29 Apr 2016 07:00
PEEL HOTELS PLC
PRELIMINARY ANNOUNCEMENT
Derived from audited results for Financial Year Ended 31 January 2016.
HIGHLIGHTS
# Turnover increased 3.4% to £17,011,472 (2015: £16,454,241)
# EBITDA increased 3.9% to £2,570,818 (2015: £2,473,196)
# Operating Profit up 7.2% to £1,559,614 (2015: £1,454,481)
# Net debt decreased £752,888
# Profit before tax was £993,607 (2015: £800,342 excluding the previous year's fair value movement on the derivative, an increase of 24%)
# Earnings per share basic and diluted 5.70p (2015: 5.24p)
# Expect to pay a dividend of 2.0p for year ended 31 January 2016. Details to be announced when we publish our Annual Report in May 2016
'Our results continue to improve on the back of Revpar growth and a lessening overall cost of finance due to sustained repayment of debt. Our cash resources allow continued investment in our product and this gives us confidence for future growth in the current year.'
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 31 January 2016 with hotel revenues increasing by 3.4% to £17,011,472 (2015: £16,454,241). Hotel gross profit before depreciation and Group administration increased 1.5% to £3,244,401 (2015: £3,196,325). EBITDA increased 3.9% to £2,570,818 (2015: £2,473,196).
Profit before tax was £993,607 (2015: £800,342 excluding the fair value movement on derivative).
Revpar (accommodation revenue per available room) increased 5.6% with occupancy up 0.8% and average room rate up 4.7%
Administration expenses decreased 6.9%. Depreciation and amortisation decreased 0.7%.
FINANCE
As at 31 January 2016 net debt stood at £10,134,856 (2015: £10,887,744) representing loans totalling £10,196,846 (2015: £10,839,915) and an overdraft of £220,776 (2015: £194,659) less £282,766 (2015: £146,830) cash at bank. Gearing on Shareholders' funds was 42.1% with interest covered 2.8 times. Net debt decreased by £752,888 compared with the previous year.
The reduction in overall debt resulted in £88,132 less finance expense compared with the previous year.
CAPITAL EXPENDITURE
£690,900 (2015: £603,295) was spent in the year. We are in the process of changing our central accounting system to a seamless Windows based system fully integrated to each one of our hotels and this will go live in May 2016. External refurbishment continued at the Midland Hotel. Refurbishment was ongoing at the Crown and Mitre Hotel with the renovation of the front hall areas. Improvements were made to the furnishings in the lobbies of the Bull and Cosmopolitan Hotels. Bedroom refurbishment was ongoing at the George, The Norfolk and the Caledonian Hotels. We are shortly to open Bistro George at the George Hotel, a new food operation aimed at the patronage of local people as well as our residents.
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.
In addition to Capital Expenditure £671,791 (2015: £646,520) was spent 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 31 January 2016
2016 | 2015 | ||||||
£ | £ | ||||||
Revenue |
| 17,011,472 | 16,454,241 | ||||
Cost of sales | (13,767,071) | (13,257,916) | |||||
Gross profit | 3,244,401 | 3,196,325 | |||||
Administration expenses | (673,583) | (723,129) | |||||
Depreciation | (1,011,204) | (1,018,715) | |||||
Total administration expenses | (1,684,787) | (1,741,844) | |||||
Operating profit | 1,559,614 | 1,454,481 | |||||
Finance income | - | 12,539 | |||||
Finance expense | (566,007) | (666,678) | |||||
Fair value movement on derivative | - | 159,061 | |||||
Profit before tax | 993,607 | 959,403 | |||||
Income tax | (195,341) | (224,939) | |||||
Profit and total comprehensive income for the period attributable to owners | 798,266 | 734,464 | |||||
Earnings per share | |||||||
Basic & diluted (pence) | 5.70 | 5.24 | |||||
Group statement of changes in equity
for the years ended 31 January 2016 and 1 February 2015
Year ended 31 January 2016 | Share Capital | Share premium account | Profit and loss account | Total |
£ | £ | £ | £ | |
Balance brought forward at 2 February 2015
| 1,401,213 | 9,743,495 | 12,032,823 | 23,177,531 |
Profit and total comprehensive income for the period | - | - | 798,266 | 798,266 |
Transactions with owners | ||||
Dividend | - | - | (210,182) | (210,182) |
Balance at 31 January 2015 | 1,401,213 | 9,743,495 | 12,620,907 | 23,765,615 |
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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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Group Balance Sheet
at 31 January 2016
2016 | 2015 | ||
£ | £ | ||
Assets | |||
Non-current assets | |||
Property, plant and equipment | 35,772,573 | 36,092,877 | |
Total non-current assets | 35,772,573 | 36,092,877 | |
Current assets | |||
Inventories | 112,585 | 103,288 | |
Trade and other receivables | 1,240,178 | 1,016,130 | |
Cash and cash equivalents | 282,766 | 146,830 | |
Total current assets | 1,635,529 | 1,266,248 | |
Total assets | 37,408,102 | 37,359,125 | |
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 | 12,620,907 | 12,032,823 | |
Total equity | 23,765,615 | 23,177,531 | |
Liabilities | |||
Non-current | |||
Borrowings | 9,490,792 | 10,133,861 | |
Deferred tax liabilities | 919,308 | 962,730 | |
Non-current liabilities | 10,410,100 | 11,096,591 | |
Current | |||
Trade and other payables | 2,159,583 | 1,971,414 | |
Borrowings | 926,830 | 900,713 | |
Current tax liabilities | 145,974 | 212,876 | |
Current Liabilities | 3,232,387 | 3,085,003 | |
Total liabilities and equity | 37,408,102 | 37,359,125 |
Group Cash Flow Statement
for the year ended 31 January 2016
2016 | 2015 | ||
£ | £ | ||
Cash flows from operating activities | |||
Profit for the year | 798,266 | 734,464 | |
Adjustments for: | |||
Financial income | - | (12,539) | |
Financial expense | 566,007 | 666,678 | |
Fair value movement on derivative | - | (159,061) | |
Income tax | 195,341 | 224,939 | |
Depreciation | 1,011,204 | 1,018,715 | |
Cash flows before changes in working capital and provisions | 2,570,818 | 2,473,196 | |
UK corporation tax paid | (305,666) | (83,275) | |
(Increase)/decrease in trade and other receivables | (223,368) | 137,826 | |
Increase/(decrease) in trade and other payables | 192,753 | (305,381) | |
(Increase)/decrease in inventories | (9,297) | 5,382 | |
Net cash from operating activities | 2,225,240 | 2,227,748 | |
Cash flows from investing activities | |||
Acquisition of property, plant and equipment | (690,900) | (603,295) | |
Net cash from investing activities | (690,900) | (603,295) | |
Cash flows from financing activities | |||
Interest paid | (508,285) | (696,747) | |
Loan repayments | (706,054) | (686,054) | |
Equity dividends paid | (210,182) | - | |
Net cash from financing activities | (1,424,521) | (1,382,801) | |
Net increase in cash and cash equivalents | 109,819 | 241,652 | |
Cash and cash equivalents at the beginning of the period | (47,829) | (289,481) | |
Cash and cash equivalents at the end of the period | 61,990 | (47,829) | |
For the purposes of the cash flow statement, cash and cash equivalents comprise: | |||
Cash and bank balances | 282,766 | 146,830 | |
Bank overdrafts | (220,776) | (194,659) |
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.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 31 January 2016 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 31 January 2016 was based on the profit attributable to ordinary shareholders of £798,266 (2015: £734,464) and a weighted average number of ordinary shares outstanding of 14,012,123 (2015: 14,012,123). No shares were issued in 2016 or 2015.
Diluted earnings per share
There were no potentially dilutive options in issue in 2016 and 2015 and consequently there is no difference between basic and diluted earnings per share.