REG - Peel Hotels PLC - Final Results <Origin Href="QuoteRef">PEEL.L</Origin>

Peel HuntAnnouncement

29/04/2016 07:05

RNS Number : 7202W
Peel Hotels PLC
29 April 2016
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'sfair 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






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




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)
1Basis 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.

This information is provided by RNS
The company news service from the London Stock Exchange
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