Hotel owner-operator PPHE (PPH) enjoyed a vintage 2012. Even after a very bullish pre-close trading statement in January, it beat analysts' expectations by a wide margin. Adjusted pre-tax profits rose 77 per cent to €24m 9£21m) and even like-for-like cash profits - which exclude the impact of three acquisitions in Holland - rose a quarter.
This organic growth was driven almost entirely by the group's London hotels, particularly the Park Plaza flagship on Westminster Bridge roundabout. London occupancy remained high at 82 per cent, allowing the group to increase average room rates by 8 per cent to £137 a night. That in turn drove a 17 per cent improvement in sterling cash profits to £48.2m, more than offsetting a slightly weaker Dutch market.
Finance director Chen Moravsky says London's summer of sport helped - beggaring the question whether profits will fall back this year. He says last year's growth rates will be impossible to match, but stresses that the company used the Olympics to win new long-term clients rather than boost short-term profits. "We didn’t just squeeze the lemon," he said. Broker Investec Securities is still cautiously forecasting adjusted EPS of 49¢ this year, down from 59¢ in 2012.
PPHE HOTEL GROUP (PPH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 293p | MARKET VALUE: | £119m | |
| TOUCH: | 290-295p | 12-MONTH HIGH: | 293p | 200p |
| DIVIDEND YIELD: | 4.1% | PE RATIO: | 2 | |
| NET ASSET VALUE: | 637¢ | NET DEBT: | 177% | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 93 | 7.9 | 19 | nil |
| 2009 | 80 | -7.2 | -18 | nil |
| 2010 | 140 | 60.5 | 152 | nil |
| 2011 | 202 | 10.6 | 37 | 6.00 |
| 2012 | 242 | 67.6 | 164 | 12.00 |
| % change | +20 | +536 | +343 | +100 |
Ex-div: 27 May Payment: 14 May £1=€1.16 | ||||
