Headline figures for hotel chain owner PPHE (PPH) don't tell the whole story, and the sharp decline in profits reflects a €50m (£42m) one-off accounting gain the previous year. In fact, profits before income expenses rose 7 per cent to €61.6m.
Almost two-thirds of group revenue comes from London hotels, where turnover rose 5.1 per cent to £137m. The performance was especially pleasing on a comparative basis, as the previous year's numbers were boosted by the Olympic Games. Average room rates declined by 1.6 per cent, but this was more than offset by a rise in occupancy levels from 80.2 per cent to 82.4 per cent, which allowed revenue per available room to grow 0.6 per cent to £113.60.
Plans to increase capacity include four new hotels - three in London and one in Germany - which, together with two rebranding projects, will add over 1,200 rooms, around 15 per cent of existing capacity.
Analysts at broker Oriel Securities expect adjusted EPS of 57.1p this year (from 52.8p in 2013).
| PPHE HOTEL GROUP (PPH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 318p | MARKET VALUE: | £130m | |
| TOUCH: | 315-323p | 12-MONTH HIGH: | 352p | LOW: 291p |
| DIVIDEND YIELD: | 4.4% | PE RATIO: | 6 | |
| NET ASSET VALUE: | 712¢ | NET DEBT: | 166% | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 80 | -7.2 | -18 | nil |
| 2010 | 140 | 60.5 | 152 | nil |
| 2011 | 202 | 10.6 | 37 | 6 |
| 2012 | 242 | 67.6 | 164 | 12 |
| 2013 | 245 | 25.8 | 63 | 14 |
| % change | +1 | -62 | -62 | +17 |
Ex-div: 26 Mar Payment: 13 Jun £1=€1.19 | ||||
