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
END
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