Don't be too concerned about last year's tail-off in sales and pre-tax profits at hotel developer Millennium & Copthorne (MLC). The group was up against tough comparative numbers in 2013 due to the sale of 147 apartments at the Glyndebourne development in Singapore. In 2014, MLC only recognised £6m in revenue from Glyndebourne after selling the final three units, compared to £274m in 2013.
Strip out Glyndebourne and the company's figures improved, with revenues rising 4 per cent to £820m and pre-tax profits up 17 per cent to £183m. That mainly reflected the completion of a few acquisitions - including a five-star hotel in London's Chelsea Harbour - and big refurbishment projects in Minneapolis and Taipei. Revenue per available room (RevPAR) rose 2.8 per cent (6.9 per cent at constant currencies) to £71.55, thanks both to an increase in average room rates and higher occupancy. The US was the strongest performing region.
The group has welcomed a new chief executive, Aloysius Lee Tse Sang, who will officially replace Wong Hong Ren on 1 March 2015.
Analysts at Panmure Gordon expect adjusted pre-tax profits of £147m this year, giving EPS of 32.4p, up from £125m and 26.9p.
| MILLENNIUM & COPTHORNE HOTELS (MLC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 577p | MARKET VALUE: | £1.9bn | |
| TOUCH: | 576-578p | 12-MONTH HIGH: | 614p | LOW: 527p |
| DIVIDEND YIELD: | 2.4% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 697p | NET DEBT: | 19% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 744 | 129 | 30.9 | 10.0 |
| 2011 | 821 | 193 | 51.0 | 12.5 |
| 2012 | 768 | 171 | 42.0 | 13.6 |
| 2013 | 1064 | 295 | 69.4 | 13.6* |
| 2014 | 826 | 188 | 34.0 | 13.6 |
| % change | -22 | -36 | -51 | - |
Ex-div: 19 Mar Payment: 15 May *Does not include special dividend of 9.15p a share | ||||
