Last time we wrote about PPHE Hotel (PPH), it was having a rough time across almost all of its geographies. Six months on, matters have improved. Revenue and adjusted profit both made double-digit gains, the latter climbing 10.3 per cent to £3.1m. On a statutory basis, earnings looked considerably worse, attributed to one-off income and expenses benefits in the first half of 2016.
The group grew across all geographies. It opened two new hotels in the UK during the period, as well as extending the Park Plaza London Riverbank. This lifted revenue in what was already the company’s largest market by 19.2 per cent to £85.6m, with a rise in both average room rates and revenue per available room negating a slight slip in occupancy, to 81.2 per cent from 81.7 per cent.
On the continent, both occupancy and per-room revenue was up across the Netherlands, Germany, Hungary and Croatia. But the extensive renovations at the Park Plaza Victoria Amsterdam limited the number of rooms, meeting rooms and outlets that were open, meaning euro revenue in the Netherlands were lower. The opening of Park Plaza Nuremberg provided a decent boost to the Germany operations.
Analysts at Stifel are forecasting adjusted pre tax profit of £34m for the year to December 2017, giving EPS of 67.4p (from £31.7m and 68p in 2016).
| PPHE HOTEL GROUP (PPH) | ||||
| ORD PRICE: | 1,000p | MARKET VALUE: | £423m | |
| TOUCH: | 985-1,015p | 12-MONTH HIGH: | 1,000p | LOW: 665p |
| DIVIDEND YIELD: | 2.2%* | PE RATIO: | 12 | |
| NET ASSET VALUE: | 987p | NET DEBT: | 134% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 112 | 12.1 | 31 | 10 |
| 2017 | 142 | 3.4 | 9 | 11 |
| % change | +27 | -72 | -71 | +10 |
| Ex-div: | 14 Sep | |||
| Payment: | 13 Oct | |||
| *Excludes special dividend of 100p paid in August 2016 | ||||
