During the first six months of 2004, revenue generated from the Group’s four hotel properties amounted to €26 million, an increase of 16% over the turnover levels for the corresponding period last year. The main reasons for this increase were a full six months of trading in 2005 for the Corinthia Alfa Hotel in Lisbon compared with a six-week trading performance in the first six months of 2004, coupled with the fact that higher revenues were also generated by the Corinthia Grand Hotel Royal in Budapest.
The Group registered an operating loss of €0.4 million against a corresponding profit of €0.3 million last year. The Directors explain that this weaker performance is due to the higher depreciation incurred on the Corinthia Alfa Hotel. Net financing costs amounted to €4.67 million, up from €4.45 million in 2004, an increase of €0.22 million. This was due to interest incurred on short-term banking facilities.
During the period under review, the IHI Group registered a loss before tax of €4.88 million, a 20.6% rise over the loss of €4.05 million incurred in the first six months of 2004. After accounting for taxation the loss during the six month sot 30 June 2005 amounted to €5.03 million (June 2004: €1.02 million). It is worth pointing out that in 2004 the Group had recognised a positive one-time reversal of a deferred tax charge previously taken in 2003 on the fair value adjustment of the properties adjacent to the Corinthia Nevskij Palace Hotel in the Russian Federation.
Total assets as at the end of June 2005 amounted to €349 million with shareholders' funds at €139.4 million. Based on the total number of shares in issue of 139,053,489, IHI’s net asset value per share stands at €1.00. The equity is currently trading at a 17% discount to its book value.