International Hotel Investments plc - Interim results

On 25 June Island Hotels Group Holdings plc published its interim results for the six months ended 30 April 2012. During the period under review the Group reported total revenue of €11.56 million, representing a 9.1% increase from the comparable period last year. IHG also experienced a 9.1% increase in staff costs to €6 million with food and beverage costs rising by 11.5% higher to €1.52 million. After accounting for €4 million in other operating costs (2011: €3.37 million), the Group reported a significant drop in EBITDA to €41,402 (2011: €371,882). The Directors explained that the results achieved during the first 6 months of the financial year which covers the shoulder months of the tourism market between 1 November and 30 April are a reflection of the current trading conditions. Furthermore, the Directors reported that there is no evidence to suggest that the current trading conditions will change before the financial year–end of the Group.

The operating loss for the first half of the current financial year increased by 38.1% higher to €1.67 million and after accounting for finance costs and investment income, the Group reported a loss before tax of €3.0 million compared to a loss of €2.65 million reported during the first 6 months of the previous financial year. Island Hotels reported a loss for the period of €2.4 million (2011: €2.05 million) which translates to a loss per share of €0.066 (2011: €0.058).

The balance sheet as at 30 April 2012 shows total assets of €137.7 million (Oct 2011: €138.6 million) and shareholders’ funds of €34.9 million.

At the time of the publication of the October 2011 full-year results earlier this year, the Directors of Island Hotels had indicated that the Group is expected to continue facing difficult business conditions in the foreseeable future. Nonetheless, the Island Hotels Group will maintain its focus on vacation ownership sales, improve operational efficiency and seek further business opportunities. With regards to the Hal Ferh site, the Directors had revealed that the Group is actively seeking fresh external equity to finance this development which will commence once the various permits required are obtained. In the meantime, the Group will also continue to leverage on its leadership position in the catering business. New exclusive venues have since been signed up while the 50%-owned subsidiary Buttigieg Holdings Limited involved in the contract and retail catering sector, entered into a franchise agreement to operate the Costa Coffee branded shops in Malta.