20th Feb 2014 10:11
LONDON (Alliance News) - Snoozebox Holdings PLC saw its shares jump Thursday after it reported a turnaround in fortunes, with revenues up about 80% in 2013 and key events like Glastonbury and the Ryder Cup gold competition added to its roster for 2014.
It also said it has promoted Chief Financial Officer Lorcán Ó Murchú to become chief executive. Former CEO Robert Breare stepped down from that role last year to concentrate on sales and business development.
The company, which converts old shipping containers into portable hotels and provides accommodation at events, had predicted in December that revenues would be up about 80% in 2013 after a restructuring programme. It confirmed the growth Thursday, saying it expects revenues to be about GBP6.5 million. It has also improved margins as it cut operating costs sharply.
In a statement, Snoozebox said net cash at the end of 2013 was more than GBP4.5 million.
It said event sales so far in 2014 are substantially ahead of last year, as it added events including Glastonbury and the Ryder Cup to its lineup.
"Sales to date of 2014 events are substantially higher than last year, selling at a faster rate and with some events seeing prices over 100% higher than in 2013. Moto GP and the IOM TT Race packages are already almost sold out, British Grand Prix packages are 50% sold and Download Rock Festival VIP Hotel is already 25% sold, all at higher pricing," it said.
It also said it is seeing demand from the wider corporate market for its events services, and has hosted a range of events on behalf of blue chip retailers, banking clients, car manufacturers, travel companies and event agencies.
The company is bringing a new generation of its portable hotel to market this year. It said it expects to deploy the first of the hotels in the latter part of the year.
"The board is pleased that Lorcán Ó Murchú has agreed to become Chief Executive of Snoozebox with immediate effect and I would like to thank him for his considerable efforts in addressing the challenges the Company faced in 2013 and in laying the foundations for future profitable growth," Chairman David Morrison said in a statement.
"Given the strength of demand for Snoozebox products, management intends to broaden and deepen the product development and sales capability of the Company in the coming months to enable more rapid growth both in the UK and overseas," he added.
Snoozebox expects to publish its full 2013 report in early April.
Its shares were up 25.5% at 8 pence Thursday morning, the second-highest gain on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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