On 1 March, Island Hotels Group Holdings plc published its Interim Directors’ Statement explaining that the new financial year (which began on 1 November 2009) started on the same challenging path as that of the previous year. Furthermore, the effects of the international economic downturn are expected to continue impacting the Group’s properties for the first six months of the current financial year ending 30 April 2010.
The Directors highlighted that the increased electricity tariffs are a major factor which could add further upward pressure to the Group’s cost base. Nonetheless management will continue to work hard on the cost containment strategy adopted in the previous financial period.
In conclusion, the Directors stated that indications for the second half of the financial year are more positive as both volumes and room rates begin to show signs of a modest recovery.