22 Apr 2015 07:00
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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 |
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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 |
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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.