15th Sep 2014 07:19
Action Hotels plc
Action Hotels reports strong growth momentum
Interim financial statements for the six month period ended 30 June 2014
Action Hotels plc ("Action Hotels"), a company focused on owning, leasing and developing branded economy and midscale hotels in the undersupplied markets of the Middle East and in Australia, is pleased to announce its unaudited results for the six months ended 30 June 2014.
All currency amounts are in US $ unless otherwise stated.
Highlights
· Year-on-year growth in key metrics - revenues, Average Daily Rate ("ADR") and revenue per available room ("RevPAR")
· Total reported revenue increased by 28% to $19.5m for the 6 months to June 2014
· Average Daily Rate (ADR) increased by 10.2% to $113
· Revenue per available room (RevPAR) grew by 7.4% to $89
· Like for like occupancy increased from 80% to 82%
· Adjusted EBITDA (pre-exceptional items) $4.6m (30 June 2013: $4.9m)
· Net Asset Value (NAV) of $170.2m (30 June 2013: $123.2m), NAV per share of $1.15
· Interim dividend for the six month period ended 30 June 2014 of GBP 0.72p to be paid on 27 November 2014
Operational highlights
· Strong performance across all six of our operating hotels
· Holiday Inn Muscat first six months of trading highly encouraging
· Significant progress on hotels under construction
· Successful acquisition of the land and operator selection for Novotel Kuwait
· Occupancy levels across the portfolio of 78%
· Advanced discussions on various potential new hotel developments and conversions
Following the appointment of our new auditors, an amendment has been made primarily to certain exceptional items (expenses) regarding the Company's restructuring and listing on AIM which took place on 23 December 2013. Given the proximity of the Company's listing to the year-end, management has identified expenses amounting to $841,000 during the current period, associated with the Company's restructuring and listing process and have been accounted for by way of a prior period restatement. These adjustments do not impact the expected forecast for the year ending 31 December 2014. The adjustments have no impact on the Group's cash and net debt position.
Interim Dividend
The Company is pleased to announce an interim dividend for the six month period ended 30 June 2014 of GBP 0.72p per share which is expected to be paid on 27 November 2014. It is expected that the Company's ordinary shares will be marked ex-entitlement to such dividend on 13 November 2014 and the dividend will be payable to all shareholders on the Company's share register at the close of play on 14 November 2014.
Alain Debare, Action Hotels CEO said:
"We are very pleased with the continuing growth of Action Hotels in key operational metrics. Our half-year EBITDA at $4.6m reflects the added investment in the resources for the Company of $1.7m. We have recruited additional staff in the finance and oversight of the business and have provided additional resources in the creation of dedicated asset management and project management roles during this rapid growth phase. These costs have been incurred a little earlier than previously anticipated mostly due to the accelerated development of the pipeline originally anticipated at the time of our IPO, further details about which we hope to announce to the market shortly. We do not however see any material increase to these costs for the foreseeable future."
Commenting on the results, Sheikh Mubarak Al Sabah, Founder and Chairman of Action Hotels said:
"It is my pleasure to announce another solid growth performance for Action Hotels, in our first year as a publicly listed company. The underlying market demand for our hotels has helped to ensure that they continue to deliver high occupancy rates. In the past six months we have continued to invest into our corporate infrastructure including additional senior management positions as we progress our secured hotel construction program, currently in excess of 1,000,000 sq ft. The Group is now ready for accelerated growth. We are in advanced discussions on a number of potential new hotel opportunities on both freehold and leasehold basis and we look forward to updating the market in due course on these. The Board and finance team continue to explore ways to optimise our strong balance sheet and I am pleased to declare a maiden interim dividend for 2014."
For further information:
Action Hotels plc +44 (0) 20 7907 9650
Alain Debare, Chief Executive Officer
Katie Shelton, Communications Director
finnCap (nominated adviser & broker) +44 (0) 20 7220 0500
Matthew Robinson / Grant Bergman / Scott Mathieson
Camarco (financial PR)
Geoffrey Pelham-Lane +44 (0) 20 3757 4985
Hazel Stevenson +44 (0) 20 3757 4989
Condensed Consolidated Interim Statement of Comprehensive Income
For the six months ended 30 June 2014
| Notes | Unaudited Six months ended 30 June 2014 | Audited Six months ended 30 June 2013 | Audited Year ended 31 December 2013 (Restated)[1] | ||
USD'000 | USD'000 | USD'000 | ||||
Revenue | 19,463
| 15,231 | 29,763 | |||
Cost of sales | (5,168)
| (3,680) | (7,447) | |||
Gross profit | 14,295
| 11,551 | 22,316 | |||
Administrative and distribution expenses | (12,475)
| (8,633) | (18,038) | |||
Loss on disposal of property, plant and equipment | - | - | (22) | |||
Operating profit | 1,820 | 2,918 | 4,256 | |||
Restructuring and listing costs | 5 | - | - | (4,062) | ||
Finance income | 13 | 183 | 361 | |||
Finance costs | (1,900) | (2,733) | (5,310) | |||
Net foreign exchange gains / (losses) | 20 | (2,160) | (3,132) | |||
Loss before tax | (47) | (1,792) | (7,887) | |||
Tax (charge) / credit | (511) | 5 | (2,069) | |||
Loss for the period attributable to owners of the company | (558) | (1,787) | (9,956) | |||
Loss per share attributable to owners of the company: | ||||||
Basic and diluted (cents) | 6 | (0.38) | (1.79) | (9.84) |
Condensed Consolidated Interim Statement of Comprehensive Income
For the six months ended 30 June 2014
| Unaudited Six Months ended 30 June 2014 | Audited Six months ended 30 June 2013 | Audited Year ended 31 December 2013 (Restated)[2]
| |||
USD'000 | USD'000 | USD'000 | ||||
Loss for the period | (558) | (1,787) | (9,956) | |||
Items that will not be reclassified subsequently to profit and loss: | ||||||
Gains on property revaluations | - | 12,389 | 12,260 | |||
Tax charge relating to property revaluations | - | (1,108) | (2,312) | |||
Items that may be subsequently reclassified to profit or loss: | ||||||
Exchange differences on translation of foreign operations | 5,199 | (411) | 286 | |||
Other comprehensive income for the period net of tax | 5,199 | 10,870 | 10,234 | |||
Total comprehensive income for the period attributable to owners of the parent | 4,641
| 9,083 | 278 |
Condensed Consolidated Interim Statement of Changes in Equity
For the six months ended 30 June 2014
| Notes | Unaudited At 30 June 2014 | Audited At 30 June 2013 | Audited At 31 December 2013 (Restated)[3] | ||
USD'000 | USD'000 | USD'000 | ||||
Non-current assets | ||||||
Intangible assets | 12,908
| 13,329 | 13,198 | |||
Property, plant and equipment | 7 | 247,222
| 216,923 | 227,482 | ||
260,130
| 230,252 | 240,680 | ||||
Current assets | ||||||
Cash and bank balances | 21,538
| 2,528 | 43,626 | |||
Trade and other receivables | 9,033
| 5,711 | 6,386 | |||
Receivables due from related parties | 8 | 6,718
| 8,182 | 13,810 | ||
Inventories | 136
| 95 | 110 | |||
37,425
| 16,516 | 63,932 | ||||
Total assets | 297,555
| 246,768 | 304,612 | |||
Current liabilities | ||||||
Trade and other payables | 8,843
| 14,204 | 16,565 | |||
Payables due to related parties | 8 | 242
| 137 | 161 | ||
Bank borrowings | 9 | 9,633
| 99,216 | 10,284 | ||
Current tax payable | 511 | - | 89 | |||
19,229
| 113,557 | 27,099 | ||||
Net current assets / (liabilities) | 18,196
| (97,041) | 36,833 | |||
Non-current liabilities | ||||||
Loans due to related parties | 8 | 60
| - | 57 | ||
Bank borrowings | 9 | 94,521
| - | 98,032 | ||
Provision for end of service indemnity | 546
| 398 | 490 | |||
Deferred tax liability | 12,962
| 9,650 | 12,681 | |||
108,089
| 10,048 | 111,260 | ||||
Total liabilities | 127,318 | 123,605 | 138,359 | |||
Net assets | 170,237
| 123,163 | 166,253 | |||
EQUITY | ||||||
Share capital | 10 | 24,102 | 3,649 | 24,102 | ||
Share premium | 10 | 124,479 | - | 124,479 | ||
Revaluation reserve | 52,776 | 53,915 | 52,582 | |||
Merger and other reserves | 11 | 5,957 | 93,892 | 758 | ||
Retained earnings | (37,077) | (28,293) | (35,668) | |||
Total equity attributable to owners of the Company | 170,237
| 123,163 | 166,253 |
Condensed Consolidated Interim Statement of Changes in Equity
For the six months ended 30 June 2014
Equity attributable to the equity holders of the Company
Share capital | Share premium | Revaluation reserve | Merger and other reserves (Note 10) | Retained earnings | Total | |
USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | |
Balance at 1 January 2014 as previously stated | 24,102 | 124,479 | 52,582 | 758 | (34,827) | 167,094 |
Adjustment (Note 14) | - | - | - | - | (841) | (841) |
Balance at 1 January 2014 (Restated)
| 24,102 | 124,479 | 52,582 | 758 | (35,668) | 166,253 |
Total comprehensive income/ (loss) for the period | - | - | - | 5,199 | (558) | 4,641 |
Deferred tax adjustments | - | - | 194 | - | - | 194 |
Dividend paid | - | - | - | - | (851) | (851) |
Balance at 30 June 2014 (Unaudited) | 24,102 | 124,479 | 52,776 | 5,957 | (37,077) | 170,237 |
Balance at 1 January 2013 (Audited) | 3,649 | - | 42,634 | 21,500 | (26,378) | 41,405 |
Reserves transfer | - | - | - | 128 | (128) | - |
Shareholder capitalisation of loans | - | - | - | 74,022 | - | 74,022 |
Salmiya reserves distributions | - | - | - | (1,347) | - | (1,347) |
Total comprehensive income/(loss) for the period | - | - | 11,281 | (411)
| (1,787) | 9,083 |
Balance at 30 June 2013 (Audited)
| 3,649 | - | 53,915 | 93,892 | (28,293) | 123,163 |
Condensed Consolidated Interim Statement of Cash Flows
For the six months ended 30 June 2014
Unaudited 6 months ended 30 June 2014 | Unaudited 6 months ended 30 June 2013 | Audited Year ended 31 December 2013 | |||
USD'000 | USD'000 | USD'000 (Restated) | |||
Cash flows from operating activities: | |||||
Net loss for the period | (558)
| (1,787) | (9,956) | ||
Adjustments for: | |||||
Finance costs | 1,900 | 2,733 | 5,310 | ||
Finance income | (13)
| (183) | (361) | ||
Income tax expense | 511 1 | (5) | 2,069 | ||
Depreciation of property, plant and equipment | 2,491
| 1,624 | 3,339 | ||
Amortisation of intangible assets | 290
| 271 | 548 | ||
Losses on disposal of property, plant & equipment | -
| 22 | 22 | ||
Share based payment expense | -
| - | 596 | ||
Net foreign exchange (gain)/ loss | (20) | 2,285 | 3,132 | ||
Restructuring and listing costs | - | - | 4,062 | ||
Operating cash flows before movements in working capital: | 4,601
| 4,960 | 8,761 | ||
(Increase) /decrease in receivables | (2,647) | (1,369) | (204) | ||
Decrease in related party receivables - trading | 469
| 1,627 | 40 | ||
(Increase) in inventory | (26)
| (7) | (22) | ||
(Decrease)/ Increase in payables | (7,722) | 644 | 1,571 | ||
Increase in related party payables | 84
| 56 | 81 | ||
Increase in provision for end of service indemnity | 56
| 31 | 118 | ||
Net cash (used in)/ generated from operating activities | (5,185)
| 5,942 | 10,345 | ||
Cash flow from investing activities | |||||
Interest received | 13
| 183 | 361 | ||
Drawdown of related party receivables - non trade | -
| (1,114) | (2,091) | ||
Repayment of related party receivables - non trade | 6,623
| 307 | 376 | ||
Transfers to restricted cash | (600) | (545) | (1,082) | ||
Capital expenditure from restricted cash | 74
| 190 | 797 | ||
Purchases of property, plant and equipment | (18,996)
| (2,839) | (8,562) | ||
Net cash used in investing activities | (12,886) | (3,818) | (10,201) | ||
Cash flow from financing activities | |||||
Repayment of borrowings - Bank loans | (7,297) | (1,156) | (2,213) | ||
Drawdown of borrowings - Bank loans | 3,136
| 2,387 | 12,648 | ||
Drawdown of borrowings - Related party | - | 266 | 325 | ||
Repayment of partners' current account | - | (22) | (22) | ||
Drawdown on partners' current account | - | 280 | 292 | ||
Proceeds on issue of shares | -
| - | 44,423 | ||
Share issue costs paid | - | - | (4,600) | ||
Finance costs paid | (1,900)
| (2,249) | (5,502) | ||
Distributions paid before contribution of Salmiya property | -
| (1,347) | (1,347) | ||
Dividend paid | (851) | - | - | ||
Restructuring and listing costs paid | - | - | (3,665) | ||
Net cash (used in)/ generated from financing activities | (6,912)
| (1,841) | 40,339 | ||
Net (decrease)/ increase in cash and cash equivalents | (24,983)
| 283 | 40,483 | ||
Cash and cash equivalents at the beginning of the period | 42,028 | 1,385 | 1,385 | ||
Effect of foreign exchange changes | 3,967 2 | (63) | 160 | ||
Cash and cash equivalents at end of the period | 21,012
| 1,605 | 42,028 | ||
Restricted cash | 526 | 923 | 1,598 | ||
Closing balance on Balance sheet | 21,538 | 2,528 | 43,626 |
1. General information
Action Hotels plc ("the Company") is a public company limited by shares and is incorporated in Jersey under the Companies (Jersey) Law 1991. The address of the registered office is 1st Floor, 17 Bond Street, St Helier, Jersey, JE2 3NP, Channel Islands. The principal activities of the Company and its subsidiaries (collectively known as "the Group") are owning, developing and operating hotels in the Middle East. The Group's principal administrative subsidiary, Action Hotels Limited, is domiciled in the Dubai International Financial Centre, which is its principal place of business.
The half year results and condensed consolidated financial statements for the six months ended 30 June 2014 ("the interim financial statements") comprise the results for the Group.
2. Basis of preparation
The interim financial statements have been prepared in accordance with IAS 34 'Interim financial reporting'. The interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2013, which have been prepared in accordance with International Financial Reporting Standards ('IFRS') and IFRIC interpretations.
3. Accounting policies
The accounting policies adopted are consistent with those of the financial statements for the year ended 31 December 2013, except as described below.
Taxes in the interim periods are accrued using the effective tax rate that would be applicable in each jurisdiction to expected profit and loss for the period.
4. Business and geographical segments
The Board of Directors of the Company is the Group's chief operating decision-maker. Management has determined the operating segments based on the information reviewed by the Board for the purposes of allocating resources and assessing performance of the Group. Reportable segments are the operational hotels in the Middle East and in Australia, hotels under construction and undeveloped land sites which are managed and reported to the Board as separate distinct business units.
Segmental revenue and results
The following is an analysis of the Group's revenue and results by reportable segments:
Six months ended 30 June 2014 (Unaudited) | Middle East | Australia | Consolidated | ||||
USD'000 | USD'000 | USD'000 | |||||
Revenue | 16,004
| 3,459
| 19,463
| ||||
Adjusted EBITDA - hotel operations | 7,327
| 1,018
| 8,345
| ||||
Central management and other costs | (6,525)
| ||||||
Operating profit | 1,820
| ||||||
Finance income | 13 | ||||||
Finance cost
| (1,900) | ||||||
Net foreign exchange gain
| 20 | ||||||
Loss before tax | (47) | ||||||
| |||||||
| |||||||
| |||||||
Six months ended 30 June 2013 (unaudited) |
| Middle East | Australia | Consolidated | |||
|
| USD'000 | USD'000 | USD'000 | |||
|
| 11,501 | 3,730 | 1 | 15,231 | ||
Adjusted EBITDA - hotel operations |
| 4,295 | 1,333 | 5,628 | |||
Central management and other costs |
| (2,710) | |||||
Operating profit |
| 2,918
| |||||
Finance income |
| 183 | |||||
Finance cost |
| (2,733) | |||||
Net foreign exchange loss
|
| (2,160) | |||||
Loss before tax |
| (1,792) | |||||
| |||||||
Year ended 31 December 2013 (Restated) | Middle East | Australia | Consolidated | ||||
USD'000 | USD'000 | USD'000 | |||||
Revenue | 22,642 | 7,121 | 29,763 | ||||
Adjusted EBITDA - hotel operations | 9,882 | 2,374 | 12,256 | ||||
Central management and other costs | (8,000) | ||||||
Operating profit | 4,256
| ||||||
Restructuring and listing costs | (4,062) | ||||||
Finance income | 361 | ||||||
Finance cost | (5,310) | ||||||
Net foreign exchange loss | (3,132) | ||||||
Loss before tax | (7,887) | ||||||
The revenue of each segment for each period arises wholly from external sales.
Segmental assets
| Unaudited At 30 June 2014 | Audited At 30 June 2013 | Audited At 31 December 2013 | ||||
USD'000 | USD'000 | USD'000 | |||||
(Restated) | |||||||
Middle East hotel operations | 166,425
| 107,730 | 168,559 | ||||
Australia hotel operations | 36,641
| 35,583 | 34,666 | ||||
Hotels under construction | 39,402
| 79,825 | 34,395 | ||||
Undeveloped land sites | 35,440
| 22,330 | 21,505 | ||||
Not allocated | 19,647
| 1,300 | 45,487 | ||||
297,555
| 246,768
| 304,612 |
For the purposes of monitoring segment performance and allocating resources between segments, the Group's management monitors the tangible, intangible and financial assets attributable to each segment.
Assets classed as not allocated represent the current assets attributable to the central management function of the business and mainly relate to head office cash balances and certain balances with related parties.
Geographical information - Revenue
The place of domicile for the Group's head office is the Dubai International Financial Centre. The table below shows the revenue from external customers split between those attributed to the place of domicile, Kuwait and all other foreign countries.
Unaudited 6 months ended 30 June 2014 | Audited 6 months ended 30 June 2013 | Audited Year ended 31 December 2013 | |||
USD'000 | USD'000 | USD'000 | |||
Kuwait | 7,185
| 6,546 | 12,892 | ||
Rest of the world | 12,278
| 8,685 | 16,871 | ||
19,463
| 15,231
| 29,763 |
Geographical information - Non-current assets
The place of domicile for the Group's head office is the Dubai International Financial Centre. The table below shows the non-current asset split between those attributed to the place of domicile and all foreign countries.
Unaudited At 30 June 2014 | Audited At 30 June 2013 | Audited At 31 December 2013 (Restated) | |||
USD'000 | USD'000 | USD'000 | |||
Dubai International Financial Centre | 545
| - | 7,136 | ||
Kuwait | 65,436
| 44,960 | 32,386 | ||
Rest of the world | 194,149
| 185,292 | 201,158 | ||
260,130
| 230,252 | 240,680 |
5. Restructuring and listing costs
For the year ended 31 December 2013, the Group classified separately costs in connection with its admission to trading on the AIM market of the London Stock Exchange. The costs expensed in the condensed consolidated income statement for the year ended 31 December 2013 totalled $4.1m. This includes an additional $0.6m from that previously reported, as explained in note 14.
6. Earnings per share
Basic and diluted loss per share is calculated by dividing the loss attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the year.
There are no dilutive potential ordinary shares in Action Hotels plc.
Unaudited Period ended 30 June 2014 | Audited Period ended 30 June 2013 | Audited Year ended 31 December 2013 (Restated) | ||||
USD'000 | USD'000 | USD'000 | ||||
Loss for the period | (558)
| (1,787) | (9,956) | |||
Weighted average number of ordinary shares in Action Hotels plc | 147,637,195
| 100,000,000 | 101,174,616 | |||
Basic and diluted loss per share (cents) | (0.38) | (1.79) | (9.84) |
7. Property, plant and equipment
Operational Hotels |
Hotels under construction |
Undeveloped land |
Other FF&E |
Vehicles |
Total | ||||||||||
Land | Buildings | Fixture, Fittings & Equipment | |||||||||||||
USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | ||||||||
Cost or valuation: | |||||||||||||||
At 1 January 2014 (Restated) | 86,712 | 77,391 | 22,306 | 33,570 | 21,505 | 122 | 39 | 241,645 | |||||||
Additions | 88 92
| 3,119
| 3,643
| - | 12,146
| - | - | 18,996
| |||||||
Transfer | - | (9,659) | 3,551 | 6,108 | - | - | - | - | |||||||
Foreign currency translation | 931 2,163
| 756
| 245
| (276) | 1,789
| - | - | 3,445 | |||||||
At 30 June 2014 | 87,731 | 71,607 | 29,745 | 39,402 | 35,440 | 122 | 39 | 264,086 | |||||||
At 1 January 2013 | 61,732 | 53,229 | 17,158 | 65,105 | 24,586 | 51 | 21 | 221,882 | |||||||
Additions | - | - | 61 | 2,907 | 226 | - | - | 3,194 | |||||||
Transfer | - | - | (22) | - | - | - | (21) | (43) | |||||||
Revaluation | 4,315 | - | - | 8,074 | - | - | - | 12,389 | |||||||
Foreign currency translation | (2,652) | (2,126) | (825) | 348 | (2,644) | - | - | (7,899) | |||||||
At 30 June 2013 | 63,395 | 51,103 | 16,372 | 76,434 | 22,168 | 51 | - | 229,523 | |||||||
Accumulated depreciation: | |||||||||||||||
At 1 January 2014 (Restated) | - | 4,545 | 9,504 | 62 | - | 47 | 5 | 14,163 | |||||||
Charge for the period | - | 671 | 1,807
| -
| - | 7 | 6 | 2,491 | |||||||
Foreign currency translation | - | (13)
| 285 | (62) | - | - | - | 210 | |||||||
At 30 June 2014 | - | 5,203
| 11,596
| - | - | 54 | 11 | 16,864 | |||||||
At 1 January 2013 | - | 3,738 | 7,918 | - | - | 40 | 21 | 11,717 | |||||||
Charge for the period | - | 528 | 1,090 | - | - | 6 | - | 1,624 | |||||||
Disposals | - | - | - | - | - | - | (21) | (21) | |||||||
Foreign currency translation | - | (222) | (498) | - | - | - | - | (720) | |||||||
At 30 June 2013 | - | 4,044 | 8,510 | - | - | 46 | - | 12,600 | |||||||
Net book value: | |||||||||||||||
At 30 June 2014 | 87,731 | 66,404 | 18,149 | 39,402 | 35,440 | 68 | 28 | 247,222 | |||||||
At 30 June 2013 | 63,395 | 47,059 | 7,862 | 76,434 | 22,168 | 5 | - | 216,923 | |||||||
8. Related party transactions
The Group has entered into various transactions with related parties in the normal course of its business concerning financing and other related services. Prices and terms of payment are approved by the Group's management. All significant related party transactions and balances are listed below and are principally with entities under control of the Group's principal shareholder, Action Group Holding Co. KSCC (formerly described as "Partner"):
Unaudited At 30 June 2014 | Audited At 30 June 2013 | Audited At 31 December 2013 | |||
USD'000 | USD'000 | USD'000 | |||
Due from related parties | 6,718
| 8,182 | 13,810 | ||
Due to related parties | (242)
| (137) | (161) | ||
Loan due to related parties | (60) | - | (57) | ||
6,416 | 8,045 | 13,592 |
Due from related parties
Unaudited At 30 June 2014 | Audited At 30 June 2013 | Audited At 31 December 2013 | |||
USD'000 | USD'000 | USD'000 | |||
Action Real Estate Co. K.S.C.C. | 4,637
| 8,105
| 7,976 | ||
IPO subscription receivable | 55
| - | 3,232 | ||
Bronzia Company (Oman) | 940
| - | 870 | ||
Action Group Holding company K.S.C.C | - | - | 713 | ||
Action Realty Australia Pty Ltd | 485 | - | 455 | ||
74-80 Fitzgerald Road Australia Pty Ltd | -
| - | 186 | ||
Waterfront Project Australia Pty Ltd | 200
| - | 188 | ||
Fitzgerald Road Australia
| 198
| - | - | ||
Magna Properties Pty Co. W.L.L. | 47
| - | 46 | ||
Jarabury Australia Pty Ltd | 43
| - | 41 | ||
Mintabury Australia Pty Ltd | 42
| - | 40 | ||
Sheikh Mubarak Abdullah Al Mubarak Al Sabah | 19
| - | 16 | ||
Action Business Center | 16
| 10 | - | ||
Gordon Luck (Altona) Australia
| 9
| - | - | ||
Action Group Australia | 3
| - | - | ||
Other | 24
| 67 | 47 | ||
6,718
| 8,182 | 13,810 |
Due to related parties
Unaudited At 30 June 2014 | Audited At 30 June 2013 | Audited At 31 December 2013 | |||
USD'000 | USD'000 | USD'000 | |||
Action Group Holding - Oman
| 40
| - | - | ||
Lausanne Travel Co. | 2
| 20 | 103 | ||
Action Real Estate - Kuwait
| 5
| - | - | ||
Action Group Australia | 62
| - | 56 | ||
Action Real Estate (Oman) | - | - | 1 | ||
Bronzia Company (Oman) | 73
| 70 | - | ||
Nehme Group of Companies
| 60
| - | - | ||
Other related parties | - | 47 | 1 | ||
242 | 137 | 161 |
9. Bank borrowings
Unaudited At 30 June 2014 | Audited At 30 June 2013 | Audited At 31 December 2013 | |||
USD'000 | USD'000 | USD'000 | |||
Bank loans | 104,154
| 99,216
| 107,948 | ||
Overdraft | - | - | 368 | ||
104,154
| 99,216
| 108,316 | |||
Less: non-current bank loans | (94,521)
| -
| (98,032) | ||
Current bank loans and overdraft | 9,633
| 99,216
| 10,284 |
10. Share capital and Share premium account
Share capital | ||||
Number of shares | Share capital USD'000 | |||
Balance at 31 December 2013 and 1 January 2014 (Audited) | 147,637,195 | 24,102 | ||
Issued during period | - | - | ||
Balance at 30 June 2014 (Unaudited) | 147,637,195 | 24,102 | ||
Balance at 1 January 2013 (Audited) | 1,000 | 3,649 | ||
Issued during period | - | - | ||
Balance at 30 June 2013 (Audited) | 1,000 | 3,649 | ||
Share premium | ||||
Share premium USD'000 | ||||
Balance at 1 January 2014 (Audited) | 124,479 | |||
Issued during the period | - | |||
Balance at 30 June 2014 (Audited) | 124,479 | |||
Balance at 1 January 2013 (Audited) | - | |||
Issued during the period | - | |||
Balance at 30 June 2013 (Audited) | - |
On incorporation the Company had 1,000 £1 ordinary shares, which on 8 November 2013 were split into 10,000 ordinary shares of nominal value of 10p. On 9 December 2013 the Company issued a further 99,990,000 shares and performed a share for share exchange with its shareholder in return for 100% of the beneficial interest in and voting control over the issued share capital of Action Hotels Limited.
On 23 December 2013 the Company issued 47,637,195 new ordinary shares at £0.64 as part of its listing on the AIM market of the London Stock Exchange.
11. Merger and other reserves
Statutory reserve | Voluntary reserve | Retranslation reserve | Salmiya contribution reserve | Share-based payment reserve | Partners' contribution reserve | Merger reserve | Total | |
USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | |
Balance at 1 January 2014 (Audited) | 2,960 | 2,802 | 587 | - | 596 | - | (6,187) | 758 |
Total comprehensive income for the period | - | - | 5,199 | - | - | - | - | 5,199 |
Balance at 30 June 2014 (Unaudited) | 2,960 | 2,802 | 5,786 | - | 596 | - | (6,187) | 5,957 |
Balance at 1 January 2013 (Audited)
| 2,960 | 2,802 | 1,096 | 14,642 | - | - | - | 21,500 |
Total comprehensive income for the period | - | - | (411) | - | - | - | - | (411) |
Reserves transfer | - | - | - | 128 | - | - | - | 128 |
Salmiya reserve distribution | - | - | - | (1,347) | - | - | - | (1,347) |
Partner current account capitalisation | - | - | - | - | - | 74,022 | - | 74,022 |
Balance at 30 June 2013 (Audited) | 2,960 | 2,802 | 685 | 13,423 | - | 74,022 | - | 93,892 |
12. Dividends
A Final dividend of GBP 0.96 (USD 1.54) pence per share was paid on the 30 May 2014, totalling $851,000. No further dividends are payable at this time.
13. Operating lease arrangements
Unaudited 6 months ended 30 June 2014 | Audited 6 months ended 30 June 2013 | Audited Year ended 31 December 2013 | ||||
USD'000 | USD'000 | USD'000 | ||||
Lease payments under operating leases recognised as an expense in the period | 1,430
1,430
| 1,462 | 2,980 |
At 30 June 2014 the Group has outstanding commitments for future minimum lease payments under non-cancellable operating leases which fall due as follows:
Unaudited At 30 June 2014 | Audited At 30 June 2013 | Audited At 31 December 2013 | ||||
USD'000 | USD'000 | USD'000 | ||||
Within one year | 2,883
| 2,634 | 2,899 | |||
Between two and five years inclusive | 6,127
| 9,879 | 9,102 | |||
9,010
| 12,513 | 12,001 |
The above amounts represent the Salmiya and the DIFC office lease costs.
14. Prior period restatement
The condensed consolidated interim financial information include a prior period restatement, primarily in relation to certain expenses associated with the Company's restructuring and its listing on AIM, which took place on 23 December 2013. Given the proximity of the Company's listing to the year-end, management has identified expenses amounting to $570,000 during the current period, associated with the Company's restructuring and listing process. In addition, arising from completion of the Company's subsidiary entity audits, which were finalised after the Company published its annual report and financial statements for the year ended 31 December 2013, a number of adjustments totalling $271,000 have been identified, which also relate to 2013.
These expenses and adjustments have been accounted for by way of a prior period restatement, in order to present a fairer view of the results for the year ended 31 December 2013 and for the period ended 30 June 2014. The impact of these restatements for the relevant periods is shown below. The amounts for the year ended 31 December 2012 are not affected by these adjustments. The adjustments are also of a non-cash nature and have no impact on the Group's cash and net debt position.
Consolidated statement of financial position (Restated)
At 1 January 2014 and 31 December 2013 | As previously reported | Adjustment
| As restated | |||
USD'000 | USD'000 | USD'000 | ||||
Intangible assets
| 13,198 | - | 13,198 | |||
Property, plant and equipment | 227,498 | (16) | 227,482 | |||
Inventories | 110 | - | 110 | |||
Trade and other receivables | 6,558 | (172) | 6,386 | |||
Due from related parties | 13,810 | - | 13,810 | |||
Cash | 43,626 | - | 43,626 | |||
Total assets | 304,800 | (188) | 304,612 | |||
Trade and other payables | 15,912 | 653 | 16,565 | |||
Due to related parties | 161 | - | 161 | |||
Bank loans | 10,284 | - | 10,284 | |||
Current tax payable | 89 | - | 89 | |||
Long term bank loan | 98,032 | - | 98,032 | |||
Loan due to related party | 57 | - | 57 | |||
Provision for end of service indemnity | 490 | - | 490 | |||
Deferred tax liabilities | 12,681 | - | 12,681 | |||
Total liabilities | 137,706 | 653 | 138,359 | |||
Total equity | 167,094 | 841 | 166,253 | |||
Consolidated statement of comprehensive income for the year ended 31 December 2013 (Restated)
As previously reported | Adjustment
| As restated | ||||
USD'000 | USD'000 | USD'000 | ||||
Revenue | 29,763 | - | 29,763 | |||
Cost of sales | (7,447) | - | (7,447) | |||
Administrative and distribution expenses | (17,866) | (172) | (18,038) | |||
Loss on disposal of property, plant and equipment | (22) | - | (22) | |||
Operating profit | 4,428 | (172) | 4,256 | |||
Finance income | 361 | - | 361 | |||
Finance Costs | (5,211) | (99) | (5,310) | |||
Restructuring and listing costs | (3,492) | (570) | (4,062) | |||
Net foreign exchange losses | (3,132) | - | (3,132) | |||
Tax charge | (2,069) | - | (2,069) | |||
Loss for the period attributable to the owners of the company | (9,115) | (841) | (9,956) |
15. Availability of interim report and accounts
Copies of the report will be available from the Company's registered office and also from the Company's website www.actionhotels.com
[2]Please see note 14.
[3] Please see note 14.
Related Shares:
AHCG.L