22nd Apr 2015 08:51
LONDON (Alliance News) - UK hotelier Peel Hotels PLC Wednesday said its pretax profit experienced a small uplift in the last financial year after revenue increased and costs fell, as the company continued to pay-down its debt.
Peel reported a small rise in pretax profit for the year ended February 1 of GBP959,403 from GBP341,863 a year earlier, after the company's revenue rose to GBP16.5 million from GBP15.5 million and finance expenses fell to GBP666,678 from GBP932,822, partially offset by a rise in administrative costs.
Earnings before interest, tax, depreciation and amortization increased by 25% to GBP2.5 million from GBP2.0 million.
The company is currently focused on paying off its loans, with net debt falling to GBP10.9 million from GBP11.7 million at the end of the 2014 financial year. The company's net debt mainly consists of loans with a small overdraft facility.
However, Peel Hotel's finance expenses fell due to the falling away of a fixed interest swap on April 11, 2014, together with less net debt, it said in a statement.
"Sustained improvement in turnover has continued in the new financial year, and we continue to pay down our debt. These two factors will enable us to look forward to another year of progress," said Chairman Robert Peel.
Peel hotel said it will pay a dividend of 1.5 pence per share for the financial year, and the company said more details will be released when it releases its annual report in May.
The hotel chain spent more in capital expenditure during the year, totalling GBP603,295 compared to GBP519,328. Of the total capital expenditure in the period, GBP240,260 was spent on the Crown and Mitre Hotel in Carlisle, with the balance being spent on repairs and renewals.
Peel Hotel shares rose by 3.3% to 101.20 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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