International Hotel Investments plc - Interim Results

Friday, August 31st, 2018

On 31 August 2018, International Hotel Investments plc published its interim financial statements covering the six-month period ended 30 June 2018.

Performance Overview

During the first six months of 2018, IHI generated €116.9 million in overall revenues. This is slightly ahead of last year’s corresponding figure of €115.3 million as a result of improved operations as well as the consolidation of Corinthia Palace Hotel Attard as from 1 April 2018.

On the expenditure side, total costs remained virtually unchanged at €105.8 million. Excluding depreciation and amortisation charges, consolidated EBITDA improved by 2.2% to €27.6 million. On an adjusted basis, the EBITDA figure when including the 50% share from the Corinthia Hotel London and the Golden Sands Resort increased by 1.3% to €26.1 million (H1 2017: €25.8 million).

Overall, results from operating activities amounted to €11.1 million compared to €10 million in the previous comparable period.

Net finance costs dropped by almost 5% to €12.6 million (H1 2017: €13.3 million). On the other hand, the financial results reflect a loss of €0.28 million arising from IHI’s investment in associates and joint ventures, namely the Golden Sands Resort, compared to a profit of €0.96 million in H1 2017. In this respect, IHI explained that the performance of the Golden Sands Resort was in line with expectations amid an exercise by this hotel resort to refocus its business model and also due to the closure of some facilities as part of a refurbishment programme.

IHI reported a pre-tax loss of €1.77 million which is lower than the pre-tax loss of €2.3 million recorded in the first six month of 2017. After accounting for a tax charge of €0.97 million and a loss of €2.85 million pertaining to minority interests (H1 2017: loss of €1.4 million), IHI posted a net profit of €0.12 million for the period under review (H1 2017: loss of €0.46 million).

The Statement of Financial Position as at 30 June 2018, compared to the corresponding figures as at 31 December 2017, shows that total assets grew by a marginal 0.4% to €1.61 billion whilst total liabilities increased by 3.3% to €741.2 million (31 December 2017: €717.7 million) mostly reflecting increased bank borrowings (+€7.74 million) as well as higher amounts of trade and other payables (+€21.5 million). Accordingly, shareholders’ funds contracted by 2.2% to €668.7 million. This translates into a net asset value per share of €1.0861 (31 December 2017: €1.111).

Outlook

Looking ahead, the Directors noted that the general business outlook for IHI’s hotels and catering operations remains positive. Moreover, Corinthia Hotels Limited, which is IHI’s hotel management company, remains active in its drive for global growth. Meanwhile, IHI also noted that it has very recently refinanced its main credit facility related to the Corinthia Hotel Lisbon. This released €17.5 million in excess cash which will now go to finance the room refurbishment programme at this hotel as well as for general corporate funding purposes of the whole Group.

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International Hotel Investments plc – Interim Financial Statements for the six-month period ended 30 June 2018.

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