These were a complex set of interim results from hotel group PPHE Hotel Group (PPH). Let's start on home soil. UK-based revenues fell 3 per cent as revenue per available room (RevPAR) dropped 5 per cent - the result of lower occupancy levels. Management blamed factors including the increased number of global terrorist incidents for the drop-off in demand, which resulted in a 13.9 per cent decline in cash profits to £21m.
The picture wasn't much better in Germany and Hungary, where RevPAR was flat at £41.2m, with a bigger drop in euro terms, despite a 14 per cent increase in average room rates. A drop in occupancy levels from 77.6 per cent to 67.4 per cent was part of the problem there.
The Netherlands proved a bright spot, with a 13.2 per cent increase in RevPAR to £83.5m and average room rates up 12.3 per cent to £104. Finally, the recently acquired Croatian business reported an 11.1 per cent improvement in RevPAR, although again part of that was a translational boost following the weakening of sterling against the Croatian kuna.
Analysts at Stifel expect pre-tax profits of £23.6m for the year to December 2016, giving EPS of 45.3p, compared with £29.7m and 71p in 2015.
| PPHE (PPH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 733p | MARKET VALUE: | £308m | |
| TOUCH: | 715-750p | 12-MONTH HIGH: | 815p | LOW: 528p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 8 | |
| NET ASSET VALUE: | 746p | NET DEBT: | 157% | |
| Half-yearto 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 102 | 10.6 | 26.0 | 10.0 |
| 2016 | 112 | 12.1 | 31.0 | 10.0 |
| % change | +9 | +14 | +19 | - |
Ex-div: 8 Sep Payment: 7 Oct | ||||
