24th Jun 2014 07:37
LONDON (Alliance News) - Investment company The Hotel Corporation PLC Tuesday saw its shares slide as it warned there is uncertainty over whether its Puma Hotels subsidiary can keep going, even though it said The Hotel Corp would be able to keep going even without an income from its Puma investment.
The Hotel Corp reported a net loss of GBP165,000 for 2013, narrower than the GBP213,000 loss it reported in 2012, as it cut administrative expenses. It didn't book any revenue having previously agreed with Puma Hotels to defer interest that Puma owes on bonds and dividends due on Puma's preference shares until further notice.
It said it hadn't recognised revenue of nearly GBP2.0 million interest on the bonds and GBP824,000 worth of dividends.
"(Puma Hotels) has no recourse to the company which is solvent and able to continue trading even in the absence of any income generated from its investment in (Puma Hotels) and as a consequence, the directors believe that the company is well placed to manage its business risks satisfactorily and have concluded that it is appropriate to prepare these financial statements on a going concern basis," it said in its statement.
"In considering the ability of the company to continue as a going concern the directors have considered the company cash flow forecasts. These cash flow forecasts indicate that the company has sufficient resources to meet its ongoing operating expenses into the foreseeable future. It also has resources to invest in other opportunities if they were to arise and if investment was considered appropriate by the directors," it added.
Still, its shares were down by a third at 1.2 pence early Tuesday, the biggest fall on the AIM All-Share index.
By Steve McGrath; [email protected]; @SteveMcGrath1
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