- Interim Results

The Board of Directors of Suncrest Hotels plc met on 26 June 2006 to approve the Interim Statements of Accounts for the period ended 30 April 2006.

April 2006 Interim Results

During the six months to April 2006 the turnover of Suncrest Hotels plc fell by 22% from Lm802,000 to Lm627,000 due to the weak demand exhibited in the four star market, particularly those hotels that were dependent on the business of tour operators. Operating costs originating from wages, salaries and overheads (excluding amortisation and depreciation) decreased by 14% to Lm908,000 and this resulted in an operating loss before depreciation and amortisation of Lm281,000 (2005: Lm255,000). After accounting for the depreciation and amortisation charge of Lm108,000 (2004: Lm113,000) the operating loss stood 5.7% higher than the previous comparative period at Lm389,000 (2004: Lm368,000).

Despite the significant drop in turnover levels, the loss after taxation of Suncrest Hotels plc rose by only 4% to Lm513,000 (2004: Lm493,000) resulting in a loss per share of 5c1 ( 2004: -4c9)

As at 30 April 2006, total assets for Suncrest Hotels plc amounted to Lm7.5 million from Lm8.4 million in April 2005. Shareholder’s Funds also stood marginally lower at Lm2.9 million translating into a book value per share of 29c.

The Directors also note that they have reviewed the available for sale investments and consider that there has been no significant movement in the value of these assets.

Developments and Outlook

According to the Directors, the Suncrest Beach Vacation Club project is gaining momentum and sales of vacation weeks have progressed at a steady pace. It was reported that the Company bought back a total of Lm118,000 bonds from the sale proceeds of these vacation weeks.

The Directors claim that the period 2005/6 was as expected and that they are closely monitoring the results of the Company in view of the decline in turnover and the losses being incurred. According to the Directors “demand during summer is expected to increase. However unless the Hotel achieves a significant increase in its occupancy, it is unlikely that the Hotel will achieve a profit during the current financial year”.

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