4th Apr 2006 07:02
Hotel Corp (The) PLC04 April 2006 4 April 2006 For Immediate Release The Hotel Corporation plc Preliminary Results for the year ended 31 December 2005 The Hotel Corporation plc ("the Company"), an AIM listed investment companyowning 49.9% of Dawnay Shore Hotels plc ("DSH"), announces its preliminaryresults for 2005. DSH is today separately announcing preliminary results forthe year ended 1 January 2006. Highlights The Hotel Corporation • Profit, including revaluation gain, of £11.5m • Independent valuation of hotels, as at 30 June 2005, translates into significant growth in net assets per share, up 24.5% at year end • Final dividend of 3.2p, making a total of 5.8p for the year DSH • DSH* like for like hotel EBITDA increases by 2.9%. • Original 13 Paramount hotels EBITDA (l-f-l) increases by 5.2%. • Food margin increases from 77% to 81%. • Corporate room nights increase by 11%. • Acquisitions during 2005 increase room count from 1,800 to 2,700 across 20 hotels • Furlong acquisition - including The Lygon Arms - positions DSH at top end of four-star sector • Net assets per share at year-end increased to 195p • Hinckley renovation now substantially complete and room addition programme at Redworth Hall under way *Excludes Walton Hall which is under redevelopment and the Furlong Group whichwas acquired on 9 December 2005 Barclay Douglas, Chairman of The Hotel Corporation plc, said: "Trading in DSH has been positive and there has been considerable progress inexploiting the property potential of the portfolio. We believe DSH is buildinga portfolio and a brand of great value. As well as delivering a strong incomestream, it is also growing its net asset value. We therefore view our prospectsas an investor in DSH very positively." Press enquiries The Hotel Corporation 0207 638 9571Barclay Douglas Dawnay Shore Hotels plc 0207 638 9571Charles Prew Shore Capital and Corporate 020 7468 7911Graham Shore Citigate Dewe Rogerson 0207 638 9571Margaret George Notes to Editors The Hotel Corporation plc The Hotel Corporation is an AIM listed company which was established as a meansfor investors in publicly quoted companies to gain an interest in Dawnay ShoreHotels plc. It is currently a 49.9% shareholder in DSH. DSH currently owns aportfolio of 20 four star regional hotels in the United Kingdom. It nowoperates under the Paramount brand of distinction and has also created asignature group of hotels. The portfolio includes the world famous The LygonArms Hotel, a Paramount Signature Hotel in the Cotswolds; the prestigiousParamount Carlton Hotel in Edinburgh and the Paramount Oxford Hotel. Paramounthotels offer extensive banqueting, conference and leisure facilities and many ofthem have architectural and historical significance. The Hotel Corporation is an Isle of Man company, with its principal place ofbusiness and registered office in Douglas, Isle of Man. DSH's hotel locations are shown below: CENTRAL ENGLAND Bedrooms No. of Health & Location meeting Leisure rooms 1 Billesley Manor Hotel* 72 10 Y Country 2 Paramount Cheltenham Park Hotel, Cheltenham 143 11 Y Country 3 Paramount Daventry Hotel, Northamptonshire 138 19 Y City 4 Paramount Hinckley Island Hotel, Leicestershire 349 21 Y Country 5 Paramount Oxford Hotel, Oxford 168 25 Y City 6 Paramount Palace Hotel, Buxton 122 7 Y Country 7 Paramount Walton Hall Hotel & Spa 132 9 Y Country 8 The Lygon Arms* 69 4 Y Country NORTHERN ENGLAND 9 Paramount Imperial Hotel, Blackpool 180 15 Y City/Coast10 Paramount Majestic Hotel, Harrogate 156 8 Y City11 Paramount Redworth Hall Hotel, County Durham 100 14 Y Country12 Paramount Shrigley Hall Hotel, Golf & Country Club, 148 11 Y Country Cheshire SCOTLAND 13 Paramount Carlton Hotel, Edinburgh 189 10 Y City14 Paramount Marine Hotel, Troon 89 4 Y Coast15 Paramount Stirling Highland Hotel, Stirling 96 6 Y City SOUTHERN ENGLAND 16 Combe Grove Manor* 42 5 Y Country17 Paramount Basingstoke Country Hotel 100 12 Y City/Country18 Paramount Imperial Hotel, Torquay 152 8 Y Coast19 Paramount Old Ship Hotel, Brighton 152 13 N City / Coast WALES 20 Paramount Angel Hotel, Cardiff 102 7 N City Total 2,699 * Paramount Signature Hotel Chairman's statement I am pleased to report on the final figures for the twelve months ended 31December 2005. As the Company's principal asset comprises its interest in DSH, this statementwill focus both on the Company's own results and then on those of DSH. Thebalance sheet of DSH as at 1 January 2006 and the profit and loss account of DSHfor the 52 week period ended 1 January 2006 are also provided in this statement. Results of the Company Revenue for the period, including bank interest, was £2.06m and, followingadministrative expenses, operating profit amounted to £1.8m. In addition, theprofit includes a credit categorised as investment gains amounting to £9.7marising from the measurement of the Company's investment in the ordinary sharesof DSH at their fair value, in accordance with International Financial ReportingStandards. Including this investment gain, total profit before tax was £11.5m.No tax is payable for the period as the Company is registered as a tax exemptcompany in the Isle of Man. Basic and diluted earnings per share were 33.3pincluding these investment gains, and 5.3p without it. In the absence of an independent professional valuation at 31 December 2005 ofthe portfolio of hotels held by DSH, the Directors have, in determining the fairvalue attributable to the ordinary shares of DSH, considered the price earningsmultiples applicable to the hotel sector and applied a multiple, which theybelieve to be conservative to the earnings of DSH, making an appropriateadjustment for the carried interest attributable to the Founder shares in DSH(as defined in the Hotel Corporation plc prospectus issued on 9th July 2004).Walton Hall and the three Furlong Hotels have been valued at cost. Thedirectors have adopted this value of DSH of 195p per share, which compares withthe price of 110p at which HCL last acquired shares in DSH in January 2005.Given the highly leveraged structure of DSH (approximately four times the levelof debt to equity), movements in the valuation of DSH (both upwards anddownwards) will have a magnified effect on the value of the Company'sshareholding in DSH. Dividend HCP has declared a final dividend of 3.2p per ordinary share, making a total of5.8p for the year. The ex-div date will be 12th April 2006 and the record date18th April 2006. Payment will be made to shareholders within 20 days of therecord date. This amount reflects the profits for the year before tax andinvestment gains together with the dividend declared by DSH in respect of 2005. Dawnay Shore Hotels plc Portfolio composition and strategy Significant acquisition activity during 2005 has seen the portfolio grow totwenty hotels. As at the year-end, DSH's portfolio comprises: • 13 Paramount hotels acquired in July 2004 and held throughout the period; • Three Hanover hotels, now re-branded as Paramount, acquired in mid-January 2005; • Walton Hall acquired on 24 June 2005; • The Lygon Arms and two other Furlong Hotels acquired on 9 December 2005. This portfolio of twenty hotels comprises 2,700 rooms, increasing to circa 2,760following the renovation of Walton Hall, and means that DSH now boasts a strongnetwork of high quality properties around the UK. Towards the end of 2005, "Paramount" was inserted in the name of each hotel inthe core portfolio so as to present a more cohesive view of the Group whilstretaining the identity of each hotel in its local market place. Each of the acquisitions made during 2005 has the clear strategic aim ofenhancing investor returns. Combined, the acquisitions broaden the portfolioboth in terms of geographic spread and market positioning. This reflects theneeds of the key business segments targeted by DSH, including meeting andconference organisers, corporate and leisure clients. Each acquisition ispursuing a specific strategy: • Three Hanover Hotels - The focus with these hotels is on adding value through renovation and repositioning. In particular, the major renovation of the Paramount Hinckley Island Hotel will create the premier conference and corporate venue in the Midlands. The scale of the hotel's meeting facilities, 349 rooms and location, in particular its proximity to the NEC, drives this repositioning. Work is substantially complete and the hotel is on track to meet its revenue target for the year. Basingstoke and Daventry provide further opportunities in the corporate and meetings segments. • Paramount Walton Hall - A major redevelopment of this hotel (a former timeshare, leisure and banqueting complex) will increase room numbers from 126 to 195 and, subject to planning approval, a conference centre will be added during 2006 and the hotel will be re-launched at the end of this year. • Three Furlong Hotels - The majority of Paramount's hotels operate in the core four-star full service market. The acquisition of the three Furlong hotels has allowed Paramount to create a "Signature" group of hotels that operate at the top end of the four-star sector. Certain other DSH hotels will be converted to Signature in order to drive additional value from the Furlong acquisition. Results and Operating Review On a total Group basis (including all 20 hotels for their period of ownership)DSH's turnover for the 52 weeks ended 1 January 2006 was £89.5m, generatinghotel operating profit of £33.4m. After central and other costs, EBIT was£18.4m. Net interest payable (including senior debt and deep discounted bonds)was £20.5m. The net loss before tax for the period was £2.0m and £0.5m aftertax. Following its acquisition in June, Walton Hall is undergoing redevelopment andon 9 December 2005 DSH acquired the three Furlong Hotels. Although included inthe DSH statutory accounts, the results for these four hotels are excluded fromthe comments below. The following comments therefore relate to the performance of the 16 hotels(Paramount 13 and Hanover 3). As they were previously controlled by otherowners with a different capital structure, it is not meaningful to comparelike-for-like financial information below the level of operating profit. 01/01/2006 (Unaudited) 02/01/2005 (Unaudited) % changeTurnover £86.9m £85.6m 1.5%Hotel Operating Profit* £33.1m £32.1m 2.9%Occupancy 70.9% 70.5% 0.6%Average Room Rate £67.85 £67.89 (0.1%)Revenue per Available Room £48.11 £47.86 0.5%Total Revenue per Available Room £101.36 £100.08 1.3% * HOP is EBITDA for the individual hotels, excluding head office costs The table above compares the results for 2005 with the results for the same 16hotels over the comparable period in 2004. It shows that, on a like for likebasis, a small increase in turnover produced a rise in hotel operating profit ofjust under 3%. This partly reflects a strong conference season during Septemberand October in Blackpool as well as cost efficiencies, offset by the impact ofthe renovation at the Paramount Hinckley Island Hotel. This overall performanceis particularly pleasing when taking into account rising energy and commissioncosts that have impacted substantially on the hospitality industry. It is anindustry trend that increasingly customers are booking through third partyelectronic distribution channels which charge commissions to hotel groups. Itis worth noting that for the 13 hotels acquired during 2004, turnover and hoteloperating profit increased by 2.6% and 5.2% respectively. For the first half of the year, DSH reported strong growth in revenue frombusiness travel but a more competitive conference and events market. This trendcontinued into the second half of the year - with the notable exception ofstrong conference business at the Imperial Hotel in Blackpool that hosted theautumn political conference held by the Liberal Democrats and ConservativeParties. DSH continues to focus on the corporate sector (including electronicdistribution) and achieved an 11% increase in room nights year on year. Whilst the less buoyant conference and events market had a direct impact on foodrevenue, close attention to customer requirements and cost efficiencies,resulted in a 5% increase in food department profit margins. Dividends DSH's policy remains to distribute its net surplus cash flow from time to time.In March 2006 the Board of DSH proposed to pay a dividend of 1.2p per share(£400,000 in total) in respect of the 52 week period ended 1 January 2006. Property valuation Looking ahead, the DSH Directors consider that significant value should begenerated from the level of interest in hotel transactions and from otherfactors such as the renovation of the Paramount Hinckley Island hotel,redevelopment of Walton Hall and addition of bedrooms to existing hotels. Property development In line with stated strategy, DSH continues to extract development value fromits property portfolio through room additions. During March 2006, constructionstarted on 39 rooms at the Paramount Redworth Hall Hotel. This development isexpected to increase the value of the property by circa £8 million or 40% (afterdeducting construction and financing costs, the net gain from the development iscirca £4 million). Other schemes are being finalised and further rooms areexpected to be added during 2006. In addition, DSH is committed to enhancing earnings by renovating existing hotelrooms and public areas where a business case exists. The following is a summaryof activity in this area: • During 2005, several renovations were successfully completed focusing on the areas with the highest impact on the guest experience including: • Paramount Palace Hotel, Buxton - 42 bedrooms and public areas; • Paramount Stirling Highland Hotel - 40 bedrooms (completed prior the G8 Conference in July 2005); • Paramount Imperial Hotel, Blackpool - 85 bedrooms, reception, Number 10 bar, other public areas and exterior (completed prior to the hotel hosting two party political conferences in Autumn 2005); • Subsequent to the year-end and during the relatively quiet period of January and February, a renovation of certain bedrooms was completed at the Paramount Redworth Hall and Paramount Shrigley Hall. In each case, this was targeted at the highest value rooms in the main manor house and a substantial average rate premium is already being realised from these bedrooms. • As previously mentioned, the major renovation of the Paramount Hinckley Island Hotel, which commenced in the Spring of 2005, is now substantially complete. Feedback from meeting organisers and other guests has been extremely positive and forward reservations at the hotel are strong. The redevelopment of Walton Hall, is also progressing well and customer feedback on both the model guest room and the meeting rooms in the manor house, most of which have already been completed, has been exceptionally positive. These meeting rooms are already enjoying very high occupancy. • During the year, the Paramount team won the bid to develop and operate the first British hotel school - in an operating hotel. This Paramount hotel is to be built and connected to the Bournemouth International Conference Centre. Pre-opening activity is underway and includes design activity, research, sales and marketing to secure business which in some cases has a 24 to 36 month lead time. Management In addition to the appointment of Peter Procopis (Finance Director) and ManjuGoel (Sales and Marketing Director), Heiko Figge was appointed as ChiefOperating Officer of Paramount Hotels in November 2005. Under the leadership ofCharles Prew, DSH boasts a well-rounded and enthusiastic team with substantialexperience in the UK and global hotel industry. Annual General Meeting Notice convening the Company's Annual General Meeting, to be held at BurleighManor, Peel Road, Douglas, Isle of Man, IM1 5EP will be enclosed with theCompany's report and accounts to be despatched to shareholders shortly. Includedwill be resolutions seeking shareholders approval of the Company's investingstrategy as required by AIM and for the repurchase of our own shares. Prospects The addition of seven hotels during 2005 has served to leverage further valuefrom the Paramount brand and also to take DSH into the top end of the four starmarket. The sales and marketing team have introduced a number ofrevenue-generating initiatives to further increase awareness of the Paramountbrand. In addition, upgrades are being made to the Group's IT systems to betterdistribute room inventory and enhance yield management. Market conditions around the UK have been variable since the start of 2006 withstrong demand in locations such as Edinburgh and less robust trading in theMidlands and resort locations such as Blackpool and Torquay. Market-led revenuegrowth in the first half of the year is expected to be modest in comparison tothe prior year. As with other UK regional operators, with significant leisureand conferencing facilities, DSH continues to focus on managing costs in theface of escalating energy prices and commissions. DSH anticipates that between2% and 3% revenue growth will be required to offset increases in energy andcommission costs. DSH continues to seek acquisitions which fit its investment criteria.Valuations however have increased over the period and DSH is focused onpurchasing synergistic assets with the right geographic fit for its portfolioand the appropriate facilities to attract leisure and corporate customers.Considerable development potential still remains within the existing portfolioand DSH will continue to seek to exploit these opportunities. Trading in DSH has been positive and there has been considerable progress inexploiting the property potential of the portfolio. We believe DSH is buildinga portfolio and a brand of great value. As well as delivering a strong incomestream, it is also growing its net asset value. We therefore view our prospectas an investor in DSH very positively. Barclay DouglasChairman3 April 2006 The Hotel Corporation Plc31st December 2005 Income Statement 2005 7 June to 31 December 2004 £'000 £'000 Continuing Operations Revenue 1,986 651Administrative expenses (247) (95) Profit from operations 1,739 556 Bank interest receivable 73 7Investment gains - unrealised 9,702 5,435 Profit before tax 11,514 5,998 Taxation - - Profit after tax for the year/period fromcontinuing operations 11,514 5,998 Earnings Per Share 2005 2004 Basic and diluted 33.3p 29.4p The Hotel Corporation PlcAs at 31st December 2005 Balance Sheet Assets 2005 2004 £'000 £'000 £'000 £'000Non-Current Assets Investments 48,807 37,740 Current Assets Trade and other Receivables 19 12Cash and Cash Equivalents 2,317 3,320 2,336 3,332 Total Assets 51,143 41,072 Equity & Liabilities Capital & Reserves Share Capital 1,731 1,731Share Premium Account 33,308 33,308Retained Earnings 16,062 5,998 51,101 41,037 Current Liabilities Trade and other payables 42 35 Total Equity & Liabilities 51,143 41,072 The Hotel Corporation Plc31st December 2005 Statement of Changes in Equity Share Capital Share Premium Retained Total Account Earnings £'000 £'000 £'000 £'000 Issue of Share Capital 1,731 33,518 - 35,249 Expenses on Issue of Share Capital - (210) - (210) Profit for Period 5,998 5,998 Balance at 31st December 2004 1,731 33,308 5,998 41,037 Profit for Year - - 11,514 11,514 Dividend - - (1,450) (1,450) Balance at 31st December 2005 1,731 33,308 16,062 51,101 The Hotel Corporation Plc31st December 2005 Cashflow Statement 2005 7 June to £,000 31 December 2004 £'000 Net Cash Outflow From Operating Activities (247) (72) Investing Activities Interest Received 73 7Purchase of Investments (1,365) (32,305)Proceeds received on the maturity of Investments 1,986 651 Net cash from Investing Activities 694 (31,647) Financing Activities Issue of Share Capital - 35,039Dividends Paid (1,450) - Net cash (used in)/from Financing Activities (1,450) 35,039 Net (decrease)/increase in cash and cash equivalents (1,003) 3,320 Notes to the Preliminary Announcement For the Year Ended 31st December 2005 1. Basis of accounting The financial information in this announcement has been prepared in accordancewith the International Financial Reporting Standards (IFRS). The informationdoes not constitute statutory accounts within the meaning of the Isle of ManCompanies Acts 1931 - 2004. The statutory accounts for the period ended 31December 2005 will be finalised on the basis of the financial informationpresented by the directors in this preliminary announcement and will bedelivered to the Companies Registry in the Isle of Man following the Company'sAnnual General Meeting. The Company was incorporated on 7th June 2004. 2. Investments Classified as: 2005 2004 £'000 £'000 Fair Value through Profit or Loss Investments 32,257 21,840Held to Maturity 16,550 15,900 48,807 37,740 The unlisted investment shown above represents a holding of 16,550,000 ordinaryshares of £1 par value in Dawnay Shore Hotels plc, which comprises 49.92% of theissued share capital of that company, which is incorporated and registered inthe United Kingdom. Investments in the ordinary shares of Dawnay Shore Hotelsplc ("DSH") held at the balance sheet date are measured at their fair value. In the absence of an independent professional valuation at 31 December 2005 ofthe portfolio of hotels held by DSH, the Directors have, in determining the fairvalue attributable to the ordinary shares of DSH, considered the price earningsmultiples applicable to the hotel sector and applied a multiple, which theybelieve to be conservative to the earnings of DSH, making an appropriateadjustment for the carried interest attributable to the Founder shares in DSH(as defined in the Hotel Corporation plc prospectus issued on 9th July 2004). Investments held to maturity The investments included above represent unlisted investments in unsecured deepdiscount bonds issued by DSH (Finance) plc, a subsidiary of Dawnay Shore Hotelsplc, maturing at nominal value over a period of 5 years. The bonds have a couponrate of nil percent. The maturity profile of the bonds held at 31st December 2005 is shown below: Maturing Nominal Value 2005 2004 £'000 £'000 Within one year 1,986 1,908One to two years 1,986 1,908Two to three years 1,986 1,908Three to four years 17,543 1,908Four to five years - 16,854 Total 23,501 24,486 3. Earnings per Share 2005 7 June to 31 December 2004 Basic and Diluted Earnings per Share 33.3p 29.4p This comprises: Basic and diluted earnings per share from operations and bank 5.3p 2.7pinterest Basic and diluted earnings per share from investment gains 28.0p 26.7p The calculation of basic earnings per share is based on the following data: Earnings 2005 7 June to 31 December 2004 £'000 £'000 Profit from Operations 1,739 556Investment Income 9,775 5,442Net Profit for the Period 11,514 5,998 Number of Shares 2005 2004Weighted average number of ordinary shares for the purpose of basic 34,619,050 20,388,742and diluted earnings per share. There were no convertible instruments in existence as at 31st December 2005 andtherefore diluted earnings per share does not differ from the basic earnings pershare. 4. Notes to the Cashflow Statement Reconciliation of Profit from Operations to Net Cash from Operating Activities 2005 7 June to 31 December 2004 £'000 £'000 Profit from Operations 1,739 556 Increase in Receivables (7) (12) Increase in Trade and other payables 7 35 Amortisation of Discount on Purchase of investments (1,986) (651) Net cash outflow from operating activities (247) (72) 5. Events after the Balance Sheet Date On 4th April 2006 the Company declared a dividend of 3.2 pence per share. Theex-div date will be 12th April 2006 and a record date of 18th April 2006.Payment will be made to shareholders within 20 days of the record date. Thisamount reflects the profits for the year before tax and investment gainstogether with the dividend declared by DSH in respect of 2005. 6. Information relating to Dawnay Shore Hotels plc The profit and loss account of DSH for the period ended 1 January 2006 togetherwith the balance sheet of DSH as at 1 January 2006 is provided on the followingpages and have been prepared in accordance with applicable United Kingdomaccounting standards. These are extracted from the preliminary resultsannouncement made by DSH today and should be read in conjunction with thepreliminary results of the company. Additional Information The following additional information has been supplied to the company by DawnayShore Hotels plc and should be read in conjunction with the preliminary results of the company Dawnay Shore Hotels plcConsolidated Profit and Loss Account1 January 2006 Existing Period operations Year Acquisitions Year ended ended ended 1 January Year ended 1 January 2 January 2006 1 January 2006 2006 2005 £'000 £'000 £'000 £'000 TURNOVER 71,863 17,595 89,458 36,395Cost of sales (8,741) (2,191) (10,932) (4,984) GROSS PROFIT 63,122 15,404 78,526 31,411Administrative expenses (47,893) (12,321) (60,214) (23,466) OPERATING PROFIT 15,229 3,083 18,312 7,945 Profit/(loss) on sale of fixed assets 127 (7) 18,439 7,938Interest receivable and similar income 318 217Interest payable and similar charges (20,772) (8,134) (LOSS)/PROFIT ON ORDINARY ACTIVITIES BEFORE (2,015)TAXATION 21Tax on (loss)/profit on ordinary activities 1,554 29 RETAINED (LOSS)/PROFIT FOR THE FINANCIAL (461) 50PERIOD All of the group's operations during the period shown above represent continuingoperations. The prior period is in respect of the 25 weeks ended 2 January 2005. Consolidated and Company Balance Sheet1 January 2006 Group Company Group Company As at 1 As at As at 2 As at January 1 January January 2 January 2006 2006 2005 2005 £'000 £'000 £'000 £'000 FIXED ASSETSIntangible assets - goodwill 9,846 - 7,685 -Tangible assets 375,207 - 237,281 -Investments - 105,340 - 88,623 385,053 105,340 244,966 88,623 CURRENT ASSETSStocks 877 - 713 -Debtors 7,564 195,419 7,582 94,657Cash at bank and in hand 6,474 290 23,926 21,329 14,915 195,709 32,221 115,986 CREDITORS: amounts falling due within one year (23,373) (48,377) (23,525) (41,942) NET CURRENT (LIABILITIES)/ASSETS (8,458) 147,332 8,696 74,044 TOTAL ASSETS LESS CURRENT LIABILITIES 376,595 252,672 253,662 162,667 CREDITORS: amounts falling due after more than (302,482) (208,133) (199,127) (120,302)one yearPROVISION FOR LIABILITIES AND CHARGES (9,495) - (10,650) - NET ASSETS 64,618 44,539 43,885 42,365 CAPITAL AND RESERVESCalled up share capital 1,658 1,658 1,598 1,598Share premium account 32,137 32,137 30,877 30,877Revaluation reserve 31,180 - 11,360 -Profit and loss account (357) 10,744 50 9,890 EQUITY SHAREHOLDERS' FUNDS 64,618 44,539 43,885 42,365 Consolidated Statement of Total Recognised Gains and LossesYear ended 1 January 2006 Year ended 1 Period ended January 2 January 2006 2005 £'000 £'000 Retained (loss)/ profit for the financial period (461) 50Unrealised surplus on revaluation of properties 19,874 11,360 Total recognised gains and losses relating to the period 19,413 11,410 Note of Consolidated Historical Cost Profits and LossesYear ended 1 January 2006 Year ended 1 Period ended January 2 January 2006 2005 £'000 £'000 Reported (loss)/profit on ordinary activities before taxation (2,015) 21Difference between historical cost depreciation charge and actual 54 -depreciation charge for the year calculated on the revalued amount Historical cost (loss)/profit on ordinary activities before taxation (1,961) 21 Historical cost (loss)/profit for the year retained after taxation and (407) 50dividends Consolidated Cash Flow StatementYear ended 1 January 2006 Year ended 1 Period ended January 2 January 2006 2005 £'000 £'000 Net cash inflow from operating activities 28,051 9,906 Returns on investments and servicing of financeInterest received 318 217Interest paid (19,436) (3,464)Interest paid on finance leases (75) (47) Net cash outflow from returns on investments and (19,193) (3,294)servicing of finance TaxationCorporation tax paid - - Capital expenditurePurchase of tangible fixed assets (7,565) (1,684)Sale of tangible fixed assets 1,114 73 Net cash outflow from capital expenditure and financial investment (6,451) (1,611) AcquisitionsPurchase of hotels (75,104) -Purchase of subsidiary undertakings (16,716) (89,213)Cash balances less overdraft acquired with hotels and subsidiary (51) 4,024undertakings Net cash outflow from acquisitions (91,871) (85,189) Net cash outflow before financing (89,464) (80,188) FinancingIssue of share capital 1,320 32,475New term loans raised 97,325 177,000New bonds issued 1,200 30,425New loan note issued 3,595 -Bank loans repaid (25,389) (85,822)Loan stock repaid - (46,949)Bonds repaid (3,475) -Term loan issue costs (2,065) (2,693)Repayment of principal under finance leases (499) (322) Net cash inflow from financing 72,012 104,114 (Decrease)/increase in cash (17,452) 23,926 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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