US DOLLAR REPORTING

RNS Number : 5289V

InterContinental Hotels Group PLC

30 May 2008

 



30 May 2008

IHG ANNOUNCES CHANGE OF REPORTING CURRENCY TO US DOLLARS

InterContinental Hotels Group PLC ("IHG") intends to change the reporting currency of its Group accounts from sterling to US dollars, reflecting the profile of revenue and operating profit, which are now primarily generated in US dollars or US dollar-linked currencies.

The change will be effective from the results for the six months to 30 June 2008 which will be reported on 12 August 2008 in US dollars.  All comparatives will be restated in US dollars.

As a consequence of this change, future dividends will be determined in US dollars.  Sterling dividends, translated at the prevailing exchange rate when the dividend is declared, will continue to be paid to all shareholders who currently receive a sterling dividend.  Dollar dividends will continue to be paid to ADR holders who currently receive a dollar dividend. 

IHG, which is registered and has its headquarters in England, will maintain its primary listing on the London Stock Exchange, with the shares quoted in sterling.  It will also maintain its ADR listing on the New York Stock Exchange, with the American Depositary Receipts quoted in US dollars. 

Unaudited pro forma full year Group income statement, balance sheets and cashflows for the financial years ending 31 December 2006 and 31 December 2007 have been restated in US dollars and are presented below and, together with the restated unaudited proforma Group quarterly income statements, balance sheets and cashflows for the first quarter ending 31 March 2008, are available to download at www.ihg.com/investors.  

For further information, please contact:

Investor Relations (Heather Wood; Catherine Dolton):	[phone]
Media Affairs (Leslie McGibbon):	[phone]
	[phone]

Notes to Editors: 

InterContinental Hotels Group (IHG) [LON:IHG, NYSE:IHG (ADRs)] is one of the world's largest hotel groups by number of rooms. IHG owns, manages, leases or franchises, through various subsidiaries, almost 4,000 hotels and more than 590,000 guest rooms in nearly 100 countries and territories around the world.  The Group owns a portfolio of well recognised and respected hotel brands including InterContinental® Hotels & Resorts, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express®, Staybridge Suites®, Candlewood Suites® and Hotel Indigo®, and also manages the world's largest hotel loyalty programme, Priority Club® Rewards with over 37 million members worldwide.

IHG pioneered the travel industry's first collaborative response to environmental issues as founder of the International Hotels and Environment Initiative (IHEI). The environment and local communities remain at the heart of IHG's global corporate responsibility focus. IHG is the first major hotel group to have measured the environmental and carbon footprints of hotels that operate under our brands globally and is in the process of setting reduction targets. 

With more than 1,600 hotels in its development pipeline, IHG needs to recruit around 150,000 people over the next few years to meet its global expansion plans.

InterContinental Hotels Group PLC is the Group's holding company and is incorporated in Great Britain and registered in England and Wales.

IHG offers information and online reservations for all its hotel brands at www.ihg.com and information for the Priority Club Rewards programme at www.priorityclub.com. For the latest news from IHG, visit our online Press Office at www.ihg.com/media

InterContinental Hotels Group PLC

GROUP INCOME STATEMENT

		12 months ended 31 December 2007			12 months ended 31 December 2006
		Before exceptional  items	Exceptional items	Total	Before exceptional items	Exceptional items	Total
		$m	$m	$m	$m	$m	$m
Continuing operations
Revenue		1,771	-	1,771	1,446	-	1,446
Cost of sales		(825)	-	(825)	(653)	-	(653)
Administrative expenses		(377)	(14)	(391)	(331)	-	(331)
Other operating income and expenses		16	76	92	7	48	55
		____	____	____	____	____	____
		585	62	647	469	48	517
Depreciation and amortisation		(111)	(2)	(113)	(102)	-	(102)
		_____	_____	____	_____	_____	____
Operating profit		474	60	534	367	48	415
Financial income		18	-	18	48	-	48
Financial expenses		(108)	-	(108)	(68)	-	(68)
		____	____	____	____	____	____
Profit before tax		384	60	444	347	48	395
Tax		(84)	60	(24)	(76)	173	97
		____	____	____	____	____	____
Profit for the period from continuing operations		300	120	420	271	221	492
Profit for the period from discontinued operations		11	32	43	36	226	262
		____	____	____	____	____	____
Profit for the period attributable to the equity holders of the parent		311	152	463	307	447	754
		====	====	====	====	====	====
Earnings per ordinary share
Continuing operations:
	Basic			131.3			126.5
	Diluted			127.7			123.3
	Adjusted	93.8			69.7
Total operations:
	Basic			144.7			193.8
	Diluted			140.7			189.0
	Adjusted	97.2			78.9
		====		====	====		====

  InterContinental Hotels Group PLC

GROUP CASH FLOW STATEMENT

		2007 12 months ended 31 December	2006  12 months ended 31 December
		$m	$m
Profit for the period		463	754
Adjustments for:
	Net financial expenses	90	20
	Income tax charge/(credit)	30	(76)
	Gain on disposal of assets, net of tax	(32)	(226)
	Exceptional operating items before depreciation	(62)	(48)
	Depreciation and amortisation	116	118
	Equity settled share-based cost, net of payments	48	26
	Other non-cash items	(4)	-
		_____	_____
Operating cash flow before movements in working capital		649	568
Increase in trade and other receivables		(30)	(57)
Increase in trade and other payables		52	18
Retirement benefit contributions, net of charge		(66)	-
		_____	_____
Cash flow from operations		605	529
Interest paid		(84)	(61)
Interest received		18	44
Tax paid on operating activities		(74)	(79)
		_____	_____
Net cash from operating activities		465	433
		_____	_____
Cash flow from investing activities
Purchases of property, plant and equipment		(114)	(160)
Purchase of intangible assets		(40)	(42)
Purchases of associates and other financial assets		(32)	(15)
Acquisition of subsidiary, net of cash acquired		-	(11)
Disposal of assets, net of costs and cash disposed of		97	1,140
Proceeds from associates and other financial assets		114	228
Tax paid on disposals		(64)	(11)
		_____	_____
Net cash from investing activities		(39)	1,129
		_____	_____
Cash flow from financing activities
Proceeds from the issue of share capital		32	37
Purchase of own shares		(162)	(478)
Purchase of own shares by employee share trusts		(138)	(86)
Proceeds on release of own shares by employee share trusts		21	35
Dividends paid to shareholders		(1,524)	(1,031)
Dividends paid to minority interests		-	(2)
Increase/(decrease) in borrowings		1,108	(316)
		_____	_____
Net cash from financing activities		(663)	(1,841)
		_____	_____
Net movement in cash and cash equivalents in the year		(237)	(279)
Cash and cash equivalents at beginning of the year		351	559
Exchange rate effects		(9)	71
		_____	_____
Cash and cash equivalents at end of the year		105	351
		=====	=====

  InterContinental Hotels Group PLC

GROUP BALANCE SHEET

	2007 31 December	2006 31 December
	$m	$m
ASSETS
Property, plant and equipment	1,934	1,956
Goodwill	221	214
Intangible assets	335	302
Investment in associates	65	63
Retirement benefit assets	65	-
Other financial assets	188	188
	_____	_____
Total non-current assets	2,808	2,723
	_____	_____
Inventories	6	6
Trade and other receivables	472	465
Current tax receivable	109	45
Cash and cash equivalents	105	351
Other financial assets	18	25
	_____	_____
Total current assets	710	892
Non-current assets classified as held for sale	115	98
	______	______
Total assets	3,633	3,713
	=====	=====
LIABILITIES
Loans and other borrowings	(16)	(20)
Trade and other payables	(784)	(788)
Current tax payable	(426)	(453)
	_____	_____
Total current liabilities	(1,226)	(1,261)
	_____	_____
Loans and other borrowings	(1,748)	(594)
Retirement benefit obligations	(111)	(139)
Trade and other payables	(279)	(214)
Deferred tax payable	(165)	(155)
	_____	_____
Total non-current liabilities	(2,303)	(1,102)
Liabilities classified as held for sale	(6)	(4)
	_____	_____
Total liabilities	(3,535)	(2,367)
	=====	=====
Net assets	98	1,346
	=====	=====
EQUITY
Equity share capital	163	129
Capital redemption reserve	10	8
Shares held by employee share trusts	(83)	(33)
Other reserves	(2,918)	(2,914)
Unrealised gains and losses reserve	38	53
Currency translation reserve	233	209
Retained earnings	2,649	3,878
	______	______
IHG shareholders' equity	92	1,330
Minority equity interest	6	16
	______	______
Total equity	98	1,346
	=====	=====

1.	Revenue
				2007 12 months ended 31 December	2006 12 months ended 31 December
				$m	$m
		Continuing operations
			Americas  (note 3)	902	778
			EMEA (note 4)	492	363
			Asia Pacific (note 5)	260	204
			Central	117	101
				____	____
				1,771	1,446
		Discontinued operations		79	319
				____	____
				1,850	1,765
				====	====

2.	Operating profit
				2007 12 months ended 31 December	2006 12 months ended 31 December
				$m	$m
		Continuing operations
			Americas (note 3)	440	395
			EMEA (note 4)	134	69
			Asia Pacific (note 5)	63	52
			Central	(163)	(149)
				____	____
				474	367
			Exceptional operating items	60	48
				____	___
				534	415
		Discontinued operations		17	57
				____	___
				551	472
				====	===

3.	Americas
			2007 12 months ended 31 December	2006 12 months ended 31 December
			$m	$m
	Revenue
		Owned & leased	257	192
		Managed	156	143
		Franchised	489	443
			____	____
	Continuing operations		902	778
	Discontinued operations - Owned & leased		62	74
			____	____
	Total		964	852
			====	====
	Operating profit
		Owned & leased	40	22
		Managed	41	50
		Franchised	425	382
		Regional overheads	(66)	(59)
			____	____
	Continuing operations		440	395
	Discontinued operations - Owned & leased		16	12
			____	____
	Total		456	407
			====	====

4.	EMEA
			2007 12 months ended 31 December	2006 12 months ended 31 December
			$m	$m
	Revenue
		Owned & leased	244	169
		Managed	167	131
		Franchised	81	63
			____	____
	Continuing operations		492	363
	Discontinued operations - Owned & leased		17	245
			____	____
	Total		509	608
			====	====
	Operating profit
		Owned & leased	33	(7)
		Managed	87	68
		Franchised	58	44
		Regional overheads	(44)	(36)
			____	____
	Continuing operations		134	69
	Discontinued operations - Owned & leased		1	45
			____	____
	Total		135	114
			====	====

5.	Asia Pacific
			2007 12 months ended 31 December	2006 12 months ended 31 December
			$m	$m
	Revenue
		Owned & leased	145	131
		Managed	99	65
		Franchised	16	8
			____	____
	Total		260	204
			====	====
	Operating profit
		Owned & leased	36	31
		Managed	46	39
		Franchised	6	5
		Regional overheads	(25)	(23)
			____	____
	Total		63	52
			====	====
	All results relate to continuing operations.

6.

Exchange rates

The results of overseas operations have been translated into US dollars at the weighted average rates of exchange for the period. In the case of sterling, the translation rate is $1= £0.50 (2006 $1 = £0.54). In the case of the euro, the translation rate is $1 = €0.73 (2006 $1 = €0.80). Foreign currency denominated assets and liabilities have been translated into US dollars at the rates of exchange on the balance sheet date. In the case of sterling, the translation rate is $1=£0.50 (2006 $1 = £0.51). In the case of the euro, the translation rate is $1 = €0.68 (2006 $1 = €0.76).

 

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