Information  X 
Enter a valid email address

Snoozebox Hldgs PLC (ZZZ)

  Print      Mail a friend       Annual reports

Thursday 20 February, 2014

Snoozebox Hldgs PLC

Trading Update

RNS Number : 5370A
Snoozebox Holdings PLC
20 February 2014
 



20 February 2014

Snoozebox Holdings plc

Trading update

Snoozebox Holdings plc (Snoozebox, AIM: ZZZ), the leading provider of portable hotel accommodation and services, today announces an update on trading.

§ C. 80% year-on-year growth in revenues to £6.5m in 2013

§ Net cash at the year-end in excess of £4.5 million

§ Positive contribution to central overheads in the second half of 2013

§ New events announced for 2014 including the Ryder Cup and Glastonbury

§ Sales to date of 2014 events substantially ahead of expectations, with some events almost sold out

§ 2014 launch of next generation portable hotel

§ Lorcán Ó Murchú, currently Chief Financial Officer, is appointed Chief Executive Officer

2013 results

In December, the Company reported a marked improvement in financial performance in the second half of 2013.  This was characterised by markedly lower operating costs and further improvements in margins. Revenues for 2013 grew by c.80% year-on-year to £6.5 million and the Company also confirms that net cash at the year-end was in excess of £4.5 million.

2014 to date

Eventz - Snoozebox's event division

Snoozebox is pleased to announce new music and sports events for 2014, including Glastonbury and the Ryder Cup. Glastonbury attracts over 175,000 people to its annual five day music festival in late June in Somerset.  Hotel packages for the event will start from £2,000 per room. 

At the Ryder Cup, Snoozebox will operate a hotel for European Tour Productions, the host broadcaster.  The Ryder Cup is the premier team golf event in the world.  The 2014 Ryder Cup sees Snoozebox build further on its first golf event, The Open, in 2013.

Sales to date of 2014 events are substantially higher than last year, selling at a faster rate and with some events seeing prices over 100% higher than in 2013. Moto GP and the IOM TT Race packages are already almost sold out, British Grand Prix packages are 50% sold and Download Rock Festival VIP Hotel is already 25% sold, all at higher pricing.

In addition to the events calendar, the Company is seeing demand from the wider corporate market.  In the last six months Snoozebox has hosted a range of events on behalf of blue chip retailers, banking clients, car manufacturers, travel companies and event agencies.

The Company plans to bring its Next Generation Portable Hotel to market in 2014, which is a much more efficient, more flexible model, positioning the Company for the next phase of growth.  Current expectations are that the Next Generation Portable Hotel will reduce deployment costs by an order of magnitude and will increase available room nights substantially, delivering the ability to deploy at more events and thereby increasing significantly the revenue per room.  In the UK alone, there are over 10,000 events each year which are worth over £11bn in sleeping accommodation.  The Company's prime focus in the near term remains the UK and European markets where it continues to experience high levels of enquiries and demand, including in Austria, Belgium, France, Germany, Hungary and Italy.

The development of other key territories is progressing.   In the last six months, Snoozebox has hosted inbound visits at its flagship hotel at Silverstone to delegations from Russia, the Middle East and South America, amongst others.  The Snoozebox brand is strong and the Company has live enquiries from over 40 countries for notable events and longer term deployments as far out as 2022.

Hotelz - Snoozebox's hotel division

Based on the current pipeline of opportunities for semi-permanent hotels, which include planned deployments at locations in London and Edinburgh amongst others, the Company believes that by the latter part of the 2014, the remaining first generation hotel room stock would be deployed.

Board

Snoozebox is pleased to announce that Chief Financial Officer, Lorcán Ó Murchú will step up to the role of Chief Executive Officer.  Lorcán will retain overall responsibility for the financial direction of the business until a new CFO is appointed.  

Commenting on today's announcement, David Morrison, Chairman, said:

"The Board is pleased that Lorcán Ó Murchú has agreed to become Chief Executive of Snoozebox with immediate effect and I would like to thank him for his considerable efforts in addressing the challenges the Company faced in 2013 and in laying the foundations for future profitable growth.

I can also report that the work undertaken in the second half of 2013, since the change in management, has achieved demonstrable progress.  The release of the Next Generation Portable Hotel combined with the levels of demand being experienced, creates a sizeable opportunity for growth both in the UK market and overseas.

Given the strength of demand for Snoozebox products, management intends to broaden and deepen the product development and sales capability of the Company in the coming months to enable more rapid growth both in the UK and overseas."

Snoozebox is expected to publish its annual results for the year ended 31 December 2013 in early April.

ENDS

Enquiries:

 

Snoozebox

Today via Instinctif Partners

Lorcán Ó Murchú, Chief Executive

 

020 7457 2020



Panmure Gordon

020 7886 2500

Corporate Finance:

Katherine Roe

Fred Walsh

Corporate Broking:

Adam Pollock

Charles Leigh-Pemberton

 




Instinctif Partners

020 7457 2020

Matthew Smallwood


Justine Warren


 

Website: www.snoozebox.com 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCSEDSUSFLSELE

a d v e r t i s e m e n t