
Trade and other receivables (199) (363) (259)
Trade and other payables 219 103 (389)
------------ ------------ -------------
Cash generated from operating activities 972 851 1,911
------------ ------------ -------------
13. Reconciliation of operating profit to EBITDA
Unaudited Unaudited Audited
6 months 6 months Year to
to 30 June to 30 June 31 December
2018 2017 2017
GBP000 GBP000 GBP000
------------- ------------- -------------
Operating profit 5 676 971
Add back:
Depreciation and amortisation 867 493 1,699
Exceptional items 437 100 495
Share based payment expense 16 17 34
------------- ------------- -------------
Group EBITDA 1,325 1,286 3,199
Head Office costs 1,109 307 1,036
------------- ------------- -------------
Hostel EBITDA 2,434 1,593 4,235
------------- ------------- -------------
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR PGUCGBUPRGRC
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