27th Feb 2014 10:36
LONDON (Alliance News) - Snoozebox Holdings PLC saw it shares rise strongly Thursday after it was given planning permission to build a 240 bedroom portable hotel for the TT races on the Isle of Man on a permanent basis.
The company had an 80 bedroom hotel on the Island for the 2012 TT motorcycle races, which are renowned the world over among motorcyle enthusiasts. It will deploy a 160 bedroom hotel to the races in May of this year, having sold almost all the packages it is offering for the 2014 event.
However, the planning permission from the Isle of Man government means it can have an even bigger portable hotel at the event going forward, on a permanent basis.
Snoozebox converts old shipping containers into portable hotels and provides accommodation at events. The initial concept proved popular, but the company struggled in its early stages after commercialising the product and had to launch a restructuring programme.
However, it saw its shares shoot higher last week after it confirmed a turnaround in 2013, with revenues up about 80%, and said it had added key events like Glastonbury and the Ryder Cup golf competition to its roster for 2014.
The company is bringing a new generation of its portable hotel to market this year, and expects to deploy the first of the hotels in the latter part of the year.
Snoozebox shares fell back a bit after the initial surge made last week, but Thursday's news sent the stock back towards those levels. The shares were up 11.8% at 13.84 pence Thursday morning, one of the biggest gains on AIM.
By Steve McGrath; [email protected]; @stevemcgrath1
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