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

Peel HuntAnnouncement

20/07/2017 07:05

RNS Number : 5144L
Peel Hotels PLC
20 July 2017
PEEL HOTELS PLC
PRELIMINARY ANNOUNCEMENT AND BOARD CHANGE
Derived from audited results for Financial Year Ended 29 January 2017.
HIGHLIGHTS
# Turnover decreased 1.3% to 16,790,320 (2016: 17,011,472)
# EBITDA before exceptional expense decreased 12.5% to 2,250,328 (2016:2,570,818)
# Operating Profit before exceptional expense down 18.7% to 1,268,734 (2016: 1,559,614)
# Net debt decreased 580,087
# Profit before tax, (including the exceptional expense 170,500 re the Strathdon Hotel) was 575,387 (2016: 993,607) 
# Earnings per share basic and diluted 3.1p (2016: 5.7p)
# In light of the benefits that will accrue from the repayment of the Loan Notes and the Director's Loan the Directors recommend that no dividend be paid.
# Keith Benham leaves the Board after 19 years service.
 
'It is very difficult to forecast the current year's outcome as so much depends on staycation and increased Tourist activity stimulated by the weak pound. However our refinancing with Allied Irish Bank and the repayment of the Director's Loan and Loan Notes will provide significant savings in the costs of finance and the subsequent benefits of improved cash flow and lessening net debt.'
Robert Peel 
Chairman
0207 286 6823
Press Enquiries
Peel Hunt Ltd / Capel Irwin
0207 418 8907
Review of the business
RESULTS
The Financial Year ended 29 January 2017 has been a very challenging year for the Group with hotel revenues decreasing by 1.3% to 16,790,320 (2016: 17,011,472). Hotel gross profit before depreciation and Group administration expenses decreased 9.4% to 2,938,211 (2016: 3,244,401). EBITDA before exceptional expense decreased 12.5% to 2,250,328 (2016: 2,570,818).
The Company has also had to bear an exceptional expense of 170,500 to its profit due to a charge for back land rent re the Strathdon Hotel, Nottingham.
Profit before tax, (including the exceptional expense re the Strathdon Hotel) was 575,387 (2016: 993,607).
However, Revpar (accommodation revenue per available room) was maintained with occupancy down 3.2% and average room rate up 3.4%
Administration expenses increased 2.1%. Depreciation and amortisation decreased 2.9%.
FINANCE
As at 29 January 2017 net debt stood at 9,554,769 (2016: 10,134,856) representing loans totalling 9,847,422 (2016: 10,196,846) and an overdraft of nil (2016: 220,776) less 292,653 (2016: 282,766) cash at bank. Gearing on Shareholders' funds was 39.9% with interest covered 2.1 times. Net debt decreased by 580,087 compared with the previous year.
Subsequent to the Financial Year End the Company has negotiated a new long term financing facility with Allied Irish Bank. The terms of this new facility, which will enable the Company to repay the outstanding Loan Notes and Director's loan, will result in a significant reduction in our financial charges going forward. Savings in the financial year 2018/19 are estimated to be not less than 160,000, providing that interest rates remain unchanged.
CAPITAL EXPENDITURE
710,701 (2016: 690,900) was spent in the year. We have completed the restructuring of certain bedrooms at the Crown and Mitre in Carlisle. The conference and banqueting facilities have been refurbished at the George Hotel in Wallingford. Bedroom refurbishment continues at the Caledonian in Newcastle.
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 them having a satisfactory stay with us.
In addition to Capital Expenditure, 661,317 (2016: 671,791) was spent on repairs and renewals which help us ensure that we are constantly and consistently maintaining and improving our product, proof of which is the continuing improvements in ratings of each Hotel assessed by the Automobile Association.
DIRECTORS
Keith Benham, as indicated last year, will retire at the AGM. Keith's contribution to Peel Hotels over the years has been exceptional and he will be greatly missed. We wish him a healthy and happy retirement.
Group Statement of Comprehensive Income
for the year ended 29 January 2017





























2017

2016





 

 








Revenue

 


16,790,320

17,011,472
Cost of sales




(13,852,109)

(13,767,071)
Gross profit




2,938,211

3,244,401








Administration expenses



(687,883)

(673,583)

Exceptional expense



(170,500)

-

Depreciation



(981,594)

(1,011,204)

Total administration expenses




(1,839,977)

(1,684,787)








Operating profit 




1,098,234

1,559,614
















Finance expense 




(522,847)

(566,007)
Profit before tax



575,387

993,607
Income tax 




(140,665)

(195,341)








Profit and total comprehensive income for the period attributable to owners 



434,722

798,266
















Earnings per share















Basic & diluted (pence)




3.1

5.7








Group statement of changes in equity
for the years ended 29 January 2017 and 31 January 2016










Year ended 29 January 2017
Share
Capital
Share
premium
account
Profit
and loss
account
Total






Balance brought forward at 1 February 2016
1,401,213
9,743,495
12,620,907
23,765,615
Profit and total comprehensive income for the period
-
-
434,722
434,722
Transactions with owners




Dividend
-
-
(280,242)
(280,242)
Balance at 29 January 2017
1,401,213
9,743,495
12,775,387
23,920,095






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
Transaction with owners




Dividend
-
-
(210,182)
(210,182)
Balance at 31 January 2016
1,401,213
9,743,495
12,620,907
23,765,615




Group Balance Sheet
at 29 January 2017 






2017
2016


Assets



Non-current assets



Property, plant and equipment

35,502,564
35,772,573




Total non-current assets 

35,502,564
35,772,573




Current assets



Inventories

114,034
112,585
Trade and other receivables

1,095,481
1,240,178
Cash and cash equivalents

292,653
282,766
Total current assets 

1,502,168
1,635,529




Total assets

37,004,732
37,408,102








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

12,775,387
12,620,907
Total equity

23,920,095
23,765,615




Liabilities







Non-current



Borrowings 

1,030,000
9,490,792
Deferred tax liabilities

861,330
919,308
Non-current liabilities

1,891,330
10,410,100




Current 



Trade and other payables

2,259,437
2,159,583
Borrowings 

8,817,422
926,830
Current tax liabilities

116,448
145,974
Current Liabilities

11,193,307
3,232,387








Total liabilities and equity

37,004,732
37,408,102


Group Cash Flow Statement
for the year ended 29 January 2017






 2017 
 2016 


Cash flows from operating activities



Profit for the year

434,722
798,266
Adjustments for:



Financial income

-
-
Financial expense

522,847
566,007
Fair value movement on derivative

-
-
Income tax 

140,665
195,341
Depreciation 

981,594
1,011,204
Cash flows before changes in working capital and provisions

2,079,828
2,570,818








UK corporation tax paid

(228,168)
(305,666)
Decrease/(increase) in trade and other receivables

149,237
(223,368)
Increase in trade and other payables

112,381
192,753
(Increase) in inventories

(1,449)
(9,297)
Net cash from operating activities

2,111,829
2,225,240




Cash flows from investing activities



Acquisition of property, plant and equipment 

(710,701)
(690,900)
Net cash outflow from investing activities

(710,701)
(690,900)












Cash flows from financing activities



Interest paid

(480,223)
(508,285)
Loan repayments

(410,000)
(706,054)
Equity dividends paid

(280,242)
(210,182)




Net cash outflow from financing activities

(1,170,465)
(1,424,521)




Net increase in cash and cash equivalents

230,663
109,819




Cash and cash equivalents at the beginning of the period

61,990
(47,829)




Cash and cash equivalents at the end of the period

292,653
61,990




For the purposes of the cash flow statement, cash and cash equivalents comprise:



Cash and bank balances

292,653
282,766
Bank overdrafts

-
(220,776)
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 29 January 2017 upon which the auditors' opinion is anticipated to be 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 29 January 2017 was based on the profit attributable to ordinary shareholders of 434,722 (2016: 798,266) and a weighted average number of ordinary shares outstanding of 14,012,123 (2016: 14,012,123). No shares were issued in 2017 or 2016.
Diluted earnings per share
The potentially dilutive options in issue in 2017 and 2016 do not cause a difference between basic and diluted earnings per share.

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