On 23 June, Island Hotels Group Holdings plc (IHG) published its half-year financial results for the six months ended 30 April 2010. The Group generated €10.5 million in turnover which according to the Directors is 9.7% lower than the turnover recorded in the comparable period last year. This drop was due to the continued effects of the international economic downturn on the business and the adverse effects of the volcanic ash crises in April. On a positive note, the Directors explained that the Group managed to reduce its overall cost base by circa 5% (equivalent to €600,000) despite the substantial increases in utility rates.
Nonetheless the greater drop in revenue resulted in a net loss for the period under review of €2.1 million which translates into a negative earnings of €0.059 per share.
With respect to the outlook for the second half of their financial year, the Directors stated that given the general positive outlook for the tourism industry and the increase in seat capacity they are confident on achieving an improved performance in the coming months. The Directors noted that the second half contributes more than a proportionate part of the Group’s annual performance due to the seasonal nature of the business.
The Directors also revealed that in the coming months the Group will be working on detailed plans for the redevelopment of the Hal Ferh complex. Construction on this new resort is expected to commence in 2011.
Download a copy of the 2010 Interim Report of IHG Holdings plc