Preliminary Statement Results
02 Abril 2004 - 4:00AM
UK Regulatory
RNS Number:2600X
Gresham Hotel Group Plc
02 April 2004
PRELIMINARY RESULTS
YEAR ENDED 31 DECEMBER 2003
Financial Highlights
* Profit before tax, excluding exceptional costs and profit on sale of
hotel properties increased by 40% from Euro1.22m to Euro1.71m
* Earnings per Share increased by 2.45 cent to 2.70 cent
* Room occupancy maintained at 76% (11 months to 31 Dec 2002: 76%)
* Average room rate for the year of Euro84 (11 months to 31 Dec 2002: Euro85)
* Profit arising on sale of hotel properties of Euro239,000
* Cash profit of Euro14m realised from sale of hotel properties
* Net assets of Euro136m producing a net asset value per share of Euro1.63
* Group borrowings at Euro37m producing a gearing ratio of 27%
CHAIRMAN'S STATEMENT
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2003
Dear Shareholder,
The trading results for the year ended 31 December 2003 reflect a satisfactory
performance, given the upheaval within our industry caused by the conflict in
Iraq and the SARS epidemic. Profit before tax, excluding exceptional costsand
profit on sale of hotel properties increased by 40% to Euro1.71m compared with
Euro1.22m for the eleven month period to 31 December 2002.
Group occupancy for the year was 76% (2002: 76%) with a group average room rate
of Euro84 being achieved(2002: Euro85). Earnings per share for the period amounted
to 2.7 cents (2002: 0.25cents).
In line with our strategy of concentrating on City Centre locations, the results
for the current year reflect the disposal of the Killarney Ryan, the Limerick
Ryan and the Galway Ryan hotels being properties which were largely dependent on
the leisure market. The cash consideration for these properties amounted to
Euro35.75m which after the deduction of all associated transaction costs produced
an exceptional gain of Euro239,000. The sale of these properties has placed the
Group in a very strong financial position and importantly enabled us to redefine
our internal cost structures which has been instrumental in producing this
increased profitability. The funds generated from this transaction have been
used to reduce debt. Our debt to equity ratio at the year end was 27% (2002:
55%).
It is evident that considerable progress has been made in the last year, however
at the time of writingthis report I am precluded from commenting on the outlook
for the current year as the Company is in an Offer Period. This is as a result
of an approach made by a consortium of investors, as has been detailed in a
number of recent announcements. I specifically refer to an announcement which
was made on 31 March 2004 which confirmed that discussions with this consortium
were on-going at an approach level of Euro1.35 per share.
Given the current position in relation to this approach, the Boardis not
proposing a dividend at this time.
The Board of Gresham would like to thank all staff for their continued
professionalism and to reassure them that we are endeavouring to bring clarity
to the current situation as soon as possible.
Harvey M. Soning
Chairman
2 April 2004
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
Group Profit and Loss Account
For the year ended 31 December 2003
Eleven month
Year ended period ended
31 December 2003 31 December 2002
Notes euro000's euro000's
TURNOVER 47,886 50,696
Operating profit before exceptional costs 4,175 4,152
Exceptional costs 3 - (1,118)
Operating profit after exceptional costs 4,175 3,034
Profit on sale of hotel properties 4 239 -
Profit on ordinary activities before
finance cost 4,414 3,034
Finance cost (2,462) (2,929)
Profit on ordinary activities before
taxation 1,952 105
Taxation 5 185 111
Profit on ordinary activities after taxation 2,137 216
Dividends proposed (including dividends
in respect of Non-Equity Shares) - (814)
Profit / (Loss) retained for the year 2,137 (598)
Profit realised from revaluation reserve 6 14,485 -
Scrip issues in lieu of cash dividends 219 629
16,841 31
Retained profits at beginning of year 38,607 38,576
RETAINED PROFITS AT END OF YEAR 55,448 38,607
Earnings per share 7 2.70c 0.25c
Diluted earnings per share 7 2.68c 0.24c
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
Group Statement of Total Recognised Gains and Losses
For the year ended 31 December 2003
Eleven month
Year ended period ended
31 December 2003 31 December 2002
euro000's euro000's
Profit on ordinary activities after taxation 2,137 216
Foreign currency loss on net assets
in overseas subsidiaries (3,562) (3,234)
Foreign currency profit on foreign
currency borrowings 2,583 2,371
Total Recognised Gains and Losses for the year 1,158 (647)
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
Group Balance Sheet
As at 31 December 2003
31 December 31 December
2003 2002
Notes euro000's euro000's
FIXED ASSETS
Tangible assets 177,318 215,409
CURRENT ASSETS
Stocks 1,077 1,562
Debtors 3,402 4,135
Cash at bank 13,932 9,575
18,411 15,272
CREDITORS
(amounts falling due within one year) (10,151) (26,724)
NET CURRENT ASSETS / (LIABILITIES) 8,260 (11,452)
TOTAL ASSETS LESS
CURRENT LIABILITIES 185,578 203,957
CREDITORS
(amounts falling due after more than one year) (48,777) (68,142)
PROVISION FOR LIABILITIES AND CHARGES (687) (1,097)
TOTAL NET ASSETS 136,114 134,718
CAPITAL AND RESERVES
Called up share capital 8,369 8,324
Share premium account 10,546 10,572
Revaluation reserve 8 59,982 74,467
Other reserves 1,769 2,748
Profit and loss account 55,448 38,607
SHAREHOLDERS' FUNDS
(Equity and Non-Equity) 136,114 134,718
Net Asset Value per Share euro1.63 euro1.62
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
Group Cash Flow Statement
For the year ended 31 December 2003
Eleven month
Year ended period ended
31 December 2003 31 December 2002
euro000's euro000's
NET CASH INFLOW FROM
OPERATING ACTIVITIES 3,944 5,895
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest received 409 343
Interest paid (2,790) (2,586)
Interest element of finance lease payments (273) (245)
Participating preference dividends (24) (21)
Net cash outflow from returns on
investments and servicing of finance (2,678) (2,509)
TAXATION
Net cash inflow /(outflow) from taxation 291 (131)
CAPITAL EXPENDITURE
Payments to acquire tangible assets (1,337) (6,199)
Net cash outflow from capital expenditure (1,337) (6,199)
ACQUISITIONS AND DISPOSALS
Proceeds from disposal of hotel properties 35,750 -
Payment of disposal costs (735) -
Net cash inflow from acquisitions and disposals 35,015 -
EQUITY DIVIDENDS PAID (572) (1,867)
Net cash inflow / (outflow) before financing 34,663 (4,811)
FINANCING
Issue of ordinary share capital 42 130
Share issue costs (23) (47)
New loans during year 3,000 2,000
Repayment of long term loans (21,776) (2,293)
Capital element of finance lease payments (8,657) (112)
Net cash outflow from financing (27,414) (322)
INCREASE / (DECREASE) IN CASH 7,249 (5,133)
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
Notes to the Preliminary Financial Statements
For the year ended 31 December 2003
1. Final Dividend
Given the current position in relation to the approach, the Board is not
proposing a dividend at this time.
2. Annual Report
The Annual Report will be sent to all shareholders and will also be made
available to the public at the Company's Registered Office, 23 Upper
O'Connell Street, Dublin 1.
3. Exceptional Costs
The exceptional items for the eleven month period to 31 December 2002
comprise professional fees and payments to Directors arising from the
convening of an Extraordinary General Meeting held on 8 August 2002 and the
resolutions passed at that meeting, the payments to directors being in
respect of termination of their contracts.
Eleven month
Year ended period ended
31 December 2003 31 December 2002
euro000's euro000's
Professional fees - (637)
Payments to Directors in respect of termination of contracts - (481)
- (1,118)
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
Notes to the Preliminary Financial Statements
For the year ended 31 December 2003
4. Profit on Sale of Hotel Properties
On 9 June 2003, the Group announced that it had agreed to dispose of its Ryan
Branded Hotels, namely the Killarney Ryan Hotel and Leisure Centre,the
Limerick Ryan Hotel and Conference Centre and the Galway Ryan Hotel and
Leisure Centre, for an aggregate cash consideration of euro35.75 million. The
profit arising on the sale of the hotel properties during the year to 31
December 2003 amountsto euro239,000.
5. Taxation
Eleven month
Year ended period ended
31 December 2003 31 December 2002
euro000's euro000's
Irish corporation tax 209 -
Foreign corporation tax 19 27
Overprovision in earlier years (3) (163)
225 (136)
Deferred tax (410) 25
Total (185) (111)
6. Profit Realised from Revaluation Reserve euro000's
Sale proceeds 35,750
Historical cost and subsequent additions (21,265)
Realised revaluation surplus 14,485
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
Notes to the Preliminary Financial Statements
For the year ended 31 December 2003
7. Earnings per Share
Eleven month
Year ended period ended
31 December 2003 31 December 2002
euro000's euro000's
Profit on ordinary activities after taxation 2,137 216
Less: Participating preference dividends - (24)
2,137 192
Ordinary shares in issue during the year 79,312,580 78,451,998
Earnings per share 2.70c 0.25c
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 ona weighted average number of shares in issue of 79,627,571 (31
December 2002: 78,781,388).
8. Revaluation Reserve
euro000's
Balance at beginning of year 74,467
Realised revaluation surplus on sale of hotel properties (14,485)
Balance at end of year 59,982
For further information contact:
Patrick Coyle ChiefExecutive 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
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
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