We saw positive growth in room rates across the portfolio. Our
occupancy levels are such that we have been actively working with
our hotel operators to push up room rates and hence we saw ADR
increase by 5.8% passing the $100 per night rate to $105.00 (2012:
$99.29). ibis Glen Waverley had an ADR of $146.27 a 3.7% uplift on
last year ($141.10) and continues to provide our highest rate per
night in the current portfolio. Revenue management remains a key
priority for us in 2014.
RevPAR
Following on from the strong performances in occupancy and ADR,
our RevPAR for the year, on a like for like basis, increased to
$82, an 8.9% increase on the previous year. ibis Sharq in Kuwait,
in its third full year of operation, was the top performer in
RevPAR growth in the portfolio with an increase of 22.2%.
Revenue
Reported revenue for the period grew 5.4% to $29.8m (2012:
$28.2m). The Middle East operating hotels contributed 76% of the
total revenue for the year, up from 73% of the portfolio in 2012.
With the opening of Holiday Inn Seeb Muscat we expect this
percentage to increase in 2014.
Adjusted EBITDA
Adjusted EBITDA fell by 6% to $8.3m (2012: $8.8m).
Reconciliation of Net 2013 2012
loss to Adjusted EBITDA
--------------------------- -------- --------
Net loss $(9.1)m $(1.0)m
--------------------------- -------- --------
Listing and restructuring $ 3.5m -
costs
--------------------------- -------- --------
Finance income $(0.4)m -
--------------------------- -------- --------
Finance cost $ 5.2m $ 5.7m
--------------------------- -------- --------
Currency translation $ 3.1m -
--------------------------- -------- --------
Taxation $ 2.1m -
--------------------------- -------- --------
Operating Profit $ 4.4m $ 4.7m
--------------------------- -------- --------
Depreciation $ 3.3m $ 3.3m
--------------------------- -------- --------
Amortisation $ 0.6m $ 0.6m
--------------------------- -------- --------
Asset disposal losses - $ 0.2m
--------------------------- -------- --------
Adjusted EBITDA $ 8.3m $ 8.8m
--------------------------- -------- --------
Adjusted EBITDA in 2013 was adversely impacted by $0.5m of
additional costs primarily relating to the company's new status as
an AIM listed company.
Loss before tax
As with most hotel development companies in their growth phase,
the operating profit/loss figure is impacted by depreciation and
finance cost charges whilst revenue ramps up over a three-year
period.
The loss before tax of $7.0m (2012: $0.2m loss) is stated after
charging $3.5m (2012: nil) of exceptional items relating to
restructuring prior to the IPO. We do not anticipate such
exceptional items in financial year 2014. It also includes a
foreign exchange loss of $3.2m (2012; gain of $0.8m), primarily
arising on accounting for the translation of intra-group loans to
the Australian properties.
Taxation
In 2013 as a result of the restructuring of the Company and its
different tax status the Company recognized a deferred tax charge
of $2.0m in relation to Kuwait deferred tax liabilities.
Dividend
As set out in the Company's admission document dated 17 December
2013, the Board intends to propose a final dividend in respect of
the year ended 31 December 2013 of GBP 0.96p per share which is
expected to be paid on 30 May 2014, subject to approval of the
dividend at the Company's annual general meeting which is expected
to occur on 29 May 2014. It is expected that the Company's ordinary
shares will be marked ex-entitlement to such dividend on 7 May 2014
and the dividend will be payable to all shareholders on the
Company's share register at the close of business on 9 May 2014.
Except that, as announced at the time of the Company's admission to
trading on AIM, the major shareholder, Action Group Holdings, has
waived its entitlement to this dividend.
Financial position
Net bank debt as at 31 December 2013 was $64.7m (2012: $98.4m).
Cash and cash equivalents were $43.63m (2012: $1.99m). Loan tenors
range from 3 - 7 years.
Debt Analysis (in USD 000's) 31 Dec 2013 31 Dec 2012
Bank Debt (Long term + Current) ($108,316) ($100,348)
Cash & Cash equivalents $43,626 $1,989
Net bank debt ($64,690) ($98,359)
Total Equity* $167,094 $120,892
Gearing ratio (Net Debt/Equity) 38.7% 81.4%
--------------------------------- ------------ -------------
*Total equity (plus partner current account as at 31 December
2012).
Property revaluations
The Board follows an annual revaluation policy and as at 31
December 2013, the carrying value of the hotel assets was $240.7m
(2012: $233.5m).
Looking ahead
We are excited about our growth prospects following our
admission to trading on AIM listing. The funds raised fully fund
our current pipeline of eight additional hotels which, due to the
nature of our operations and our low and early break even points,
will contribute to earnings soon after opening. Holiday Inn Seeb
Muscat has made an extremely good start with strong occupancy and
ADR.
Alaister Murray
Finance Director
Action Hotels plc
Unaudited Consolidated Income Statement
For the year ended 31 December 2013
Year ended Year ended
31 December 31 December
2013 2012
USD'000 USD'000
Revenue 29,763 28,235
Cost of sales (7,447) (7,040)
------------ ------------
Gross profit 22,316 21,195
------------ ------------
Administrative and distribution expenses (17,866) (16,266)
Losses on disposal of property, plant
and equipment (22) (239)
Operating profit 4,428 4,690
------------ ------------
Restructuring and listing costs (3,492) -
Finance income 361 23
Finance costs (5,211) (5,795)
Foreign exchange (losses) /gains (3,132) 821
Loss before tax (7,046) (261)
------------ ------------
Tax (charge) / credit (2,069) 15
------------ ------------
Loss for the year attributable to owners
of the company (9,115) (246)
------------ ------------
Loss per share attributable to owners
of the company:
Basic and diluted (cents) (9.0) (0.2)
All operations were continuing throughout the years.
Action Hotels plc
Unaudited Consolidated Statement of Comprehensive Income
For the year ended 31 December 2013
Year ended Year ended
31 December 31 December
2013 2012
USD'000 USD'000
Loss for the year (9,115) (246)
Items that will not be reclassified subsequently
to profit and loss:
Gains on property revaluations 12,260 20,273
Tax charge relating to property revaluations (2,312) (1,768)
Items that may be subsequently reclassified
to profit or loss:
Exchange differences on translation of
foreign operations 286 313
Other comprehensive income for the year
net of tax 10,234 18,818
------------ ------------
Total comprehensive income for the year
attributable to owners of the parent 1,119 18,572
============ ============
Total comprehensive income attributable to equity shareholders
arises from continuing operations.
Action Hotels plc
Unaudited Consolidated Statement of Financial Position
As at 31 December 2013
At 31 December At 31 December
2013 2012
USD'000 USD'000
Non-current assets
Intangible assets 13,198 13,753
Property, plant and equipment 227,498 219,746
240,696 233,499
-------------- --------------
Current assets
Cash and bank balances 43,626 1,989
Trade and other receivables 6,558 4,369
Receivables due from related parties 13,810 16,617
Inventories 110 91
64,104 23,066
-------------- --------------
Total assets 304,800 256,565
============== ==============
Current liabilities
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