28th Jul 2014 09:02
LONDON (Alliance News) - Snoozebox Holdings PLC shares rose sharply Monday after the company said it has significantly reduced its losses in the first half of the year, supported by a successful events programme, while saying it has a strong pipeline of opportunities.
Snoozebox shares were trading at 8.70 pence Monday morning, up 8.8%.
The portable hotel provider said it expects to report an improvement in pre-exceptional earnings before interest, taxes, depreciation and amortisation for the six months to June 30, while it expects to reduce its losses to GBP1.6 million in the period, compared with GBP4.2 million the prior year, supported by a GBP1.7 million reduction in administrative expenses and central overhead costs. It said it is expecting revenue of GBP0.7 million for the first half.
"The progress made in the underlying operating model, combined with the launch of the next generation portable hotel in the autumn of this year, provides the platform on which to transform the performance of the business in 2015 and to scale it in 2016," said Chief Executive Lorcán Ó Murchú in a statement.
The company said its new hotel rooms, which it plans to launch later this year, are more flexible and efficient than the original stock, which will allow it to reduce deployment costs substantially and increase the size, scope and viability of the company's addressable events market.
"This will enable the business to move forward and capitalise on the rising levels of demand that are being experienced for high quality portable hotel accommodation at sporting, music and other events," it said.
Snoozebox said it saw high occupancy levels in the first half, with most events sold-out and with room rates ranging from GBP160 to GBP330 per night.
The company said revenue will be higher in the second half of the year, driven by key events including the British Grand Prix, the Silverstone Classic, the Moto GP and the Ryder Cup at Gleneagles. All of these, it said, are either sold out or experiencing high levels of demand, with the booking rate materially ahead of this time last year.
"With regard to the long-term deployment of the current generation of Snoozebox hotel rooms, there is a strong pipeline of opportunities, and the company remains confident that the existing hotel room stock will be placed on a 'semi-permanent' basis by the end of 2014," the company said.
The company said it has secured planning permission for a 60 bedroom Snoozebox hotel at the Eden Project in Cornwall, which will be deployed for an initial period of two years and is scheduled to open in October this year, it said.
The company said it will release its interim results on September 30.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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