RNS Number:9798U
Gresham Hotel Group Plc
24 April 2002
PRELIMINARY RESULTS
53 WEEKS ENDED 31 JANUARY 2002
Financial Highlights
Profit & Loss
• Turnover for the year at €55m (Jan 2001: €56m)
• Operating profit before exceptional items of €7.7m
• Final dividend increased by 7% to €0.032 per share to give an overall
increase of 5% in annual dividend.
• Cash profit of €14m realised from sale & leaseback of Royal Marine Hotel.
• Tax charge comprises:
Corporation tax € 37,000
Deferred tax charge on introduction of new
accounting standard € 85,000
Tax arising on sale & leaseback of Royal Marine Hotel € 158,000
• Exceptional items comprise:
Costs arising on sale & leaseback of Royal Marine Hotel € 874,000
Branding costs € 939,000
Non-cash revaluation adjustment €5,975,000
Balance Sheet
• Fixed assets revalued producing an uplift of €13m. Fixed assets now stand
at €213m.
• Net assets increased to €135m, producing a net asset value per share of
€1.74.
• Bank borrowings at €47m producing a bank gearing ratio of 35%.
CHAIRMAN'S STATEMENT
PRELIMINARY RESULTS FOR THE 53 WEEKS ENDED 31 JANUARY 2002
Dear Shareholder,
In what was one of the most difficult years in living memory for Irish tourism
with the effects of Foot & Mouth Disease and the fall-out from September 11,
your Group maintained turnover in the year ended 31 January 2002 at levels
achieved in the previous year. While operating profit, at €7.7m was down
significantly on the €13.5m achieved in the previous year, it was very much in
line with the revised forecasts posted by analysts after September 11th.
Despite the manifest trading difficulties experienced, your board is
recommending an increase of 7% in the final dividend. This is indicative of our
confidence going forward and reflective of the dividend policy of your Group.
Over the past five years, shareholders have enjoyed an increase of 87% in their
dividend payment.
Your board and management has, in recent years, been preparing Gresham for a new
phase of growth and development. Essential work in re-branding and investment in
staff training and development, has already taken place. This leaves Gresham
well poised to take advantage of development opportunities as economic
conditions improve and tourism recovers.
In light of the uncertainty caused by a combination of external circumstances
the Board decided to concentrate its capital expenditure programme on up-grading
existing properties. During the year work commenced on the redevelopment of the
Gresham Hotel which will result in 100% increase in lobby area and the
development of a new bar and restaurant, the redevelopment of the Gresham
Memphis ground floor and the upgrading of bedrooms at the Gresham Belson,
Gresham Ardhu and the Gresham Metropole. Work is also in progress on the
redevelopment of the West Coast bedroom stock in Killarney and Galway. On
completion of this programme all hotels in the Group will be of a superior
standard.
The Group continues to work to the strategy approved by the shareholders and
during the year the Sale & Lease Back of the Gresham Royal Marine was completed
successfully. This resulted in a significant injection of cash into the group
and, as a result, the group bank gearing fell from 50% to 35% and total gearing
fell from 70% to 53%. The Gresham Royal Marine was sold at full book value and
underpins the carrying values of our properties. Notwithstanding a downward
revaluation of the Gresham Carat in Hamburg the net asset value per share has
risen in the year from €1.62 to €1.74 and has risen in the last 5 years from
€0.88 to €1.74, an increase of almost 100%. This represents a profit from our
property portfolio of €60m during the same period.
Your board and Management through a number of initiatives, is determined to
vigorously grow the group and enhance shareholder value. Specific opportunities
for growth through acquisitions, leasing arrangements and management contracts
are being examined to capitalise on the stronger brand and service excellence
which Gresham now represents. These initiatives are being pursued and will be
undertaken as and when the board considers the timing appropriate.
In respect of the current year your Group believes that conditions will continue
to be challenging however, there are emerging signs from the domestic leisure
and corporate markets, which if they continue, will benefit the Group,
particularly in the second half.
Finally, I must refer to the recent and well publicised efforts of a major
shareholder to seize board control of your company. This opportunism was firmly
rejected by your board. We welcome the co-operation of any shareholder group
which would work with Gresham to enhance stakeholder value. We will not,
however, allow a shareholder who has refused to declare its intentions or to
approach the company in a spirit of friendship to take control.
The price of control should be a full and fair offer to all shareholders. We
will not allow control by stealth, nor allow shareholders have their Group
effectively acquired at a discount.
Sean Henneberry
Chairman
24 April 2002
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
Group Profit & Loss Account
For the period ended 31 January 2002
(Restated Note 4)
2002 2001
Notes €000's €000's
TURNOVER 55,221 56,268
Operating profit before exceptional costs 7,696 13,543
Exceptional costs:
Branding costs 3 (939) -
Revaluation adjustment on Carat Hotel 3 (5,975) -
Operating profit after exceptional costs 782 13,543
Costs arising on Sale & Leaseback of
Royal Marine Hotel 3 (874) -
(Loss)/Profit before finance costs and taxation (92) 13,543
Finance cost (4,709) (4,209)
(Loss) / Profit before taxation (4,801) 9,334
Taxation 5 (280) (1,419)
(Loss) / Profit after taxation (5,081) 7,915
Dividends (including dividends
In respect of Non-Equity Shares)
- paid (976) (966)
- proposed (2,517) (2,293)
(Loss) / Profit retained for the period (8,574) 4,656
Profit realised from revaluation reserve 6 14,836 -
Scrip issues in lieu of cash dividends 782 1,246
Retained profits at beginning of period
- as previously stated 32,519 26,480
- prior year adjustment - deferred tax 4 (987) (850)
- as restated 31,532 25,630
RETAINED PROFITS AT END OF PERIOD 38,576 31,532
Earnings per share - before exceptional items 7 €0.0371 €0.1045
Earnings per share - after exceptional items 7 (€0.0669) €0.1045
Diluted earnings per share 7 (€0.0667) €0.1030
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
Group Statement of Total Recognised Gains & Losses
For the period ended 31 January 2002
(Restated Note 4)
2002 2001
€000's €000's
(Loss) / Profit after taxation and exceptional items (5,081) 7,915
Unrealised surplus on revaluation of hotel properties 19,214 -
Foreign currency profit / (loss) 1,668 (1,415)
On net assets in overseas subsidiaries
Foreign currency (loss) / profit (1,323) 1,262
On foreign currency borrowings
Total Recognised Gains and Losses for the period 14,478 7,762
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
Group Balance Sheet
As at 31 January 2002
(Restated Note 4)
2002 2001
Notes €000's €000's
FIXED ASSETS
Tangible assets 213,209 218,153
CURRENT ASSETS
Stocks 1,358 1,258
Debtors 4,436 6,313
Cash at bank 15,183 8,523
20,977 16,094
CREDITORS
(amounts falling due within one year) (17,458) (20,203)
NET CURRENT ASSETS / (LIABILITIES) 3,519 (4,109)
TOTAL ASSETS LESS 216,728 214,044
CURRENT LIABILITIES
CREDITORS
(amounts falling due after more than one year) (81,260) (90,668)
TOTAL NET ASSETS 135,468 123,376
CAPITAL AND RESERVES
Called up share capital 8 8,222 5,097
Share premium account 10,592 13,392
Revaluation reserve 9 74,467 70,089
Other reserves 3,611 3,266
Profit and loss account 38,576 31,532
SHAREHOLDERS' FUNDS
(Equity and Non-Equity) 135,468 123,376
Net Asset Value per Share €1.74 €1.62
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
Group Cash Flow Statement
For the period ended 31 January 2002
2002 2001
€000's €000's
NET CASH INFLOW FROM
OPERATING ACTIVITIES 6,666 15,839
RETURNS ON INVESTMENTS &
SERVICING OF FINANCE
Interest received 810 656
Interest paid (4,992) (4,724)
Interest element of finance lease payments (506) (679)
Participating preference dividends (33) (16)
Net Cash Outflow from Returns on
Investments and Servicing of Finance (4,721) (4,763)
TAXATION
Net Cash Flow from Taxation (828) (1,368)
CAPITAL EXPENDITURE
Payments to acquire tangible assets (3,467) (8,699)
Net Cash Outflow from Capital Expenditure (3,467) (8,699)
ACQUISITIONS & DISPOSALS
Proceeds from disposal of Royal Marine Hotel 22,220 -
Payment of disposal costs (912) -
Net Cash Inflow from Acquisitions & Disposals 21,308 -
EQUITY DIVIDENDS PAID (2,454) (1,750)
Net Cash Inflow / (Outflow) before Financing 16,504 (741)
FINANCING
Issue of ordinary share capital 421 25
Share issue costs (96) (44)
New loans during period 2,539 5,358
Repayment of long term loans (13,651) (2,710)
Capital element of finance lease payments (211) (161)
Net Cash (Outflow) / Inflow from Financing (10,998) 2,468
INCREASE IN CASH 5,506 1,727
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
Notes to the Preliminary Financial Statements
For the period ended 31 January 2002
1. Final Dividend
€0.032 per Ordinary share payable on 28 June 2002 to Shareholders on the
Register on 3 May 2002.
2. Annual Report
The Annual Report is being sent to all Shareholders. It is also available to
the public at the Company's Registered Office, 23 Upper O'Connell Street,
Dublin 1.
3. Exceptional Items
The revaluation adjustment below reflects the movement in carrying value of
the Carat Hotel, Hamburg. The decrease in value amounts to €6,405,000.
€430,000 has been written off against previous revaluation surpluses on the
Carat Hotel and the balance of €5,975,000 has been charged to the profit and
loss account. Other revaluation pluses and minuses have been taken to
revaluation reserves. The net increase in value, after allowing for the
Carat Hotel adjustment, amounts to €13,239,000.
Non-
Cash Cash Total Total
2002 2002 2002 2001
€000's €000's €000's €000's
Costs arising on sale & leaseback of
Royal Marine Hotel (874) - (874) -
Branding costs (939) - (939) -
Revaluation adjustment - (5,975) (5,975) -
(1,813) (5,975) (7,788) -
4. Deferred tax
A new accounting standard, Financial Reporting Standard (FRS) 19 - 'Deferred
Tax', was published during the year. This accounting standard applies to all
companies for accounting periods ending on or after 23 January 2002. As
such, the Group has adopted this accounting standard, for the first time, in
the period ended 31 January 2002. FRS 19 requires deferred tax to be
recognised in respect of most types of timing differences, including those
attributable to accelerated capital allowances on hotel properties, which in
the past were viewed by the Group as permanent differences.
In previous accounting periods, the Group accounting policy was to provide
for timing differences to the extent that they were expected to reverse in
the foreseeable future. The change in policy has been accounted for as a
prior year adjustment and previously reported figures have been restated.
The effect has been to reduce the profit after tax for the period ended 31
January 2002 by €85,000 (2001: €137,000) and to reduce profit and loss
account reserves by €987,000 (2001: €850,000).
5. Taxation 2002 2001
€000's €000's
Corporation tax 37 1,282
Tax arising on sale & leaseback of Royal Marine Hotel 158 -
Deferred tax 85 -
As previously reported 1,282
Prior Year Adjustment:
Deferred tax - 137
Total 280 1,419
6. Significant Items - Sale & Leaseback of Royal Marine Hotel €000's
Sale proceeds 22,220
Historical cost - 1985 (1,441)
Subsequent additions (5,943)
Realised revaluation surplus 14,836
7. Earnings per Share 2002 2001
€000's €000's
(Loss) / Profit after taxation (5,081) 7,915
Less: Participating preference dividends (33) (33)
(5,114) 7,882
Ordinary shares in issue during the period 76,321,858 75,436,470
Earnings per share after exceptional items (€0.0669) €0.1045
(Loss) / Profit after taxation (5,081) 7,915
Less: Participating preference dividends (33) (33)
Add: Branding costs 939 -
Revaluation adjustment on Carat Hotel 5,975 -
Costs arising on sale & leaseback of
Royal Marine Hotel 874 -
Tax arising on sale & leaseback of
Royal Marine Hotel 158 -
2,832 7,882
Ordinary shares in issue during the period 76,321,858 75,436,470
Earnings per share before exceptional items €0.0371 €0.1045
Diluted earnings per share, which takes account solely of the potential exercise
of share options granted under the Company's Share Option Scheme, is based on a
weighted average number of shares in issue of 76,648,451 (Jan 2001: 76,504,818).
8. Share Capital €000's
Authorised:
Equity:
120,000,000 Ordinary shares of €0.10 each 12,000
Non-Equity:
4,200,000 Participating preference shares of €0.10 each 420
30,000,000 Preference shares of €1 each 30,000
42,420
Allotted and fully paid:
Equity:
76,076,793 Ordinary shares at beginning of period 4,830
960,000 Share options exercised 96
974,371 Scrip issues in lieu of cash dividends 97
Increase in par value per share 2,779
78,011,164 Ordinary shares at end of period 7,802
Non-Equity:
4,200,000 Participating Preference shares at beginning of period 267
Increase in par value per share 153
4,200,000 Participating Preference shares at end of period 420
8,222
9. Revaluation Reserve €000's
Balance at beginning of period 70,089
Realised revaluation surplus on sale & leaseback of Royal Marine Hotel (14,836)
Surplus on revaluation of hotel properties 19,644
Deficit in respect of Carat Hotel, Hamburg (430)
Balance at end of period 74,467
For further information contact:
Patrick Coyle Chief Executive Gresham Hotel Group Plc +353 1 817 6209
Robert Bastow Finance Director Gresham Hotel Group Plc +353 1 817 6209
Fiona Gillespie Communications Consultant +353 87 250 2447
This information is provided by RNS
The company news service from the London Stock Exchange
Gresham Hotel (LSE:GHL)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Gresham Hotel (LSE:GHL)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024
