Pre Close Statement

SNOOZEBOX HOLDINGS PLC

Pre Close Statement

Snoozebox Holdings plc (AIM: ZZZ), ("the Company") today provides a scheduled update on its 2014 performance and on its 2015 business plan.

2014 was spent executing the initial phases of the Company's new strategy, following the business review undertaken in 2013. There has been a considerable turnaround in the trading performance and stability of the business.

Trading Highlights 

· Turnaround of the UK events programme, with all events undertaken during the year delivering a positive contribution to overheads

· Majority of the existing room stock committed profitably on a semi-permanent basis with an expanding pipeline

· Launched a new generation of Snoozebox rooms, capable of faster deployment and offering flexible and easily configurable accommodation options

· Unaudited revenues for 2014 are expected to be £2.8m, slightly ahead of expectations

· 24,000 room nights sold with Average Revenues per Room of £117 achieved across events and semi-permanent deployments

· Underlying business has generated a positive contribution to overheads in 2014

· Unaudited 2014 EBITDA loss anticipated to be in line with market expectations

· Cash position at year end was £17m, after the drawdown of £10m of the Company's £15m financing facility.

Outlook

2015 will be a year in which the Company positions itself for scale from 2016. The primary focus of the business will be the deployment of the remaining room stock on longer term, semi-permanent contracts (Hotelz) and the roll-out of the first tranche of 150 rooms of the new event stock (Eventz).

The Company believes that it now has the products, the pipeline, the finance and the core infrastructure to execute successfully its growth strategy. 2015 will see the expansion of the event programme in the UK and the acceleration of an entry into Europe, in addition to the delivery of additional workforce-related, semi-permanent hotel deployments. Revenues in 2015 are anticipated to be more than double the level of 2014 and the contribution for the year from longer term deployments will be in line with expectations. The decision to accelerate entry into Europe will result in a short-term impact on revenues, which it is anticipated will lead to a small EBITDA loss for the Company in 2015. However, this approach positions the Company for growth and profitability in 2016 and beyond.

Hotelz

Deployment of the existing room stock on longer term contracts is projected to deliver a contribution that will cover the core central costs of the business in 2015. At present, 300 hotel rooms are committed on a semi-permanent basis and the Company is becoming increasingly optimistic about the demand for its longer term offering. This has been supported by the recent opening of a 54 bedroom consumer hotel at the Eden Project in Cornwall and the deployment of an 80 bedroom workforce hotel for Premier Oil plc, both of which provide secure, medium term revenue streams.

Eventz

In 2015, Snoozebox plans to deploy hotels at 50% more events in the UK than last year. The event programme for 2015 will include hotels at the Cheltenham Festival, Isle of Man TT Races, British F1 Grand Prix, Moto GP, Rugby World Cup, Goodwood festivals, Open Championship, Glastonbury and the Edinburgh Festivals.

The Company plans to build 150 second generation rooms during 2015. 40 new rooms will be available for deployment by the end of H1. The remainder of the new rooms will become available during the second half of the year. 200 rooms of the existing stock have been allocated to fulfil the core events programme, whilst the new rooms are rolled out.

The Company's primary focus in 2015 will be on the UK market. However, as a consequence of the additional financial resources that the new debt facility provides, the Company has decided to allocate some of the new stock to accelerating entry into the European events market. A small number of rooms will be used to establish an events circuit in Europe during 2015, which can be scaled in 2016. Whilst this strategy allocates some of the new room stock to Europe that would otherwise have been deployed on the UK events circuit and will have some adverse impact on near term UK revenues, the Company believes that this approach should accelerate and increase medium term growth.

Snoozebox continues to experience interest for the provision of temporary accommodation solutions at a range of global sporting events as far ahead as 2022. The Company has developed proposals for some such events which involve a broader accommodation and service offering. To date, the Company has delivered large scale solutions for the London 2012 Olympics, 2013 G8 Summit, 2014 Ryder Cup and the 2014 World Equestrian Games.

Snoozebox will publish it results for 2014 in early April.

11 February 2015

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