18th Sep 2006 07:02
Hotel Corp (The) PLC18 September 2006 18 September 2006 For immediate release The Hotel Corporation plc Interim results for the six months ended 30 June 2006 The Hotel Corporation plc ("the Company"), an AIM listed investment companyowning 49.9% of Dawnay Shore Hotels plc ("DSH"), announces its interim resultsfor the six months to 30 June 2006. DSH is today separately announcing interimresults for the 26 weeks ended 2 July 2006. Highlights The Hotel Corporation • Profit, including revaluation gain, of £31.0m up from £9.3m the previous year • 58% growth in net asset value per share to 234p* arising from recent hotels valuation (December 2005: 148p) • Interim dividend of 2.65p (2005: 2.60p) * After allowing for the carried interest attributable to the Founder shares in DSH DSH • DSH* like for like hotel EBITDA increases by 4.3% • Strong demand in corporate and meetings sector with rooms revenue up 6% in these segments • Significant boost to operating performance at Hinckley post renovation • Walton Hall redevelopment on target for completion in 2007 • Furlong hotels, including The Lygon Arms, integrated as Paramount Signature Hotels * Excludes Walton Hall which is under redevelopment Barclay Douglas, Chairman of The Hotel Corporation plc, said: "Trading at DSH has been encouraging with the management focusing on theintegration of the hotels acquired last year and on the overall returns acrossthe rest of the group. "The recent valuation of the existing portfolio has boosted the assets of HotelCorporation by 58% and DSH continues to exploit the development potential of theproperty portfolio." Press enquiries The Hotel Corporation 0207 638 9571Barclay Douglas Dawnay Shore Hotels plc 0207 638 9571Charles PrewPeter Procopis Citigate Dewe Rogerson 0207 638 9571Margaret George Notes to Editors The Hotel Corporation plc The Hotel Corporation is an AIM listed company which was established as a meansfor investors in publicly quoted companies to gain an interest in Dawnay ShoreHotels plc. It is currently a 49.9% shareholder in DSH. DSH currently owns aportfolio of 20 four star regional hotels in the United Kingdom. It nowoperates under the Paramount brand of distinction and has also created asignature group of hotels. The portfolio includes the world famous The LygonArms Hotel, a member of the Leading Hotels of the World located in theCotswolds; the prestigious Paramount Carlton Hotel in Edinburgh and theParamount Oxford Hotel. Paramount hotels offer extensive banqueting, conferenceand leisure facilities and many of them have architectural and historicalsignificance. The Hotel Corporation is an Isle of Man company, with its principal place ofbusiness and registered office in Douglas, Isle of Man. DSH's hotel locations are shown below: CENTRAL ENGLAND Bedrooms No. of Health & Location meeting Leisure rooms 1 Billesley Manor Hotel* 72 10 Y Country 2 Paramount Cheltenham Park Hotel, Cheltenham 152 11 Y Country 3 Paramount Daventry Hotel, Northamptonshire 138 19 Y City 4 Paramount Hinckley Island Hotel, Leicestershire 349 21 Y Country 5 Paramount Oxford Hotel, Oxford 168 25 Y City 6 Paramount Palace Hotel, Buxton 122 7 Y Country 7 Paramount Walton Hall Hotel & Spa 132 9 Y Country 8 The Lygon Arms* 69 4 Y Country NORTHERN ENGLAND 9 Paramount Imperial Hotel, Blackpool 180 15 Y City/Coast 10 Paramount Majestic Hotel, Harrogate 156 8 Y City 11 Paramount Redworth Hall Hotel, County Durham 100 14 Y Country 12 Paramount Shrigley Hall Hotel, Golf & Country Club, 148 11 Y Country Cheshire SCOTLAND 13 Paramount Carlton Hotel, Edinburgh 189 10 Y City 14 Paramount Marine Hotel, Troon 89 4 Y Coast 15 Paramount Stirling Highland Hotel, Stirling 96 6 Y City SOUTHERN ENGLAND 16 Combe Grove Manor* 42 5 Y Country 17 Paramount Basingstoke Country Hotel 100 12 Y City/Country 18 Paramount Imperial Hotel, Torquay 152 8 Y Coast 19 Paramount Old Ship Hotel, Brighton 152 13 N City / Coast WALES 20 Paramount Angel Hotel, Cardiff 102 7 N City Total 2,708 * Paramount Signature Hotel Chairman's statement I am pleased to report on the interim figures for the first six months of thecurrent year. As the Company's principal asset comprises its interest in DSH, this statementwill focus both on the Company's own results and then those of DSH. Theconsolidated balance sheet of DSH as at 2 July 2006, the consolidated profit andloss account and consolidated cashflow statement of DSH for the 26 weeks ended 2July 2006 are also provided in this statement. Results of the Company Revenue for the period, including bank interest, was £1.24m (2005: £1.03m) and,following administrative expenses, operating profit amounted to £1.1m (2005:£0.9m). In addition, the profit includes a credit categorised as investmentgains amounting to £29.8m (2005: £8.4m), arising from the measurement of theCompany's investment in the ordinary shares of DSH at their fair value, inaccordance with International Financial Reporting Standards. Including theseinvestment gains, total profit before tax was £31.0m (2005: £9.3m). No tax ispayable for the period due to the Zero Corporate Taxation provisions in the Isleof Man. Basic and diluted earnings per share were 89.4p (2005: 26.8p) includingthese investment gains, and 3.2p (2005: 2.6p) without it. The net asset valueper share is 234p (December 2005: 148p). The Company has valued its shareholding in DSH on the basis of the net assetvalue of DSH as set out in that company's accounts. DSH's accounts themselvesinclude a valuation of its portfolio of hotels of £445 million, excluding WaltonHall which is under redevelopment but including the three Furlong hotelsacquired in December 2005. The valuation was carried out by Colliers RobertBarry, third party independent valuers, as at 2 July 2006. This translates intoa net asset value per share in the capital of DSH of 375p (2005: 173p pershare), after allowing for the carried interest attributable to the Foundershares in DSH, which compares with the price of 110p at which the Company lastacquired shares in DSH in January 2005. Given DSH's highly leveraged structureat inception (of approximately four times the level of debt to equity),movements in the valuation of DSH have had a magnified effect on the value ofthe Company's shareholding in DSH. It is worth noting that following the recentvaluation, DSH's debt relative to equity is less than two times. The guidelines used for the valuation of the DSH hotels require that eachproperty is valued taking into account its individual trading potential. Thevaluation methodology also assumes that each property is sold individually. Inthe opinion of the valuers, if the hotels were valued and sold as one portfolioa premium over the £445 million valuation would be realised. Dividend The Company has today declared an interim dividend of 2.65p per ordinary share(2005: 2.60p). The ex-div date will be 27 September 2006 and the record date 29September 2006. Payment will be made to shareholders on 11 October 2006. Dawnay Shore Hotels plc - Review of Operations and Financial Performance After significant expansion of the portfolio during 2005, DSH now owns twentyhotels comprising in excess of 2,700 rooms across the UK. Management focusduring 2006 is on integrating the three Furlong hotels, property enhancements tothe portfolio and maximising returns from all Group hotels. In particular,significant attention is being dedicated to leveraging value from the renovationand re-launch of the Hinckley Island Hotel and Walton Hall, as well asidentifying opportunities to add rooms to the portfolio. To achieve the integration of the Furlong hotels, service standards that willapply to all Paramount Signature Hotels have been defined and rolled-out at eachhotel. In addition, back office procedures and front office IT systems havebeen brought into line with the rest of the Group. The next step in theSignature strategy is to convert a number of the existing hotels to thisstandard and Shrigley Hall is the first of the original portfolio of hotels tobe converted. This conversion is due to take effect at the end of September2006. Across the Group, a key strategy during 2006 is to identify and implementmeasures to counter-act the significant cost pressures (mainly rising energycosts) that are affecting the hotel industry as a whole. These measures includeboth revenue strategies and containment of controllable costs. As detailedbelow, the effect of this strategy is reflected in the Group achieving revenueand profitability growth which has outperformed the peer group. As shown on the attached Consolidated Financial Statements, on a total Groupbasis (including all 20 hotels) DSH's turnover for the 26 week period ended 2July 2006 was £47.9m, generating hotel operating profit of £15.6m (excludingWalton Hall, turnover was £47.0m and hotel EBITDA was £15.9m). Afterdepreciation, central and other costs, operating profit was £7.2m. Net interestpayable was £11.6m and included £9.1m of interest on senior debt and £2.0m ofinterest on the deep discounted bonds which are owned by DSH shareholders. Notax is payable and the loss for the financial period was £4.4m. Following its acquisition in June 2005 Walton Hall is undergoing a majorredevelopment which will result in the conversion of 132 timeshare units into195 bedrooms and the construction of a large conference centre. Due to thescale of the redevelopment the hotel is operating at minimal capacity, and isexcluded from the comments that follow. H1 2006 H1 2005 % change (Unaudited) (Unaudited)Turnover £47.0m £46.1m 1.8%Hotel Operating Profit* £15.9m £15.2m 4.3%Occupancy 66.5% 68.1% (2.4%)Average Room Rate £71.38 £68.13 4.8%Revenue per Available Room £47.45 £46.40 2.3%Total Revenue per Available Room £100.79 £99.44 1.4% * HOP is EBITDA for the individual hotels, excluding head office costs The above figures exclude Walton hall which is under redevelopment. Areconciliation of the HOP reported above, of £15.9m, and the Operating Profit of£7.2m is shown with the Consolidated Profit and Loss Account The unaudited 2005 comparatives include pro-forma results for the hotelsacquired during 2005 and will therefore differ from the 2005 results in theConsolidated Financial Statements. On a like for like basis (excluding Walton Hall) turnover was 1.8% ahead of theprior year. Although occupancy was down by 1.6 percentage points, average roomrate (ARR) increased by 4.8% giving an increase of 2.3% in revenue per availableroom. Leisure demand was slow in the first quarter impacting certain leisurereliant hotels, namely, Torquay, Shrigley, Redworth Hall and Troon. Demand wassignificantly stronger in the second quarter but leisure travel remains pricesensitive and susceptible to competition from products such as budget airlinesoffering international travel deals to domestic tourists. The hotels inEdinburgh, Cardiff, Hinckley and Cheltenham are performing substantially aheadof expectations as both the corporate and meetings segments have been verystrong in these locations. Total DSH room revenue from these segments hasincreased 6% year on year. The focus of the Group's revenue strategy is on maximising ARR on high occupancynights as this results in greater profit conversion versus occupancy-led revenuegrowth. This strategy has been a key element in the increase in hotel operatingprofit of 4.3% over the previous year. As anticipated, energy costs for theperiod were around £630,000 higher than the comparable period and without thisincrease EBITDA would have increased 8.4%. In particular EBITDA at Cheltenhamwas ahead of the prior year by 44% driven by aggressive sales and marketingstrategies and at Hinckley by 41%, benefiting from the impact of the renovation. Direct operating costs, including payroll, have been tightly controlledresulting in a £525,000 reduction year on year and leading to profit conversionduring this period of 33.9% (or 35.2% before the increase in energy costs)versus 33.1% in the previous year. Interest expense was around £1.4 million greater than the previous year, mainlyreflecting the cost of the facility used to acquire the three Furlong hotels(100% debt funded) and funds drawn for the Hinckley renovation. Dividends DSH's policy remains to distribute its net surplus cash flow from time to time.Trading in the second half of the year is normally much stronger than the firsthalf and the Board of DSH will review payments of dividends in respect of thecurrent financial year at the conclusion of the year. During the period DSHpaid a dividend of £397,800, of which Hotel Corporation plc received £198,600. Property valuation The DSH hotel portfolio was valued by Colliers Robert Barry at £445 million(excluding Walton Hall but including the three Furlong hotels) as at 2 July2006. The 2005 interim valuation by Colliers Robert Barry was £314 millionfor the 16 hotels owned by the Group at that time. The revaluation incrementshown in the financial statements of approximately £90 million mainly relates tothese 16 hotels and represents a 30% increase over the previous year'svaluation. The impact of this is to increase the DSH net asset value per shareby 117% since the year end (124% since June 2005). Segmenting the portfolio to show the various acquisitions made by the Group, thecurrent valuation represents a per room value as follows: • 19 hotels: £173,000; • 16 hotels excluding Furlong: £169,000; • Original 13 Paramount hotels: £182,000. The valuation above is based on guidelines issued by RICS and this requires thateach property is valued taking into account its individual trading potential.The valuation methodology also assumes that each property is sold individually.In the opinion of Colliers Robert Barry, if the Group's hotels were valued andsold as one portfolio a premium over the £445 million valuation would berealised. The net asset value per share at 2 July 2006, after allowing for the carriedinterest that would be payable to the DSH Founder Investors, is 375p against173p at the year end. Property development In line with stated strategy, DSH continues to exploit the development potentialof its property portfolio through room additions. The room additions for 2006are summarised as follows: Hotel Number of rooms Status New Within Total Completed Work commenced To be commenced Estimated build existing completion structure Cheltenham 9 9 March 2006Walton Hall 64 64 March 2006 Q1 2007Redworth Hall 40 3 43 March 2006 January 2007Lygon 9 9 August 2006 Q1 2007Shrigley Hall 18 3 21 Q4 2006 Q4 2007Carlton 24 24 Q4 2006 Q2 2007Stirling 4 4 Q4 2006 Q1 2007Majestic 10 10 Q3 2006 Q1 2007Torquay 9 9 Q4 2006 Q2 2007Daventry 15 15 Q4 2006 Q2 2007Brighton 2 2 Q4 2006 Q1 2007 58 152 210 In addition to all of the above, planning permission has been secured andconstruction has started on a 1,300 square metre conference facility atParamount Walton Hall & Spa. This is significantly larger than the originalplan for an 800 square metre centre. Also, a major renovation of The Lygon Armsis currently being planned and will be started by the beginning of 2007. DSH is also committed to enhancing earnings by renovating existing hotel roomsand public areas where a business case exists. The following is a summary ofactivity in this area: • Paramount Shrigley Hall, Cheshire - 8 bedrooms and main bar completed; 24 bedrooms refurbishment started; • Paramount Cheltenham Park, Cheltenham - refurbishment started on 23 rooms; • Paramount Redworth Hall, County Durham - 8 bedrooms and reconfiguration of reception completed; • Paramount Imperial, Torquay - 29 bathrooms completed; • Paramount Daventry, Northamptonshire - refurbishment started on 101 bedrooms Prospects Significant investment has been made in re-launching the Paramount website whichhas seen an increase of over 100% in revenue booked in the first half of theyear as compared to the same period last year. The Paramount Special Eventsprogramme was also launched this year bringing with it a new income stream forthe hotels. In the face of a challenging market in the leisure sector, theseinitiatives are expected to yield substantial benefits for the remainder of 2006and going forward. Valuations have increased over the period. Nevertheless, DSH continues to seek"bolt-on" acquisitions which fit its investment criteria and is focused onpurchasing synergistic assets with the right geographic fit for its portfolioand the appropriate facilities to attract leisure and corporate customers.Considerable development potential still remains within the existing portfolioand DSH will continue to seek to exploit these opportunities. Trading at DSH has been encouraging with the management focusing on theintegration of the hotels acquired last year and on the overall returns acrossthe rest of the group. Rising energy costs has been a challenge affecting thehotel industry as a whole, but the specific measures taken by DSH to addressthis are benefiting the profitability of the group. The recent valuation of the existing portfolio has boosted the assets of HotelCorporation by 58% and DSH continues to exploit the development potential of theproperty portfolio. Barclay Douglas Chairman 18 September 2006 Income Statement For the six months ended 30th June 2006 Unaudited Unaudited period period Audited from 1 from 1 year January January to 31 2006 until 2005 until December 30 June 2006 30 June 2005 2005 Notes £'000 £'000 £'000Continuing Operations Revenue 5 1,192 993 1,986Administrative expenses (111) (124) (247) Profit from operations 1,081 869 1,739 Bank interest receivable 45 34 73Investment gains-unrealised 2 29,829 8,384 9,702 Profit before tax 30,955 9,287 11,514 Taxation - - - Profit after tax for the period/year fromcontinuing operations 30,955 9,287 11,514 Earnings per share Basic and diluted 3 89.4p 26.8p 33.3p Balance Sheet As at 30th June 2006 Unaudited Unaudited Audited as at as at as at 30 June 30 June 31st DecemberAssets 2006 2005 2005 Notes £'000 £'000 £'000 £'000 £'000 £'000Non-Current Assets Investments 2 78,636 47,489 48,807 Current Assets Trade and other receivables 13 14 19 Cash and cash equivalents 2,325 2,326 2,317 2,338 2,340 2,336 Total assets 80,974 49,829 51,143 Equity & Liabilities Capital & Reserves Share Capital 1,731 1,731 1,731 Share Premium Account 33,301 33,308 33,308 Retained Earnings 45,909 14,735 16,062 80,941 49,774 51,101 Current Liabilities Trade and other payables 33 55 42 80,974 49,829 51,143 Net asset values per share 234p 144p 148p Statement of changes in equity For the six months ended 30th June 2006 Share Share premium Retained capital account earnings Total £'000 £'000 £'000 £'000 Balance at 31st December 2004 1,731 33,308 5,998 41,037Profit for period - - 9,287 9,287Dividend paid - - (550) (550) Balance at 30th June 2005 1,731 33,308 14,735 49,774 Balance at 30th June 2005 1,731 33,308 14,735 49,774Profit for period - - 2,227 2,227Dividend paid - - (900) (900) Balance at 31st December 2005 1,731 33,308 16,062 51,101 Balance at 31st December 2005 1,731 33,308 16,062 51,101Profit for period - - 30,955 30,955Dividend paid - - (1,108) (1,108)Preliminary expenses - (7) - (7) Balance at 30th June 2006 1,731 33,301 45,909 80,941 Cash flow statement For the six months ended 30th June 2006 Unaudited Unaudited Audited period from period from year 1 January 1 January to 31 2006 until 2005 until December 30 June 2006 30 June 2005 2005 Notes £'000 £'000 £'000Net cash inflow/(outflow)from operating activities 4 85 (106) (247) Investing activities Interest receivable 45 34 73 Purchase of investments - (1,365) (1,365) Proceeds received on the maturity of Investments 993 993 1,986 Net cash from investing activities 1,038 (338) 694 Financing activities Dividends paid (1,108) (550) (1,450) Preliminary expenses (7) - - Net cash (used in) financing activities (1,115) (550) (1,450) Net increase (decrease) in cash and cashequivalents 8 (994) (1,003) Notes to the Accounts For the six months ended 30th June 2006 1. Basis of Accounting The interim report has been prepared in accordance with the Company's IFRSaccounting policies as set out in its annual financial statements for the yearended 31st December 2005. Certain information and disclosures normally requiredto be included in the notes to the annual financial statements have been omittedor condensed. These interim financial statements should be read in conjunctionwith the financial statements and the notes thereto in the Company's AnnualReport for the year ended 31st December 2005. The accounting policies areconsistent with those set out in the Company's financial statements for the yearended 31st December 2005. The statutory accounts for the year ended 31st December 2005 have been filedwith the Registrar of Companies and contained an unqualified audit report. 2. Investments Unaudited Unaudited Audited period from period from year 1s January 1s January to 31st 2006 to 30 2005 to 30 December June 2006 June 2005 2005 £'000 £'000 £'000Classified as:Fair value through Profit and Loss Investments 62,086 30,939 32,257Held to maturity 16,550 16,550 16,550 78,636 47,489 48,807 Fair value through Profit or Loss Investments Fair value at start of period 32,257 21,840 21,840Additions at cost - 715 715Increase in fair value 29,829 8,384 9,702 Fair value at end of period 62,086 30,939 32,257 The unlisted investment shown above represents a holding of 16,550,000 ordinaryshares of £1 par value in Dawnay Shore Hotels plc, which comprises 49.92% of theissued share capital of that company. Investments in the ordinary shares ofDawnay Shore Hotels plc ("D.S.H.") held at the balance sheet date are measuredat their fair value. In determining the fair value attributable to the ordinaryshares in D.S.H., the directors have drawn upon the net asset value of D.S.H. asset out in the financial statements of that company and have utilised that netasset value for each ordinary share held in D.S.H. by the Company, making anappropriate adjustment for the carried interest attributable to the foundershares in D.S.H. (as defined in the Hotel Corporation plc prospectus issued on9th July 2004). The financial statements of D.S.H. include a valuation as at2nd July 2006 of the portfolio of hotels that has been provided by anindependent professional valuer and prepared in accordance with the rules ofRICS. Any resultant gain or loss in the value of the Company's equityinvestment in D.S.H. is recognised in the Income Statement. Unaudited Unaudited Audited period from period from year 1s January 1s January to 31st 2006 to 30 2005 to 30 December June 2006 June 2005 2005 £'000 £'000 £'000Investments Held to MaturityCost and net book valueAt start of period 16,550 15,900 15,900Additions - 650 650Redeemed in Period (993) (993) (1,986)Amortisation of Discount 993 (993) 1,986 At end of period 16,550 16,550 16,550 The investments included above represent unlisted investments in unsecured deepdiscount bonds issued by D.S.H. (Finance) plc, a subsidiary of Dawnay ShoreHotels plc, maturing at nominal value over a period of five years. The bondshave a coupon rate of nil percent. 3. Earnings Per Share Unaudited Unaudited Audited period from period from year 1s January 1s January to 31st 2006 to 30 2005 to 30 December June 2006 June 2005 2005 Basic and Diluted Earnings Per Share 89.4p 26.8p 33.3pThis comprises:Basic and diluted earnings per share fromoperations and bank interest 3.2p 2.6p 5.3pBasic and diluted earnings per share frominvestment gains 86.2p 24.2p 28.0p The calculation of basic earnings per share isbased on the following data: £'000 £'000 £'000EarningsProfit from operations and bank interest 1,126 903 1,739Investment gains 29,829 8,384 9,775 Net profit for period 30,955 9,287 11,514 Number of sharesWeighted average number of ordinary shares for thepurpose of basic and diluted earnings per share 34,619,050 34,619,050 34,619,050 There are no convertible investments in existence at 30th June 2006 andtherefore diluted earnings per share does not differ from basic earnings pershare. 4. Reconciliation of Profit from Operations to Net Cash fromOperating Activities Unaudited Unaudited Audited period from period from year 1s January 1s January to 31st 2006 to 30 2005 to 30 December June 2006 June 2005 2005 £'000 £'000 £'000 Profit from operations 1,081 869 1739Decrease/(increase) in receivables 6 (2) (7)(Decrease)/increase in trade and other payables (9) 20 7Amortisation of discount on investments (993) (993) (1986) Net cash inflow/(outflow) from operating activities 85 (106) (247) 5. Revenue Unaudited Unaudited Audited period from period from year 1s January 1s January to 31st 2006 to 30 2005 to 30 December June 2006 June 2005 2005 £'000 £'000 £'000An analysis of the Company's revenue is as follows:Amortisation of discount on investments 993 993 1,986Dividend received 199 - - 1,192 993 1,986 6. Taxation The Company was granted tax exempt status in the Isle of Man from theincorporation to 5th April 2006. The Isle of Man Treasury introduced a zerorate of corporate tax in the Isle of Man with effect from 6th April 2006 whichis expected to apply to the Company's taxable profits. Therefore no provisionfor Isle of Man taxation is required in these accounts. Additional Information The following additional information has been supplied to the company by Dawnay Shore Hotels plc and should be read in conjunction with the interim results of the company Dawnay Shore Hotels plcConsolidated Profit and Loss Account26 Weeks Ended 2 July 2006 Unaudited Unaudited Audited 26 weeks ended 26 weeks ended Year ended 2 July 2006 3 July 2005 1 January 2006 £'000 £'000 £'000 Turnover 47,902 40,424 89,458 Cost of Sales (5,765) (4,951) (10,932) Gross profit 42,137 35,473 78,526 Administrative Expenses (34,973) (29,355) (60,214) Operating Profit 7,164 6,118 18,312 Profit/(loss) on sale of fixed assets - - 127 7,164 6,118 18,439 Interest receivable and similar income 86 186 318Interest payable and similar charges (11,696) (10,172) (20,772) Profit on ordinary activities before taxation (4,446) (3,868) (2,015) Tax on profit on ordinary activities - - 1,554 Dividends (398) - - Retained profit / (loss) for the financial period (4,844) (3,868) (461) Note: Reconciliation of Operating Profit 2 July 2006 £mHotel EBITDA excluding Walton Hall 15.9Walton Hall Loss (0.3)Depreciation and Amortisation (4.2)Central and other costs (4.2)Operations Profit as shown above 7.2 Dawnay Shore Hotels plcConsolidated Balance SheetAs at 2 July 2006 Unaudited Unaudited Audited As at 2 July As at 3 July As at 1 January 2006 2005 2006 £'000 £'000 £'000 Fixed assetsIntangible assets - Goodwill 9,652 7,505 9,846Tangible assets 467,973 333,217 375,207 477,625 340,722 385,053 Current AssetsStocks 832 729 877Debtors 7,509 8,020 7,564Cash at Bank and in hand 2,190 4,618 6,474 10,531 13,367 14,915 Creditors amounts falling due within 1 year (22,583) (23,485) (23,373) Net current liabilities (12,052) (10,118) (8,458) Total assets less current liabilities 465,573 330,604 376,595 Creditors amounts falling due after more than 1 year (307,040) (257,968) (302,482) Provision for liabilities and charges (9,478) (10,635) (9,495) Net assets 149,055 62,002 64,618 Capital and reservesCalled up share capital 1,658 1,658 1,658Share premium account 32,137 32,137 32,137Revaluation reserve 120,461 32,026 31,180Profit and loss account (5,201) (3,819) (357) Equity shareholders funds 149,055 62,002 64,618 Dawnay Shore Hotels plcConsolidated Cash Flow Statement26 Weeks Ended 2 July 2006 Unaudited Unaudited Audited 26 weeks ended 26 weeks ended As at 1 January 2 July 2006 3 July 2005 2006 £'000 £'000 £'000 Net cash inflow from operating activities 10,212 13,958 28,051 Returns on investments and servicing of financeInterest received 86 186 318Interest paid (9,575) (10,980) (19,436)Interest paid on finance leases (37) (40) (75)Dividends paid (398) - - Net cash outflow from returns on investments and servicingof finance (9,924) (10,834) (19,193) TaxationCorporation tax paid - - - Capital expenditurePurchase of tangible fixed assets (7,351) (2,383) (7,565)Sale of tangible fixed assets - - 1,114 Net cash outflow from capital expenditure and financialinvestment (7,351) (2,383) (6,451) AcquisitionsPurchase of Hotels - (76,807) (75,104)Purchase of subsidiary undertakings - (16,716)Cash balances less overdraft acquired with hotels andsubsidiary undertakings - - (51) Net cash outflow from acquisitions - (76,807) (91,871) Net cash outflow before financing (7,063) (76,066) (89,464) FinancingIssue of share capital - 1,320 1,320New term loans raised 4,551 58,400 97,325New bonds issued - 1,200 1,200Bank loan note issued - - 3,595Bank loans repaid - (652) (25,389)Bonds repaid (1,591) (1,788) (3,475)Term loan issue costs - (1,503) (2,065)Repayment of principal under finance leases (181) (220) (499)Net cash inflow from financing (2,779) 56,757 72,012 Decrease in cash (4,284) (19,309) (17,452) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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