1st Sep 2015 08:33
LONDON (Alliance News) - Snoozebox Holdings PLC Tuesday reported a wider pretax loss in the first half of 2015 as it made investments into the business as part of its expansion plans, but said that revenue beat expectations and continues to grow strongly.
The portable hotel company said that it made a pretax loss of GBP3.1 million in the six months to June 30, wider than the GBP2.3 million loss it made in the first half of 2014, even though revenue jumped to GBP2.4 million from GBP731,000, ahead of its expectations.
Snoozebox said that its loss was due to investments it made in systems, processes, resources and brand development, as the business "prepares for scale".
Room stock increased by a quarter in the first half, with just over 800 rooms under management, compared to 578 in the same period last year. It said it plans to build a further 150 Snoozebox event hotel rooms for the 2016 season, taking the total room inventory to over 950 rooms.
Snoozebox added that occupancy rates exceeded 90% at most events, at an average room rate for Snoozebox hotel rooms of GBP156, compared with GBP147 last year. The average room rate for non-ensuite Snoozy rooms was GBP76 in the first two months of operation, giving an overall average room rate of GBP140.
"Snoozebox continues to make solid progress, growing revenues, gross profit and contribution to overhead. We have broadened our product offering and strengthened our operating model, in line with our strategy to position the business for sustainable long-term growth," Chief Executive Lorcán Ó Murchú said in a statement.
"Demand for our unique, high quality offering remains high, both from the UK and overseas. With greater visibility, clear growth prospects and an executable event model, our focus in the second half of the year will be to build on the strong foundations we now have in place, investing in further improving and growing the core business, as well as expanding into new sectors and markets," he said.
Snoozebox added that due to further expenditure in expanding the business, it does not expect to report positive earnings before interest, tax, depreciation and amortisation in the second half of the year, although it does expect revenue to continue to grow strongly.
Shares in Snoozebox were trading down 1.3% at 9.75 pence Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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