Interim Results
28 Agosto 2003 - 4:08AM
UK Regulatory
RNS Number:1041P
Gresham Hotel Group Plc
28 August 2003
INTERIM RESULTS
SIX MONTHS ENDED 30 JUNE 2003
Highlights
Period under review is January to June whereas the comparative period is
February to July.
These results do not reflect the recent sale transactions with regards to the
Killarney Ryan, Limerick Ryan and Galway Ryan Hotels.
Turnover for the period was Euro25.3m (2002: Euro26.8m)
Operating profit of Euro1m (2002: Euro1.8m).
Performance on a comparable basis is approximately Euro250,000 above the same
period last year.
Room occupancy was 73% (2002: 73%)
Average room rate was Euro82 (2002: Euro83)
Net assets at Euro134m producing a net asset value of Euro1.69.
Net bank borrowings of Euro49m producing a bank gearing ratio of 37%.
CHAIRMAN'S STATEMENT
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2003
Dear Shareholder,
The Interim Results as presented reflect trading for the six months to June
2003, whereas the previous year reflects the six months to July 2002. This
movement in the accounting period is as a result of our change of financial year
to December which was made last year. Whilst the results as presented show a
decrease in profitability before tax and exceptional items, of Euro494,000, the
performance on a comparable basis (January to June) has increased by
approximately Euro250,000.
Trading for the period was adversely affected by the conflict in Iraq,
particularly during the months of March and April, and the travel concerns
created by the SARS virus. Group occupancy for the period was in line with last
year at 73% with a Group average room rate of Euro82 (2002: Euro83). The domestic
market has performed well showing growth on the previous year, however the
important US market has seen a further decline with no growth being experienced
from the British market.
In line with last year the Board has decided, given the uncertain trading
environment, not to pay an interim dividend as it is felt appropriate to defer
the decision on the level of dividend until such time as the outcome for the
full year is known.
In line with our strategy which was communicated earlier this year, one aspect
of which was to concentrate on city centre locations with an emphasis on
bedrooms and meeting facilities, the Group announced in June that it had entered
into agreements to dispose of the Killarney Ryan, the Limerick Ryan and the
Galway Ryan Hotel for an aggregate cash consideration of Euro35.75m. The net book
values of these properties at 30 June 2003 was Euro34.06m. The sale contracts in
respect of the Galway Ryan and Limerick Ryan were completed on 11 July 2003.
The sale contract in respect of the Killarney Ryan is anticipated to complete by
the end of November 2003 at the latest. The funds generated from these
transactions are initially being used to reduce debt
I would like to express our gratitude to the management and staff of the
properties concerned, for their commitment and professionalism which they have
shown while working with the Group. The sale process ensured that all
employment was secured on the same terms and conditions as before and that
pension entitlements were also protected.
The sale of these properties together with a reduced cost structure places the
Group in a very strong financial position and creates the necessary flexibility
to enable us execute our future growth strategy.
Finally, the Group continues to operate in an environment with limited
visibility, however given the progress that has been made to date and the
strategic repositioning of the Group, we look forward with increased optimism to
the second half of the year.
Harvey M Soning
Chairman
28 August 2003
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
GROUP PROFIT & LOSS ACCOUNT - (UNAUDITED)
FOR THE SIX MONTHS TO 30 JUNE 2003
Jan to June Feb to July
2003 2002
Euro000's Euro000's
TURNOVER 25,298 26,807
Operating profit before exceptional items 993 1,832
Exceptional items - (1,118)
Profit before finance costs and taxation 993 714
Finance cost (1,387) (1,672)
Loss before taxation (394) (958)
Taxation - (60)
Loss after taxation - retained (394) (1,018)
Scrip issues in lieu of cash dividends 218 629
Retained profits at beginning of period 38,607 38,576
RETAINED PROFITS AT END OF PERIOD 38,431 38,187
Loss per share (Euro0.00498) (Euro0.0130)
Diluted loss per share (Euro0.00496) (Euro0.0130)
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE SIX MONTHS TO 30 JUNE 2003
Jan to June Feb to July
2003 2002
Euro000's Euro000's
Loss after taxation (394) (1,018)
Foreign currency loss
on net assets in overseas subsidiaries (2,668) (1,387)
Foreign currency profit
on foreign currency borrowings 2,065 1,097
Total recognised gains and losses for the period (997) (1,308)
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
GROUP BALANCE SHEET
AS AT 30 JUNE 2003
30 June 1 August
2003 2002
Euro000's Euro000's
FIXED ASSETS
Tangible assets 212,621 215,636
CURRENT ASSETS
Stocks 1,398 1,568
Debtors 5,160 6,085
Cash at bank 9,889 9,199
16,447 16,852
CREDITORS
(amounts falling due within one year) (26,260) (28,124)
NET CURRENT LIABILITIES (9,813) (11,272)
TOTAL ASSETS LESS
CURRENT LIABILITIES 202,808 204,364
CREDITORS
(amounts falling due after more than one year) (67,729) (68,490)
PROVISION FOR LIABILITIES AND CHARGES (1,097) (1,132)
TOTAL NET ASSETS 133,982 134,742
CAPITAL AND RESERVES
Called up share capital 8,369 8,228
Share premium account 10,569 10,539
Revaluation reserve 74,467 74,467
Other reserves 2,146 3,321
Profit and loss account 38,431 38,187
SHAREHOLDERS' FUNDS
(Equity and Non-Equity) 133,982 134,742
Net Asset Value per Share Euro1.69 Euro1.71
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
GROUP CASH FLOW STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2003
Jan to June Feb to July
2003 2002
Euro000's Euro000's
NET CASH INFLOW FROM
OPERATING ACTIVITIES 1,551 2,037
RETURNS ON INVESTMENTS &
SERVICING OF FINANCE
Interest received 251 244
Interest paid (1,612) (1,707)
Interest element of finance lease payments (94) (133)
Participating preference dividends (24) (21)
Net cash outflow from returns on
investments and servicing of finance (1,479) (1,617)
TAXATION
Net cash inflow / (outflow) from taxation 137 (146)
CAPITAL EXPENDITURE
Payments to acquire tangible assets (911) (3,175)
Net cash outflow from capital expenditure (911) (3,175)
EQUITY DIVIDENDS PAID (572) (1,867)
Net cash outflow before financing (1,273) (4,768)
FINANCING
Issue of ordinary share capital 42 -
Share issue costs - (36)
New loans during period 3,000 -
Repayment of long term loans (1,462) (1,546)
Capital element of finance lease payments (82) (72)
Net cash inflow / (outflow) from financing 1,498 (1,654)
INCREASE / (DECREASE) IN CASH 225 (6,423)
GRESHAM HOTEL GROUP PLC AND SUBSIDIARIES
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2003
1. Interim Report
The interim 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.
2. Accounting Period
The company has changed it's accounting year end date to 31 December.
Accordingly, these interim financial statements cover the six month period from
1 January 2003 to 30 June 2003. The comparative figures are for the twenty six
week period from 1 February 2002 to 1 August 2002.
3. Subsequent Events - Disposal of Hotels
On 9 June 2003, the Group announced that, by separate transactions entered into
by wholly-owned subsidiaries, it had agreed to dispose of 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 net book values of these properties at 30 June 2003
amounted to Euro34.06 million.
Each of the purchasers will acquire certain working capital assets transferred
on completion. The working capital assets transferred will be a maximum balance
of Euro0.8 million per transaction. These working capital assets were Euro0.3 million
in aggregate at 30 June 2003. The consideration of Euro21.89 million in respect of
the Limerick Ryan Hotel and Conference Centre, and the Galway Ryan Hotel and
Leisure Centre was received in July 2003. It is anticipated that consideration
of Euro13.86 million in respect of the Killarney Ryan Hotel and Leisure Centre will
be received not later than 30 November 2003.
Tax and other costs amounting to Euro1.6 million will be incurred on these disposal
transactions.
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
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