Preliminary Results

Snoozebox Holdings plc

("Snoozebox" or "the Company")

Preliminary results for the year ended 31 December 2013

Snoozebox, the leading provider of portable hotel accommodation and services, today announces its preliminary results for the year ended 31 December 2013.

Key points

· Company emerged from a challenging year and can report growth in sales, room rates and gross margins

· Growth across all sectors - Motorsport, Leisure and Entertainment and Event Support Services

· Positive contribution to overheads achieved in H2

· Hotel room stock increased by 11% to 578 rooms

· 32,000 room nights sold

o 15,000 room nights sold at events

o 17,000 room nights sold at longer deployments

· 78% year on year growth in revenue to £6.7m compared to £3.8m in 2012

· Increase in gross margin achieved to 73% (2012: 54%)

· EBITDA pre-exceptionals of (£4.8m) compared to EBITDA of (£2m) in 2012*

· £4.7m cash at the year end

· Company moved to a more variable cost structure and headcount was reduced by c.60%

· Next Generation Portable Hotel product developed with prototypes being manufactured

· Demand emerging for longer term hotel deployments

· Near term focus on the UK and European markets

· Placing announced today conditionally raising approximately £10m gross (£9.4m net) (see separate announcement)

* Exceptional items in 2013 related to reorganisation costs (£0.4m) and fixed asset write-offs (£2.9m).(2012: non recurring initial mobilisation costs (£0.4m), international franchise development costs (£0.3m) and flotation and acquisition costs (£0.5m))

David Morrison, Chairman, added:

"Subsequent to the management changes at the end of Q1 in 2013, the immediate focus was on delivering the accommodation and services at events, during the summer months, to which the Company had committed, as well as making some necessary changes to the organisation of the business. Notwithstanding the turbulence within the Company, I am pleased to report that the delivery of the events programme went well and that, consistently, the feedback from our guests was positive and their response is now manifesting itself in repeat bookings for the events to which we have committed for the current year.

The latter part of 2013 saw an assessment of all aspects of the Company including a review of market sectors and opportunities and the strengths and weaknesses of the existing Snoozebox offering. This review resulted in the realisation that the opportunities for the Company include the provision of accommodation and related services not only at events but also for longer term deployments to address demand in other sectors. It also gave rise to a recognition that, whilst the first generation of Snoozebox units have been well received by our customers, in order to open up a broader market, it is necessary to develop a new generation of units capable of more rapid and lower cost deployment. Considerable progress has been made in the past few months on that front and we anticipate being able to introduce new stock later this year, with a view to full deployment in 2015".

Lorcán Ó Murchú, Chief Executive, added:

"The Company emerged from a challenging year reporting growth in sales, room rates and gross margins. The opportunity in the event sleeping accommodation market is compelling in terms of market size, level of demand and opportunity for growth. In addition to events, there is a broader opportunity in the market and the focus in the last six months has been on positioning the Company for growth. 2014 will be a transitional year, as the Company services the demand for longer term deployments with the existing room stock and introduces the Next Generation Portable Hotel to service the events market.

The Snoozebox brand is strong and created the market for Portable Hotel Accommodation. I would like to thank new and existing shareholders for their participation in the recent fundraising. I believe the Company can now move to securing leadership of the market and building long term value through profitable growth".

16 April 2014

Enquiries:

Website: www.snoozebox.com

CHAIRMAN'S STATEMENT

After a challenging start to 2013 the year ended on a more positive note. 2014 will be a year of consolidation and transition in preparation for the growth that the Company is capable of delivering from 2015 onwards.

Matters that came to light during the audit of the 2012 figures led to the Company announcing worse than expected results and, subsequently, to the departure of the Chief Executive and founder of the business, as well as the Finance Director. A rapid review of the outlook for the Company by the new management team identified the need for additional funding, which led to a fundraising of £9.4m in June 2013.

The immediate focus was then on delivering the accommodation and services at events, during the summer months, to which the Company had committed, as well as making some necessary changes to the management team and organisation of the business. Notwithstanding the turbulence within the Company, I am pleased to report that the delivery of the events programme went well and that, consistently, the feedback from our guests was positive and their response is now manifesting itself in repeat bookings for the events to which we have committed for the current year.

The latter part of 2013 saw an assessment of all aspects of the Company including a review of market sectors and opportunities and the strengths and weaknesses of the existing Snoozebox offering. This review resulted in the realisation that the opportunities for the Company include the provision of accommodation and related services not only at events but also for longer term deployments to address demand in other sectors. It also gave rise to a recognition that, whilst the first generation of Snoozebox units has been well received by our customers, in order to open up a broader market, it is necessary to develop a new generation of units capable of more rapid and lower cost deployment. A review of fixed assets has been undertaken including hotel room stock and ancillary equipment. The outcome of the review has been to write down certain fixed assets and book an exceptional charge in the accounts (£2.9m). However, in relation to the hotel rooms, the assessment has resulted in the extension of the useful economic life to 15 years.

In respect of the Next Generation Portable Hotel, considerable progress has been made in the past few months and we anticipate being able to introduce new stock later this year, with a view to full deployment in 2015.

At the beginning of 2013, Hugh Scrimgeour and Stephen East joined the Board of the Company and their support and commitment from the outset has been invaluable. Lorcán Ó Murchú also joined the Company as Finance Director at the end of April and his contribution could not have been bettered. I am delighted that he has now stepped up to become Chief Executive. 2013 was not an easy year for the employees of Snoozebox and I would like to record my thanks to them for their steadfastness and commitment in seeing the Company through a difficult period.

Finally, 2013 tested the patience and tolerance of all the owners of Snoozebox. I am grateful to so many of the shareholders who agreed to provide additional financial support in the summer and, thereby, gave us an opportunity to start to resolve the problems that beset the Company.

Since the year end, existing and new shareholders have made a further investment in the Company and as announced on 16 April 2014, a conditional placing raised approximately £10m gross (£9.4m net of expenses). This funding will enable the Company to finalise the development of its second generation of Snoozebox rooms and to build and launch new rooms later this year. We are confident that the lower deployment costs of the new room stock will transform the returns that can be generated from the events business and enable the Company fully to capitalise on the opportunities that it is seeing for the provision of high quality, temporary accommodation and services.

D J MORRISON

16 April 2014

CHIEF EXECUTIVE'S REVIEW

The Company emerged from a challenging year reporting growth in sales, room rates and gross margins. Turnover rose by nearly 80% to £6.7m (2012: £3.8m), the overall average room rate for both Event hotels and longer term deployments increased to over £200 (2012: £127), which resulted in an improvement in gross margins to 73%, from 54% in 2012. The improvement in margins and lower operating costs enabled the Company to generate a positive contribution to overheads in the second half of the year, compared to the losses reported in the first half. The Company also increased its hotel room stock by 11% to 578 rooms in the year.

Eventz

The Eventz division reported revenues of £5.6m compared to £3.8m in the prior year and saw growth across all sectors, Motorsport, Leisure and Entertainment and Event Support Services. Average room rates grew almost threefold to over £350 compared to £127 in the prior year and occupancy rates of 80% to 100% were being achieved for events during the second half of the year. In addition to the core events programme the Company successfully deployed a large scale accommodation solution to the Police Service of Northern Ireland for the G8 Summit. The Company has been building demand for 2 years and sales at events in 2014 to which we have committed are higher than last year.

In the UK alone, there are over 10,000 events each year, which are estimated to be worth over £11bn in sleeping accommodation. In order to capitalise on this opportunity, the Company plans to bring its Next Generation Portable Hotel to market in 2014, which is a more efficient and flexible model. Although the first generation Snoozeboxes have achieved high guest satisfaction scores, which have led to a high level of repeat bookings, the operating costs and deployment time for short-term events are too high and have resulted in the losses reported in the period. Current expectations are that the Next Generation Portable Hotel will reduce deployment costs by an order of magnitude and will increase available room nights substantially, delivering the ability to deploy at more events.

The year ahead will see the Eventz division transition to the Next Generation Portable Hotel, whilst the remainder of the existing room stock is deployed on a long term semi-permanent basis.

Whilst our prime focus in the near term is to grow the business in the UK and European markets, the development of other key territories is progressing. In the last six months, Snoozebox has hosted inbound visits at its flagship hotel at Silverstone to delegations from Russia, the Middle East and South America, amongst others. The Snoozebox brand is strong and the Company has received serious enquiries from over 40 countries for notable events and longer term deployments as far out as 2022. The Company has recently set up a subsidiary in Brazil.

In addition to the events calendar, the Company is seeing demand from the wider corporate market. In the last six months Snoozebox has hosted a range of events on behalf of retailers, banking clients, car manufacturers, travel companies and event agencies.

Hotelz

2013 saw the emergence of demand for longer term hotel deployments and the Snoozebox brand as a standalone hotel proposition in addition to events. The division currently offers two models, a consumer-facing hotel model and a workforce accommodation model.

During the year the Company deployed and operated hotels at Silverstone Circuit (76 bedrooms), Thorpe Park Resort (58 bedrooms) and in the second half of the year at Nigg Energy Park (80 bedrooms). This division reported £1.1m in revenue in its first period of trading and achieved average room rates of c. £60 per room night. Gross margins in the second half of 2013 increased to 55% and over the full year were 24%.

The existing hotel room stock will be used to service the demand for longer term deployments. Based on the current pipeline of opportunities, which include planned deployments at locations in London and Edinburgh, the Company sees continued growth in this division.

Other sectors in development

Temporary housing accommodation is a new sector for the Company and builds on the Company's track record in portable accommodation and services. Local Authorities and Housing Associations have seen an increase in waiting lists and are seeking more innovative and cost-effective means of providing temporary accommodation.

The Snoozebox model has been developed, in response to demand, as a managed service solution that delivers quality, cost effectiveness and the flexibility of multiple configurations. The offering provides the option to secure short-term capacity where, for example, people are being assessed or waiting to be housed. Formal tenders are being evaluated in this area.

Healthcare is also a new sector for the Company. Against the backdrop of an estimated 30,000 patients each year occupying critical care beds unnecessarily, hotels are seen as a more cost-effective option and are currently being used to accommodate patients. Snoozebox has developed an innovative portable medical hotel model. The model is to offer NHS Trusts or other providers of care high quality cost-effective temporary hotel accommodation. A medical hotel can be used to alleviate bed pressures and also provide the option of on-site hotel accommodation for staff and relatives of patients, amongst others.

The Company recently entered into an agreement with Compass Group plc to work together to bring this innovative portable medical hotel model to market.

Outlook and current trading

The opportunity in the event sleeping accommodation market is compelling in terms of market size, level of demand and opportunity for growth. In addition to events, there is a broader opportunity in the market and the focus in the last six months has been on positioning the Company for growth. 2014 will be a transitional year as the Company services the demand for longer term deployments with the existing room stock and introduces the Next Generation Portable Hotel to service the events market.

The Snoozebox brand is strong and created the market for portable hotel accommodation. I would like to thank new and existing shareholders for their participation in the recent fundraising. I believe the Company can now move to securing leadership of the market and building long-term value through profitable growth.

L Ó MURCHÚ

16 April 2014

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2013

STATEMENT OF FINANCIAL POSITION

As at 31 December 2013

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2013

STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2013

NOTES TO THE FINANCIAL STATEMENTS

1. REPORTING ENTITY AND BASIS OF PREPARATION

Snoozebox Holdings plc ("the Company") was incorporated in England and Wales on 30th March 2012 under the Companies Act 2006 (registration number 8013887) and its registered address is 6 Agar Street, London WC2N 4HN. On 17 April 2012 the Company entered into share exchange agreements to acquire 100% of the issued share capital of Snoozebox Limited, a company incorporated in England and Wales on 1 March 2011 and registered at the same address. On 1 May 2012 the Company was admitted to the Alternative Investment Market (AIM) where its ordinary shares are traded.

The consolidated financial statements of the Company as at and for the year ended 31 December 2013 comprise the Company and its subsidiaries (together referred to as the "Group"). The Group is engaged in the provision of portable hotel and accommodation services.

The financial information in these preliminary results has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial reporting Standards and Interpretations adopted for use in the European Union. They are presented in pounds sterling, rounded to the nearest thousand. The same accounting policies, presentation and methods of computation have been followed in the preparation of these results as were applied in the Company's 2012 Report and Accounts, except as noted below.

The financial information set out in this announcement does not constitute the Company's statutory accounts for the year ended 31 December 2013 or the period ended 31 December 2012. Statutory accounts for the year ended 31 December 2013 and the period ended 31 December 2012 have been reported on by the Independent Auditors. The Independent Auditors report on the Annual Report and Financial Statements for both years was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under S498 (2) or s498(3) of the Companies Act 2006. The Annual Report and Financial Statements for 2012 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2013 will be delivered to the register in due course.

2. PRESENTATION OF ACCOUNTS

Following a review of the financial statements, the following amendments have been made to the Consolidated Statement of Comprehensive Income.

A new category of costs, 'Logistics, deployments and equipment hire', has been added to the disclosures in arriving at the Loss from Operating Activities to provide a greater clarity of the operational areas in which the costs have been incurred. The comparatives have been reclassified to match as shown in the table below:

There has been no change in the recognised loss arising from these presentational changes.

3. SEGMENTAL INFORMATION

Business Segments

Snoozebox is currently organised into two segments, Eventz and Hotelz. The Eventz segment includes all activities providing short term hotel accommodation at popular events and festivals in both the United Kingdom and mainland Europe. The Hotelz segment includes all activities in relation to the provision of long term managed hotel solutions.

The segmental analysis is reviewed up to gross profit and other resources are shared through the business.

Geographical Segments

Revenue and non-current assets by geographical area are as follows:

For the purposes of the analysis of revenue, geographical markets are defined as the country or area in which the service is provided. Non-current assets are allocated based on their physical location. Of the revenue for the year, £4,525,000 is in respect of the G8 summit (2012 - £2,914,000 in respect of Olympic contracts).

4. EXCEPTIONAL ITEMS

5. TAX EXPENSE

The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the UK applied to profits for the period are as follows:

6. LOSS PER SHARE

All share options have been excluded when calculating the diluted EPS in both 2013 and 2012 as they were anti dilutive.