On 21 June, Island Hotels Group Holdings plc (IHG) published its half-year financial results for the six months ended 30 April 2011. The Group generated €10.6 million in turnover which is 1.1% higher than the turnover recorded in the comparable period last year. Island Hotels explained that during the six months under review (which covers the shoulder months of the tourism market), the trading conditions of the Group were similar to the previous year when it faced a decline in vacation ownership sales due to the economic conditions within its core market, including the significant tightening of consumer credit provisions. Earnings before interest, depreciation, tax and amortisation fell 17.8% to €0.37 million (2010: €0.45 million). The Group incurred a net loss for the period under review of €2 million compared to a loss of €2.2 million registered in the same period during 2010. This translates into negative earnings per share of €0.058 (2010: €0.062).
With respect to the outlook for the second half of their financial year, the Directors stated that they see no dramatic changes to the trading patterns registered last year when the Group incurred a loss of €0.7 million for the full-year to 30 October 2010. However, in May 2011 the IHG Group had announced that it signed an agreement for the acquisition of 50% of the share capital of Buttigieg Holdings Limited which in turn wholly owns R.J.C. Caterers. The latter is a catering company operating in the retail and contract catering sector. Island Hotels reported that this acquisition will strengthen operations carried out by the Group’s subsidiary Island Caterers Limited together with the aim of increasing overall turnover levels, exploit both local and international opportunities and enhance the efficiency of both businesses through synergies. IHG also explained that this acquisition is expected to increase revenue and operating profits of the Group by around 10% compared to the 2010 figures.
Download a copy of the 2011 Interim Report of IHG Holdings plc