Interim Results
PEEL HOTELS PLC
INTERIM RESULTS
For 28 weeks ended 18 August 2013
· Sales up to £8,228,186 (2012: £8,214,828)
· Operating Profit up 27.2% to £536,982 (2012: £422,230)
· EBITDA up 6.4% to £1,095,519 (2012: £1,029,823)
· Profit before tax up to £202,136 (2012: £45,049)
· Net Debt decreased by £366,066
· Earnings per share
Basic 1.1p (2012: 0.2p)
Diluted 1.1p (2012: 0.2P)
Chairman Robert Peel said: In spite of flat Sales we have managed to produce solid EBITDA improvement, REVPAR growth and a modest decrease in finance costs with net debt continuing to decrease. We hope to continue this improvement over the remaining trading periods of the year.
Press enquiries: 0207 266 1100
Nominated advisor and Broker: 0207 418 8900
Peel Hunt LLP
Capel Irwin
CHAIRMAN'S STATEMENT
In the 28 weeks to 18 August 2013 turnover was £8,228,186 (2012: £8,214,828). Over the same period operating profit increased 27.2% to £536,982. EBITDA (earnings before interest, tax and depreciation) increased 6.4% to £1,095,519.
Revpar (accommodation revenue per available room) increased 1.7% with occupancy up 2.0% and average room rate down 0.3%.
Group Overheads decreased 26.5% reflecting in part previous year adjustments on business rates and depreciation and amortisation that decreased by 8.1%.
Profit before tax was £202,136 compared to a profit of £45,049 in the same period last year.
Corporation tax has been provided at an effective rate of 25%. Basic earnings per share were 1.1p compared with 0.2p in the equivalent period in the previous year on 14,012,123 (14,012,123) shares in issue.
FINANCE
On 18 August 2013 net debt stood at £12,000,235 representing loans totalling £11,783,536 and an overdraft of £338,596 less £121,897 cash at bank. Gearing on Shareholders' funds was 54.3% with interest covered 1.1 times. Net debt decreased by £366,066 compared with the previous year end.
The cost of buying out the swap on 18 August 2013 was £329,871 and the Board's view is still that it would make little economic sense to do this bearing in mind that the agreement expires on 11 April 2014
CAPITAL EXPENDITURE
We spent £276,226 in the period (2012: £172,332) mainly in refurbishing the public areas of the Caledonian Hotel in Newcastle, bedroom refurbishment at the Cosmopolitan in Leeds and Bull Hotel in Peterborough. Our strategy is to continue to improve the fabric of our product and we expect to spend more capital expenditure in the current financial year than the £439,308 that was spent in the previous year.
SHAREHOLDERS
We are always delighted to welcome Shareholders to our Hotels where they can see for themselves the progress we have made, whilst enjoying a beneficial discount of 50% of our rack rate tariff, using a special reservations number 0207 266 1100 or e-mail info@peelhotel.com . Shareholders can keep in touch with progress in the company and various promotional activities by visiting our website www.peelhotels.co.uk
THE FUTURE
In spite of flat sales we have managed to produce solid EBITDA improvement together with a modest decrease in finance costs. We hope to continue this improvement over the remaining trading periods of the year.
Robert Peel
Chairman
14 October 2013
DIRECTORS AND ADVISORS
Directors
Robert Edmund Guy Peel Executive Chairman
Nicholas David Lawton Parrish Financial Director
Clement John Govett Non-executive Director
Keith Peter Benham Non-executive Director
Norbert Paul Gottfried Petersen Non-executive Director
Secretary
Thrings LLP
Kinnaird House, 1 Pall Mall East, London SW1Y 5AU
Registered Office
5th Floor, Kinnaird House, 1 Pall Mall East, London SW1Y 5AU
Company registration number 3473990
Auditor
Grant Thornton UK LLP
No. 1 Whitehall Riverside, Leeds, LS1 4BN
Bankers
Royal Bank of Scotland Plc
280 Bishopsgate, London EC2M 4RB
Registrars
Computershare Services Plc
PO Box No 82, The Pavilions, Bridgewater Road, Bristol BS99 7NH
Solicitors
Thrings LLP
Kinnaird House, 1 Pall Mall East, London SW1Y 5AU
Stockbroker
Peel Hunt LLP
Moor House, 120, London Wall, London EC2Y 5ET
GROUP STATEMENT OF COMPREHENSIVE INCOME
for the period ended 18 August 2013
Unaudited Unaudited Audited
28 weeks ended 28 weeks ended Year ended
18/08/2013 19/08/2012 03/02/2013
Note £ £ £
Revenue 8,228,186 8,214,828 15,233,026
Cost of sales (6,869,472) (6,826,912) (12,822,715)
Gross profit 1,358,714 1,387,916 2,410,311
Administration expenses (263,195) (358,093) (712,251)
Depreciation (558,537) (607,593) (1,137,081)
Operating profit 536,982 422,230 560,979
Finance income - - 318
Finance expense (508,680) (524,424) (961,444)
Fair value movement on derivative 173,834 147,243 302,736
Profit /(loss) before tax 202,136 45,049 (97,411)
Income tax 2 (50,534) (11,262) 101,563
Profit and total comprehensive
income for the period attributable
to owners 151,602 33,787 4,152
Earnings per share
Basic & diluted (pence) 3 1.1 0.2 0.03
GROUP STATEMENT OF CHANGES IN EQUITY
for the period ended 18 August 2013
28 weeks ended 19 August 2012
Unaudited Share Profit
Share premium and loss
Capital account account Total
£ £ £ £
Balance brought forward
at 6 February 2012 1,401,213 9,743,495 10,904,734 22,049,442
Profit and total comprehensive
income for the period - - 33,787 33,787
Balance at 19 August 2012 1,401,213 9,743,495 10,938,521 22,083,229
12 months ended 3 February 2013
Share Profit
Audited Share premium and loss
Capital account account Total
£ £ £ £
Balance brought forward
at 6 February 2012 1,401,213 9,743,495 10,904,734 22,049,442
Profit and total comprehensive
income for the period - - 4,152 4,152
Balance at 3 February 2013 1,401,213 9,743,495 10,908,886 22,053,594
28 weeks ended 18 August 2013
Share Profit
Unaudited Share premium and loss
Capital account account Total
£ £ £ £
Balance brought forward
at 4 February 2013 1,401,213 9,743,495 10,908,886 22,053,594
Profit and total comprehensive
income for the period - - 151,602 151,602
Balance at 18 August 2013 1,401,213 9,743,495 11,060,488 22,205,196
GROUP BALANCE SHEET
at 18 August 2013
18/08/2013 19/08/2012 03/02/2013
Unaudited Unaudited Audited
£ £ £
Assets
Non-current assets
Property, plant and equipment 36,755,235 37,300,058 37,037,546
Deferred tax asset 115,852 201,610 115,852
Total non-current assets 36,871,087 37,501,668 37,153,398
Current assets
Inventories 107,377 106,393 99,529
Trade and other receivables 486,768 580,675 404,449
Prepayments 814,370 796,019 732,105
Current tax asset - 28,275 -
Cash at bank and in hand 121,897 102,342 116,554
Total current assets 1,530,412 1,613,704 1,352,637
Total assets 38,401,499 39,115,372 38,506,035
Equity and liabilities
Equity attributable to owners
Share capital 1,401,213 1,401,213 1,401,213
Share premium 9,743,495 9,743,495 9,743,495
Retained earnings 11,060,488 10,938,521 10,908,886
Total equity 22,205,196 22,083,229 22,053,594
Liabilities
Non-current
Borrowings (due after one year) 11,207,482 10,393,975 9,324,716
Deferred tax liabilities 1,182,914 1,417,523 1,182,914
Derivative financial instruments - 344,812 71,958
Non-current liabilities 12,390,396 12,156,310 10,579,588
Current
Trade and other payables 2,459,160 2,434,337 2,231,275
Borrowings (due within one year) 914,650 2,127,110 3,158,139
Current tax liabilities 102,226 - 51,692
Derivative financial instruments 329,871 314,386 431,747
Current liabilities 3,805,907 4,875,833 5,872,853
Total liabilities and equity 38,401,499 39,115,372 38,506,035
GROUP CASH FLOW STATEMENT
for the Period ended 18 August 2013
Unaudtied Unaudited Audited
18/08/2013 19/08/2012 03/02/2013
£ £ £
Cash flows from operating activities
Profit for the period 151,602 33,787 4,152
Adjustments for:
Financial income - - (318)
Financial expense 08,680 524,424 961,444
Fair value movement on derivative (173,834) (147,243) (302,736)
Income tax income 50,534 11,262 (101,563)
Depreciation 558,537 607,593 1,137,081
Operating profit before changes in
working capital and provisions 1,095,519 1,029,823 1,698,060
UK corporation tax received - - 43,941
(Increase)/decrease in trade and other receivables (161,812) (171,922) 78,609
Increase in trade and other payables 205,919 272,155 95,145
(Increase)/decrease in inventories (7,848) (4,087) 2,777
Net cash from operating activities 1,131,778 1,125,969 1,918,532
Cash flows from investing activities
Interest paid (513,693) (524,424) (1,001,966)
Acquisition of property, plant and equipment (276,226) (172,332) (439,308)
Net cash from investing activities (789,919) (696,756) (1,441,274)
Cash flows from financing activities
New loans - 585,000 585,000
Loan repayments (283,027) (223,027) (467,889)
Net cash from financing activities (283,027) 361,973 117,111
Net increase /(decrease) in cash
and cash equivalents 58,832 791,186 594,369
Cash and cash equivalents at the
beginning of the period (275,531) (869,900) (869,900)
Cash and cash equivalents at the
end of the period (216,699) (78,714) (275,531)
For the purposes of the cash flow statement,
cash and cash equivalents comprise:
Cash and bank balances 121,897 102,342 116,554
Bank overdraft (338,596) (181,056) (392,085)
NOTES TO THE INTERIM RESULTS
for the period ended 18 August 2013
1. Basis of accounting
The interim financial information has been prepared on the basis of the recognition and measurement requirements of adopted IFRSs as at 18 August 2013 that are effective (or available for early adoption) at 2 February 2014. Based on these adopted IFRSs, the Directors have applied the accounting policies, which they expect to apply when the annual IFRS financial statements are prepared for the year ending 2 February 2014.
The group has chosen not to adopt IAS 34 (Interim Financial Statements) in preparing these interim financial statements and therefore the interim financial information is not in full compliance with International Financial Reporting Standards.
The financial information set out in this interim report does not constitute statutory accounts as defined in sections 434 and 435 of the Companies Act 2006. The figures for the year ended 3 February 2013 have been extracted from the statutory financial statements which have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498(2) and 498(3) of the Companies Act 2006.
The group's accounting policies remain as stated in the group's full annual accounts for the year ended 3 February 2013.
2. Taxation
Tax has been provided at a rate of 25% which represents the expected effective rate for the full year.
3. Earnings per share
Earnings per share are based on the profit after taxation and on the weighted average number of shares in issue during the period.
2 8 weeks 28 weeks Year
ended ended ended
18/8/2013 19/8/2012 3/2/2013
Unaudited Unaudited Audited
Average No. shares - Basic 14,012,123 14,012,123 14,012,123
- Diluted 14,012,123 14,012,123 14,012,123
Independent review report to Peel Hotels plc
Introduction
We have been engaged by the company to review the financial information in the half-yearly financial report for the 28 weeks ended 18 August 2013 which comprises the Group Statement of Comprehensive Income, the Group Balance Sheet, the Group Cash Flow Statement, the Group Statement of Changes in Equity and the related notes.
We have read the other information contained in the half yearly financial report which comprises only the Chairman's Interim Statement and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company's members, as a body, in accordance with guidance contained in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our review work, for this report, or for the conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The AIM rules of the London Stock Exchange require that the accounting policies and presentation applied to the financial information in the half-yearly financial report are consistent with those which will be adopted in the annual accounts having regard to the accounting standards applicable for such accounts.
As disclosed in Note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The financial information in the half-yearly financial report has been prepared in accordance with the basis of preparation in Note 1.
Our responsibility
Our responsibility is to express to the Group a conclusion on the financial information in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the financial information in the half-yearly financial report for the 28 weeks ended 18 August 2013 is not prepared, in all material respects, in accordance with the basis of accounting described in Note 1.
GRANT THORNTON UK LLP
AUDITOR
LEEDS
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