Final Results
Park Plaza Hotels Limited
27 March 2008
27 March 2008
PARK PLAZA HOTELS LIMITED
('Park Plaza' or the 'Group')
Preliminary Results for the year ended 31 December 2007
Park Plaza Hotels Limited, an owner, operator and franchisor of hotels in
Europe, the Middle East and North Africa, today reports results for the 12
months ended 31 December 2007.
Highlights
Unaudited Financial Proforma Statistics for the year ended 31 December 20071
2007 2006 % change
Occupancy 82.4% 80.7% +1.7%
Average Room Rate €118.8 €115.1 +3.2%
Revpar €97.1 €91.6 +6.1%
Total Revenue €97.0 million €88.2 million +10.0%
EBITDA2 €28.4 million €22.8 million +24.4%
• Group revenues up 10.0% to €97.0 million, with occupancy, average room
rates and RevPAR in the hotel business all increasing
• 24.4% increase in EBITDA to €28.4 million (2006: €22.8 million),
driven primarily by strong performances in the UK and hotel management
operations
• Successful admission of shares to AIM in July, raising £85 million
• Existing hotel portfolio enhanced by refurbishments completed at
art'otel Ku'damm (Berlin) and Park Plaza Mandarin (Eindhoven), with Park
Plaza Vondel (Amsterdam) and art'otel Berlin Mitte refurbishments due for
completion in 2008
• Significant strategic progress made towards expanding the Group's
portfolio to over 8,000 rooms by 2010, including:
- Opening of Park Plaza County Hall (London) in February 2008
- Franchise agreements signed for a Park Plaza hotel in Doha (Qatar) and
a Park Plaza hotel and art'otel in Marrakech (Morocco)
- Increase in shareholding in Park Plaza Westminster Bridge project to
100% and obtaining of planning permission for an additional floor
- 50% joint venture agreement with the Reuben Brothers to build London's
first art'otel in Hoxton, London
• Cash or cash equivalents at 31 December 2007 of €120 million, giving
the Group the flexibility to capitalise on further growth opportunities.
Commenting on the results, Boris Ivesha, Chief Executive Officer of Park Plaza
said, 'We are extremely pleased to report such good progress during 2007, both
with regards to our successful admission to AIM in July and the performance of
our hotels and management operations. In addition to ongoing refurbishments in
our current estate, the funds raised will support our goal of doubling the
number of rooms in our portfolio to over 8,000 by 2010.
Although it is still early in the year and there are uncertainties in the
economic environment, we are confident that our current portfolio of hotels and
pipeline of opportunities leave the Group well positioned to achieve further
growth in 2008 and beyond.'
1. Park Plaza Hotels Limited was incorporated and registered in Guernsey
on 14 June 2007, however the merger of Euro Sea Group and acquisition of Park
Plaza Group did not take place until 17 July 2007. Except where otherwise
indicated, all 2007 and 2006 unaudited proforma financial figures in this
statement have been calculated as if the company had been incorporated and
the merger and acquisition taken place in December 2005. Figures for 2006
are unaudited proforma financial figures calculated as if these events had
taken place at 31 December 2005.
2. Earnings before interest, tax, depreciation and amortisation.
Enquiries:
Park Plaza Hotels
Boris Ivesha/ Tel: +44 (0)20 7034 4800
Chen Moravsky Tel: +31 (0)20 305 8351
Hudson Sandler Tel: +44 (0)20 7796 4133
Jessica Rouleau / Amy Faulconbridge
Overview
2007 was a busy year for the Group. On 17 July 2007, Park Plaza Hotels
Limited's shares were admitted to trading on the Alternative Investment Market
(AIM) of the London Stock Exchange, raising £85 million before costs through a
placing with new institutional investors.
The Group's objective is to become one of the leading hotel owner/operators in
the mid to upscale segment and trendy boutique hotel markets in Europe, the
Middle East and North Africa. To achieve this, the Group intends to grow both
organically and through the acquisition and development of new hotels. We have
made significant progress on both of these fronts since our admission to AIM.
The Group's EBITDA increased by 24.4% in 2007, to €28.4 million reflecting
strong performance from our existing hotel portfolio. The Group also has a
number of development projects underway, many of them signed in the past 6
months, which will help us achieve our goal of increasing the number of rooms in
our portfolio to over 8,000 by 2010. These include the development of new
hotels in London (UK), Nuremberg and Cologne (Germany), as well as new franchise
agreements for hotels in Doha (Qatar) and Marrakech (Morocco). The additional
equity capital raised at the time of admission to AIM gives the Group the
financial flexibility to capitalise on growth opportunities beyond its current
committed projects.
Financial Performance
All 2007 and 2006 unaudited proforma financial figures in this statement have
been calculated as if Park Plaza had been incorporated on 31 December 2005 and
31 December 2006.
Total revenue for the year increased by 10% to €97.0 million (2006: €88.2
million), reflecting good performances across the Group. Group RevPAR for the
year increased by 6.1% to €97.1 (2006: €91.6) driven primarily by improvements
in average room rates in the Group's properties in the UK and The Netherlands.
In the UK, the Group's hotels achieved RevPAR of €144.6 for the full year, a
13.7% increase over the previous year (2006: €127.3). The Group's hotels in The
Netherlands achieved RevPAR of Euro 112.5 for the year, an increase of 8.4%
(2006: €103.8), primarily driven by a 6.8% increase in average room rate during
the period whilst maintaining 90% occupancy. The German and Hungarian markets
continued to be very competitive, reflected in a small reduction in RevPAR
during the year to €51.7 (2006: €52.4).
Group EBITDA increased by 24.4% to €28.4 million (2006: €22.8 million) as a
result of strong performances from the Group's hotels in the UK and its hotel
management operations. This result was achieved despite a challenging year in
Germany and Hungary.
Profit before tax was €22.1 million (2006: loss of €4.7 million). This figure
includes a profit of €9.2 million from the sale of Park Plaza's 50% shareholding
in Andrassy, a joint venture owning one property in Hungary, and a negative
goodwill adjustment of €13.0 million resulting from the difference in the sale
and purchase price of the Park Plaza Group prior to the Initial Public Offering
and the value of the Group at flotation. Excluding these items, the Group would
have reported a marginal loss before tax.
Following completion of its IPO, Park Plaza's balance sheet provides a strong
platform from which to grow its portfolio. As at 31 December 2007, net debt was
€86.5 million, with cash and cash equivalents of €120.0 million.
As we indicated at the time of the Group's admission to AIM, the Group intends
to retain its earnings for use in, and to grow, the business and does not
envisage paying any dividends for at least the first 18 months following the
Group's admission to AIM. The Board will keep this policy under review in
light of the growth opportunities available to the Group.
Review of Operations
Overview
The Group operates under two distinct brands which appeal to different target
customers: Park Plaza Hotels & Resorts (part of Carlson Hotels Worldwide), over
which the Group has exclusive rights in 55 countries in Europe, the Middle East
and North Africa, and art'otel, a brand owned by the Group. The Park Plaza
brand is positioned in the mid to upscale segment of full-service hotels and
offers both business and leisure travellers' high quality standard rooms at
attractive rates. The art'otel brand, which also operates in the mid to upscale
segment, is built on the concept of individually themed boutique hotels, each of
which is dedicated to a well-known modern artist.
The Group's strategic partnership with Carlson, one of the world's largest
travel and hospitality companies, provides Park Plaza with access to Carlson's
large-scale and effective reservation and distribution system. Through this
partnership, the Group benefits from the economies of scale, extensive operating
experience and the significant negotiating power of Carlson whilst retaining the
flexibility and speed of reaction associated with a much smaller organisation.
During the year, the Group continued to make good progress, developing a number
of projects in order to expand its hotel portfolio to over 8,000 rooms by 2010.
These include obtaining planning permission for an additional floor and ongoing
construction of the Park Plaza Westminster Bridge hotel in London, starting
construction of a new build art'otel in Cologne (Germany) and the development of
an existing property in Nuremberg (Germany). Major refurbishment projects of
existing hotels which will also enhance the Group's portfolio were started in
Amsterdam, Berlin and Eindhoven. Two new franchise agreements, signed in
December 2007, for hotels in Doha (Qatar) and Marrakech (Morocco) will add an
additional 281 rooms. In addition to investment opportunities, the Group will
continue to look at further options to expand its brands through franchise and
management agreements in selected markets.
During the year, the Group also successfully implemented a new yield management
system across the portfolio. This system allows Park Plaza to take account of
demand from both the Carlson Central Reservation System and its own internet
bookings in real time, assisting managers to maximise room rates and drive top
line growth. It will also enable the Group to take full advantage of its
membership in the new Carlson goldpointsplusSM programme, which covers 965
locations in 71 countries.
Our Markets
The UK, The Netherlands and Germany are currently the principal markets in which
Park Plaza operates.
Overview of Hotel Operating Results for the year to 31 December 2007
The following is a discussion of certain summary operating statistics for Park
Plaza's owned/co-owned, operated and managed hotels for the periods indicated.
These figures have been extracted from Park Plaza's unaudited management
accounts and may therefore not be comparable with Park Plaza's audited results
over the periods shown or any future period.
UK
Hotel Operations: Key Operating Statistics
Year ended 31 December 2007 Year ended 31 December 2006
(Unaudited proforma) (Unaudited proforma)
Occupancy 84.8% 80.9%
Average Room Rate € 173.6 € 161.9
RevPAR € 144.6 € 127.3
Total Revenue € 37.7 million € 34.1 million
EBITDA € 12.7 million € 10.5 million
The London market as a whole remained strong during the period, albeit slowing
slightly in the second half of the year. The Group's owned and co-owned hotels
in London achieved RevPAR growth of 13.7% to €144.6 (2006: €127.3) reflecting
increased market share and higher room rates. Improvements to our London
central reservations office increased the level of direct, non-commissionable
business and we also achieved growth in week-end occupancy rates as a result of
strategic use of third party websites, such as Expedia.com.
The Group's conferencing and banqueting business, which accounts for over a
quarter of UK revenues, experienced a slower rate of corporate bookings than
anticipated in the important pre-Christmas period. Actions have been taken to
improve this performance, including the appointment of a new management team,
and this area of our UK business is on track to deliver a stronger performance
in 2008.
The Netherlands
Hotel Operations: Key Operating Statistics
Year ended 31 December 2007 Year ended 31 December 2006
€ (Unaudited proforma) € (Unaudited proforma)
Occupancy 88.9% 87.4%
Average Room Rate € 126.8 € 118.7
RevPAR € 112.5 € 103.8
Total Revenue € 22.4 million € 20.8 million
EBITDA € 8.2 million € 8.0 million
The Dutch market remained strong throughout 2007 and Amsterdam continues to be
one of the best performing hotel markets in Europe. The Group's hotels achieved
RevPAR growth of 8.4% during the year, primarily driven by a 6.8% increase in
average room rate to €126.8 (2006: €118.7). Despite already having occupancy
levels above the market average as a result of the quality of our product
offering, we were able to increase occupancy to 88.9% for the year. In addition
to good market conditions, our team's longstanding expertise in revenue
management contributed to this result.
Park Plaza Victoria (Amsterdam) performed particularly well during the period,
gaining market share and benefiting from increased occupancy and higher room
rates. Profitability at Park Plaza Vondel (Amsterdam), which is undergoing a
major refurbishment programme, was adversely impacted by the closure of
one-third of its rooms during the summer. This first phase of the refurbishment
was completed in September and work on the final phase, including the
refurbishment of the remaining rooms and public areas, started in February 2008.
In November 2007, the Group started refurbishment of 60 rooms and all the public
areas at Park Plaza Mandarin in Eindhoven. This was completed in February 2008
and the benefits of the project are expected to come through during the year.
Germany and Hungary
Hotel Operations: Key Operating Statistics
Year ended 31 December 2007 Year ended 31 December 2006
€ (Unaudited proforma) € (Unaudited proforma)
Occupancy 76.9% 76.2%
Average Room Rate € 67.2 € 68.6
RevPAR € 51.7 € 52.4
Total Revenue € 29.6 million € 26.2 million
EBITDA € (293,000) € (792,000)
The German market remains challenging. In Berlin, some 2,000 rooms were opened
in the upscale segment during the year, leading to an over-supply of high
quality hotel rooms and high levels of competition. Market occupancy rates in
East and Central Berlin remained stable during the period, with West Berlin
being most heavily affected by the competitive situation. The high levels of
competition have meant that any increase in room rates has tended to have an
immediate impact on occupancy. In this market, our strategy is to grow our
corporate business and decrease our exposure to discounted pricing in the
leisure travel market.
During the year, the performance of the Group's Berlin hotels was broadly in
line with 2006. A small increase in occupancy rates was off-set by a small
decline in average room rates. As a result, RevPAR for the period reduced
slightly, primarily as a result of the competitive nature of the market. The
Group has taken a number of steps to improve its performance in Germany,
including hotel refurbishments, tighter cost controls and the appointment of new
management. While the business again made a loss in 2007, tighter management of
costs and the first full year contribution from Park Plaza Wallstreet had a
positive impact on EBITDA, which improved to a loss of €0.29 million (2006: loss
of €0.79 million).
Modernisation of 133 rooms and all the public areas at art'otel Kudamm in Berlin
was completed in August 2007. These changes will enable the hotel to compete
more effectively. Refurbishment at art'otel Berlin Mitte, located in the heart
of Berlin's historic centre, commenced in November 2007. It will involve
renovation of 109 rooms, including suites, banqueting facilities and meeting
rooms, and is scheduled to be completed during the first half of 2008.
The Group's art'otel in Budapest, Hungary has shown further signs of recovery in
the second half of the year. This performance has been achieved notwithstanding
a very competitive market.
Management and Holdings Operation
Year ended 31 December 2007 Year ended 31 December 2006
€ (Unaudited proforma) € (Unaudited proforma)
Total Revenue € 7.4 million €6.3 million
EBITDA €7.7 million €5.3 million
EBITDA for our Management and Holdings operation increased by 46.9% to €7.7
million reflecting increases in revenue and gross operating profit from our
managed hotels. This figure also includes EBITDA generated from intra-group
management fees.
Development pipeline
During the year, the Group has continued to work towards its goal of more than
doubling the number of rooms in its portfolio to over 8,000 by 2010. In
Germany, two projects are underway in Nuremberg and Cologne. In Nuremberg, we
have applied for planning permission to refurbish a former hotel, owned by the
Group, transforming it into a 175 room Park Plaza hotel. The property is
located in the bustling shopping and business centre of Nuremberg and close to
public transportation.
Construction of a new build art'otel in Cologne began in October 2007. This 220
room development, which Park Plaza will also manage, is located in the city's
midtown Reinau Port development, on the banks of the River Rhine. When
completed in 2009, the hotel will feature impressive artwork and will offer its
customers high quality facilities in an attractive Cologne Old Town location.
The refurbishment of an extension to the Park Plaza Victoria (Amsterdam) will
add a further 100 rooms to the Group's portfolio through the conversion of an
adjacent office building. The refurbishment is awaiting zoning consent.
In December 2007, the Group announced that it had signed two franchise
agreements with Global V Hospitality Inc.. The Park Plaza in Doha (Qatar)
opened in January 2008 and North Africa's first Park Plaza, located in Marrakech
(Morocco), is due to open in mid 2009. These hotels will add an additional
281 rooms.
Several portfolio developments have occurred since the year end:
In February, the Group announced the acquisition of the remaining 66% of
Marlbray Limited that it did not already own for £10.27 million in cash and the
issue of 735,000 new ordinary shares in Park Plaza. As a result, Park Plaza has
increased its ownership interest in the Park Plaza Westminster Bridge project to
100%. This prestigious development, situated at the southern end of Westminster
Bridge, will also be managed by Park Plaza when it opens, expected to be in
2010. The hotel will have 1,037 apartments when completed, almost 80% of which
have already been pre-sold.
The Park Plaza County Hall (London), a managed property with 398 rooms, opened
on 1 February 2008. The hotel's occupancy rates since opening have been
encouraging and customer feedback has been extremely positive.
On 6 March 2008, the Group announced a further franchise agreement with Global V
Hospitality Inc to open the first art'otel in Marrakech. The hotel will have 70
rooms and is expected to open in mid 2009.
On 14 March 2008, we announced a joint venture agreement with Aldersgate
Investments Limited, the property vehicle of the Reuben Brothers, to develop and
manage London's first art'otel located in the trendy area of Hoxton, on the edge
of the City of London. It is expected that the proposed hotel will consist of
several hundred rooms and suites, a choice of restaurants and bars, an art
gallery and two auditoriums, which will show cult films. A planning application
for the project is expected to be submitted later this year.
Current Trading and Outlook
Trading across our portfolio for the first 12 weeks of 2008, has been in line
with our expectations and to date we have not experienced any significant impact
from the widely publicised general economic slowdown.
In the UK, we have achieved underlying revenue and EBITDA growth in the mid to
high single digit range in the first 12 weeks of the year and bookings for the
remainder of 2008 are encouraging. However, reported profitability in the UK,
which accounted for over 40% of the Group's EBITDA in 2007, will potentially be
affected by adverse movements in the GBP to Euro exchange rates. The average
GBP to Euro exchange rate for the first 12 weeks of the year was 11% lower than
for the comparable period in 2007.
In The Netherlands, our operations have delivered high single digit revenue
growth and similar levels of EBITDA growth in the first 12 weeks of the year.
The major refurbishment programme at the Park Plaza Vondel (Amsterdam) and Park
Plaza Mandarin (Eindhoven) are expected to contribute to a continued strong
performance in 2008.
In Germany and Hungary, markets are likely to remain challenging throughout the
year, but we expect the steps we have taken to improve the performance of our
hotels to deliver progress in both revenue and EBITDA.
Our management operations have also been performing in line with our
expectations.
Although it is still early in the year and there are uncertainties in the
economic environment, we believe that our current portfolio of hotels and
pipeline of opportunities leave the Group well positioned to achieve further
growth in 2008 and beyond.
Owned / co-owned Hotels - Selected Unaudited Operational and Financial
Statistics *
The following table provides certain summary operating statistics for Park
Plaza's owned/co-owned, operated and managed hotels for the periods indicated.
These data have been extracted from Park Plaza's unaudited management accounts
and may therefore not be comparable to Park Plaza's audited results over the
periods shown or to be expected for any future period.
No. of Occupancy ARR RevPAR
rooms
Jul- Dec Jul- Dec Jan- Jun Jul- Dec Jul- Dec Jan- Jun Jul- Dec Jul- Dec Jan- Jun
2007 2006 2007 2007 2006 2007 2007 2006 2007
€ € € € € €
Park Plaza Victoria 306 96% 95% 95% 151 146 147 145 139 139
Amsterdam
Vondel Park Plaza 143 85% 85% 78% 108 94 102 88 80 76
(Amsterdam)
Park Plaza Utrecht 120 85% 83% 81% 102 93 108 88 80 87
(Utrecht)
Park Plaza Mandarin 102 85% 77% 86% 98 90 102 84 69 87
Eindhoven
Park Plaza 394 83% 83% 80% 153 153 151 124 121 121
Riverbank
(London)
Plaza on the River 66 82% 85% 76% 336 303 285 272 250 217
(London)
Park Plaza Victoria 299 89% 90% 88% 170 157 168 148 139 148
(London)
Park Plaza Sherlock 119 90% 90% 88% 183 173 181 163 153 159
Holmes
(London)
Owned / co-owned Hotels - Selected Unaudited Operational and Financial
Statistics *
The following table provides certain summary operating statistics for Park
Plaza's owned/co-owned, operated and managed hotels for the periods indicated.
These data have been extracted from Park Plaza's unaudited management accounts
and are not comparable to Park Plaza's audited results over the periods shown or
to be expected for any future period.
Total Revenue GOP EBITDA
Jul- Dec Jul- Dec Jan- Jun Jul- Dec Jul- Dec Jan- Jun Jul- Dec Jul- Dec Jan- Jun
2007 2006 2007 2007 2006 2007 2007 2006 2007
€ '000 € '000 € '000 € '000 € '000 € '000 € '000 € '000 € '000
Park Plaza Victoria 5,440 5,193 5,480 2,545 2,468 2,415 2,183 1,953 1,923
(Amsterdam)
Vondel Park Plaza 2,104 2,399 1,929 933 1,177 697 749 1,213 353
(Amsterdam)
Park Plaza (Utrecht) 1,580 1,473 1,675 733 670 805 629 580 689
Park Plaza Mandarin 2,007 1,782 2,166 915 911 1,085 770 763 919
(Eindhoven)
Park Plaza 8,859 8,719 8,094 3,908 3,602 3,148 2,960 2,645 1,699
Riverbank
(London)
Plaza on the River 1,904 1,620 1,421 1,369 1,221 952 1,458 1,093 829
(London)
Park Plaza Victoria 6,069 5,785 6,209 2,836 2,689 2,884 2,290 2,050 2,193
(London)
Park Plaza Sherlock 2,622 2,499 2,495 1,215 1,204 1,109 751 656 565
Holmes
(London)
Owned / co-owned Hotels - Selected Unaudited Operational and Financial
Statistics *
The following table provides certain summary operating statistics for Park
Plaza's owned/co-owned, operated and managed hotels for the periods indicated.
These data have been extracted from Park Plaza's unaudited management accounts
and may therefore not be comparable to Park Plaza's audited results over the
periods shown or to be expected for any future period.
No. of rooms Occupancy ARR RevPAR
Jan- Dec Jan- Dec Jan- Dec Jan- Dec Jan- Dec Jan- Dec
2007 2006 2007 2006 2007 2006
€ € € €
Park Plaza Victoria Amsterdam 306 96% 95% 149 144 142 137
Vondel Park Plaza 143 81% 81% 105 95 82 96
(Amsterdam)
Park Plaza Utrecht 120 83% 83% 105 93 89 79
(Utrecht)
Park Plaza Mandarin Eindhoven 102 85% 78% 100 93 86 72
Park Plaza Riverbank 394 82% 76% 152 151 122 109
(London)
Plaza on the River 66 79% 72% 311 281 241 192
(London)
Park Plaza Victoria 299 88% 88% 169 152 147 131
(London)
Park Plaza Sherlock Holmes 119 89% 86% 182 167 159 140
(London)
Owned / co-owned Hotels - Selected Unaudited Operational and Financial
Statistics *
The following table provides certain summary operating statistics for Park
Plaza's owned/co-owned, operated and managed hotels for the periods indicated.
These data have been extracted from Park Plaza's unaudited management accounts
and may therefore not be comparable to Park Plaza's audited results over the
periods shown or to be expected for any future period.
No. of rooms Total Revenue GOP EBITDA
Jan- Dec Jan- Dec Jan- Dec Jan- Dec Jan- Dec Jan- Dec
2007 2006 2007 2006 2007 2006
€ '000 € '000 € '000 € '000 € '000 € '000
Park Plaza Victoria 306 10,920 9,933 4,960 4,525 4,106 3,682
Amsterdam
Vondel Park Plaza 143 4,033 4,283 1,630 2,118 1,102 1,729
(Amsterdam)
Park Plaza Utrecht 120 3,255 2,942 1,538 1,295 1,318 1,106
(Utrecht)
Park Plaza Mandarin 102 4,173 3,688 2,000 1,766 1,689 1,463
Eindhoven
Park Plaza Riverbank 394 16,953 15,890 7,056 6,194 4,659 4,089
(London)
Plaza on the River 66 3,325 2,545 2,321 1,761 2,288 1,537
(London)
Park Plaza Victoria 299 12,278 11,120 5,720 5,160 4,483 3,895
(London)
Park Plaza Sherlock Holmes 119 5,117 4,584 2,323 2,085 1,316 1,024
(London)
PRO-FORMA PROFIT & LOSS STATEMENT
The following profit and loss statement presents the 2007 unaudited proforma
profit and loss for the Group as if the business combination of Euro Sea Group
and Park Plaza had taken place at the beginning of the year. The figures shown
for 2006 reflect the unaudited pro-forma statement of operations as disclosed in
the Group's AIM Admission Document and prepared on the basis of the assumptions
disclosed in the notes to that statement
2007 2006
€ '000 € '000
Revenues 97,058 88,213
Operating expenses (57,677) (56,490)
EBITDAR 39,381 31,723
Rental expenses (11,006) (8,916)
EBITDA 28,374 22,807
Depreciation and amortisation (9,353) (9,235)
EBIT 19,021 13,572
Finance expenses net (19,025) (18,329)
Share in loss of associate (40) 85
Other income 22,184 -
PROFIT BEFORE TAX 22,140 (4,672)
Income taxes 923 (930)
Net profit for the year 23,063 (5,602)
AUDITED CONSOLIDATED INCOME STATEMENT
Year ended
31 December
2007 2006
€ '000 (Except earning per share)
Revenues 75,039 48,852
Operating expenses (44,503) (35,770)
EBITDAR 30,536 13,082
Rental expenses (6,102) (1,165)
EBITDA 24,434 11,917
Depreciation and amortisation (7,252) (5,180)
EBIT 17,182 6,737
Financial expenses (20,831) (14,491)
Financial income 3,782 1,321
Share in profit (loss) of associate (40) 85
Other income 22,184 -
Profit (loss) before tax 22,277 (6,348)
Income tax expense (benefits) (21) 1,555
Profit (loss) for the year 22,298 (7,903)
Basic and diluted earnings (loss) per share (In Euro) 0.54 (0.45)
AUDITED CONSOLIDATED BALANCE SHEET
31 December
2007 2006
€ '000
ASSETS
NON-CURRENT ASSETS:
Intangible assets 56,993 -
Property, plant and equipment 170,848 134,443
Prepaid leasehold payments 20,621 18,678
Investment in associate 9,109 10,028
Other financial assets 3,707 4,346
261,278 167,495
CURRENT ASSETS:
Inventories 578 276
Trade receivables 10,634 3,273
Other receivables and prepayments 4,161 1,574
Short-term deposits - 1,564
Restricted cash 646 1,021
Cash and cash equivalents 119,376 6,212
135,395 13,920
Total assets 396,673 181,415
AUDITED CONSOLIDATED BALANCE SHEET
31 December
2007 2006
€ '000
EQUITY AND LIABILITIES
EQUITY:
Issued capital - -
Share premium 195,894 14,401
Foreign currency translation reserve (11,009) (3,332)
Hedging reserve 1,759 4,349
Accumulated deficit (21,377) (28,675)
Total equity 165,267 (13,257)
NON-CURRENT LIABILITIES:
Bank borrowings 177,912 169.020
Other financial liabilities 2,607 618
Deferred income taxes 2,061 1,192
182,992 170,830
CURRENT LIABILITIES:
Trade payables 4,502 4,903
Other payables and accruals 15,668 9,825
Bank borrowings 28,656 9,114
48,826 23,842
Total liabilities 213,818 194,672
Total equity and liabilities 396,673 181,415
AUDITED CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December
2007 2006
€ '000
Cash flows from operating activities:
Profit (loss) for the year 22,298 (7,903)
Adjustment to reconcile net profit (loss) to cash provided by operating (17,466) 5,407
activities (a)
Net cash provided by operating activities 4,832 (2,496)
Cash flows from investing activities:
Purchase of property, plant and equipment (8,637) (11,797)
Net change in cash upon acquisition of the Park Plaza Group (b) 6,735 -
Net change in cash upon disposal of subsidiary (c) 14,930 (1,628)
Decrease (increase) in short-term deposits, net 3,459 (989)
Decrease (increase) in restricted cash 375 (117)
Collection of loans to jointly controlled entities - 4,501
Loans to related parties - (8,686)
Net cash provided by (used in) investing activities 16,862 (18,716)
Cash flows from financing activities:
Proceeds from issuance of new shares 116,490 -
Dividend distribution (15,000) -
Proceeds from long-term loans 720 134,997
Repayment of long-term loans (3,068) (116,251)
Increase (decrease) in short-term credit, net 67 (807)
Increase (decrease) in loans from related parties 687 (247)
Net cash provided by financing activities 99,896 17,692
Increase (decrease) in cash and cash equivalents 121,590 (3,520)
Net foreign exchange differences (8,426) 379
Cash and cash equivalents at beginning of year 6,212 9,353
Cash and cash equivalents at end of year 119,376 6,212
Year ended 31 December
2007 2006
€ '000
(a) Adjustment to reconcile profit (loss) to net cash provided by operating
activities:
Gain on sale of investments (9,148) -
Negative goodwill on acquisition of Park Plaza Group (13,036)
Share in loss (profit) of associate 40 (85)
Provision for impairment - 1,404
Deferred income taxes 682 (29)
Depreciation and amortisation 9,360 5,820
Changes in operating assets and liabilities:
Decrease in other assets - 676
Increase in inventories (65) (6)
Share based payments 68 -
Decrease (increase) in trade and other receivables 199 (466)
Decrease in trade and other payables (5,566) (1,907)
(17,466) 5,407
(b) Net change in cash upon acquisition of the Park Plaza Group:
Current assets (except cash) (12,922) -
Current liabilities 29,889 -
Long-term assets (112,734) -
Long-term liabilities 28,531 -
Premium on shares issued as consideration for acquisition 60,935 -
Negative goodwill 13,036 -
6,735 -
Year ended 31 December
2007 2006
€ '000
(c) Net change in cash upon disposal of subsidiary:
Current assets (except cash) 307 11
Current liabilities (104) (1,096)
Property 5,579 -
Long-term liabilities - (543)
Gain on sale 9,148 -
14,930 (1,628)
(d) Supplemental disclosure of cash flows:
Cash paid during the year:
Income taxes 294 259
Cash received during the year:
Interest received 2,996 -
(e) Significant non-cash transactions:
Shares issued to acquire the Park Plaza Group 60,935 -
Shares issued to acquire intangibles 4,000 -
NOTE 1: GENERAL
Description of business and formation of the Company:
The Company was incorporated and registered in Guernsey on 14 June 2007.
The Company through its subsidiaries owns, operates and manages hotels in
Europe, Middle East and Africa under two primary brands: Park Plaza and
art'otel.
On 14 July 2007, the Company entered into an agreement to acquire the Euro Sea
Group. For periods prior to the legal formation of the Company, the assets,
liabilities, revenues and expenses of Euro Sea Group were consolidated in
preparing the financial statements. Also on 14 July 2007, as part of the Group's
IPO it acquired 100% of the voting shares of Park Plaza Hotels Europe Holding
B.V., its subsidiaries and other investments ('Park Plaza Group'). As of this
date the assets, liabilities, revenues and expenses of the Park Plaza Group were
included in the consolidated financial statements.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 10th January 2025
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