With a stratospheric rise in revenues and profits it looks as though Dalata Hotel (DAL) has all the luck of the Irish, but the explanation is rather more prosaic. Management acknowledges that the "significant increase" in turnover and operating profits is due to the new properties acquired since August 2014.
A better barometer for how the group fared is the underlying performance of its pre-IPO portfolio. The numbers here are still impressive, as adjusted cash profits more than doubled to €16.9m (£13.1m) after revenues rose by more than a fifth. Revenue per available room (RevPAR) outpaced that of the wider Dublin market too, while its Cardiff hotel attracted a host of Rugby World Cup supporters.
Of course, the quick growth has come at a cost. The group is now in a net debt position, but early signs suggest it has bought some promising assets. Post year-end, the spending spree has continued, with two hotels added in Ireland as well as a new site in Dublin where it will build a 181-room hotel.
Analysts at Goodbody expect adjusted pre-tax profits of €60m in 2016, leading to adjusted EPS of 27.6¢ (from €28.5m and 24.9¢ in 2015).
| DALATA HOTEL GROUP (DAL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 352.5p | MARKET VALUE: | £645m | |
| TOUCH: | 340.25-353.25p | 12-MONTH HIGH: | 405p | LOW: 229p |
| DIVIDEND YIELD: | nil | PE RATIO: | 31 | |
| NET ASSET VALUE: | 294¢ | NET DEBT: | 22% | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011* | 69.5 | 2 | na | nil |
| 2012* | 71.1 | -139 | na | nil |
| 2013 | 60.6 | 0 | -6074.0 | nil |
| 2014 | 79.1 | 4 | 3.7 | nil |
| 2015 | 226 | 28 | 14.5 | nil |
| % change | +185 | +578 | +297 | - |
*Pre-IPO figures £1=€1.29 | ||||
