8th Aug 2016 08:49
LONDON (Alliance News) - Hotel operator and engineering company CH Bailey Monday reported a swing to a pretax loss for its most recently ended financial year, as it made no property sales during the period, though it saw revenue rise.
For the year to the end of March, CH Bailey reported a pretax loss of GBP398,543, swung from a pretax profit of GBP6.9 million the previous year, on revenue of GBP5.1 million from GBP4.9 million. The swing in profit was mostly due to a GBP8.2 million profit on the sale of property in the prior year.
The company said it had seen an improved gross profit margin, helped by the first full year following the completion of its phase III development which houses the Oyster Bay Suites, serviced offices, a bank and a premium restaurant in Tanzania.
Additionally CH Bailey's administrative costs were reduced 21% due to increased efficiencies, it said.
The company did not propose the payment of a dividend, having paid a dividend of 20 pence the previous year, but said that it hopes to create "consistent trading profits" so it can offer its shareholders a return via an increase in share price or, subject to profitability, a dividend payment.
In regards to the UK's vote to leave the European Union, CH Bailey noted that its Tanzanian revenue is largely denominated in US dollars, providing it with a sterling-based benefit.
"The board will seek to further invest in our existing asset base and will consider potential new investments. We are confident in our strategy to achieve and maintain profitability and the board believes the company is well positioned to grow in the future," said Chairman David Wilkinson in a statement.
Shares in CH Bailey were down 3.9% at 125.00 pence Monday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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Related Shares:
C.H. Bailey Plc