Final Results

RNS Number : 8957K

Peel Hotels PLC

22 April 2015

 



PEEL HOTELS PLC

PRELIMINARY ANNOUNCEMENT

Derived from audited results for Financial Year Ended 1 February 2015.

HIGHLIGHTS

#          Turnover increased 6.1% to £16,454,241 (2014: £15,509,911)

#          EBITDA increased 24.9% to £2,473,196 (2014: £1,980,380)

#          Operating Profit up 56.5% to £1,454,481 (2014: £929,627)

#          Net debt decreased £821,990

#          Profit before tax increased 180.6% to £959,403 (2014: £341,863)

#          Earnings per share basic and diluted 5.24p (2014: 2.78p)

#          Expect to pay dividend of 1.5p for year ended 1 February 2015. Details to be announced when we publish our Annual Report at the beginning of May 2015

'Sustained improvement in turnover has continued in the new financial year and we continue to pay down our debt. These two factors will enable us to look forward to another year of progress.'

Robert Peel                                         

Chairman

0207 286 6823

Press Enquiries

Peel Hunt Ltd / Capel Irwin

0207 418 8907

Review of the business

RESULTS

The Group achieved a creditable improvement in the Financial Year ended 1 February 2015 with hotel revenues increasing by 6.1% to £16,454,241 (2014: £15,509,911). Hotel gross profit before depreciation and Group administration increased 25.9% to £3,196,325 (2014: £2,538,464). EBITDA increased 24.9% to £2,473,196 (2014: £1,980,380). Profit before tax excluding the fair value movement on derivative was £800,342 (2014: £2,781 loss).

Revpar (accommodation revenue per available room) increased 9.9% with occupancy up 8.9% and average room rate up 1.0%

Administration expenses increased 29.6% partly due to the effect of Business Rates refunds received in the previous year. The increase is also partly due to the Chairman being paid a salary in this financial year.  Depreciation and amortisation decreased 3.0%.

FINANCE

As at 1 February 2015 net debt stood at £10,887,744 (2014: £11,709,734) representing loans totalling £10,839,915 (2014: £11,420,253) and an overdraft of £194,659 (2014: £484,496) less £146,830 (2014: £195,015) cash at bank. Gearing on Shareholders' funds was 47.0% with interest covered 2.2 times. Net debt decreased by £821,990 compared with the previous year.

Savings in financial charges through the falling away of the fixed interest swap on 11 April 2014, together with less net debt, produced £278,269 less finance expenses compared with the previous year.

During the year £100,000 of the unsecured loan notes that bear interest at 7% per annum to Robert Peel and Charles Peel were repaid reducing the total to £750,000.

CAPITAL EXPENDITURE

£603,295 (2014: £519,328) was spent in the year of which £240,260 was spent on the Crown and Mitre Hotel in Carlisle. The majority of the Hotel corridors have been refurbished together with several bedrooms and the entire front elevation of the Hotel was subjected to a major overhaul and renovation. English Heritage kindly contributed £80,000 towards these important restoration works.

The Bull Hotel bedroom refurbishment was completed in the year. Bedroom refurbishment continued at the Caledonian in Newcastle and the Cosmopolitan in Leeds. We renovated the restaurant at the Norfolk in Bournemouth and installed new boilers at the Cosmopolitan in Leeds.

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 their having a satisfactory stay with us.

£646,520 (2014:£576,192) was spent in addition to Capital Expenditure on repairs and renewals which help us ensure that we are constantly and consistently maintaining and improving our Product.

Group Statement of Comprehensive Income

for the year ended 1 February 2015

					2015		2014
					£		£
Revenue					16,454,241		15,509,911
Cost of sales					(13,257,916)		(12,971,447)
Gross profit					3,196,325		2,538,464
Administration expenses				(723,129)		(558,084)
Depreciation				(1,018,715)		(1,050,753)
Total administration expenses					(1,741,844)		(1,608,837)
Operating profit					1,454,481		929,627
Finance income					12,539		414
Finance expense					(666,678)		(932,822)
Fair value movement on derivative					159,061		344,644
Profit before tax					959,403		341,863
Income tax					(224,939)		47,610
Profit and total comprehensive income for the period attributable to owners					734,464		389,473
Earnings per share
Basic & diluted (pence)					5.24		2.78

Group statement of changes in equity

for the years ended 1 February 2015 and 2 February 2014

Year ended 1 February 2015	Share Capital	Share premium account	Profit and loss account	Total
	£	£	£	£
Balance brought forward at 3 February 2014	1,401,213	9,743,495	11,298,359	22,443,067
Profit and total comprehensive income for the period	-	-	734,464	734,464
Balance at 1 February 2015	1,401,213	9,743,495	12,032,823	23,177,531

Year ended 2 February 2014	Share Capital	Share premium account	Profit and loss account	Total
	£	£	£	£
Balance brought forward at 4 February 2013	1,401,213	9,743,495	10,908,886	22,053,594
Profit and total comprehensive income for the period	-	-	389,473	389,473
Balance at 2 February 2014	1,401,213	9,743,495	11,298,359	22,443,067

Group Balance Sheet

at 1 February 2015    

		2015	2014
		£	£
Assets
Non-current assets
Property, plant and equipment		36,092,877	36,506,121
Deferred tax asset		-	31,813
Total non-current assets		36,092,877	36,537,934
Current assets
Inventories		103,288	108,670
Trade and other receivables		1,016,130	1,114,703
Cash and cash equivalents		146,830	195,015
Total current assets		1,266,248	1,418,388
Total assets		37,359,125	37,956,322
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		12,032,823	11,298,359
Total equity		23,177,531	22,443,067
Liabilities
Non-current
Borrowings		10,133,861	10,844,199
Deferred tax liabilities		962,730	982,306
Non-current liabilities		11,096,591	11,826,505
Current
Trade and other payables		1,971,414	2,383,690
Borrowings		900,713	1,060,550
Current tax liabilities		212,876	83,449
Derivative financial instruments		-	159,061
Current Liabilities		3,085,003	3,686,750
Total liabilities and equity		37,359,125	37,956,322

Group Cash Flow Statement

for the year ended 1 February 2015

		2015	2014
		£	£
Cash flows from operating activities
Profit for the year		734,464	389,473
Adjustments for:
Financial income		(12,539)	(414)
Financial expense		666,678	932,822
Fair value movement on derivative		(159,061)	(344,644)
Income tax		224,939	(47,610)
Depreciation		1,018,715	1,050,753
Cash flows before changes in working capital and provisions		2,473,196	1,980,380
UK corporation tax paid		(83,275)	(37,202)
Decrease in trade and other receivables		137,826	14,524
(Decrease)/increase in trade and other payables		(305,381)	165,423
Decrease/(increase) in inventories		5,382	(9,141)
Net cash from operating activities		2,227,748	2,113,984
Cash flows from investing activities
Acquisition of property, plant and equipment		(603,295)	(519,328)
Net cash from investing activities		(603,295)	(519,328)
Cash flows from financing activities
Interest paid		(696,747)	(1,042,552)
Loan repayments		(686,054)	(566,054)
Net cash from financing activities		(1,382,801)	(1,608,606)
Net increase/(decrease) in cash and cash equivalents		241,652	(13,950)
Cash and cash equivalents at the beginning of the period		(289,481)	(275,531)
Cash and cash equivalents at the end of the period		(47,829)	(289,481)
For the purposes of the cash flow statement, cash and cash equivalents comprise:
Cash and bank balances		146,830	195,015
Bank overdrafts		(194,659)	(484,496)

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, except for derivative financial instruments which are included at their fair value.

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 1 February 2015 upon which the auditors' opinion is 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 1 February 2015 was based on the profit attributable to ordinary shareholders of £734,464 (2014: £389,473) and a weighted average number of ordinary shares outstanding of 14,012,123 (2014: 14,012,123).  No shares were issued in 2015 or 2014.

Diluted earnings per share

There were no potentially dilutive options in issue in 2015 and 2014 and consequently there is no difference between basic and diluted earnings per share.

 

END

 

 

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