RNS Number:3207S
Thistle Hotels PLC
4 March 2002
4th March 2002
THISTLE HOTELS PLC
PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS
FOR THE 52 WEEKS ENDED 30 DECEMBER 2001
HIGHLIGHT
• Revenue per available room (Revpar) in London and Regional hotels
outperform the market.
• Cost base effectively managed in response to market conditions.
• Final dividend held reflecting strong balance sheet and Board's
confidence for the future.
• Completion of three-year hotel accelerated upgrade programme.
• Continued improvements in brand ranking and guest satisfaction
surveys.
FINANCIAL SUMMARY
Notes 52 weeks 53 weeks
ended 30/12/01 ended 31/12/00
Turnover (£m) 305.3 324.6
Revenue per available room (£) 50.56 53.43
Hotel gross profit before fixed charges 1 156.8 175.6
EBITDA (£m) 2 115.5 134.7
Operating profit (£m) 82.9 105.4
Profit before taxation (£m) 49.1 68.2
Adjusted earnings per share (p) 3 7.6 11.1
Dividend per share (p) 5.1 5.1
Commenting on the results, Chief Executive Officer, Ian Burke said:
"Over the first eight weeks of the current financial year, turnover was down
some 10% on the comparative period last year with a greater decrease in London
against a strong comparative period in the early months of 2001. However,
turnover this eight week period is broadly in line with the same period in 2000.
"
"We intend to actively manage our costs, with a focus on reducing our cash
operating expenditures and capital expenditures in 2002, as compared to 2001."
David Newbigging, Chairman said "At the time of Thistle's Interim Announcement I
indicated that we were evaluating opportunities to improve and rebalance our
hotel portfolio. We have been actively exploring such opportunities and we are
in discussions with a third party about a possible material transaction. There
can be no certainty that such a transaction will be agreed and a further
announcement will be made as soon as is appropriate."
For further information, please contact
Ian Burke 020 7723 0101
Thistle Hotels Plc
Nick Denton/Chelsea Hayes 020 7357 9477
Hogarth Partnership Limited
Notes to Highlights
1. Fixed charges comprise property rent, rates, insurance,
depreciation and amortisation.
2. EBITDA represent earnings before interest, tax,
depreciation and amortisation.
3. Before exceptional items, which comprise profits on the
sale of tangible fixed assets.
NOTES TO EDITORS
Thistle is the largest hotel group in London with 22 hotels in prime locations
throughout the capital and has hotels in key regional cities of England,
Scotland and Wales.
There are 56 hotels in the group, of which 55 are owned and 1 is managed. There
are a total of 10,727 bedrooms, of which 70 rooms are managed.
In London, Thistle has 6,014 rooms in 22 hotels and, in the regions, 4,713 rooms
in 34 hotels (including 70 rooms in Thistle Poole under management).
Thistle's London hotels include the Thistle Tower, the Thistle Charing Cross,
the Thistle Marble Arch, the Thistle City Barbican, the Thistle
Victoria and The Royal Horseguards. Thistle has hotels in Aberdeen, Bristol,
Birmingham, Cardiff, Edinburgh, Glasgow, Liverpool, Manchester
and Newcastle among other regional centres as well as hotels at airports in
Aberdeen, East Midlands, Gatwick, Heathrow, Luton and Manchester.
CHAIRMAN'S STATEMENT
Results
Our results for the 52 weeks ended 30 December 2001 were achieved under market
conditions which proved to be the most challenging for travel and tourism since
the Gulf War in 1991. The events of 11 September compounded the difficulties
experienced earlier in the year following the slowdown in the global economy and
the foot and mouth outbreak in Britain. Combined, these circumstances led to a
significant reduction in international business and leisure travellers,
particularly from the US.
Turnover was down 5.9% against the 53 weeks to 31 December 2000 and revenue per
available room (revpar) fell 5.4% to £50.56. In London, which is more dependent
on international travellers, revpar was down 8.8% for the full year, whilst in
the Regions revpar was up 3.3%. In London and the Regions our revpar performance
was ahead of the market over the year.
Profit before tax and exceptional items was £45.5 million (2000: £67.0 million).
Earnings per share adjusted to exclude the profit on the sale of tangible
fixed assets were 7.6 pence against 11.1 pence for 2000, a reduction of 31.5%.
Dividends
The Board is recommending an unchanged final dividend of 3.4 pence per share to
be paid on 31 May. If approved, this would result in total dividends for the
year of 5.1 pence per share, unchanged from the previous year.
Operations
During 2001 we completed a three-year major upgrade programme positioning
Thistle as a leading full service hotel group and improving our comparative
position. The actions we have taken over the past few years have also improved
the quality of our information technology systems and of our management. These
measures have resulted in a continuation of improvements in Thistle's ranking as
a brand in the UK hotel market and in both guest and staff satisfaction, all as
judged by independent third party audits.
Finance
Our net debt at the end of the year was £430.2 million, comparable with our net
debt at the end of the previous financial year (2000: £428.9 million) despite
the decline in turnover referred to earlier. We acted quickly in view of this
turnover decline to reduce our operating cost base and to restrict our capital
expenditures to essential items only. These actions, together with net sale
proceeds of £13.4 million received for the sale of the Thistle Poole hotel and
the deposit on the agreed sale of our freehold Leeds support office site for
redevelopment, restricted our cash outflow for the year to £1.3 million.
Prospects
Over the first eight weeks of the current financial year, turnover was down some
10% on the comparative period last year with a greater decrease in London
against a strong comparative period in the early months of 2001. However,
turnover this eight week period is broadly in line with the same period in 2000.
We intend to actively manage our costs, with a focus on reducing our cash
operating expenditures and capital expenditures in 2002, as compared to 2001.
At the time of Thistle's Interim Announcement, I indicated that we were
evaluating opportunities to improve and rebalance our hotel portfolio. We have
been actively exploring such opportunities and we are in discussions with a
third party about a possible material transaction. There can be no certainty
that such a transaction will be agreed and a further announcement will be made
as soon as is appropriate."
CHIEF EXECUTIVE'S REVIEW
The 2001 financial year began strongly continuing the momentum enjoyed in the
second half of 2000 and overall turnover was 11.9% ahead after 12 weeks.
However, the impact of the events referred to in the Chairman's Statement all
contributed to making the remainder of the year particularly challenging.
Our revenue per available room improved relative to hotel sector benchmark
studies in London and the Regions.
Our three-year programme of hotel upgrades was completed during the year
supporting the increase in achieved room rate over the year in both London and
the Regions. The quality of our assets and our management has now improved
significantly and we are in a strong position both financially and operationally
to weather the downturn and to take advantage of opportunities when trading
conditions improve.
Key Revenue Statistics
The key revenue statistics for the full year are set out below.
52 weeks 53 weeks %
2001 2000 Change
London
Occupancy (%) 74.0 82.1 (9.9)
Average Room Rate (£) 81.91 80.94 1.2
Revenue per available room (£) 60.61 66.45 (8.8)
Turnover (£m) 183.7 203.6 (9.8)
Regions
Occupancy (%) 67.2 67.5 (0.4)
Average Room Rate (£) 56.14 54.13 3.7
Revenue per available room (£) 37.73 36.54 3.3
Turnover (£m) 121.6 121.0 0.5
Total Group Hotels
Occupancy (%) 71.0 75.8 (6.3)
Average Room Rate (£) 71.21 70.49 1.0
Revenue per available room (£) 50.56 53.43 (5.4)
Turnover (£m) 305.3 324.6 (5.9)
The results for 2000 have been restated to reclassify the Thistle Heathrow from
London to the Regions in line with industry reporting practice.
Turnover
Group turnover decreased by 5.9% as a result of a 4.8 percentage point reduction
in occupancy. Our financial year 2001 contained 52 weeks compared with 53 weeks
in 2000. The extra week in 2000, between Christmas and the New Year, is a
quieter week than average and it contributed approximately 1% of the Group's
turnover in that year.
Segmental Review
A summary of hotel turnover and gross profit for London and the Regions is set
out below.
London Regions Total
2001 2000 2001 2000 2001 2000
Hotel turnover (£m) 183.7 203.6 121.6 121.0 305.3 324.6
Hotel gross profit (before 103.9 120.9 52.9 54.7 156.8 175.6
fixed charges) (£m)
Hotel gross profit margin 56.6% 59.4% 43.5% 45.2% 51.4% 54.1%
(before fixed charges)
Fixed charges comprise property rent, rates and insurance, depreciation and
amortisation.
London
The London market began the year strongly with both turnover and revpar up 10.9%
and 13.2% respectively in the first 12 weeks compared to last year. However, in
the remainder of the period to mid September the effects of the US economic
slowdown and the foot and mouth outbreak led to a significant reduction in
visitors to the UK from abroad and the gains in turnover in the early weeks were
reversed.
Over the final 15 weeks of the year we experienced a further large reduction in
both business and leisure travellers from the United States and other long-haul
international markets. Faced with this reduction in demand from foreign
customers we instigated a number of marketing initiatives to stimulate demand
from UK customers and this helped limit the shortfall in occupancy although the
average room rate during the 15 week period inevitably suffered and was 9.5%
lower than in the equivalent weeks of 2000.
Revenue per available room declined by 8.8% against last year although this
decline was less severe than for the London hotel market overall.
As a result of the turnover reduction during the year, gross profit before fixed
charges decreased by 14.1% to £103.9 million and from 59.4% to 56.6% of
turnover. As part of our efforts to improve profit margins we are implementing
during 2002 a central purchasing and distribution arrangement covering the
majority of the Group's food requirements. Product will be sourced for us by
Scottish & Newcastle Retail's food purchasing operation and deliveries to hotels
will be made by Wincanton. These arrangements will greatly improve our catering
efficiency without compromising quality.
Regions
Turnover for the Regions showed a small overall increase for the year. A similar
pattern of trading to London was seen during the year until mid September,
albeit with a less pronounced impact from the US economic slowdown. The year
started well with turnover and revpar up by 13.2% and 14.3% respectively during
the first 12 weeks and at the half-year turnover and revpar were up by 7.4% and
8.7% respectively against the first half last year.
The reduction in trade in the 15 weeks from 17 September was much less
pronounced in the Regions as a whole. Whilst turnover at the Heathrow and
Gatwick airport hotels suffered in line with the London market, elsewhere in the
Regions turnover was only marginally down compared with the same period in 2000.
Revenue per available room was ahead 3.3% against last year, a stronger growth
rate than for the hotel market overall in the Regions.
Overall gross profit before fixed charges of £52.9 million was marginally lower
than in 2000. The gains in gross profit margin experienced in the first half of
the year were reversed as the result of the promotional activity initiated in
the final quarter to limit reductions in occupancy.
Brand Management
In my report last year I said that the development of a hotel brand recognised
and valued by both guests and travel partners does not happen overnight but that
I believed we were making good progress in establishing the Thistle brand. This
progress continued during 2001 with the completion of our three-year accelerated
capital investment programme.
I am pleased to be able to report that during 2001 Thistle's ranking as a brand
in the UK market has again improved in the independent rankings produced by BDRC
2002 British Hotel Guest Survey. Additionally, it is also encouraging to note
that improvements have also been recorded in guest satisfaction surveys, as
judged by independent third party audits.
A further 551 bedrooms in London and 614 rooms in the Regions were refurbished
during the year on time and within budget at a cost of £15.7 million. We have
continued the development of our branded restaurant and leisure concepts. A new
Gengis restaurant (taking the total to four) was opened at the Thistle Luton and
we have also developed a new restaurant concept, Oak and Avocado, combining both
traditional and modern dishes with three restaurants opening during the year at
the Thistle Stevenage, Thistle St Albans and Thistle Heathrow Hotels. A further
four Otium leisure centres were opened at the Thistle Glasgow, Thistle Bristol,
Thistle Luton and Thistle Middlesbrough hotels. Together with the conversions
of existing leisure centres at the Thistle Brighton and Thistle Manchester, we
now operate 15 Otium leisure centres. The Touch of Rhodes restaurant opened at
the Thistle Manchester during September and is performing well. The association
of the Thistle brand with the name and standards of Gary Rhodes is extremely
positive and has raised the profile of the hotel in its marketplace. These
developments, together with the three Faya Mediterranean Bar and Grills and 16
Co.Motion coffee shop units already in operation, provide a wide range of brands
and opportunities to improve revenues. We will continue to evaluate
opportunities to develop our restaurants and bars further, but we have no plans
to do so currently.
Conference and banqueting ("C&B") continues to be an important part of our
business and a total of 36 hotels operate Meeting Plan, our branded meetings
product. During the year we implemented Delphi, a C&B management system, at 22
of our hotels on time and within budget and we have expectations that it will
enable us to deliver a 4% uplift in annual C&B revenues. Our other major recent
C&B initiative, the Tower Suite, a 500 seat conference facility developed at a
cost of £2.4 million at the Thistle Tower hotel, has performed well since
opening in October 2000 generating revenues of over £2 million in 2001 and with
the potential to improve on that performance in a more normal trading
environment.
Sales and Distribution
Our sales strategy remains focused on delivering the optimum mix of corporate
and higher rated leisure customers in times of high demand and using lower rated
leisure customers tactically in periods of lower demand.
To this end we introduced during 2001 the Optims yield management system in 21
hotels. The Optims system is designed to increase revenues from the high demand
market segments.
We achieved revenue growth in the year through existing marketing partnerships
with British Airways, Air Miles and American Airlines. Major leisure sales
promotions contributed revenue in periods of lower corporate demand.
Global Distribution System ("GDS") revenues, driven by our greater focus on the
corporate sector, were 42% ahead of 2000 up until mid September, but declined
over the balance of the year, leaving full year growth at 15% ahead of last
year.
Internet revenue also grew rapidly, nearly 200% up on 2000. At peak times more
than £110,000 of revenue has been generated through internet bookings each week.
People
We recognise that our staff are the cornerstone of our operations. They have
demonstrated continued commitment throughout a year of challenging market
conditions and in a year when the annual pay review, usually settled in
November, was deferred for at least six months for all grades of management and
staff.
All staff, including support offices, have now been through our progressive
customer service improvement programme, Be My Guest, which focuses on the
anticipation of customer needs. There is a strong correlation between staff
satisfaction and customer satisfaction and during 2001 both staff and customer
satisfaction improved as measured by an independent survey. Staff turnover has
again reduced over the year.
Thistle is committed to supporting the community. During 2001 nearly £2,000 was
donated on average in each of our hotels to the hotel industry's own support
organisation, Hospitality Action and, in 2002, each hotel will raise cash funds
for Bliss - the National Charity for the Newborn - and the Muscular Dystrophy
Campaign.
FINANCE DIRECTOR'S REVIEW
Performance - Profit
Thistle's profit and cash flow performance in 2001 reflected the difficult
market conditions described in the Chief Executive's review.
Turnover fell by 5.9% against last year and by 5% on an equivalent number of
weeks basis. Due to the Group's high operational gearing the reduction in
turnover was largely reflected in profit reduction. An increase in the
depreciation charge of £3.2 million arising from the high levels of capital
expenditure in the last two years also contributed to a reduction in operating
profit of £22.5 million to £82.9 million. Improving efficiency is a priority
both within the hotels and the administrative functions.
An exceptional profit of £3.6 million arose on the disposal of the Thistle Poole
hotel to Orb Estates plc. Thistle has retained a management contract to continue
to manage the hotel at least until the site is redeveloped.
Interest charges decreased by £1.0 million to £37.4 million as a consequence of
lower effective interest rates during the year. Interest cover remained
adequate despite the reduction in the Group's profit.
Profit before tax (PBT) fell by £19.1 million, to £49.1 million but adjusting
for the exceptional disposals of properties in each year, the underlying profit
before tax was £45.5 million, a decrease of £21.5 million.
The Group's tax charge was lower than the standard 30% rate due to the
availability of capital allowances in excess of depreciation for which no
deferred tax provision has been made. This reflects the active capital
expenditure programme undertaken by Thistle in recent years. The effective tax
rate for 2002 is expected to rise to approximately 30% of profit due to the
implementation of the new deferred tax accounting standard FRS 19 which is
described below.
Adjusted earnings per share (EPS) decreased by 31.5% to 7.6 pence reflecting
both the reduced adjusted PBT and the increased effective tax rate described
above. Adjusted EPS is calculated on earnings before the after tax impact of
asset sales.
Performance - Cash flow
Net cash inflow from operating activities of £112.4 million was £40.4 million
lower than in 2000 as a result of both the lower operating profit for the year
and a small net outflow from working capital of £2.9 million compared with the
unusually high inflow of £18.1 million in 2000.
The Group generated after tax and interest cash of £47.8 million in 2001 with
£13.9 million arising in the last quarter despite the trading downturn. This
cash flow, together with proceeds from property disposals, financed capital
expenditure of £38.3 million and ordinary dividends of £24.6 million.
From the £47.8 million cash generated, an outflow of £21.4 million was paid in
respect of corporation tax and debenture interest withholding tax liabilities
deferred from 2000. No similar deferral existed at 30 December 2001.
The three-year accelerated hotel refurbishment programme was completed during
the year and consequently there was a reduction of £28.0 million in capital
expenditure from £66.3 million to £38.3 million. The spend comprised room
upgrades (£15.7 million), additional new rooms (£0.3 million), food and beverage
outlets (£3.1 million), leisure facilities (£4.1 million), information
technology and systems (£2.5 million), and general capital expenditure (£12.6
million).
Net cash of £13.8 million was generated from the sale of Thistle Poole and an
advance payment received on the sale of the Group's freehold Leeds support
office site. A pre tax profit on disposal in excess of £2.0 million will be
booked on completion of the sale of the support office site in the second half
of 2002 when the support staff move to new purpose built leased offices in
Leeds.
Currently only maintenance capital expenditure is being approved. With the
three-year refurbishment programme complete this action will not be detrimental
to the Group's business or the condition of its assets. We will re-evaluate our
capital expenditure plans during 2002 as the trading outlook becomes clearer but
currently we estimate that expenditure in the year will be approximately £15
million.
Balance Sheet
Thistle's balance sheet remains strong, underpinned by the property portfolio
consisting of 32 freehold and 23 leasehold properties with a book value of £1.6
billion. Net borrowings at the year end showed little year-on-year movement at
£430.2 million giving a net debt to equity ratio of 37.2%.
Accounting Standards
FRS 18 (Accounting Policies) is the only new accounting standard which fully
applied to the Group's results for the first time in 2001. There have been no
changes to the Group's accounting policies arising from the introduction of FRS
18.
The Group has not adopted the accounting requirements of FRS 17 (Retirement
Benefits) in 2001 but they will be implemented at the latest in 2003. Had the
Group implemented FRS 17 at 30 December 2001 then the balance sheet would have
contained an item for the pensions liability of £3.4 million net of deferred tax
with a corresponding reduction in Group net assets.
The Group will adopt FRS 19 (Deferred Taxation) during 2002. FRS 19 requires
the Group to provide for deferred tax on certain timing differences where
previously no provision has been made as it was not anticipated that a tax
liability would arise in the foreseeable future. The implementation of FRS 19
will increase the Group's effective tax rate on profits before exceptional items
to approximately 30% in 2002.
Treasury
The treasury policy adopted by the Board is to maintain sufficient borrowing
facilities to meet, and provide adequate headroom above, its requirements for
the medium term. At 30 December 2001 the Group had net borrowings of £430.2
million and committed facilities of £484.0 million. Two bank loans totaling
£65.0 million were extended during the year and the Group's debt facilities,
other than its £50.0 million overdraft facility which is reviewed annually, now
fall due for repayment or renewal in 2004 at the earliest.
It is the Board's policy to use swap arrangements with banking counterparties of
high credit standing to manage interest rate risk wherever there is a perceived
foreseeable long term cash benefit to the Group. Market conditions during 2001
meant, however, that no such suitable opportunities were identified.
THISTLE HOTELS Plc
PRELIMINARY ANNOUNCEMENT
GROUP PROFIT AND LOSS ACCOUNT
for the 52 weeks ended 30 December 2001
2001 2000
Notes £m £m
Turnover 2 305.3 324.6
Cost of sales (198.4) (196.8)
Gross profit 2 106.9 127.8
Administrative expenses (24.0) (22.4)
Operating profit 3 82.9 105.4
Profit on sale of tangible fixed assets 4 3.6 1.2
Interest payable and similar charges 5 (37.4) (38.4)
Profit before taxation 49.1 68.2
Taxation 6 (9.0) (13.4)
Profit after taxation 40.1 54.8
Dividends 7 (24.6) (24.6)
Transfer to reserves 15.5 30.2
Earnings per share 8 8.3p 11.4p
Diluted earnings per share 8 8.3p 11.4p
Adjusted earnings per share 8 7.6p 11.1p
THISTLE HOTELS Plc
PRELIMINARY ANNOUNCEMENT
GROUP BALANCE SHEET
at 30 December 2001
2001 2000
£m £m
Fixed assets
Tangible assets 1,627.3 1,628.0
Current assets
Stocks 1.2 1.4
Debtors 28.1 31.0
Cash at bank and in hand 3.1 4.4
32.4 36.8
Creditors: amounts falling due within one year (69.9) (90.5)
Net current liabilities (37.5) (53.7)
Total assets less current liabilities 1,589.8 1,574.3
Creditors: amounts falling due after more than one year (433.3) (433.3)
Net assets 1,156.5 1,141.0
Equity share capital and reserves
Called up share capital 123.6 123.6
Share premium account 398.5 398.5
Revaluation reserve 441.5 446.0
Other reserves 50.8 50.8
Profit and loss account 142.1 122.1
Total equity shareholders' funds 1,156.5 1,141.0
THISTLE HOTELS Plc
PRELIMINARY ANNOUNCEMENT
GROUP CASH FLOW STATEMENT
for the 52 weeks ended 30 December 2001
2001 2000
Notes £m £m £m £m
Net cash inflow from operating activities 9 112.4 152.8
Returns on investments and servicing of finance
Interest paid (40.6) (36.6)
Taxation paid (24.0) (3.1)
Capital expenditure
Purchase of tangible fixed assets (38.3) (66.3)
Sale of tangible fixed assets 13.8 9.1
Equity dividends paid (24.6) (23.6)
Cash (outflow) / inflow before financing (1.3) 32.3
Financing
Issue of share capital - 0.5
Loans repaid - (0.5)
- -
(Decrease) / increase in cash (1.3) 32.3
RECONCILIATION OF NET DEBT
for the 52 weeks ended 30 December 2001
2001 2000
£m £m
(Decrease) / increase in cash in the year (1.3) 32.3
Cash flow from decrease in debt - 0.5
Reclassification of current asset investment - (0.1)
Movement in net debt in the year (1.3) 32.7
Net debt at the beginning of year (428.9) (461.6)
Net debt at the end of year (430.2) (428.9)
THISTLE HOTELS Plc
PRELIMINARY ANNOUNCEMENT
OTHER GROUP FINANCIAL STATEMENTS
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the 52 weeks ended 30 December 2001
2001 2000
£m £m
Profit for the financial year 40.1 54.8
Total gains and losses relating to the year 40.1 54.8
NOTE OF HISTORICAL COST PROFITS AND LOSSES
for the 52 weeks ended 30 December 2001
2001 2000
£m £m
Profit before taxation as reported 49.1 68.2
Difference between historical cost and actual depreciation charges 1.4 -
Realisation of property revaluation gains of previous 3.1 2.8
years
Historical cost profit before taxation 53.6 71.0
Historical cost profit after taxation and 20.0 33.0
dividends
RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS' FUNDS
for the 52 weeks ended 30 December 2001
2001 2000
£m £m
Total recognised gains and losses for the year 40.1 54.8
Dividends (24.6) (24.6)
Issue of share capital - 0.5
Net change in the year 15.5 30.7
Opening equity shareholders' funds 1,141.0 1,110.3
Closing equity shareholders' funds 1,156.5 1,141.0
THISTLE HOTELS Plc
PRELIMINARY ANNOUNCEMENT
NOTES TO THE PRELIMINARY ANNOUNCEMENT
The figures shown for the 52 weeks to 30 December 2001 represent unaudited
abridged financial statements and have not as yet been delivered to the
Registrar of Companies. The comparative figures for the 53 weeks ended 31
December 2000 have been extracted from, but do not constitute, the Group's
statutory financial statements for that financial year. Those financial
statements 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) or (3) of the Companies Act 1985.
The Board of Directors approved this preliminary announcement on 3 March 2002.
1. Basis of preparation
The financial information has been prepared on the basis of the
accounting policies set out in the Group's 2000 statutory accounts.
2. Segmental analysis
2001 2000
£m £m
Turnover by UK region
London 183.7 203.6
Regions 121.6 121.0
305.3 324.6
Gross profit before fixed charges by UK region
London 103.9 120.9
Regions 52.9 54.7
Total gross profit before fixed charges 156.8 175.6
Fixed charges (49.9) (47.8)
Total group gross profit 106.9 127.8
Fixed charges comprise property rent, rates and insurance, depreciation
and amortisation. The comparative figures for 2000 have been restated to
classify the Thistle Heathrow as a Regional hotel in line with industry
reporting practice.
3. Operating profit
2001 2000
£m £m
Operating profit is stated after charging:
Depreciation and amortisation 32.6 29.3
Repairs and renewals 8.4 8.8
THISTLE HOTELS Plc
PRELIMINARY ANNOUNCEMENT
NOTES TO THE PRELIMINARY ANNOUNCEMENT
4. Profit on sale of tangible fixed assets
2001 2000
£m £m
Profit on sale of fixed assets 3.6 1.2
During the year the Group realised an aggregate net profit of £3.6
million (2000: £1.2 million) on the disposal of one hotel (2000: three hotels
and a number of ancillary properties). There was no tax charge attributable to
this profit (2000: £nil). The sale proceeds net of selling costs were £10.4
million (2000: £9.1 million).
5. Interest payable and similar charges
2001 2000
£m £m
Interest on long term loans 27.4 28.0
Interest on bank overdrafts and loans repayable within 5 years 9.9 10.3
Bank charges 0.1 0.1
37.4 38.4
6. Taxation
2001 2000
£m £m
Corporation tax at 30% (2000: 30%) 11.0 13.4
Adjustments in respect of previous years (2.0) -
9.0 13.4
The corporation tax charge based on the profit for the year has
benefited from capital allowances and relief for losses brought forward of
approximately £2.7 million (2000: £6.8 million).
7. Dividends
2001 2000
£m £m
Interim paid of 1.7 pence (2000: 1.7 pence) 8.2 8.2
per share
Final proposed of 3.4 pence (2000: 3.4 16.4 16.4
pence) per share
24.6 24.6
THISTLE HOTELS Plc
PRELIMINARY ANNOUNCEMENT
NOTES TO THE PRELIMINARY ANNOUNCEMENT
8. Earnings per share
Earnings per share of 8.3 pence (2000: 11.4 pence) are based on the
Group's profit after taxation of £40.1 million (2000: £54.8 million) and on the
average number of shares in issue during the year of 481.9 million (2000: 481.9
million).
Diluted earnings per share of 8.3 pence (2000: 11.4 pence) takes into
account, in addition to the average number of shares noted above, dilutive
potential ordinary shares arising from employee share options of 0.3 million
(2000: 0.2 million).
Adjusted earnings per share of 7.6 pence (2000: 11.1 pence) are based
on the Group's adjusted profit after taxation of £36.5 million (2000: £53.6
million) which excludes the profit on disposal of fixed assets of £3.6 million
(2000: £1.2 million). No taxation charge has been attributed to these items in
this calculation.
9. Reconciliation of operating profit to
net cash inflow from operating activities
2001 2000
£m £m
Operating profit 82.9 105.4
Depreciation and amortisation 32.6 29.3
Profit on disposal of fixed assets (0.2) -
Decrease in stocks 0.2 -
Decrease in debtors 2.9 4.5
(Decrease) / increase in creditors (6.0) 13.6
Net cash inflow from operating 112.4 152.8
activities
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Thistle Hotels (LSE:THO)
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