5th Nov 2015 09:35
LONDON (Alliance News) - Temporary accommodation provider Snoozebox Holdings PLC on Thursday said it expects to post a loss for 2015 due to additional costs of ramping up its 'semi-permanent hotels' business, though it said revenue for the year should meet market expectations.
Snoozebox said it will book higher mobilisation costs in the fourth quarter of 2015 thanks to the five semi-permanent hotels it will launch and which will ramp up in the first quarter of 2016. Due to this, it expect it will make an earnings before interest, taxation, depreciation and amortisation loss of around GBP5.0 million for the year. That would compared to a GBP3.6 million loss a year earlier and also would be a wider loss than the one it made in 2013.
The company said it is confident on the opportunity provided by the semi-permanent hotel market and expects the revenue from its new launches to flow through in 2016. Planning permission is currently pending on 600 new rooms for the company and it said it is seeking to establish a greater presence in the events market.
"2015 has been a year of transition for Snoozebox. We have transformed our product into a diverse and fully executable offering capable of deployment at a wide range of events, supported by a growing semi-permanent business. We are confident in the long-term opportunities in our markets and our ability to profitably scale the business," said Chief Executive Lorcán Ó Murchú.
Shares in Snoozebox were down 6.5% to 9.00 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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