Half Yearly Report

RNS Number : 2545P

Peel Hotels PLC

23 October 2012

 



PEEL HOTELS PLC

 

 

INTERIM RESULTS

 

 

For 28 weeks ended 19 August 2012

·         Turnover up 4.7% to £8,214,828 (2011:£7,846,471)

·         Operating Profit up 10.2% to £422,230 (2011:£383,172*)

·         Profit before tax £45,049 (2011:£32,998)

·         Net Debt decreased by £424,816

·         Earnings per share

                                      Basic     0.2p      (2011: 0.4p)

                                      Diluted  0.2p      (2011: 0.4P)

·     Excluding the £232,068 profit on disposal of property in last year's results

Chairman Robert Peel said: 'We have made progress in the period in terms of sustainable sales growth, Revpar growth and the continuing decrease of net debt. We hope to build on this very satisfactory sales growth by improving our return on sales'

23 October 2012

Press enquiries :                                  0207 266 1100

Nominated advisor and Broker              0207 418 8900

Peel Hunt LLP

Capel Irwin

CHAIRMAN'S STATEMENT

In the 28 weeks to 19 August 2012 turnover was £8,214,828, an increase of 4.7% on the corresponding period of the previous year. Over the same period operating profit increased 10.2% to £422,230 excluding the £232,068 profit on disposal of property in last year's results. EBITDA (earnings before interest, tax and depreciation) increased 1.1% to £1,029,823.

Revpar (accommodation revenue per available room) increased 2.6% with occupancy down 0.3% and average room rate up 2.8%.

Group overheads increased £10,447 and depreciation and amortisation decreased £27,440.

Profit before tax was £45,049 compared to a profit of £32,998 last year.

Corporation Tax has been provided at an effective rate of 25%. Basic earnings per share were 0.2p compared with 0.4p in the comparative period on a weighted average of 14,012,123 (2011: 14,012,123) shares in issue.

FINANCE

On 19 August 2012 net debt stood at £12,418,743 representing loans totalling £12,340,029 and an overdraft of £181,056 less £102,342 cash at bank. Gearing on Shareholder's funds was 56.2% with interest covered 0.8 times. Net debt decreased by £424,816 compared with previous year end.

The cost of buying out the swap on 19 August 2012 was £659,198 and the Board's view is still that it would make little economic sense to do this bearing in mind that the agreement ceases on 11 April 2014.

CAPITAL EXPENDITURE

We have been careful to conserve cash in the period but not at the detriment of maintaining and improving all our properties. We spent £172,331 in the period across the portfolio mainly upgrading the garden at the Norfolk Royale Hotel and on the continuation of improving the bedrooms at the Midland Hotel.

In addition to such capital expenditure a further £299,790 (2011: £305,283) was expensed through the statement of comprehensive income in the period on repairs and renewals which further demonstrates our commitment to maintaining and improving the quality of our estate.

SHAREHOLDERS

We are always delighted to welcome Shareholders to our Hotels where they can see for themselves the progress we have made, whilst enjoying a beneficial discount of 50% of our rack rate tariff, using a special reservations number 0207 266 1100 or e-mail [e-mail] .  Shareholders can keep in touch with progress in the company and various promotional activities by visiting our website www.peelhotels.co.uk

DIRECTORS

Norbert Petersen, who has been an Executive Director of the Company since 1998, has decided to retire from his executive duties but has agreed to remain on the board as a Non-executive Director.

Nick Parrish, who has been Chief Accountant since 1998, has been elected to the Board as Financial Director.

THE FUTURE

We have maintained the sales growth (without deriving any benefit from the Olympic Games) that was mentioned in the Annual Report and this continues to give us optimism that in provincial terms the 'bottom of the cycle' has been reached. We have managed to control our labour costs in line with the business we achieved. However the pressure to increase tariffs from our suppliers, in particular energy, is relentless. Large increases in the cost of food and Duty increases on liquor lessen our margins, as we are unable to pass large increases in tariff on to our customers.

We have certainly made progress in the period and hope to build on our very satisfactory sales growth by improving our return on sales.

DIRECTORS AND ADVISORS

Directors

                   Robert Edmund Guy Peel                      Executive Chairman

                   Nicholas David Lawton Parrish              Financial Director

                   Clement John Govett                            Non-executive Director

                   Keith Peter Benham                              Non-executive Director

                   Norbert Paul Gottfried Petersen             Non-executive Director

Secretary

Thrings LLP

Kinnaird House, 1 Pall Mall East, London SW1Y 5AU

Registered Office

5^th Floor, Kinnaird House, 1 Pall Mall East, London SW1Y 5AU

Company registration number 3473990

Auditor

Grant Thornton UK LLP

No. 1 Whitehall Riverside, Leeds, LS1 4BN

Bankers    

Royal Bank of Scotland Plc

280 Bishopsgate, London EC2M 4RB

Registrars

Computershare Services Plc

PO Box No 82, The Pavilions, Bridgewater Road, Bristol BS99 7NH

Solicitors

Thrings LLP

Kinnaird House, 1 Pall Mall East, London SW1Y 5AU

Stockbroker

Peel Hunt LLP

Moor House, 120, London Wall, London EC2Y 5ET

                                                                                                                                     4

GROUP STATEMENT OF COMPREHENSIVE INCOME

for the period ended 19 August 2012

                                                                    Unaudited                                Unaudited                                        Audited

                                                             28 weeks ended                        28 weeks ended                                    Year ended

                                                                                          19/08/2012                              21/08/2011                                     05/02/2012

                                                            Note            £                                        £                                                         £

Revenue                                               8,214,828                      7,846,471                        14,647,126   

Cost of sales                                         (6,826,912)                    (6,480,620)                      (12,388,590)

Gross profit                                            1,387,916                     1,365,851                          2,258,536

Administration expenses                           (358,093)                      (347,646)                            (700,881)

Depreciation                                            (607,593)                     (635,033)                           (1,192,025)

Profit on disposal of property                      -                                  232,068                                232,766 

Operating profit                                            422,230                     615,240                             598,396

Finance income                                                          -                              -                                      21

Finance expense                                          (524,424)                    (523,540)                            (952,026)

Fair value movement on derivative                  147,243                     (58,702)                               125,807     

Profit /(loss) before tax                                 45,049                        32,998                              (227,802)

Income tax                                     2                (11,262)                      26,259                                229,590

Profit and total comprehensive
income for the period attributable
to owners                                                        33,787                        59,257                                   1,788

Earnings per share                                                

Basic & diluted (pence)                     3                  0.2                               0.4                                    0.01

GROUP STATEMENT OF CHANGES IN EQUITY

for the period ended 19 August 2012

28 weeks ended 21 August 2011

Unaudited                                                                                                    Share                Profit

                                                                                          Share           premium             and loss

                                                                                       Capital             account             account                Total

                                                                                                £                       £                       £                       £

Balance brought forward                                      

at 7 February 2011                                 1,401,213     9,743,495   10,902,946   22,047,654

Profit and total comprehensive

income for the period                                          -                  -         59,257         59,257

Balance at 21 August 2011                      1,401,213     9,743,495   10,962,203   22,106,911

12 months ended 5 February 2012

                                                                                                                   Share                Profit

Audited                                                                              Share           premium             and loss

                                                                                       Capital             account             account                 Total

                                                                                                £                       £                       £                       £

Balance brought forward

at 7 February 2011                                 1,401,213     9,743,495   10,902,946   22,047,654 

Profit and total comprehensive

income for the period                                          -                  -           1,788           1,788

Balance at 5 February 2012                     1,401,213     9,743,495   10,904,734   22,049,442

28 weeks ended 19 August 2012

                                                                                                                   Share                Profit

Unaudited                                                                           Share           premium             and loss

                                                                                       Capital             account             account                 Total

                                                                                                £                       £                       £                       £

Balance brought forward

at 6 February 2012                                 1,401,213     9,743,495   10,904,734   22,049,442

Profit and total comprehensive

income for the period                                          -                  -         33,787         33,787

Balance at 19 August 2012                      1,401,213     9,743,495   10,938,521   22,083,229

                                                                                                                                 
GROUP BALANCE SHEET

at 19 August 2012

                                                                                          19/08/2012                21/08/2011              05/02/2012

                                                                                             Unaudited                   Unaudited                    Audited

                                                                                                          £                                £                              £

Assets

Non-current assets

Property, plant and equipment                       37,300,058          38,026,537        37,735,319

Deferred tax asset                                              201,610              257,647            201,610

Total non-current assets                            37,501,668          38,284,184        37,936,929

Current assets

Inventories                                                       106,393              103,533          102,306

Trade and other receivables                              580,675              562,314            446,983

Prepayments                                                    796,019              987,862            768,180

Current tax asset                                                28,275                        -              39,537

Cash at bank and in hand                                  102,342                70,980              42,529

Total current assets                                     1,613,704           1,724,689          1,399,535

Total assets                                               39,115,372          40,008,873        39,336,464

Equity and liabilities

Equity attributable to owners

Share capital                                                 1,401,213           1,401,213          1,401,213

Share premium                                              9,743,495           9,743,495          9,743,495

Retained earnings                                         10,938,521          10,962,203        10,904,734

Total equity                                               22,083,229          22,106,911        22,049,442

Liabilities

Non-current

Borrowings (due after one year)                    10,393,975           9,981,865          9,762,605

Deferred tax liabilities                                     1,417,523            1,575,325          1,417,523

Derivative financial instruments                           344,812              704,735             483,865

Non-current liabilities                                12,156,310          12,261,925        11,663,993

Current

Trade and other payables                               2,434,337           2,403,011          2,176,970

Borrowings (due within one year)                   2,127,110           2,806,451          3,123,483

Current tax liabilities                                                   -              144,360                       -

Derivative financial instruments                          314,386              286,215              322,576

Current liabilities                                        4,875,833           5,640,037            5,623,029

Total liabilities and equity                          39,115,372          40,008,873        39,336,464

GROUP CASH FLOW STATEMENT

for the Period ended 19 August 2012

                                                                                Unaudtied              Unaudited              Audited

                                                                                                           19/08/2012             21/08/2011          05/02/2012

                                                                                                               £                          £                                       £

Cash flows from operating activities

Profit for the period                                                33,787            59,257                   1,788

Adjustments for:

Financial income                                                            -                    -                      (21)

Financial expense                                                 524,424          523,540                952,026

Fair value movement on derivative                        (147,243)          58,702              (125,807)

Income tax income                                                 11,262          (26,259)              (229,590)

Profit on sale of property                                                -         (232,068)               (232,766)

Depreciation                                                        607,593          635,033               1,192,025

Operating profit before changes in

working capital and provisions                        1,029,823       1,018,205                 1,557,655

UK corporation tax (paid)                                                -                    -                   (82,331)

(Increase)/decrease in trade and other receivables  (171,922)       (317,164)                     13,770

Increase in trade and other payables                       272,155          389,093                     190,200

(Increase)/decrease in inventories                            (4,087)            3,255                         4,482

Net cash from operating activities                   1,125,969       1,093,389                1,683,776

Cash flows from investing activities

Interest paid                                                       (524,424)       (522,866)              (1,004,935)

Acquisition of property, plant and equipment       (172,332)       (302,667)                   (568,441)

Sale of property, plant and equipment                               -          462,927                   462,927

Net cash from investing activities                   (696,756)       (362,606)              (1,110,449)

Cash flows from financing activities

New loans                                                           585,000                    -                   300,000

Loan repayments                                               (223,027)        (685,954)                 (908,981)

Net cash from financing activities                    361,973         (685,954)                (608,981)

Net increase/(decrease) in cash

and cash equivalents                                          791,186            44,829                  (35,654)

Cash and cash equivalents at the

beginning of the period                                        (869,900)        (834,246)                (834,246)

Cash and cash equivalents at the

end of the period                                                (78,714)        (789,417)                 (869,900)

For the purposes of the cash flow statement,

cash and cash equivalents comprise:

Cash and bank balances                                        102,342             70,980                     42,529

Bank overdraft                                                  (  181,056)           (860,397)                (912,429)           

NOTES TO THE INTERIM RESULTS

for the period ended 19 August 2012

1. Basis of accounting

The interim financial information has been prepared on the basis of the recognition and measurement requirements of adopted IFRSs as at 19 August 2012 that are effective (or available for early adoption) at 3 February 2013. Based on these adopted IFRSs, the Directors have applied the accounting policies, which they expect to apply when the annual IFRS financial statements are prepared for the year ending 3 February 2013.

The group has chosen not to adopt IAS 34 (Interim Financial Statements) in preparing these interim financial statements and therefore the interim financial information is not in full compliance with International Financial Reporting Standards.

The financial information set out in this interim report does not constitute statutory accounts as defined in sections 434 and 435 of the Companies Act 2006.  The figures for the year ended 5 February 2012 have been extracted from the statutory financial statements which have been filed with the Registrar of Companies.  The auditor's report on those financial statements was unqualified and did not contain a statement under section 498(2) and 498(3) of the Companies Act 2006.

The group's accounting policies remain as stated in the group's full annual accounts for the year ended 5 February 2012.

2. Taxation

Tax has been provided at a rate of 25% which represents the expected effective rate for the full year. 

3. Earnings per share

Earnings per share are based on the profit after taxation and on the weighted average number of shares in issue during the period.

                                                                            28 weeks          28 weeks               Year

                                                                                 ended                ended             ended

                                                                            19/8/2012          21/8/2011         5/2/2012

                                                                          Unaudited          Unaudited           Audited

Average No. shares - Basic                                14,012,123        14,012,123      14,012,123

                                - Diluted                             14,012,123        14,012,123      14,012,123

Independent review report to Peel Hotels plc

Introduction

We have been engaged by the company to review the financial information in the half-yearly financial report for the 28 weeks ended 19 August 2012 which comprises the Group Statement of Comprehensive Income, the Group Balance Sheet, the Group Cash Flow Statement, the Group Statement of Changes in Equity and the related notes.

We have read the other information contained in the half yearly financial report which comprises only the Chairman's Interim Statement and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with guidance contained in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the company those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusion we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The AIM rules of the London Stock Exchange require that the accounting policies and presentation applied to the financial information in the half-yearly financial report are consistent with those which will be adopted in the annual accounts having regard to the accounting standards applicable for such accounts.

As disclosed in Note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The financial information in the half-yearly financial report has been prepared in accordance with the basis of preparation in Note 1.

Our responsibility

Our responsibility is to express to the Group a conclusion on the financial information in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the financial information in the half-yearly financial report for the 28 weeks ended 19 August 2012 is not prepared, in all material respects, in accordance with the basis of accounting described in Note 1.

GRANT THORNTON UK LLP

AUDITOR

LEEDS 

 

END

 

 

IR FEEFIEFESEDS