Trading Update
May 21 2003 - 3:02AM
UK Regulatory
RNS Number:3568L
Millennium & Copthorne Hotels PLC
21 May 2003
21 May 2003
MILLENNIUM & COPTHORNE HOTELS PLC
TRADING UPDATE AND RESULTS FOR THE THREE MONTHS ENDED
31 MARCH 2003
Millennium & Copthorne Hotels plc today provides a trading update and results
for the three months ended 31 March 2003.
Group results
* Group turnover #125.1m (2002: #135.6m)
* Group operating profit #9.6m (2002: #18.5m)
* Pre-tax profit #4.7m (2002: #7.6m)
Operational overview
* Ongoing tight control on costs
* Sale of non-core assets in London and China realises #6.1m of profit
* Significant SARS impact on Singapore and Hong Kong in second half of
March
* Post period end:
- Improvement in trading in the United States and Europe since the end
of the war in Iraq
- Asian business continued to be severely affected by SARS during
April and May
- Reopening of the Millenium Hilton in New York
Commenting today, Mr Kwek Leng Beng, Chairman, said:
"Despite challenging conditions we made a promising start to the year with Group
RevPAR for the period to 21 February 2003 down only 2% on the prior year.
However, the accelerated build up to and the subsequent war in Iraq had a severe
impact on international travel. This was compounded by the outbreak of SARS in
the second half of March which significantly impacted our operations in Asia.
"The war in Iraq is over and we are experiencing a significant improvement in
the business environment in Europe and the USA. Asia continues to be affected
by SARS but following the strong control and precautionary measures introduced
by the Singapore government we expect the World Health Organisation to declare
Singapore SARS free in the near future. Furthermore, we are encouraged by the
measures taken by other countries in the region to control the disease. Clearly
the containment of SARS in Asia will result in a further improvement in Group
trading."
Millennium & Copthorne will hold its Annual General Meeting today at the
Millennium Hotel London Mayfair, Grosvenor Square, London at 10.00am.
Enquiries to:
John Wilson, Chief Executive 020 7872 2444
Millennium & Copthorne Hotels plc
David Thomas, Finance Director 020 7872 2444
Millennium & Copthorne Hotels plc
Nick Claydon/Kate Miller/Chi Lo 020 7404 5959
Brunswick Group Limited
MILLENNIUM & COPTHORNE HOTELS PLC
TRADING UPDATE AND RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2003
The Group's majority shareholder, City Developments Limited, will this year
introduce quarterly reporting following the issue of a new regulation to this
effect for all companies listed on the Singapore Stock Exchange. In order to
comply with London Stock Exchange requirements, Millennium & Copthorne Hotels
plc will now also issue quarterly trading updates as well as the year end and
interim statements. This initial release is comprehensive to ensure that all
aspects of the current trading environment are addressed.
SUMMARY OF PERFORMANCE
At the time of the Preliminary Announcement in March we stated that 2003 would
be a challenging year due to the prospect of war in Iraq and worldwide economic
uncertainty. In March the build up to the war resulted in a severe impact on
international travel. The conflict is over and we are experiencing an
improvement in the business environment in Europe and the USA. However, the
hotel industry in Asia has now been severely affected by the impact of the SARS
virus on travel in that region. The virus did not have a major impact until the
third week in March but it has seriously affected business in April and May.
We also outlined the position regarding the Millenium Hilton in New York that
had been closed since 11 September 2001. On 5 May it was reopened with a ribbon
cutting ceremony by Mayor Bloomberg and we now have nearly half of the 561 rooms
open. The refurbished rooms are in demand and we anticipate that all of the
rooms will be opened by mid summer. The legal action with the insurance company
has not been settled and to ensure our accounting is prudent we have not
recognised any business interruption income from this hotel in 2003. The hotel
incurred a loss of US$4.1m the first quarter 2003 relating to on-going fixed
expenses and pre-opening costs. This compares to a net profit of US$2.1m, after
recognising business interruption insurance, for the equivalent period in 2002.
Our turnover for the first quarter of 2003 was #125.1m, a reduction of #10.5m.
Group operating profit was #9.6m (2002: #18.5m) and profit before tax was #4.7m
(2002: #7.6m). Earnings per share was 0.6p (2002: 0.9p). Group RevPAR was down
5% on the equivalent period in 2002.
In response to very challenging market conditions we have successfully continued
to drive sales at a local level to maintain and improve market share. We
continue to monitor our cost base carefully and we have put in place further
cost reductions, both in terms of staffing levels and by restricting other
expenses. The Group is continuing the review of non-core assets and seeking
opportunities to realise shareholder value.
REGIONAL PERFORMANCE
The results and key operating statistics for this period are set out in full in
the appendix. In order to assist the understanding of these results, the
commentary that follows is based upon statistics presented in constant currency
on a like for like basis.
UNITED STATES
New York
In New York, we have continued our policy of targeting volume through tactical
marketing and our occupancy has remained high at 81.2% (2002: 82.8%) despite the
severe winter weather and the Iraq conflict. Overall, RevPAR fell by 9% in the
quarter as a result of the pressure on average rates, particularly those offered
via the Internet which is becoming an increasingly popular booking channel.
The Millenium Hilton re-opened on 5 May as a "brand new" hotel and it is well
positioned in the New York market. Initial bookings have been encouraging with
all available rooms fully booked on most days. We are focussed on fully
reopening the hotel as soon as possible. The legal action with the insurance
company has not been settled and we have therefore not recognised any business
interruption income from this hotel in 2003. In the first half of 2003 our
projected net charge to the profit and loss account is forecast to be US$9.2m
mainly resulting from pre-opening costs compared to a net profit of US$4.5m in
2002. This is reported as other operating expenses.
Regional US
We have seen some encouraging signs in the year to date in this region.
Occupancy in this region has begun to improve and was nearly 7 percentage points
up on 2002. This more than compensated for the fall of 10% in average room rate
to produce a very pleasing increase in RevPAR of 4% for the period.
Our large convention hotels in St Louis and Cincinnati both performed well and
they increased their combined occupancy by 10 percentage points, conversely our
other large convention property in this region, the Millennium Biltmore Hotel
Los Angeles, maintained its occupancy at just below 2002 but suffered a
significant fall in average rate. Other good performances were in the
Millennium hotels in Boulder, Chicago, Minneapolis and the newly rebranded
Millennium Maxwell House Nashville, which all showed significant RevPAR
improvements.
On 31 March 2003 we acquired the remaining 60% of the share capital held by
limited partners in The Sunnyvale Four Points Hotel, California for a net
consideration of US$4.2m (#2.6m). This will give us greater flexibility going
forward. This 378 room hotel is now wholly owned by the Group.
EUROPE
London
Significant pressure on average rate, combined with generally reduced levels of
business, has affected the performance of our London properties. Despite the
difficult market conditions our occupancy was above 75%. However, the average
rate fell by almost 5% and our RevPAR declined by 11%.
The war in Iraq has further reduced inbound business from the United States but
we are continuing with our policy of making tactical price reductions rather
than wholesale cuts.
As set out in our preliminary announcement in March, we have recognised a #4.0m
profit on the sale of one of our staff hostels. This is reported as profit on
the sale of fixed assets.
Rest of Europe
Occupancy showed a minor decrease compared to 2002 but average rate fell by 5%
to produce a RevPAR decline of 6%.
Our Millennium Hotel in the centre of Paris achieved a 3% rise in RevPAR mainly
through an increase in occupancy. The German hotel market shows no signs of
recovery and the combined RevPAR of our two properties was in line with last
year. The operating loss in our German hotels was #0.6m.
ASIA
In Asia, our occupancy was nearly five percentage points down on last year and
the average rate fell by 1% leading to a reduction in RevPAR of 8%.
The SARS virus did not have a major effect on Singapore or Hong Kong until the
second half of March and other countries, such as Taiwan, were not affected
until April. The Grand Hyatt Taipei was the best performing hotel in the region
with a rise in both occupancy and average rate leading to a 4% increase in
RevPAR. However, in late April and May, Taiwan has been more seriously affected
by SARS with resultant reductions in room revenues.
The impact of both the war and SARS are being mitigated by cost cutting measures
such as a shorter working week for staff, moth-balling of guest rooms and the
closure of unprofitable outlets. In addition, both the Hong Kong and Singapore
governments have introduced relief packages for the tourist industry, mainly by
reducing government levies.
Our Singapore hotels have minimal borrowings and we have no borrowings in
Taiwan. Our interest servicing burden is therefore minimal in these countries
and their cash position is satisfactory.
South Korea has not been declared as a SARS affected area but business volumes
have reduced due to a decline in intra-regional travel.
As set out in our preliminary announcement in March, we have recognised a #2.1m
profit on the sale of our shareholding in a partly completed hotel in China.
This is reported as profit on the sale of fixed assets.
AUSTRALASIA
Australasia continues to achieve good RevPAR growth and finished the quarter 4%
ahead of last year. This was achieved through an increase in average rate,
which was boosted by the hosting of the Americas Cup in Auckland between mid
February and early March. We remain pleased with the performance of this
region.
The Millennium Sydney has now closed and the conversion of one of the towers to
residential accommodation has begun. We are continuing to evaluate our options
regarding the second tower.
GROUP FINANCE
The Group has considerable financial strength and notwithstanding the impact on
the Group of the Iraq conflict and the SARS virus, we do not anticipate any
difficulties in continuing to meet our financial obligations.
As at 31 March 2003, the gross asset value is #2.2bn (2002: #2.3bn). The net
debt was #703m (2002: #696m). The overall gearing was 51% (2002: 49%). The net
debt includes cash balances of #49.5m (2002: #89.3m). Of our gross debt of
#752.9m only 10% is due within one year. Our borrowing arrangements are largely
asset specific and we have unencumbered assets in excess of #700m.
Our US debt of US$531m is subject to interest hedging arrangements resulting in
a blended cost of 6.7%. This arrangement will cease in December 2005 when the
interest rate will become US Federal rate (presently 1.75%) plus between 150 to
200 basis points.
We have deferred an element of non-essential capital expenditure and expect the
total for the year, including US$25m on the Millenium Hilton, to be in the
region of #30m.
CURRENT TRADING AND PROSPECTS
The war in Iraq clearly affected the travel industry both in terms of actual
bookings made and by shortening the lead time for future bookings. Many people
waited longer than usual before making the final decision to travel and this
trend is continuing.
In addition, the SARS virus has effectively isolated Hong Kong, Singapore and
now Taiwan. Many Western companies have imposed travel bans to the affected
region and Asian based personnel are being discouraged from travelling to other
countries for fear of spreading the disease.
As a consequence of the Iraq war and the SARS virus, RevPAR in Asia was down 52%
in April. Once the SARS outbreak is contained we hope to see an immediate pick
up in travel in the region again. On 7 May, the US Center for Disease Control
and Prevention (CDC) took Singapore off its travel advisory list meaning that
CDC no longer advises against travel to Singapore but only advises travellers to
take precautions. Following the strong control and precautionary measures
introduced by the Singapore government we expect the World Health Organisation
to declare Singapore SARS free in the near future.
In respect of the other regions, the RevPAR decline for April was 23% in New
York, 20% in the rest of the USA, 25% in London and 15% in the rest of Europe.
Australasia continued to show growth and its RevPAR was up 6% for the month of
April. This gives an overall Group RevPAR fall of 26%.
In the first two weeks of May we have seen a significant improvement in trading
in the United States and Europe. We are confident that the containment of SARS
in Asia will result in a further improvement in Group trading.
In the light of the factors mentioned above, coupled with our decision not to
recognise business interruption insurance for the Millenium Hilton, our profit
for the six months to 30 June will be significantly lower than the equivalent
period in 2002. However, the Group is financially sound and is well positioned
to meet the existing challenges in the global marketplace.
- End -
Appendix
Consolidated profit and loss account
3 months 3 months Year
ended ended ended
31 March 31 March 31 December
2003 2002 2002
#m #m #m
Unaudited Unaudited Audited
TURNOVER
Group and share of joint ventures 136.6 151.4 641.1
Less share of turnover of joint ventures (11.5) (15.8) (73.6)
______ ______ ______
GROUP TURNOVER 125.1 135.6 567.5
Cost of sales (59.5) (62.1) (252.1)
_____ _____ _____
GROSS PROFIT 65.6 73.5 315.4
Administrative expenses (53.4) (56.4) (225.6)
Other operating (expense)/income (2.6) 1.4 6.5
_____ _____ _____
GROUP OPERATING PROFIT 9.6 18.5 96.3
Share of operating profits of joint ventures 0.8 1.7 12.2
Share of operating profits of associated undertakings - 0.1 0.4
_____ _____ _____
TOTAL OPERATING PROFIT 10.4 20.3 108.9
Profit on sale of fixed assets 6.1 - -
Interest payable less receivable
Group (10.4) (10.9) (41.8)
Joint ventures (1.4) (1.7) (6.5)
Associated undertakings - (0.1) (0.4)
_____ _____ _____
(11.8) (12.7) (48.7)
_____ _____ _____
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 4.7 7.6 60.2
Tax on profit on ordinary activities (1.3) (2.2) (14.4)
_____ _____ _____
PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 3.4 5.4 45.8
Minority interests - equity (1.8) (2.9) (7.8)
____ ____ ____
Profit for the financial period 1.6 2.5 38.0
Dividends paid and proposed - - (35.3)
____ ____ ____
RETAINED PROFIT FOR THE FINANCIAL PERIOD 1.6 2.5 2.7
____ ____ ____
Basic earnings per share 0.6p 0.9p 13.4p
Diluted earnings per share 0.6p 0.9p 13.4p
Consolidated statement of total recognised gains and losses
3 months 3 months Year
ended ended ended
31 March 31 March 31 December
2003 2002 2002
#m #m #m
Unaudited Unaudited Audited
Profit for the financial period 1.6 2.5 38.0
Gain/(loss) on foreign currency translation 13.6 17.5 (62.6)
Deficit on revaluation of fixed assets - - (0.3)
____ ____ ____
Total gains and losses relating to the financial period 15.2 20.0 (24.9)
Prior year adjustments - (62.5) (62.5)
____ ____ ____
Total gains and losses recognised since last annual report 15.2 (42.5) (87.4)
____ ____ ____
Note of historical cost profits and losses
3 months 3 months Year
ended ended ended
31 March 31 March 31 December
2003 2002 2002
#m #m #m
Unaudited Unaudited Audited
Reported profit on ordinary activities before taxation 4.7 7.6 60.2
Difference between a historical cost depreciation charge
and the actual depreciation charge for the period calculated
on the revalued amount 0.1 0.1 0.5
____ ____ ____
Historical cost profit on ordinary activities before taxation 4.8 7.7 60.7
____ ____ ____
Historical cost profit for the period retained after taxation,
minority interests and dividends 1.7 2.6 3.2
____ ____ ____
Consolidated balance sheet
31 March 31 March 31 December
2003 2002 2002
#m #m #m
Unaudited Unaudited Audited
FIXED ASSETS
Tangible assets 2,226.1 2,326.5 2,185.4
Investments in joint ventures
Share of gross assets 289.3 323.1 288.1
Share of gross liabilities (201.8) (232.6) (205.1)
Share of minority interests (21.9) (22.7) (21.2)
Loans to joint ventures 36.7 40.8 36.1
_______ _______ _______
102.3 108.6 97.9
Investment in associated undertakings 2.2 5.9 6.2
Investments 0.6 0.3 0.3
_______ _______ _______
105.1 114.8 104.4
_______ _______ _______
2,331.2 2,441.3 2,289.8
_______ _______ _______
CURRENT ASSETS
Stocks 15.1 13.7 15.7
Debtors falling due within one year 79.8 103.9 75.6
Debtors falling due after more than one year 2.2 7.9 2.0
_______ _______ _______
82.0 111.8 77.6
Cash at bank and in hand 49.5 89.3 59.1
_______ _______ _______
146.6 214.8 152.4
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans, overdrafts and finance lease obligations (76.4) (137.3) (115.8)
Other liabilities (174.5) (218.0) (176.4)
_______ _______ _______
(250.9) (355.3) (292.2)
_______ _______ _______
NET CURRENT LIABILITIES (104.3) (140.5) (139.8)
_______ _______ _______
TOTAL ASSETS LESS CURRENT LIABILITIES 2,226.9 2,300.8 2,150.0
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Bank loans, overdrafts and finance lease obligations (676.5) (648.3) (618.8)
Other liabilities (13.6) (17.5) (15.2)
_______ _______ _______
(690.1) (665.8) (634.0)
PROVISIONS FOR LIABILITIES AND CHARGES (48.9) (45.9) (49.7)
_______ _______ _______
NET ASSETS 1,487.9 1,589.1 1,466.3
_______ _______ _______
CAPITAL AND RESERVES
Called up share capital 84.8 84.7 84.8
Share premium account 845.6 845.5 845.6
Revaluation reserve 311.9 323.7 308.4
Profit and loss account 123.8 177.0 112.1
_______ _______ _______
SHAREHOLDERS' FUNDS - EQUITY 1,366.1 1,430.9 1,350.9
MINORITY INTERESTS - EQUITY 121.8 158.2 115.4
_______ _______ _______
TOTAL CAPITAL EMPLOYED 1,487.9 1,589.1 1,466.3
_______ _______ _______
31 March 31 March 31 December
2003 2002 2002
#m #m #m
Unaudited Unaudited Audited
CASH FLOW STATEMENT
Net cash inflow from operating activities 8.8 19.2 122.2
Dividends received from associated undertakings - - 0.2
Dividends received from joint ventures - - 0.1
Returns on investments and servicing of finance (10.8) (14.4) (50.0)
Taxation refund/(paid) 1.5 (2.8) (11.6)
Capital expenditure and financial investment (3.5) (3.4) (12.2)
Acquisitions and disposals (2.6) - -
Equity dividends paid - - (35.3)
______ ______ ______
Cash (outflow)/inflow before use of liquid resources and (6.6) (1.4) 13.4
financing
Management of liquid resources - - 30.6
Financing
Net cash from the issue of shares and purchase
of minority interests - 0.2 (37.2)
(Decrease)/increase in debt and lease financing (2.2) 8.8 8.1
______ ______ ______
Net cash (outflow)/inflow from financing (2.2) 9.0 (29.1)
______ ______ ______
(Decrease)/increase in cash in the period (8.8) 7.6 14.9
______ ______ ______
RECONCILIATION OF NET CASH FLOW TO MOVEMENT
IN NET DEBT
(Decrease)/increase in cash in the period (8.8) 7.6 14.9
Cash inflow from decrease in
liquid funds - - (30.6)
Cash outflow/(inflow) from the decrease/(increase)
in debt and lease financing 2.2 (8.8) (8.1)
______ ______ ______
Change in net debt resulting from cash flows (6.6) (1.2) (23.8)
Acquisitions (12.7) - -
Deferred finance costs - - 0.2
Translation differences and other non cash movements (8.6) (9.7) 33.5
______ ______ ______
Movement in net debt in the period (27.9) (10.9) 9.9
Net debt at 1 January 2003 (675.5) (685.4) (685.4)
______ ______ ______
Net debt at 31 March 2003 (703.4) (696.3) (675.5)
______ ______ ______
RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM
OPERATING ACTIVITIES
31 March 31 March 31 December
2003 2002 2002
#m #m #m
Unaudited Unaudited Audited
Operating profit 9.6 18.5 96.3
Depreciation 9.8 10.1 39.8
(Gain)/loss on disposal of fixed assets (0.1) (0.1) 0.4
Decrease/(increase) in stocks 0.2 (0.1) 0.1
Increase in debtors (11.6) (11.5) (4.3)
Increase/(decrease) in creditors 0.9 2.4 (9.7)
Decrease in provisions - (0.1) (0.4)
____________________________________
Net cash inflow from operating activities 8.8 19.2 122.2
____________________________________
ANALYSIS OF NET DEBT
Translation
Acquisitions differences
As at 1 excluding cash and other As at 31
January and non cash March
2003 Cash flow overdrafts movements 2003
#m #m #m #m #m
Cash 46.2 (8.8) 1.5 38.9
Overdrafts (1.8) _________ 0.1 (1.7)
(8.8)
Short term deposits 12.9 (2.3) 10.6
Debt due after one year (465.0) (51.8) (5.7) (522.5)
Debt due within one year (86.5) 53.9 (12.7) (3.5) (48.8)
Finance Leases (18.3) 0.1 (0.3) (18.5)
Bonds due after one year (147.4) - 1.9 (145.5)
Bonds due within one year (15.6) - (0.3) (15.9)
__________
2.2
____________________________________________________________
(675.5) (6.6) (12.7) (8.6) (703.4)
____________________________________________________________
ANALYSIS OF CASH FLOW FOR HEADINGS NETTED IN THE CASH 31 March 31 March 31 December
FLOW STATEMENT 2003 2002 2002
#m #m #m
Unaudited Unaudited Audited
Returns on investment and servicing of finance
Interest received 0.6 0.9 4.6
Interest paid (10.4) (12.6) (46.5)
Loan arrangement fees paid (0.3) - (2.9)
Interest element of finance lease rental payments (0.3) (0.3) (1.2)
Dividends paid to minorities (0.4) (2.4) (4.0)
____________________________________
Net cash outflow for returns on investments and
servicing of finance (10.8) (14.4) (50.0)
____________________________________
Capital expenditure and financial investment
Purchase of tangible fixed assets (5.8) (5.7) (28.6)
Hilton capital expenditure (6.3) (0.4) (5.1)
Insurance capital claim receipts - - 18.9
Purchase of development properties - - (2.1)
Proceeds from the sale of development properties 1.6 0.3 0.3
Sale of properties held for resale - 2.4 3.2
Sale of other fixed assets 6.7 - 0.3
Decrease in investments, associates and joint ventures 0.3 - -
Repayment in loans to associated undertakings and - - 0.9
joint ventures
____________________________________
Net cash outflow for capital expenditure and financial
investment (3.5) (3.4) (12.2)
____________________________________
Acquisitions and disposals
Acquisition of subsidiary undertakings (2.6) - -
____________________________________
Net cash outflow for acquisitions and disposals (2.6) - -
____________________________________
Management of liquid resources
Cash withdrawn from short term deposit - - 30.6
____________________________________
Net cash inflow from management of liquid resources - - 30.6
____________________________________
Financing
Issue of shares from the exercise of options - 0.2 0.2
Purchase of shares in minorities - - (37.4)
____________________________________
- 0.2 (37.2)
____________________________________
Drawdown of third party loans 59.8 40.7 165.2
Repayment of third party loans (61.9) (31.3) (155.0)
Capital element of finance lease repayment (0.1) (0.6) (2.1)
____________________________________
(2.2) 8.8 8.1
____________________________________
____________________________________
Net cash outflow from financing (2.2) 9.0 (29.1)
____________________________________
Segmental Analysis
3 months ended 3 months ended Year ended
31 March 2003 31 March 2002 31 December 2002
Reported Reported Reported
Currency Currency Currency
Unaudited Unaudited Audited
#m #m #m
GROUP TURNOVER
New York 12.5 16.1 68.0
Regional US 24.1 25.9 119.7
London 15.6 17.3 75.3
Regional Europe 21.1 21.3 88.6
Asia 34.0 39.2 157.6
Australasia 17.8 15.8 58.3
____________________________________________________
Group 125.1 135.6 567.5
____________________________________________________
OPERATING (LOSS)/PROFIT
New York (0.5) 1.3 10.7
Regional US (2.2) (0.8) 8.1
London 5.4 5.3 24.6
Regional Europe 1.6 2.2 9.3
Asia 5.7 7.4 34.9
Australasia 5.3 4.7 14.4
____________________________________________________
Group 15.3 20.1 102.0
Other operating (expense)/income (2.6) 1.4 6.5
Central costs and other items (3.1) (3.0) (12.2)
____________________________________________________
GROUP OPERATING PROFIT 9.6 18.5 96.3
Share of operating profits of joint ventures 0.8 1.7 12.2
Share of operating profits of associated - 0.1 0.4
undertakings
Profit on sale of fixed assets 6.1 - -
Interest payable less receivable (11.8) (12.7) (48.7)
____________________________________________________
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 4.7 7.6 60.2
____________________________________________________
Notes.
1. Basis of preparation These statements have been prepared under the historic
cost convention, modified to include the revaluation of certain hotels.
Preparation is in accordance with the Group's accounting policies as set out in
the financial statements for the year ended 31 December 2002.
The comparative figures for the financial year ended 31 December 2002 are not
the Group's statutory accounts for that financial year but are abridged from
them. Those accounts have been reported on by the Group's auditors and,
following their adoption by the Annual General Meeting on 21 May 2003, will be
delivered to the Registrar of Companies. The report of the auditors was
unqualified and did not contain a statement under section 237 (2) and (3) of the
Companies Act 1985.
2. Basis of consolidation The interim statements consolidate the accounts of
Millennium & Copthorne Hotels plc and its subsidiary undertakings together with
the Group's share of the net assets and results of its joint ventures and
associated undertakings.
The results of the subsidiary undertakings acquired are included in the profit
and loss account from the effective date of acquisition. The Group's share of
the results and the net assets of its associated undertakings and joint ventures
are included in the consolidated profit and loss account and balance sheet under
the equity method of accounting.
3. Taxation A tax charge has been accrued to reflect the estimated effective
tax rate for the full year of 27.7% (2002 full year: 23.9%).
4. Earnings per share The basic earnings per share of 0.6p (2002: 0.9p) are
based on earnings of #1.6 million (2002: #2.5 million) and a weighted average
number of shares in issue of 282.6 million (2002: 282.6 million) being the
average number of shares in issue in the period. Fully diluted earnings per
share of 0.6p (2002: 0.9p) are based on a weighted average number of shares in
issue of 282.7 million (2002: 282.7 million) being the average number of shares
in issue during the period adjusted for the exercise of share options.
Key Operating Statistics
3 months ended 3 months ended 3 months ended Year ended
31 March 2003 31 March 2002 31 March 2002 31 December 2002
Reported Constant Reported Reported
Currency Currency Currency Currency
OCCUPANCY (%)
New York 81.2 82.8 82.8 83.3
Rest of USA 50.9 44.3 44.3 54.0
USA 56.4 51.8 51.8 59.7
London 75.4 80.9 80.9 83.1
Rest of Europe 65.5 66.1 66.1 68.6
Europe 69.9 72.6 72.6 75.0
Asia 61.0 65.7 65.7 66.4
Australasia 80.1 80.0 80.0 70.4
Group 64.9 65.6 65.6 67.2
____________________________________________________________________
AVERAGE ROOM RATE (#)
New York 95.56 103.07 115.56 120.28
Rest of USA 57.47 63.79 71.52 70.83
USA 67.53 76.04 85.25 84.29
London 72.97 76.63 76.63 79.86
Rest of Europe 68.85 72.33 69.81 68.94
Europe 70.82 74.45 73.17 74.30
Asia 53.60 54.27 58.78 59.26
Australasia 37.03 35.75 30.95 31.46
Group 58.90 61.64 63.73 65.73
____________________________________________________________________
REVENUE PER AVAILABLE ROOM
(#)
New York 77.59 85.34 95.68 100.19
Rest of USA 29.25 28.26 31.68 38.25
USA 38.09 39.39 44.16 50.32
London 55.02 61.99 61.99 66.36
Rest of Europe 45.10 47.81 46.14 47.29
Europe 49.50 54.05 53.12 55.73
Asia 32.70 35.66 38.62 39.35
Australasia 29.66 28.60 24.76 22.15
Group 38.23 40.44 41.81 44.17
____________________________________________________________________
This information is provided by RNS
The company news service from the London Stock Exchange
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