7th Aug 2007 07:01
Millennium & Copthorne Hotels PLC07 August 2007 MILLENNIUM & COPTHORNE HOTELS PLC SECOND QUARTER AND HALF YEAR RESULTS TO 30 JUNE 2007 7 August 2007 Millennium & Copthorne Hotels plc today announces its second quarter and halfyear results to 30 June 2007. The Group has a portfolio of 112 hotels located inthe Americas, Europe, Middle-East, Asia and New Zealand. Second quarter highlights • Revenue up 8.9% to £169.3m(1) • Hotel operating profit margin improved by 2.1 percentage points to 22.7% • Hotel operating profit up 19.8% to £37.1m(1) • Headline operating profit up 22.9% to £39.7m (2006: £32.3m) (2) • Headline profit before tax up 44.4% to £35.1m (2006: £24.3 m) (2) • Headline earnings per share up 50.0% to 9.3p (2006: 6.2p) (3) • Group RevPAR up by 9.3%(1) Half year highlights • Revenue up 8.9% to £322.4m(1) • Hotel operating profit margin improved by 2.1 percentage points to 18.9% • Hotel operating profit up 22.7% to £58.9m(1) • Headline operating profit up 22.5% to £63.7m (2006: £52.0m) (2) • Headline profit before tax up 49.4% to £53.5m (2006: £35.8 m) (2) • Headline earnings per share up 61.7% to 13.1p (2006: 8.1p) (3) • Group RevPAR up by 8.9%(1) • Interim dividend of 2.08p (2006: 2.08p) Separately, the Board today announced that Peter Papadimitropoulos has left thecompany by mutual consent with immediate effect. The search to appoint a newChief Executive is underway and will be led by the Nominations Committee. In themeantime, Wong Hong Ren, an Executive Director of M&C, will act as Interim GroupChief Executive. (1) At constant rates of exchange (June 2007 exchange rates) (2) Adjusted to exclude other operating income (3) Adjusted to exclude other operating income (net of tax) and effect of change in UK tax legislation to remove claw back on hotel tax allowances Commenting today, Mr Kwek Leng Beng, Chairman said: "Overall the half year results were strong, particularly in London, New York andSingapore where we have experienced buoyant market conditions. As outlined inMay, the group has focused on actively maximising yield management opportunitiesand I am pleased to say that we have achieved our targets so far. The thirdquarter has begun well with RevPAR up by 7.6% in the first 4 weeks of July. Theoutlook for the year as a whole remains positive and our expectations areunchanged." Enquiries: Wong Hong Ren, Interim Group Chief Executive +44 (0) 20 7872 2444Robin Lee, Senior Vice President FinanceMillennium & Copthorne Hotels plc Ben Foster/Charlie WatenphulFinancial Dynamics +44 (0) 20 7831 3113 MILLENNIUM & COPTHORNE HOTELS PLCSECOND QUARTER AND HALF YEAR RESULTS TO 30 JUNE 2007 FINANCIAL AND OPERATING HIGHLIGHTS ------------------------------------------------------------------------------------------------------------- Second quarter ended Half year ended 30 June 30 June------------------------------------------------------------------------------------------------------------- 2007 2006 2007 2006Financial information £m £m £m £m------------------------------------------------------------------------------------------------------------- Revenue 169.3 162.8 322.4 312.7Operating profit 38.9 31.2 62.4 49.6Profit before tax 35.4 24.6 55.2 36.1Profit for the period 43.6 19.8 58.4 27.9Basic earnings per share (pence) 13.8p 6.3p 18.0p 8.2p---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Performance reporting Hotel operating profit 37.1 32.1 58.9 50.2Headline operating profit 39.7 32.3 63.7 52.0Headline profit before tax 35.1 24.3 53.5 35.8Adjusted effective tax rate (excluding joint ventures andassociates)# 30.1% 33.0%Headline earnings per share (pence) 9.3p 6.2p 13.1p 8.1pNet debt 235.7 448.0Gearing (%) 18.0% 36.2%----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Operational RevPAR growth at constant rates of exchange* 9.3% 6.8% 8.9% 8.4%Occupancy movement (0.2%) 0.4% - 1.1%Average room rate growth at constant rates of exchange* 9.6% 6.3% 8.9% 5.5%Hotel revenue growth at constant rates of exchange* 10.1% 1.1% 10.4% 7.0%Hotel operating profit growth at constant rates of exchange* 19.8% 8.9% 22.7% 11.0%------------------------------------------------------------------------------------------------------------- * At constant rates of exchange (June 2007 exchange rates) # Excludes the impact of a change in UK tax legislation in respect of theremoval of claw back on hotel tax allowances, and the impact of changes in thetax rate on net opening deferred tax liabilities Second quarter overview For the second quarter to 30 June 2007, the Group recorded a pre tax profit of£35.4m (2006: £24.6m). Hotel operating profit increased by £5.0m to £37.1m(2006: £32.1m). Headline profit before tax increased by £10.8m to £35.1m (2006:£24.3m). In addition an overall tax credit of £8.2m resulted in basic earningsper share increasing by 119.0% to 13.8p (2006: 6.3p). Headline earnings pershare increased by 50.0% to 9.3p (2006: 6.2p). The tax credit is primarilyattributable to a change in UK tax legislation in respect of the removal of clawback on hotel tax allowances. SUMMARY OF HALF YEAR PERFORMANCE For the half year to 30 June 2007, the Group recorded a pre tax profit of £55.2m(2006: £36.1m). Hotel operating profit increased by £8.7m to £58.9m (2006:£50.2m). Headline profit before tax increased by £17.7m to £53.5m (2006: £35.8m) Group RevPAR increased by 8.9% to £50.70 at constant rates of exchange. Averageroom rates also grew by 8.9% to £69.26 and occupancy remained flat. At constantrates of exchange, total hotel revenues increased by £29.4m and hotel operatingprofit by £8.7m to £58.9m. CDL Hospitality Trusts (CDLHT) has had a successful year and our share ofprofits before other operating income was £3.6m. CDLHT made its secondacquisition with the purchase of the Novotel Clarke Quay in Singapore forS$219.8m. This brings its portfolio of hotels to six. Other operating income of the Group of £1.4m (2006: £0.3m) comprises a profit of£0.4m on the disposal of shares in CDLHT and following protracted negotiations,the release of a £1.0m property tax provision in the US set aside on theacquisition of Regal hotels in 1999. Other operating income of associates and joint ventures of £0.3m represents theGroup's share of the revaluation of the Novotel Hotel purchased by CDLHT inJune. Taxation Excluding the tax relating to joint ventures and associates, the Group hasrecorded a tax credit of £3.2m (2006: £8.2m tax expense). This tax credit isprimarily attributable to the deferred tax impact of a change in UK taxlegislation in respect of the removal of claw back of hotel tax allowances,resulting in an estimated attributed £13.0m tax credit, and also includes a£4.9m credit in respect of the impact of reduced tax rates applied to broughtforward net deferred tax liabilities. Excluding the impact of the tax credit adjustments arising from changes in taxlegislation and tax rates, the underlying income tax expense for the period iscalculated by applying an estimated average annual effective tax rate, in thiscase of 30.1%, to profit before tax for the period excluding the Group's shareof joint venture profits. A tax charge of £0.6m (2006: £0.6m) relating to joint ventures and associates isincluded in the reported profit before tax. Dividend The Board recommends an interim dividend of (2.08p) per share. The interimdividend will be paid on 10 October 2007 to those shareholders on the registerat the close of business on 17 August 2007. The ex-dividend date of theCompany's shares is 15 August 2007. Earnings per share In addition to growth in profit before tax an overall tax credit of £3.2mresulted in basic earnings per share increasing by 119.5% to 18.0p (2006: 8.2p).Headline earnings per share increased by 61.7% to 13.1p (2006: 8.1p). The taxcredit is primarily attributable to a change in UK tax legislation in respect ofthe removal of claw back on hotel tax allowances. PERFORMANCE BY REGION UNITED STATES New York Further measures were put in place at the beginning of this year to grow averageroom rates. As a result of these actions the improvements seen in the firstquarter have continued. Average rates increased by 14.8% to £140.47 (2006:£122.41). The growth in average rates came at a cost of a 2.1 percentage pointfall in occupancy to 83.7%. The net result was an 11.9% increase in RevPAR to£117.57 (2006: £105.03). The resultant impact of this was to drive grossoperating profit margins up 4.2 percentage points to 37.1% (2006: 32.9%). Thestrongest performer in the region was the Millennium UN Plaza. Regional US RevPAR increased by 7.1% to £32.57 (2006: £30.42). This was driven by a 7.5%increase in average room rates to £49.72 (2006: £46.23) offset by a 0.3percentage points fall in occupancy to 65.5% (2006: 65.8%). The top fiveMillennium properties had RevPAR growth between 12% and 19%, with three of theseproperties managing to increase occupancy as well as rate. EUROPE London London continues to achieve the strongest growth in our geographical regions.RevPAR increased by 13.8% to £78.34 (2006: £68.85) on the back of high demandwith a 15.0% increase in average room rates and a 0.9 percentage points decreasein occupancy to 84.1%. The strongest growth has been at the MillenniumGloucester which underwent a 142 room refurbishment in the first four months of2006. The improvement is a combination of both the increased inventory availablethis year and a better product. We restructured the business mix at theCopthorne Tara last year. This had a negative impact in 2006, but the fruits ofthis restructuring can be seen in its double digit growth this year. Rest of Europe RevPAR increased by 1.1% to £52.64 (2006: £52.05) driven by rate growth of 2.8%from £71.30 to £73.31 and occupancy levels which fell from 73.0% to 71.8%. Regional UK RevPAR increased 5.2% to £55.64 driven by a 1.5 percentage point increase inoccupancy to 77.4% (2006: 75.9%) and a 3.1% increase in rate to £71.88 (2006:£69.69). The strongest growth was in Glasgow & Aberdeen whilst our two Gatwickproperties also grew RevPAR by more than 10%. Copthorne Gatwick has had a 129room refurbishment this year which together with a change in marketing strategyhas contributed to this growth. France & Germany Our presence in these two countries remains limited to four hotels. RevPAR fellby 5.6% to £47.89. This year started with a weak set of results in our twoGerman properties which has continued into the second quarter. As a result, wehave sold 13.2% fewer rooms which, when combined with a small fall in rate, hasresulted in a half year RevPAR decrease of 14.7%. Our two French propertiesshowed a 3.8% increase in RevPAR. ASIA RevPAR increased by 13.5% to £46.98 (2006: £41.41) driven by occupancy growth of2.4 percentage points to 75.8% and a 9.9% increase in average room rates to£61.98 (2006: £56.42). Singapore The Grand Copthorne Waterfront is now included in the statistics for this regionand strong growth continues in this buoyant market. On a like-for-like basis,RevPAR increased 28.8% to £50.26 (2006: £39.03) driven by a 4.9 percentagepoints increase in occupancy to 85.5% and a 21.4% growth in average room ratesto £58.78 (2006: £48.43). Rest of Asia RevPAR figures in the rest of Asia have been impacted by the refurbishment worksat the Regent Kuala Lumpur. RevPAR increased by 3.5% to £44.51 (2006: £43.01).On a like-for-like basis excluding the Regent Hotel, RevPAR increased by 7.5% to£48.89 (2006: £45.47). There was positive growth in the remaining propertieswithin Asia with noteworthy performances in Seoul, Jakarta, Manila and Penang.Much of the occupancy increase has arisen in the Millennium Seoul Hilton, nowbenefiting from the addition of a state run Casino. NEW ZEALAND In New Zealand, where we operate under the Millennium, Copthorne and Kingsgatebrands, RevPAR has remained more or less flat at £29.33. Occupancy fell by 1.0percentage point to 70.2% (2006: 71.2%) and average rate increased by 1.1% to£41.78 (2006: £41.33). The Oriental Bay has been undergoing a majorrefurbishment and has now been re-branded a Copthorne. If this property and thatof the Kingsgate Greenlane whose lease expired in April 2007 were to be excludedfrom the statistics, RevPAR would have increased by 0.7%. Seven Zenith apartments have been sold this year for a profit of £0.7m. REVIEW AND OUTLOOK Overall the half year results were strong, particularly in London, New York andSingapore where we have experienced buoyant market conditions. As outlined inMay, the group has focused on actively maximising yield management opportunitiesand I am pleased to say that we have achieved our targets so far. The thirdquarter has begun well with RevPAR up by 7.6% in the first 4 weeks of July. Theoutlook for the year as a whole remains positive and our expectations areunchanged. Kwek Leng BengChairman6 August 2007 Consolidated income statement (unaudited)for the half year ended 30 June 2007 Half year Half year Year Notes ended ended ended 30 June 30 June 31 December 2007 2006 2006 £m £m £m------------------------------------------------------------------------------------------------------------------Revenue 2 322.4 312.7 646.3Cost of sales (135.7) (140.0) (277.4)------------------------------------------------------------------------------------------------------------------ Gross profit 186.7 172.7 368.9 Administrative expenses (132.0) (125.5) (261.5)Other operating income 3 1.4 0.3 21.6------------------------------------------------------------------------------------------------------------------Group operating profit 56.1 47.5 129.0 Share of profit of joint ventures and associates 6.3 2.1 25.2------------------------------------------------------------------------------------------------------------------ Analysed between share of: Operating profit before other income 9.0 4.8 13.8 Other operating income 0.3 - 17.7Interest, tax and minority interests 4 (3.0) (2.7) (6.3)------------------------------------------------------------------------------------------------------------------ Operating profit 62.4 49.6 154.2 ------------------------------------------------------------------------------------------------------------------Analysed between: Headline operating profit 2 63.7 52.0 124.7 Other operating income - Group 3 1.4 0.3 21.6Other operating income - Share of joint ventures and associates 0.3 - 17.7Impairment - - (3.5)Share of interest, tax and minority interests of joint ventures and associates (3.0) (2.7) (6.3)------------------------------------------------------------------------------------------------------------------Finance income 4.5 2.5 5.8Finance expense (11.7) (16.0) (29.8)------------------------------------------------------------------------------------------------------------------Profit before tax 55.2 36.1 130.2 Income tax credit/(expense) 5 3.2 (8.2) (22.1)------------------------------------------------------------------------------------------------------------------Profit for the period 58.4 27.9 108.1------------------------------------------------------------------------------------------------------------------Attributable to:Equity holders of the parent 52.7 23.7 100.1 Minority interests 5.7 4.2 8.0------------------------------------------------------------------------------------------------------------------ 58.4 27.9 108.1------------------------------------------------------------------------------------------------------------------Basic earnings per share (pence) 6 18.0 8.2 34.5 Diluted earnings per share (pence) 6 17.9 8.2 34.4 The financial results above all derive from continuing activities. Consolidated statement of recognised income and expense (unaudited)for the half year ended 30 June 2007 Half year Half year Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £m £m £m Foreign exchange translation differences (1.9) (40.2) (84.2) Share of associates other reserve movements - - (2.3) Actuarial losses arising in respect of defined benefit pension schemes (1.7) - (1.4) Taxation credit arising on defined benefit pension schemes 0.5 - 0.4 Taxation credit arising in respect of previously revalued property 2.4 - 2.2------------------------------------------------------------------------------------------------------------------ Income and expense recognised directly in equity (0.7) (40.2) (85.3) Profit for the period 58.4 27.9 108.1 ------------------------------------------------------------------------------------------------------------------ Total recognised income and expense for the period 57.7 (12.3) 22.8 ------------------------------------------------------------------------------------------------------------------ Attributable to: Equity holders of the parent 47.6 (6.8) 25.1 Minority interests 10.1 (5.5) (2.3)------------------------------------------------------------------------------------------------------------------Total recognised income and expense for the period 57.7 (12.3) 22.8------------------------------------------------------------------------------------------------------------------ Consolidated balance sheet (unaudited)as at 30 June 2007 As at As at As at Notes 30 June 30 June 31 December 2007 2006 2006 £m £m £m-----------------------------------------------------------------------------------------------------------------Non-current assetsProperty, plant and equipment 1,612.6 1,863.4 1,612.4Lease premium prepayment 74.0 82.8 74.6Investment properties 48.4 46.7 49.6Investments in joint ventures and associates 138.7 29.8 115.5Loans due from joint ventures and associates 4.9 25.8 26.5Other financial assets 2.9 2.6 3.2----------------------------------------------------------------------------------------------------------------- 1,881.5 2,051.1 1,881.8-----------------------------------------------------------------------------------------------------------------Current assetsInventories 4.3 4.1 4.6Development properties 71.0 60.8 68.6Lease premium prepayment 1.2 1.7 1.3Trade and other receivables 61.3 56.0 57.8Other financial assets 4.1 6.9 7.2Cash and cash equivalents 162.4 121.8 162.3----------------------------------------------------------------------------------------------------------------- 304.3 251.3 301.8-----------------------------------------------------------------------------------------------------------------Total assets 2,185.8 2,302.4 2,183.6-----------------------------------------------------------------------------------------------------------------Non-current liabilitiesInterest-bearing loans, bonds and borrowings (341.0) (482.4) (283.1)Employee benefits (16.5) (15.9) (15.0)Provisions (1.2) (1.5) (1.3)Other non-current liabilities (6.5) (6.7) (6.8)Deferred tax liabilities (201.7) (235.6) (224.6)----------------------------------------------------------------------------------------------------------------- (566.9) (742.1) (530.8)-----------------------------------------------------------------------------------------------------------------Current liabilitiesInterest-bearing loans, bonds and borrowings (57.1) (87.4) (139.6)Trade and other payables (98.3) (100.9) (102.6)Provisions (0.4) (0.4) (0.4)Income taxes payable (21.4) (14.7) (18.1)----------------------------------------------------------------------------------------------------------------- (177.2) (203.4) (260.7)-----------------------------------------------------------------------------------------------------------------Total liabilities (744.1) (945.5) (791.5)-----------------------------------------------------------------------------------------------------------------Net assets 1,441.7 1,356.9 1,392.1-----------------------------------------------------------------------------------------------------------------EquityTotal equity attributable to equity holders of the parent 1,310.8 1,237.1 1,269.1Minority interests 130.9 119.8 123.0-----------------------------------------------------------------------------------------------------------------Total equity 8 1,441.7 1,356.9 1,392.1 ----------------------------------------------------------------------------------------------------------------- Consolidated statement of cash flows (unaudited)for the half year ended 30 June 2007 Half year Half year Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £m £m £m-----------------------------------------------------------------------------------------------------------------Cash flows from operating activitiesProfit for the period 58.4 27.9 108.1 Adjustments for:Depreciation and amortisation 14.8 18.1 34.5Share of profit of joint ventures and associates (6.3) (2.1) (25.2)Impairment losses for property, plant and equipment - - 3.5Profit on sale of property, plant and equipment - (0.3) (11.2)Profit on sale of shares in associates (0.4) - -Revaluation of investment properties - - (4.9)Employee stock options 0.4 0.4 0.6Finance income (4.5) (2.5) (5.8)Finance expense 11.7 16.0 29.8Income tax (credit)/expense (3.2) 8.2 22.1-----------------------------------------------------------------------------------------------------------------Operating profit before changes in working capital and provisions 70.9 65.7 151.5 Increase in inventories, trade and other receivables (1.4) (1.5) (5.1)(Increase)/decrease in development properties (0.6) 1.6 (2.5)(Decrease)/increase in trade and other payables (2.2) 2.7 0.9Increase/(decrease) in provisions and employee benefits 1.4 (0.2) (0.3)-----------------------------------------------------------------------------------------------------------------Cash generated from operations 68.1 68.3 144.5 Interest paid (11.2) (16.5) (28.9)Interest received 3.6 3.9 7.8 Income taxes paid (7.9) (8.6) (16.3)-----------------------------------------------------------------------------------------------------------------Net cash from operating activities 52.6 47.1 107.1----------------------------------------------------------------------------------------------------------------- Cash flows from investing activitiesProceeds from sale of property, plant and equipment and investment properties 0.1 0.2 210.8Investment in financial assets - (4.7) (3.1)Proceeds from disposal of joint venture - 2.3 4.0Proceeds from the sale of shares in associates 1.3 - -Dividends received from associates 2.7 - -Increase in joint ventures and associates (0.6) - (81.3)Acquisition of property, plant and equipment (29.8) (14.0) (34.6)-----------------------------------------------------------------------------------------------------------------Net cash flow from investing activities (26.3) (16.2) 95.8-----------------------------------------------------------------------------------------------------------------Balance carried forward 26.3 30.9 202.9----------------------------------------------------------------------------------------------------------------- Consolidated statement of cash flows (unaudited) (continued)for the half year ended 30 June 2007 Half year Half year Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £m £m £m-----------------------------------------------------------------------------------------------------------------Balance brought forward 26.3 30.9 202.9 ----------------------------------------------------------------------------------------------------------------- Cash flows from financing activitiesProceeds from the issue of share capital 1.2 0.5 2.2Repayment of borrowings (110.1) (78.6) (205.0)Drawdown of borrowings 92.4 80.7 79.7Payment of finance lease obligations (1.0) (1.0) (2.0)Loan arrangement fees (0.1) (0.6) (0.6)Dividends paid to minorities (2.2) (2.2) (2.2)Dividends paid to equity holders of the parent (7.6) (7.3) (9.1)-----------------------------------------------------------------------------------------------------------------Net cash from financing activities (27.4) (8.5) (137.0)----------------------------------------------------------------------------------------------------------------- Net (decrease)/increase in cash and cash equivalents (1.1) 22.4 65.9 Cash and cash equivalents at beginning of period 161.5 103.7 103.7 Effect of exchange rate fluctuations on cash held 1.5 (5.3) (8.1) -----------------------------------------------------------------------------------------------------------------Cash and cash equivalents at end of the period 161.9 120.8 161.5 ----------------------------------------------------------------------------------------------------------------- Reconciliation of cash and cash equivalents Cash and cash equivalents shown in the balance sheet 162.4 121.8 162.3 Overdraft bank accounts included in borrowings (0.5) (1.0) (0.8) -----------------------------------------------------------------------------------------------------------------Cash and cash equivalents for cash flow statement purposes 161.9 120.8 161.5----------------------------------------------------------------------------------------------------------------- Notes to the half year results announcement (unaudited) 1. General information Basis of preparation The half year financial statements for Millennium & Copthorne Hotels plc ('theCompany') to 30 June 2007 comprise the Company and its subsidiaries (togetherreferred to as 'the Group') and the Group's interests in jointly controlled andassociate entities. These primary statements and selected notes comprise the unaudited interimconsolidated financial results of the Group for the half years ended 30 June,2007 and 2006 together with the audited results for the year ended 31 December2006. These half year results do not comprise statutory accounts within themeaning of Section 240 of the Companies Act 1985. The comparative figures for the financial year ended 31 December 2006 have beenextracted from the Group's statutory accounts for that financial year but do notconstitute those accounts. Those accounts have been reported on by the Company'sauditors and (i) were unqualified, (ii) did not include a reference to anymatters to which the auditors drew attention by way of emphasis withoutqualifying their report, and (iii) did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The consolidated financial statements ofthe Group for the financial year ended 31 December 2006 are available from theCompany's website www.millenniumhotels.com. The interim financial information has been prepared applying the accountingpolicies and presentation that were applied in the preparation of the Group'spublished consolidated financial statements for the year ended 31 December 2006. The half year financial statements were approved by the Board of Directors on 6August 2007. Use of adjusted measures A number of measures quoted in this half year results announcement are 'non-GAAP' measures. The directors believe these measures provide a moremeaningful analysis of trading results of the Group and are consistent with theway financial performance is measured by management. These include hoteloperating profit, headline operating profit, headline profit before tax,headline earnings per share, net debt and free cash flow. These measures areused for internal performance analysis and are useful in connection withdiscussion with the investment analyst community. They are not defined byAdopted IFRSs and therefore may not be directly comparable with other companies'adjusted performance measures. It is not intended to be a substitute for, orsuperior to Adopted IFRSs performance measures. The adjustments made to reported profit before tax are: • Fair value adjustments of investment property• Business interruption insurance proceeds• Gains/losses on disposal of property• Impairment• Share of other operating income, impairment, interest, tax and minority interests of joint ventures and associates Notes to the half year results announcement (unaudited) 2. Segmental analysis The following segmental analysis is not intended to be a full statutorydisclosure. Half year ended 30 June 2007 New York Regional London Rest of Asia Australasia Central Total US Europe costs GroupRevenue £m £m £m £m £m £m £m £m------------------------------------------------------------------------------------------------------------------Hotel 49.0 53.9 43.9 47.4 94.2 22.7 - 311.1Property operations - 0.9 - - 0.7 9.7 - 11.3------------------------------------------------------------------------------------------------------------------Total 49.0 54.8 43.9 47.4 94.9 32.4 - 322.4------------------------------------------------------------------------------------------------------------------Hotel gross operating profit 18.2 12.0 21.6 14.4 39.1 9.5 - 114.8Hotel fixed charges* (7.5) (8.8) (8.4) (8.4) (18.6) (4.2) - (55.9)------------------------------------------------------------------------------------------------------------------Hotel operating profit 10.7 3.2 13.2 6.0 20.5 5.3 - 58.9Property operations operating profit - - - - 0.3 4.2 - 4.5Central costs - - - - - - (8.7) (8.7)Share of joint ventures and associates operating profit - - - - 9.0 - - 9.0------------------------------------------------------------------------------------------------------------------Headline operating profit 10.7 3.2 13.2 6.0 29.8 9.5 (8.7) 63.7Other operating income - Group - - - - 0.4 - 1.0 1.4Other operating income - Share of joint ventures and associates - - - - 0.3 - - 0.3Share of interest, tax and minority interests of jointventures and associates - - - - (3.0) - - (3.0)------------------------------------------------------------------------------------------------------------------Operating profit 10.7 3.2 13.2 6.0 27.5 9.5 (7.7) 62.4Net financing costs (7.2) ---------Profit before tax 55.2 --------- Half year ended 30 June 2006 New York Regional London Rest of Asia Australasia Central Total US Europe costs GroupRevenue £m £m £m £m £m £m £m £m------------------------------------------------------------------------------------------------------------------Hotel 49.0 57.3 39.2 47.9 81.8 23.1 - 298.3Property operations - 1.3 - - 0.7 12.4 - 14.4------------------------------------------------------------------------------------------------------------------Total 49.0 58.6 39.2 47.9 82.5 35.5 - 312.7------------------------------------------------------------------------------------------------------------------Hotel gross operating profit 16.1 12.2 17.6 13.8 30.0 9.9 - 99.6Hotel fixed charges* (9.3) (9.3) (6.7) (7.8) (11.7) (4.6) - (49.4)------------------------------------------------------------------------------------------------------------------Hotel operating profit 6.8 2.9 10.9 6.0 18.3 5.3 - 50.2Property operations operating profit - 0.3 - - 0.3 4.0 - 4.6Central costs - - - - - - (7.6) (7.6)Share of joint ventures and associates operating profit - - - - 4.8 - - 4.8------------------------------------------------------------------------------------------------------------------Headline operating profit 6.8 3.2 10.9 6.0 23.4 9.3 (7.6) 52.0Other operating income - Group - - - - 0.3 - - 0.3Share of interest, tax and minority interests of jointventures and associates - - - - (2.7) - - (2.7)------------------------------------------------------------------------------------------------------------------Operating profit 6.8 3.2 10.9 6.0 21.0 9.3 (7.6) 49.6Net financing costs (13.5) ---------Profit before tax 36.1 --------- Notes to the half year results announcement (unaudited) 2. Segmental analysis (continued) Year ended 31 December 2006 New York Regional London Rest of Asia Australasia Central Total US Europe costs GroupRevenue £m £m £m £m £m £m £m £m------------------------------------------------------------------------------------------------------------------Hotel 103.1 117.0 84.2 96.8 175.1 44.9 - 621.1Property operations - 2.3 - - 1.4 21.5 - 25.2Total 103.1 119.3 84.2 96.8 176.5 66.4 - 646.3------------------------------------------------------------------------------------------------------------------Hotel gross operating profit 38.9 27.7 40.1 28.9 69.4 18.8 - 223.8Hotel fixed charges* (16.3) (18.5) (13.8) (16.6) (29.8) (8.5) - (103.5)------------------------------------------------------------------------------------------------------------------Hotel operating profit 22.6 9.2 26.3 12.3 39.6 10.3 - 120.3Property operations operating - 0.2 - - 0.6 8.0 - 8.8profitCentral costs - - - - - - (18.2) (18.2)Share of joint ventures and - - - - 13.8 - - 13.8associates operating profit------------------------------------------------------------------------------------------------------------------Headline operating profit 22.6 9.4 26.3 12.3 54.0 18.3 (18.2) 124.7Other operating income - Group 5.5 3.1 - - 13.0 - - 21.6Other operating income - Share of associates and joint ventures - - - - 17.7 - - 17.7Impairment - (0.6) - (2.9) - - - (3.5)Share of interest, tax and minority interests of jointventures and associates - - - - (6.3) - - (6.3)------------------------------------------------------------------------------------------------------------------Operating profit 28.1 11.9 26.3 9.4 78.4 18.3 (18.2) 154.2Net financing costs (24.0) ---------Profit before tax 130.2 --------- * 'Hotel fixed charges' include depreciation, amortisation of lease prepayments,property rent, taxes and insurance, operating lease rentals and management fees Notes to the half year results announcement (unaudited) 2. Segmental analysis (continued) Segmental assets and liabilities Regional Rest of Total Half year - 30 June 2007 New York US London Europe Asia Australasia Group 2007 2007 2007 2007 2007 2007 2007 £m £m £m £m £m £m £m------------------------------------------------------------------------------------------------------------------Hotel operating assets 282.1 240.3 456.1 214.9 463.2 104.6 1,761.2Hotel operating liabilities (59.7) (54.1) (53.0) (33.7) (126.3) (11.1) (337.9)Investments in joint ventures and associates - - - - 138.1 - 138.1Loans to joint ventures - - - - 4.9 - 4.9------------------------------------------------------------------------------------------------------------------Total hotel operating net assets 222.4 186.2 403.1 181.2 479.9 93.5 1,566.3------------------------------------------------------------------------------------------------------------------Property operating assets - 43.2 - - 33.3 43.3 119.8Property operating liabilities - (7.3) - - (0.6) (0.8) (8.7)------------------------------------------------------------------------------------------------------------------Total property operating net - 35.9 - - 32.7 42.5 111.1------------------------------------------------------------------------------------------------------------------assetsNet debt (235.7) ---------Net assets 1,441.7 --------- Regional Rest of Total Half year - 30 June 2006 New York US London Europe Asia Australasia Group 2006 2006 2006 2006 2006 2006 2006 £m £m £m £m £m £m £m------------------------------------------------------------------------------------------------------------------Hotel operating assets 306.4 280.3 456.4 225.8 660.4 87.3 2,016.6Hotel operating liabilities (72.5) (51.1) (66.8) (43.9) (118.8) (13.8) (366.9)Investments in joint ventures and associates - - - - 29.8 - 29.8Loans to joint ventures - - - - 25.8 - 25.8------------------------------------------------------------------------------------------------------------------Total hotel operating net assets 233.9 229.2 389.6 181.9 597.2 73.5 1,705.3------------------------------------------------------------------------------------------------------------------Property operating assets - 40.9 - - 28.7 38.9 108.5Property operating liabilities - (7.4) - - (0.6) (0.9) (8.9)------------------------------------------------------------------------------------------------------------------Total property operating net assets - 33.5 - - 28.1 38.0 99.6------------------------------------------------------------------------------------------------------------------Net debt (448.0) ---------Net assets 1,356.9 --------- Regional Rest of Total Year - 31 December 2006 New York US London Europe Asia Australasia Group 2006 2006 2006 2006 2006 2006 2006 £m £m £m £m £m £m £m------------------------------------------------------------------------------------------------------------------Hotel operating assets 292.3 235.9 452.0 216.1 468.8 97.4 1,762.5Hotel operating liabilities (60.1) (64.7) (67.0) (36.1) (126.8) (11.6) (366.3)Investments in joint ventures and associates - - - - 115.5 - 115.5Loans to joint ventures - - - - 26.5 - 26.5Total hotel operating net assets 232.2 171.2 385.0 180.0 484.0 85.8 1,538.2Property operating assets - 43.3 - - 33.9 42.0 119.2Property operating liabilities - (3.7) - - (0.4) (0.8) (4.9)Total property operating net assets - 39.6 - - 33.5 41.2 114.3------------------------------------------------------------------------------------------------------------------Net debt (260.4) ---------Net assets 1,392.1 --------- Notes to the half year results announcement (unaudited) 3. Other operating income Half year Half year Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £m £m £m------------------------------------------------------------------------------------------------------------------Release of property tax provision set aside on acquisition of Regal 1.0 - -hotels in 1999Profit on disposal of shares in CDLHT 0.4 - -Profit on sale and leaseback of three Singapore hotels - Orchard - - 10.1Hotel, Copthorne Kings Hotels and M HotelChanges in fair value upon revaluation of investment property - - 4.9Business interruption insurance proceeds - - 5.5Other - 0.3 1.1------------------------------------------------------------------------------------------------------------------ 1.4 0.3 21.6------------------------------------------------------------------------------------------------------------------ 4. Share of joint ventures and associates interest, tax and minority interests Half year Half year Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £m £m £m------------------------------------------------------------------------------------------------------------------Interest (0.9) (0.8) (1.4)Tax (0.6) (0.6) (1.8)Minority interests (1.5) (1.3) (3.1)------------------------------------------------------------------------------------------------------------------ (3.0) (2.7) (6.3)------------------------------------------------------------------------------------------------------------------ 5. Income tax (credit)/expense Half year Half year Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £m £m £m------------------------------------------------------------------------------------------------------------------UK (15.8) 1.0 0.7Overseas 12.6 7.2 21.4------------------------------------------------------------------------------------------------------------------Total income tax (credit)/expense in income statement (3.2) 8.2 22.1------------------------------------------------------------------------------------------------------------------ Notes to the half year results announcement (unaudited) 5. Income tax (credit)/expense (continued) Half year Half year Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £m £m £m------------------------------------------------------------------------------------------------------------------Current taxCorporation tax charge for the period 11.4 6.7 18.2Adjustment in respect of prior years - (2.1) (6.6)------------------------------------------------------------------------------------------------------------------Total current tax expense 11.4 4.6 11.6------------------------------------------------------------------------------------------------------------------Deferred taxOrigination and reversal of timing differences 1.7 3.3 0.3(Reduction)/increase in tax rate (4.9) 0.1 0.2Benefits of tax losses recognised 1.7 - 9.0(Over)/under provision in respect of prior years (13.1) 0.2 1.0------------------------------------------------------------------------------------------------------------------Total deferred tax (credit)/expense (14.6) 3.6 10.5------------------------------------------------------------------------------------------------------------------Total income tax (credit)/expense in the income statement (3.2) 8.2 22.1------------------------------------------------------------------------------------------------------------------ Income tax reconciliation Half year Half year Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £m £m £m------------------------------------------------------------------------------------------------------------------Profit before tax in income statement 55.2 36.1 130.2Less share of profit in joint ventures and associates (6.3) (2.1) (25.2)------------------------------------------------------------------------------------------------------------------ 48.9 34.0 105.0------------------------------------------------------------------------------------------------------------------Income tax on ordinary activities at the standard rate of UK tax of 30% 14.7 10.2 31.5Effects of:Permanent differences (1.4) (1.2) (5.5)Non-utilisation of tax losses arising in year 0.3 0.3 0.5Utilisation of brought forward tax losses (0.1) - (0.6)Higher/(lower) rates on overseas earnings 0.3 0.1 (1.2)Overseas tax suffered 1.0 0.6 1.6Effect of change in tax rates on opening deferred taxes (4.9) 0.1 0.3Effect of change in UK tax legislation in respect of the removal of claw back on hotel tax allowances (13.0) - -Other adjustments to tax charge in respect of prior years (0.1) (1.9) (5.6)Unrecognised deferred tax assets - - 1.1------------------------------------------------------------------------------------------------------------------Total income tax (credit)/expense in the income statement (3.2) 8.2 22.1------------------------------------------------------------------------------------------------------------------ Excluding the tax relating to joint ventures and associates, the Group hasrecorded a tax credit of £3.2m (half year ended 30 June 2006 a £8.2m tax expenseand for the year ended 31 December 2006 a £22.1m tax expense). This tax creditis primarily attributable to the deferred tax impact of a change in UK taxlegislation in respect of the removal of claw back on hotel tax allowances,resulting in an estimated attributed £13.0m tax credit, and also includes a£4.9m credit in respect of the impact of reduced tax rates applied to broughtforward net deferred tax liabilities. Excluding the impact of the tax credit adjustments arising from changes in taxlegislation and tax rates, the underlying income tax expense for the period iscalculated by applying an estimated average annual effective tax rate, in thiscase of 30.1%, to profit before tax for the period excluding the Group's shareof joint venture profits. A tax charge of £0.6m (2006: £0.6m) relating to joint ventures and associates isincluded in the reported profit before tax. Notes to the half year results announcement (unaudited) 6. Earnings per share Half year Half year Year ended ended ended 30 June 30 June 31 December 2007 2006 2006------------------------------------------------------------------------------------------------------------------Basic Profit for period attributable to holders of the parent (£m) 52.7 23.7 100.1------------------------------------------------------------------------------------------------------------------Weighted average number of shares outstanding (m) 292.8 288.8 289.9Basic earnings per share (pence) 18.0 8.2 34.5------------------------------------------------------------------------------------------------------------------Diluted Weighted average number of shares outstanding (m) 293.7 289.8 290.6Diluted earnings per share (pence) 17.9 8.2 34.4------------------------------------------------------------------------------------------------------------------Headline earnings per share Profit for the period attributable to holders of the parent (£m) 52.7 23.7 100.1Adjustment to exclude: - Other operating income (net of tax) (£m) (1.0) (0.2) (22.4) - Impairment (net of tax) (£m) - - 3.3 - Share of associates other operating income (nil tax) (£m) (0.3) - (17.7) - Change in UK tax legislation on hotel tax allowances (£m) (13.0) - -------------------------------------------------------------------------------------------------------------------Adjusted profit for the period attributable to holders of the parent (£m) 38.4 23.5 63.3------------------------------------------------------------------------------------------------------------------Weighted average number of shares outstanding (m) 292.8 288.8 289.9Adjusted earnings per share (pence) 13.1 8.1 21.8------------------------------------------------------------------------------------------------------------------ 7. Dividends Dividends have been recognised within equity as follows: Half year Half year Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £m £m £m----------------------------------------------------------------------------------------------------------------- Final ordinary dividend paid for 2006 of 6.42p (for 2005: 5.62p) 18.7 16.2 16.2Interim ordinary dividend paid for 2006 of 2.08p (for 2005: 2.08p) - - 6.1------------------------------------------------------------------------------------------------------------------ 18.7 16.2 22.3------------------------------------------------------------------------------------------------------------------Final special ordinary dividend paid for 2006 of 4.00p (for 2005: Nil) 11.7 - ------------------------------------------------------------------------------------------------------------------- 30.4 16.2 22.3------------------------------------------------------------------------------------------------------------------ After the balance sheet date, the Directors have declared an interim dividend of(2.08p) per share (2006 interim dividend: 2.08p) payable on 10 October 2007 tothe holders of relevant shares on the register at 17 August 2007. Theex-dividend date of the Company's shares is 15 August 2007. The interim dividendamounts to £6.2m (2006: £6.1m) and will be reflected in the financial statementsin the second half of the financial year. The Directors again offer the option of a scrip dividend reinvestment plan.Those shareholders who have not elected to participate in this plan, and whowould like to participate with respect to the 2007 interim dividend, may do soby contacting Lloyds TSB Registrars direct on 0870 2413018. The last day forelection for the interim dividend is 26 September 2007 and any requests shouldbe made in good time ahead of that date. Notes to the half year results announcement (unaudited) 8. Statement of changes to total equity Half year Half year Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £m £m £m------------------------------------------------------------------------------------------------------------------Total recognised income and expense for the period 57.7 (12.3) 22.8Dividends paid to equity holders of the parent (30.4) (16.2) (22.3)Issue of shares in lieu of dividends 22.8 8.9 13.2Dividends paid to minority interests (2.2) (2.2) (2.2)Share options exercised 1.2 0.5 2.2Equity settled transactions 0.5 0.4 0.6------------------------------------------------------------------------------------------------------------------Net increase/(decrease) in total equity 49.6 (20.9) 14.3Opening total equity 1,392.1 1,377.8 1,377.8------------------------------------------------------------------------------------------------------------------Closing total equity 1,441.7 1,356.9 1,392.1------------------------------------------------------------------------------------------------------------------ Notes to the half year results announcement (unaudited) 9. Non-GAAP measures Headline operating profit Headline operating profit is the Group's measure of the underlying profit beforeinterest and tax. It includes the operating results of joint ventures andassociates but excludes other operating income (of Group and share ofassociates) which is normally a one-off item. Half year Half year Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 £m £m £m-------------------------------------------------------------------------------------------------------------------Profit before tax 55.2 36.1 130.2Adjusted to exclude:-------------------------------------------------------------------------------------------------------------------Fair value adjustments of investment property - - (4.9)Business interruption insurance proceeds - - (5.5)Net gain on disposal of property - sale and leaseback of 3 Singapore hotels - - (10.1) - other - (0.3) (1.1)Profit on disposal of shares in CDLHT (0.4) - -Release of property tax provision set aside on acquisition of Regal hotels in 1999 (1.0) - -Share of associates (CDLHT) fair value adjustments to investment property (0.3) - (17.7)Impairment - - 3.5------------------------------------------------------------------------------------------------------------------- Headline profit before tax 53.5 35.8 94.4 Add back:-------------------------------------------------------------------------------------------------------------------Share of results of joint ventures and associates - interest 0.9 0.8 1.4 - taxation 0.6 0.6 1.8 - minority interests 1.5 1.3 3.1 Net financing costs 7.2 13.5 24.0------------------------------------------------------------------------------------------------------------------- Headline operating profit 63.7 52.0 124.7------------------------------------------------------------------------------------------------------------------- As at As at As at 30 June 30 June 31 DecemberNet Debt 2007 2006 2006 £m £m £m------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents (as presented in the consolidated balance sheet) 161.9 120.8 161.5 Bank overdrafts 0.5 1.0 0.8------------------------------------------------------------------------------------------------------------------- Cash and cash equivalents (as presented in the consolidated balance sheet) 162.4 121.8 162.3 Interest-bearing loans, bonds and borrowings - Non-current (341.0) (482.4) (283.1) - Current (57.1) (87.4) (139.6)-------------------------------------------------------------------------------------------------------------------Net debt (235.7) (448.0) (260.4)-------------------------------------------------------------------------------------------------------------------Gearing (%) 18.0% 36.2% 20.5% 10. Subsequent events On 12 July 2007, the Group was allocated an additional 41,213,790 new stapledsecurities of CDL Hospitality Trusts ('CDLHT') costing S$100.0m (£32.8m) under athree for every 20 existing stapled preferential offering of 107,162,695 newstapled securities. This now takes the Group's cost of investment in CDLHT to£98.4m for a 38.5% interest. Independent review report to Millennium & Copthorne Hotels plc Introduction We have been instructed by the company to review the financial information forthe half year ended 30 June 2007 which comprises the consolidated incomestatement, consolidated statement of recognised income and expense, consolidatedbalance sheet, consolidated statement of cash flows and the related notes (1) to(10). We have read the other information contained in the interim report andconsidered whether it contains any apparent misstatements or materialinconsistencies with the financial information. This report is made solely to the company in accordance with the terms of ourengagement to assist the company in meeting the requirements of the ListingRules of the Financial Services Authority. Our review has been undertaken sothat we might state to the company those matters we are required to state to itin this report and for no other purpose. To the fullest extent permitted by law,we do not accept or assume responsibility to anyone other than the company forour review work, for this report, or for the conclusions we have reached. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by, the directors. The directorsare responsible for preparing the interim report in accordance with the ListingRules of the Financial Services Authority which require that the accountingpolicies and presentation applied to the interim figures should be consistentwith those applied in preparing the preceding annual accounts except where anychanges, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4Review of interim financial information issued by the Auditing Practices Boardfor use in the UK. A review consists principally of making enquiries of groupmanagement and applying analytical procedures to the financial information andunderlying financial data and, based thereon, assessing whether the accountingpolicies and presentation have been consistently applied unless otherwisedisclosed. A review excludes audit procedures such as tests of controls andverification of assets, liabilities and transactions. It is substantially lessin scope than an audit performed in accordance with International Standards onAuditing (UK and Ireland) and therefore provides a lower level of assurance thanan audit. Accordingly, we do not express an audit opinion on the financialinformation. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the half year ended30 June 2007. KPMG Audit PlcChartered Accountants 8 Salisbury SquareLondonEC4Y 8BB Date: 6 August 2007 APPENDIX 1: Key operating statistics (unaudited)for the half year ended 30 June 2007 Half year ended Half year ended Half year ended 30 June 2007 30 June 2006 30 June 2006 Reported Constant Reported currency currency currency----------------------------------------------------------------------------------------------------------------Occupancy %New York 83.7 85.8Regional US 65.5 65.8 ---------------------------------------------------------------Total US 69.7 70.4 ---------------------------------------------------------------London 84.1 85.0Rest of Europe 71.8 73.0 ---------------------------------------------------------------Total Europe 77.3 78.3 ---------------------------------------------------------------Asia 75.8 73.4Australasia 70.2 71.2 ---------------------------------------------------------------Total Group 73.2 73.2 --------------------------------------------------------------- Average Room Rate (£)New York 140.47 122.41 135.84Regional US 49.72 46.23 51.30 ---------------------------------------------------------------Total US 74.92 67.68 75.11 ---------------------------------------------------------------London 93.15 81.00 81.00Rest of Europe 73.31 71.30 71.88 ---------------------------------------------------------------Total Europe 82.89 75.97 76.27 ---------------------------------------------------------------Asia 61.98 56.42 60.87Australasia 41.78 41.33 40.86 ---------------------------------------------------------------Total Group 69.26 63.59 67.36 ---------------------------------------------------------------RevPAR (£)New York 117.57 105.03 116.55Regional US 32.57 30.42 33.76 ---------------------------------------------------------------Total US 52.22 47.65 52.88 ---------------------------------------------------------------London 78.34 68.85 68.85Rest of Europe 52.64 52.05 52.47 ---------------------------------------------------------------Total Europe 64.07 59.48 59.72 ---------------------------------------------------------------Asia 46.98 41.41 44.68Australasia 29.33 29.43 29.09 ---------------------------------------------------------------Total Group 50.70 46.55 49.31 --------------------------------------------------------------- Gross Operating Profit Margin (%)New York 37.1 32.9Regional US 22.3 21.3 ---------------------------------------------------------------Total US 29.3 26.6 ---------------------------------------------------------------London 49.2 44.9Rest of Europe 30.4 28.8 ---------------------------------------------------------------Total Europe 39.4 36.1 ---------------------------------------------------------------Asia 41.5 36.7Australasia 41.9 42.9 ---------------------------------------------------------------Total Group 36.9 33.4 --------------------------------------------------------------- For comparability the 30 June 2006 Average Room Rate and RevPAR have beentranslated at 30 June 2007 exchange rates. APPENDIX 2: Consolidated income statement (unaudited)for the second quarter ended 30 June 2007 Second quarter Second quarter ended ended 30 June 30 June 2007 2006 £m £m-----------------------------------------------------------------------------------------------------------------Revenue 169.3 162.8Cost of sales (68.3) (70.2)----------------------------------------------------------------------------------------------------------------- Gross profit 101.0 92.6 Administrative expenses (65.7) (62.6)Other operating income - 0.3 Group operating profit 35.3 30.3 Share of profit of joint ventures and associates 3.6 0.9 ----------------------------------------------------------------------------------------------------------------- Analysed between share of: 4.4 2.3 Operating profit before other income Other operating income 0.3 - Interest, tax and minority interests (1.1) (1.4)----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Operating profit 38.9 31.2 -----------------------------------------------------------------------------------------------------------------Analysed between: 39.7 32.3 Headline operating profit - 0.3 Other operating income - Group 0.3 - Other operating income - Share of joint ventures and associatesShare of interest, tax and minority interests of joint ventures and associates (1.1) (1.4)-----------------------------------------------------------------------------------------------------------------Finance income 2.3 1.3Finance expense (5.8) (7.9)-----------------------------------------------------------------------------------------------------------------Profit before tax 35.4 24.6Income tax credit/(expense) 8.2 (4.8)-----------------------------------------------------------------------------------------------------------------Profit for the period 43.6 19.8----------------------------------------------------------------------------------------------------------------- Attributable to:Equity holders of the parent 40.5 18.1Minority interests 3.1 1.7----------------------------------------------------------------------------------------------------------------- 43.6 19.8-----------------------------------------------------------------------------------------------------------------Basic earnings per share (pence) 13.8 6.3Diluted earnings per share (pence) 13.7 6.3 The financial results above all derive from continuing activities. APPENDIX 3: Segmental analysis for the second quarter ended 30 June 2007 Second quarter ended 30 June 2007 New York Regional London Rest of Asia Australasia Central Total US Europe costs GroupRevenue £m £m £m £m £m £m £m £m-----------------------------------------------------------------------------------------------------------------Hotel 27.6 30.4 23.4 24.0 48.9 9.3 - 163.6Property operations - 0.4 - - 0.4 4.9 - 5.7-----------------------------------------------------------------------------------------------------------------Total 27.6 30.8 23.4 24.0 49.3 14.2 - 169.3-----------------------------------------------------------------------------------------------------------------Hotel gross operating profit 12.0 8.8 12.0 7.3 21.7 3.0 - 64.8Hotel fixed charges* (4.0) (4.5) (3.5) (4.3) (9.6) (1.8) - (27.7)-----------------------------------------------------------------------------------------------------------------Hotel operating profit 8.0 4.3 8.5 3.0 12.1 1.2 - 37.1Property operations operating - - - - 0.1 2.1 - 2.2profitCentral costs - - - - - - (4.0) (4.0)Share of joint ventures and - - - - 4.4 - - 4.4associates operating profit-----------------------------------------------------------------------------------------------------------------Headline operating profit 8.0 4.3 8.5 3.0 16.6 3.3 (4.0) 39.7Other operating income - Share of joint ventures and associates - - - - 0.3 - - 0.3Share of interest, tax and - - - - (1.1) - - (1.1)minority interests of jointventures and associates-----------------------------------------------------------------------------------------------------------------Operating profit 8.0 4.3 8.5 3.0 15.8 3.3 (4.0) 38.9Net financing costs (3.5) --------Profit before tax 35.4 -------- Second quarter ended 30 June 2006 New Regional London Rest of Asia Australasia Central Total York US Europe costs GroupRevenue £m £m £m £m £m £m £m £m------------------------------------------------------------------------------------------------------------------Hotel 27.6 31.8 21.2 24.5 41.8 9.3 - 156.2Property operations - 0.6 - - 0.4 5.6 6.6------------------------------------------------------------------------------------------------------------------Total 27.6 32.4 21.2 24.5 42.2 14.9 - 162.8------------------------------------------------------------------------------------------------------------------ 11.0 9.0 9.9 7.2 16.2 3.3 - 56.6 Hotel gross operating profitHotel fixed charges* (5.2) (4.8) (3.3) (3.4) (5.7) (2.1) - (24.5)------------------------------------------------------------------------------------------------------------------Hotel operating profit 5.8 4.2 6.6 3.8 10.5 1.2 - 32.1Property operations operating profit - 0.2 - - 0.1 1.8 - 2.1Central costs - - - - - - (4.2) (4.2)Share of joint ventures and associates operating profit - - - - 2.3 - - 2.3------------------------------------------------------------------------------------------------------------------Headline operating profit 5.8 4.4 6.6 3.8 12.9 3.0 (4.2) 32.3Other operating income - Group - - - - 0.3 - - 0.3Share of interest, tax and minority interests of jointventures and associates - - - - (1.4) - - (1.4)------------------------------------------------------------------------------------------------------------------Operating profit 5.8 4.4 6.6 3.8 11.8 3.0 (4.2) 31.2Net financing costs (6.6) --------Profit before tax 24.6 -------- APPENDIX 4: Non-GAAP measures for the second quarter ended 30 June 2007 Headline operating profit Headline operating profit is the Group's measure of the underlying profit beforeinterest and tax. It includes the operating results of joint ventures andassociates but excludes other operating income (of Group and share ofassociates) which is normally a one-off item. Second quarter Second quarter ended ended 30 June 30 June 2007 2006 £m £m-------------------------------------------------------------------------------------------------------------------Profit before tax 35.4 24.6 Adjusted to exclude:-------------------------------------------------------------------------------------------------------------------Other operating income - Group - (0.3)Share of associates (CDLHT) fair value adjustments toinvestment property (0.3) --------------------------------------------------------------------------------------------------------------------Headline profit before tax 35.1 24.3 Add back:-------------------------------------------------------------------------------------------------------------------Share of results of associates and joint ventures - interest 0.1 0.4 - taxation 0.3 0.3 - minority interests 0.7 0.7 Net financing costs 3.5 6.6-------------------------------------------------------------------------------------------------------------------Headline operating profit 39.7 32.3------------------------------------------------------------------------------------------------------------------- APPENDIX 5: Key operating statistics (unaudited)for the second quarter ended 30 June 2007 Second quarter ended Second quarter ended Second quarter ended 30 June 2007 30 June 2006 30 June 2006 Reported Constant Reported currency currency currency---------------------------------------------------------------------------------------------------------------Occupancy %New York 89.2 90.8Regional US 70.6 70.2 ---------------------------------------------------------------------Total US 74.9 75.0 ---------------------------------------------------------------------London 85.9 88.0Rest of Europe 72.7 75.5 ---------------------------------------------------------------------Total Europe 78.6 81.1 ---------------------------------------------------------------------Asia 76.2 73.8Australasia 58.7 61.3 ---------------------------------------------------------------------Total Group 74.1 74.3 --------------------------------------------------------------------- Average Room Rate (£)New York 148.29 129.76 142.73Regional US 52.49 48.75 53.62 ---------------------------------------------------------------------Total US 78.85 71.44 78.58 ---------------------------------------------------------------------London 98.34 85.68 85.68Rest of Europe 75.03 72.58 73.12 ---------------------------------------------------------------------Total Europe 86.33 78.89 79.17 ---------------------------------------------------------------------Asia 64.95 58.37 62.80Australasia 40.65 40.12 36.44 ---------------------------------------------------------------------Total Group 73.12 66.73 70.15 --------------------------------------------------------------------- RevPAR (£)New York 132.27 117.82 129.60Regional US 37.06 34.22 37.64 ---------------------------------------------------------------------Total US 59.06 53.58 58.94 ---------------------------------------------------------------------London 84.47 75.40 75.40Rest of Europe 54.55 54.80 55.21 ---------------------------------------------------------------------Total Europe 67.86 63.98 64.21 ---------------------------------------------------------------------Asia 49.49 43.08 46.35Australasia 23.86 24.59 22.34 ---------------------------------------------------------------------Total Group 54.18 49.58 52.12 --------------------------------------------------------------------- Gross Operating Profit Margin (%)New York 43.5 39.9Regional US 28.9 28.3 ---------------------------------------------------------------------Total US 35.9 33.7 ---------------------------------------------------------------------London 51.3 46.7Rest of Europe 30.4 29.4 ---------------------------------------------------------------------Total Europe 40.7 37.4 ---------------------------------------------------------------------Asia 44.4 38.8Australasia 32.3 35.5 ---------------------------------------------------------------------Total Group 39.6 36.2 --------------------------------------------------------------------- For comparability the 30 June 2006 Average Room Rate and RevPAR have beentranslated at 30 June 2007 exchange rates. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Millennium & Copthorne Hotels