3rd Quarter Results
November 05 2003 - 2:01AM
UK Regulatory
RNS Number:6877R
Millennium & Copthorne Hotels PLC
05 November 2003
5 November 2003
MILLENNIUM & COPTHORNE HOTELS PLC
TRADING UPDATE AND RESULTS FOR THE NINE MONTHS ENDED
30 SEPTEMBER 2003
Millennium & Copthorne Hotels plc today provides a trading update and results
for the nine months ended 30 September 2003.
Group results
Three months Three months Nine months to Nine months to
to 30 Sept 2003 to 30 Sept 2002 30 Sept 2003 30 Sept 2002
#m #m #m #m
Group turnover 134.6 138.9 377.6 422.7
Group operating profit 14.5 22.7 30.0 66.9
Profit before tax 6.6 10.6 0.3 36.2
Highlights
* Return to profit - #6.6m profit in third quarter compared to #6.3m
loss in first half of 2003
* Group occupancies increased to 68.7% in the quarter from 61.0% in
first half of 2003
* Continued recovery in RevPAR performance - up 12.1% compared to first
half of 2003
* Ongoing tight control on costs and capital expenditure
Commenting today, Mr Kwek Leng Beng, Chairman said:
"We believe that the worst is over and that our industry is recovering, albeit
at a gradual pace. We are encouraged by the signs of recovery in Group RevPAR
and anticipate this recovery will continue. Volumes are encouraging and historic
trends indicate that an improvement in rates should follow.
"Looking forward, we remain confident that our ownership of quality assets in
key locations makes us uniquely placed to benefit from the ongoing improvement
in trading. However, the market remains challenging and the recovery that we
have seen is gradual."
Enquiries:
John Wilson, Chief Executive 020 7872 2444
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 NINE MONTHS
ENDED 30 SEPTEMBER 2003
Overview
We are pleased to report that the gradual improvement in trading that we had
begun to see at the time of our interim results has continued. As a result, we
have returned to profitability in this quarter despite the impact of SARS on
travel patterns in Asia.
For the three months to end of September Group turnover was #134.6m (2002:
#138.9m). Group operating profit was #14.5m (2002: #22.7m) and the profit before
tax was #6.6m (2002: #10.6m).
For the nine months to 30 September Group turnover was #377.6m (2002: #422.7m).
Group operating profit was #30.0m (2002: #66.9m) and our profit before tax was
#0.3m (2002: #36.2m). This compares with a loss before tax of #6.3m for the
first half of 2003.
At our interim results we announced that Group RevPAR for the month of July was
8.0% down compared to 2002, a clear improvement on the 14.5% decline reported
for the half year. This improvement has continued gradually throughout the third
quarter and, for the three months to 30 September 2003, the Group's RevPAR was
down 6.7% on the equivalent period in 2002. Comparing the third quarter to the
first half, it is encouraging to note that Group occupancies increased from
61.0% to 68.7%, with Group RevPAR increasing by 12.1% to #41.29 (6 months to 30
June 2003: #36.83).
Operationally, we have continued to monitor and reduce our cost base and
maintain a tight control on capital expenditure. We expect the total capital
expenditure for the year, including US$25m on the Millenium Hilton, to be in the
region of #30m.
Our decision to have a scrip dividend alternative for the 2003 interim dividend
was well received by our shareholders, although the actual take-up was
relatively small. Going forward, we will continue to keep the allocation of our
cash resources under close review.
Summary of performance
New York City has continued to enjoy high volumes of business and we have
improved occupancies. However, we have experienced ongoing rate pressure in the
corporate market. Despite this, the RevPAR shortfall compared to the third
quarter 2002 was 5.8% and this shows a much better position than the 11.3%
shortfall for the six months to 30 June 2003. The Millenium Hilton continues to
trade well and we expect significant benefits from it during the fourth quarter
and into 2004.
We continue to benefit from the capital investment in the refurbishment of our
regional US hotels in 2001. RevPAR in this region was down 3.2% for the quarter
compared to 5.6% in the 6 months to 30 June 2003.
The London market remains challenging with continued pressure on rate. We saw an
improvement in performance in September resulting from a return of corporate
business. Third quarter RevPAR was down 10.0% compared to 15.6% in 6 months to
30 June 2003. In respect of the Rest of Europe, our Regional UK operations
continue to be resilient but Germany remains difficult.
The recovery in Asia has continued following the end of the SARS epidemic. We
are pleased with the dramatic recovery of our hotels in Taipei and Hong Kong.
There has been a good improvement in Singapore, albeit at a more gradual rate.
The performance of our hotel in Seoul was disappointing compared to its very
strong performance in 2002 when it benefited from the Asian Games and the
football World Cup. For the region as a whole RevPAR for the three months was
down 11.9% compared to down 35.4% for the first half of 2003.
Our Australasian portfolio continues to perform well and saw RevPAR improve to
last year by 2.2%. Again this is a better performance than in the first six
months of 2003.
Prospects
We believe that the worst is over and that our industry is recovering, albeit at
a gradual pace. Group RevPAR for the 4 weeks to 28 October 2003 was 3.9% down
compared to 2002. We are encouraged by the signs of recovery in Group RevPAR and
anticipate this recovery will continue. Volumes remain strong and historic
trends would indicate that an improvement in rates should follow.
Looking forward, we remain confident that our ownership of quality assets in key
locations makes us uniquely placed to benefit from the ongoing improvement in
trading. However, the market remains challenging and the recovery that we have
seen is gradual.
Kwek Leng Beng
Chairman
5th November 2003
Consolidated profit and loss account
for the quarter ending 30 September 2003
3 months 3 months
ended ended
30 September 30 September
2003 2002
#m #m
Unaudited Unaudited
Turnover
Group and share of joint ventures 149.2 153.6
Less share of turnover of joint
ventures (14.6) (14.7)
---------- ---------
Group turnover 134.6 138.9
Cost of sales (63.7) (60.4)
---------- ---------
Gross profit 70.9 78.5
Administrative expenses (55.9) (56.9)
Other operating (expense)/income (0.5) 1.1
---------- ---------
Group operating profit 14.5 22.7
Share of operating profits of joint ventures 1.2 0.5
Share of operating profits of associated undertakings - 0.1
---------- ---------
Total operating profit 15.7 23.3
Profit on sale of fixed assets - -
---------- ---------
Profit before interest and taxation 15.7 23.3
Interest payable less receivable
Group (7.9) (12.2)
Joint ventures (1.2) (0.4)
Associated undertakings - (0.1)
---------- ---------
(9.1) (12.7)
---------- ---------
Profit on ordinary activities before taxation 6.6 10.6
Tax on profit on ordinary activities (1.7) (2.2)
---------- ---------
Profit on ordinary activities after taxation 4.9 8.4
Minority interests - equity (2.0) (1.7)
---------- ---------
Profit for the financial period 2.9 6.7
Dividends paid and proposed - -
---------- ---------
Retained profit for the financial period 2.9 6.7
---------- ---------
Key Operating Statistics
for the quarter ending 30 September 2003
3 months 3 months 3 months
ended ended ended
30 September 30 September 30 September
2003 2002 2002
Excluding
Millenium Hilton Like for Like
Reported Constant Reported
Currency Currency Currency
Occupancy (%)
New York 84.9 82.8 82.8
Rest of USA 64.9 61.0 61.4
USA 68.6 65.0 65.6
London 89.9 87.6 87.6
Rest of Europe 72.3 70.3 70.3
Europe 80.1 78.0 78.0
Asia 61.4 67.4 67.4
Australasia 61.4 62.7 63.9
Group 68.7 68.7 69.0
--------- ---------- ---------
Average room rate (#)
New York 99.51 108.26 113.13
Rest of USA 59.26 65.14 69.16
USA 68.41 75.23 79.99
London 70.00 79.86 79.86
Rest of Europe 63.57 69.05 66.73
Europe 66.77 74.44 73.27
Asia 52.35 54.14 55.77
Australasia 36.94 35.41 30.26
Group 60.10 64.41 64.20
--------- ---------- ---------
RevPAR (#)
New York 84.48 89.64 93.67
Rest of USA 38.46 39.74 42.46
USA 46.93 48.90 52.47
London 62.93 69.96 69.96
Rest of Europe 45.96 48.54 46.91
Europe 53.48 58.06 57.15
Asia 32.14 36.49 37.59
Australasia 22.68 22.20 19.34
Group 41.29 44.25 44.30
--------- ---------- ---------
Like for like statistics include
- Four points Sunnyvale for the three months July 1 to 30 September 2002 and
2003.
The Millenium Hilton is excluded from both 2002 and 2003 statistics. Including
the Millenium Hilton in 2003 would produce the following statistics.
OCCUPANCY (%)
New York 81.2
USA 68.9
Group 68.8
AVERAGE ROOM RATE (#)
New York 103.43
USA 72.05
Group 61.62
REVPAR (#)
New York 83.99
USA 49.64
Group 42.39
Consolidated profit and loss account
for the nine months ended 30 September 2003
9 months 9 months Year
ended ended ended
30 September 30 September 31 December
2003 2002 2002
#m #m #m
Unaudited Unaudited Audited
Turnover
Group and share of joint ventures 417.9 473.8 641.1
Less share of turnover of joint ventures (40.3) (51.1) (73.6)
--------- --------- ----------
Group turnover 377.6 422.7 567.5
Cost of sales (177.4) (187.0) (252.1)
--------- --------- ----------
Gross profit 200.2 235.7 315.4
Administrative expenses (162.7) (173.0) (225.6)
Other operating (expense)/income (7.5) 4.2 6.5
--------- --------- ----------
Group operating profit 30.0 66.9 96.3
Share of operating
profits of joint ventures 1.8 5.7 12.2
Share of operating profits of
associated undertakings - 0.3 0.4
--------- --------- ----------
Total operating profit 31.8 72.9 108.9
Profit on sale of fixed assets 0.4 - -
--------- --------- ----------
Profit before interest and taxation 32.2 72.9 108.9
Interest payable less receivable
Group (28.1) (32.7) (41.8)
Joint ventures (3.8) (3.7) (6.5)
Associated undertakings - (0.3) (0.4)
--------- --------- ----------
(31.9) (36.7) (48.7)
--------- --------- ----------
Profit on ordinary activities before
taxation 0.3 36.2 60.2
Tax on profit on ordinary activities (0.1) (9.5) (14.4)
--------- --------- ----------
Profit on ordinary activities after
taxation 0.2 26.7 45.8
Minority interests - equity (3.6) (7.0) (7.8)
--------- --------- ----------
(Loss)/profit for the financial period (3.4) 19.7 38.0
Dividends paid and proposed (11.9) (11.9) (35.3)
--------- --------- ----------
Retained (loss)/profit for the
financial period (15.3) 7.8 2.7
--------- --------- ----------
Basic (loss) /earnings per share (1.2p) 7.0p 13.4p
Diluted (loss) /earnings per share (1.2p) 7.0p 13.4p
Dividends per share 4.2p 4.2p 12.5p
Key Operating Statistics
for the nine months ending 30 September
2003
9 months 9 months 9 months Year
ended ended ended ended
30 September 30 September 30 September 31 December
2003 2002 2002 2002
Excluding
Millenium Hilton Like for Like
Reported Constant Reported Reported
Currency Currency Currency Currency
Occupancy (%)
New York 83.4 82.6 82.6 83.3
Rest of USA 58.1 54.5 54.9 54.0
USA 62.8 59.7 60.3 59.7
London 79.7 83.8 83.8 83.1
Rest of Europe 69.7 68.6 68.6 68.6
Europe 74.1 75.3 75.3 75.0
Asia 52.5 66.6 66.6 66.4
Australasia 66.2 68.2 68.5 70.4
Group 63.6 66.8 67.2 67.2
--------- --------- ---------- ----------
Average room rate (#)
New York 97.33 108.37 118.10 120.28
Rest of USA 59.10 66.07 72.22 70.83
USA 68.43 76.83 84.50 84.29
London 72.25 79.62 79.62 79.86
Rest of Europe 66.65 71.40 68.91 68.94
Europe 69.32 75.45 74.19 74.30
Asia 52.61 57.49 60.57 59.26
Australasia 36.48 34.91 30.70 31.46
Group 60.28 65.03 66.20 65.73
--------- --------- ---------- ----------
RevPAR (#)
New York 81.17 89.51 97.55 100.19
Rest of USA 34.34 36.01 39.65 38.25
USA 42.97 45.87 50.95 50.32
London 57.58 66.72 66.72 66.36
Rest of Europe 46.46 48.98 47.27 47.29
Europe 51.37 56.81 55.87 55.73
Asia 27.62 38.29 40.34 39.35
Australasia 24.15 23.81 21.03 22.15
Group 38.34 43.44 44.49 44.17
--------- --------- ---------- ----------
Gross operating profit
margin (%)
New York 25.3 31.3 32.5
Rest of USA 21.3 25.1 23.7
USA 22.7 27.3 27.0
London 48.7 51.3 51.4
Rest of Europe 27.8 30.5 30.5
Europe 36.8 40.1 40.1
Asia 30.3 37.2 38.8
Australasia 38.8 35.5 37.3
Group 30.5 34.6 35.1
--------- --------- ---------- ----------
Like for like statistics include
- Four points Sunnyvale for the nine months to 30 September 2002 and 2003
- Millennium Hotel Sydney for the three months ended 31 March 2002 and 2003
- Quality Hotel Willis Street Wellington for the three months ended 31 March
2002 and 2003
The Millenium Hilton is excluded from both 2002 and 2003 statistics. Including
the Millenium Hilton, after deduction of preopening expenses, in 2003 would
produce the following statistics.
OCCUPANCY (%)
New York 81.9
USA 63.2
Group 63.7
AVERAGE ROOM RATE (#)
New York 99.71
USA 70.38
Group 61.06
REVPAR (#)
New York 81.66
USA 44.48
Group 38.90
GROSS OPERATING PROFIT MARGIN (%)
New York 27.4
USA 23.6
Group 30.7
Segmental information
for the nine months ending 30 September
2003
New York Rest of USA London Rest of Europe Asia Australasia Group
2003 2003 2003 2003 2003 2003 2003
#'m #'m #'m #'m #'m #'m #'m
Turnover
Hotel 47.0 79.3 49.1 65.0 89.1 30.4 359.9
Non-hotel - 2.7 - - 1.3 13.7 17.7
--------------------- ------ ------ ------ ------ ------ ------- ------
Total 47.0 82.0 49.1 65.0 90.4 44.1 377.6
--------------------- ------ ------ ------ ------ ------ ------- ------
Hotel gross operating
profit 12.9 16.9 23.9 18.1 27.0 11.8 110.6
Hotel fixed charges (11.3) (15.1) (8.8) (13.4) (16.0) (6.9) (71.5)
--------------------- ------ ------ ------ ------ ------ ------- ------
Hotel operating
profit 1.6 1.8 15.1 4.7 11.0 4.9 39.1
Non-Hotel operating
profit - 1.0 - - 0.6 5.5 7.1
--------------------- ------ ------ ------ ------ ------ ------- ------
Profit before central
costs 1.6 2.8 15.1 4.7 11.6 10.4 46.2
Other operating
expenses (7.5) (7.5)
Central costs (8.7)
--------------------- ------ ------ ------ ------ ------ ------- ------
Group operating
profit 30.0
Share of operating
profits of joint
ventures 0.5 1.3 1.8
Share of operating
profits of associated
undertakings -
Profit on sale of
fixed assets 0.4
Net interest payable (31.9)
--------------------- ------ ------ ------ ------ ------ ------- ------
Profit on ordinary
activities before
taxation 0.3
--------------------- ------ ------ ------ ------ ------ ------- ------
Segmental information
for the nine months ending 30 September
2002
Reported Currency New York Rest of USA London Rest of Europe Asia Australasia Group
2002 2002 2002 2002 2002 2002 2002
#'m #'m #'m #'m #'m #'m #'m
Turnover
Hotel 49.9 88.0 55.7 64.3 117.4 29.0 404.3
Non-hotel - 2.9 - - 1.3 14.2 18.4
--------------------- ------ ------ ------ ------ ------ ------- ------
Total 49.9 90.9 55.7 64.3 118.7 43.2 422.7
--------------------- ------ ------ ------ ------ ------ ------- ------
Hotel gross operating
profit 15.6 22.1 28.6 19.6 43.7 10.3 139.9
Hotel fixed charges (8.9) (16.2) (10.9) (13.2) (20.6) (6.1) (75.9)
--------------------- ------ ------ ------ ------ ------ ------- ------
Hotel operating
profit 6.7 5.9 17.7 6.4 23.1 4.2 64.0
Non-Hotel operating
profit - 1.1 - - 1.2 5.9 8.2
--------------------- ------ ------ ------ ------ ------ ------- ------
Profit before
central costs 6.7 7.0 17.7 6.4 24.3 10.1 72.2
Other operating
income 4.2 4.2
Central costs (9.5)
--------------------- ------ ------ ------ ------ ------ ------- ------
Group operating
profit 66.9
Share of operating
profits of joint
ventures 1.5 4.2 5.7
Share of operating
profits of
associated
undertakings 0.3 0.3
Profit on sale of -
fixed assets
Net interest payable (36.7)
--------------------- ------ ------ ------ ------ ------ ------- ------
Profit on ordinary
activities before
taxation 36.2
--------------------- ------ ------ ------ ------ ------ ------- ------
For 2003 the New York hotel operating profit excludes pre-opening and legal
fees with respect to the Millenium Hilton, these are disclosed in other
operating expense
For 2002 the New York hotel operating profit excludes business interruption
income with respect to the Millenium Hilton, this is disclosed in other
operating income
Consolidated statement of total recognised
gains and losses
9 months 9 months Year
ended ended ended
30 September 30 September 31 December
2003 2002 2002
#m #m #m
Unaudited Unaudited Audited
(Loss)/profit for the financial period (3.4) 19.7 38.0
Loss on foreign currency translation (15.1) (46.0) (62.6)
Deficit on revaluation of fixed assets - (2.0) (0.3)
--------- --------- ---------
Total gains and
losses relating to
the period (18.5) (28.3) (24.9)
Prior year
adjustment - (62.5) (62.5)
--------- --------- ---------
Total gains and losses recognised
since last annual report (18.5) (90.8) (87.4)
--------- --------- ---------
Note of historical costs profits and losses
9 months 9 months Year
ended ended ended
30 September 30 September 31 December
2003 2002 2002
#m #m #m
unaudited unaudited audited
Reported profit on ordinary activities
before taxation 0.3 36.2 60.2
Difference between a historical cost
depreciation charge and the actual
depreciation charge for the period
calculated on the revalued amount 0.3 0.3 0.5
--------- --------- ---------
Historical profit on ordinary activities
before taxation 0.6 36.5 60.7
--------- --------- ---------
Historical cost (loss)/profit for the
period retained after taxation,
minority interests and dividends (15.0) 8.1 3.2
--------- --------- ---------
Consolidated balance sheet
30 September 30 September 31 December
2003 2002 2002
#m #m #m
Unaudited Unaudited Audited
Fixed assets
Tangible assets 2,177.2 2,204.6 2,185.4
Investments in joint ventures
Share of gross assets 273.0 292.5 288.1
Share of gross liabilities (189.5) (212.6) (205.1)
Share of minority interests (20.6) (21.2) (21.2)
Loans to joint ventures 35.7 38.3 36.1
--------- --------- ---------
98.6 97.0 97.9
Investments in associated undertakings 1.4 5.2 6.2
Investments 0.4 0.4 0.3
--------- --------- ---------
100.4 102.6 104.4
2,277.6 2,307.2 2,289.8
Current assets
Stocks 14.5 15.6 15.7
Debtors falling due within one year 74.7 73.5 75.6
Debtors falling due after more than
one year 2.0 7.3 2.0
--------- --------- ---------
76.7 80.8 77.6
Cash and short term deposits 35.4 58.5 59.1
--------- --------- ---------
126.6 154.9 152.4
Creditors: amounts falling due
within one year
Bank loans, overdrafts and finance
lease obligations (96.5) (185.1) (115.8)
Other liabilities (120.7) (167.5) (176.4)
--------- --------- ---------
(217.2) (352.6) (292.2)
Net current liabilities (90.6) (197.7) (139.8)
--------- --------- ---------
Total assets less current liabilities 2,187.0 2,109.5 2,150.0
Creditors: amounts falling due after
more than one year
Bank loans, overdrafts and finance
lease obligations (674.2) (569.8) (618.8)
Other liabilities (16.6) (17.0) (15.2)
--------- --------- ---------
(690.8) (586.8) (634.0)
Provisions for liabilities and charges (52.8) (47.9) (49.7)
--------- --------- ---------
Net assets 1,443.4 1,474.8 1,466.3
========= ========= =========
Share capital 84.8 84.8 84.8
Share premium 845.7 845.6 845.6
Revaluation reserve 306.2 307.3 308.4
Profit and loss account 83.9 133.2 112.1
--------- --------- ---------
Shareholders' funds - equity 1,320.6 1,370.9 1,350.9
Minority interests - equity 122.8 103.9 115.4
--------- --------- ---------
Total Capital Employed 1,443.4 1,474.8 1,466.3
========= ========= =========
Consolidated Cash Flow Statement
9 months 9 months Year
ended ended ended
30 September 30 September 31 December
2003 2002 2002
#m #m #m
CASH FLOW STATEMENT Unaudited Unaudited Audited
Net cash inflow from operating activities 51.6 93.4 122.2
Dividends received from associated
undertakings - 0.2 0.2
Dividends received from joint ventures 0.1 - 0.1
Returns on investment and servicing of
finance (36.2) (40.1) (50.0)
Taxation paid (5.1) (9.7) (11.6)
Capital expenditure and financial investment (19.9) (17.5) (12.2)
Acquisitions and disposals (28.0) - -
Equity dividends paid (23.5) (23.5) (35.3)
--------- --------- ---------
Cash (outflow)/inflow before use of liquid
resources and financing (61.0) 2.8 13.4
--------- --------- ---------
Management of liquid resources (5.4) 39.9 30.6
--------- --------- ---------
Financing
Net cash from the issue of shares and
purchase of minority interests 0.1 (37.2) (37.2)
Increase in debt and lease financing 40.4 21.2 8.1
--------- --------- ---------
40.5 (16.0) (29.1)
--------- --------- ---------
(Decrease)/increase in cash in the period (25.9) 26.7 14.9
========= ========= =========
RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET DEBT
(Decrease)/increase in cash in the period (25.9) 26.7 14.9
Cash outflow/(inflow) from increase/
(decrease) in liquid funds 5.4 (39.9) (30.6)
Cash inflow from the increase in debt
and lease financing (40.4) (21.2) (8.1)
--------- --------- ---------
Change in net debt resulting from cash
flows (60.9) (34.4) (23.8)
Acquisitions (12.6) - -
Deferred finance costs 0.4 0.2 0.2
Translation differences and
other non-cash movements 13.3 23.2 33.5
--------- --------- ---------
Movement in net debt in the period (59.8) (11.0) 9.9
Net debt at the beginning of the period (675.5) (685.4) (685.4)
--------- --------- ---------
Net debt at the end of the period (735.3) (696.4) (675.5)
========= ========= =========
RECONCILIATION OF OPERATING PROFIT TO NET
CASH INFLOW FROM OPERATING ACTIVITIES
9 months 9 months Year
ended ended ended
30 September 30 September 31 December
2003 2002 2002
#m #m #m
Unaudited Unaudited Audited
Operating profit 30.0 66.9 96.3
Depreciation 30.0 29.2 39.8
Loss on disposal of fixed assets - 0.2 0.4
Decrease in stocks 1.1 0.2 0.1
Decrease/(increase) in debtors 0.9 (0.5) (4.3)
Decrease in creditors (10.0) (2.3) (9.7)
Decrease in provisions (0.4) (0.3) (0.4)
--------- --------- ---------
Net cash inflow from operating activities 51.6 93.4 122.2
========= ========= =========
ANALYSIS OF NET DEBT
Translation
Acquisitions differences
As at 1 Deferred excluding and other As at 30
January finance cash and non cash September
2003 Cashflow costs overdrafts movements 2003
#m #m #m #m #m #m
Cash 46.2 (26.8) - - (1.9) 17.5
Overdrafts (1.8) 0.9 - - - (0.9)
------
(25.9)
Short term
deposits 12.9 5.4 - - (0.4) 17.9
Debt due after
one year (465.0) (71.2) 0.4 - 11.3 (524.5)
Debt due
within one
year (86.5) 51.1 - (12.6) (0.2) (48.2)
Finance Leases (18.3) 11.1 - - (0.3) (7.5)
Bonds due
after one year (147.4) - - - 3.6 (143.8)
Bonds due
within one
year (15.6) (31.4) - - 1.2 (45.8)
------
(40.4)
------ ------ ------ -------- ------- --------
(675.5) (60.9) 0.4 (12.6) 13.3 (735.3)
====== ====== ====== ======== ======= ========
ANALYSIS OF CASH FLOW FOR HEADINGS NETTED
IN THE CASH FLOW STATEMENT
9 months 9 months Year
ended ended ended
30 September 30 September 31 December
2003 2002 2002
#m #m #m
Returns on investment and servicing of
finance
Interest received 2.6 3.1 4.6
Interest paid (30.8) (36.4) (46.5)
Payment of interest on deferred
consideration (4.8) - -
Loan arrangement fees paid (0.4) (1.9) (2.9)
Interest element of finance lease
rental payments (0.9) (0.9) (1.2)
Dividends paid to minorities (1.9) (4.0) (4.0)
--------- --------- --------
Net cash outflow for returns on
investments and servicing of finance (36.2) (40.1) (50.0)
========= ========= ========
Capital expenditure and financial
investment
Purchase of tangible fixed assets (13.9) (21.2) (28.6)
Millennium Hilton New York capital
expenditure (14.3) (2.4) (5.1)
Insurance capital claims receipts - 3.3 18.9
Purchase of development properties - (1.6) (2.1)
Proceeds from the sale of development
properties 1.6 0.2 0.3
Proceeds from the sale of investments 2.5 - -
Sale of properties held for resale - 3.2 3.2
Sale of other fixed assets 4.2 0.1 0.3
Repayment from loans to associates
and joint ventures - 0.9 0.9
--------- --------- --------
Net cash outflow for capital expenditure
and financial investment (19.9) (17.5) (12.2)
========= ========= ========
Acquisitions and disposals
Acquisitions of subsidiary undertakings (2.6) - -
Payment of deferred consideration (25.4) - -
--------- --------- --------
Net cash outflow for acquisitions
and disposals (28.0) - -
========= ========= ========
Management of liquid resources
Cash (placed on)/withdrawn from short
term deposit (5.4) 39.9 30.6
--------- --------- --------
Net cash (outflow)/ inflow from
management of liquid resources (5.4) 39.9 30.6
========= ========= ========
Financing
Issue of shares from the exercise of options 0.1 0.2 0.2
Purchase of shares in minorities - (37.4) (37.4)
--------- --------- --------
0.1 (37.2) (37.2)
--------- --------- --------
Drawdown of third party loans 261.8 121.6 165.2
Repayment of third party loans (210.3) (99.1) (155.0)
Capital element of finance lease repayment (11.1) (1.3) (2.1)
--------- --------- --------
40.4 21.2 8.1
--------- --------- --------
--------- --------- --------
Net cash inflow/(outflow) from financing 40.5 (16.0) (29.1)
========= ========= ========
Notes
1. Basis of preparation These statements have been prepared under the
historical 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 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 financial 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 20.0% (2002 full year: 23.9%).
4. (Loss)/earnings per share The basic loss per share of 1.2p (2002:
earnings per share of 7.0p) are based on a loss of #3.4 million (2002: profit of
#19.7 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.
The fully diluted loss per share of 1.2p (2002: earnings per share of 7.0p) are
based on a weighted average number of shares in issue of 282.6 million (2002:
282.7 million) being the average number of shares in issue in the period
adjusted for the exercise of dilutive share options.
5. Deferred Consideration. In December 1999 the Group acquired a number of
hotels in the USA and, under the terms of the acquisition, US$45.0m (plus
interest) of the consideration for these hotels was deferred for a period of two
years. This consideration was not paid when it originally fell due in December
2001 pending adequate financial assurances that the vendor could honour its
indemnity obligations under the terms of the agreement. The parties have now
reached agreement and a total of US$48.8m was paid in September 2003. The full
amount had already been fully provided for by the Group.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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