Commenting on the results, Sunil Chatrani, CEO of Elegant Hotels LON:EHG, said: “The Group delivered a solid performance in 2017 against a background of changed market conditions. The team remains firmly focused on delivering our strategy, and we are pleased with the operational progress that has been made during the year. We have continued to strive for day-to-day excellence, and have invested in our people and systems to ensure that our hotels continue to provide exceptional guest experiences. We have also successfully expanded our sales and marketing presence in the US in order to drive further growth in visitor numbers from that market.
During the year we acquired another hotel in Barbados, in the form of Treasure Beach. We also expanded outside of the island for the first time through a management contract and a sales and marketing agreement on hotels in Antigua and St Lucia, respectively. Trading since the start of the new financial year has remained in line with market expectations, and our bookings are currently tracking ahead of the same period last year. As a result, the Group remains confident in its prospects for FY18 and beyond.”
Elegant Hotels Group plc the owner and operator of seven upscale freehold hotels and a beachfront restaurant on the island of Barbados, today gave DirectorsTalk its preliminary unaudited results for the year ended 30 September 2017. The Group’s audited results for the year ended 30 September 2017 will be posted to shareholders in due course, at which point a further announcement will be made.
This was the first full year of a rebased Sterling/USD exchange rate. As a result, given Elegant Hotels’ rates are priced in USD while the majority of its customers are from the UK, it has been necessary for the Group to discount rates at certain of its properties on a targeted and tactical basis. This has inevitably affected the profit margins of the business, but the Group believes that the pricing environment is now much more stable. As such, these market conditions should be seen as the new normal.
Unaudited Financial Highlights
— Revenue up 5.1% to $59.9 million (2016: $57.0 million), reflecting an improvement in occupancy and the addition of Waves Hotel & Spa to the portfolio
-- RevPAR (revenue per available room) down 4.6% to $227 (2016: $238) -- ADR (average daily rates) down 6.3% to $354 (2016: $378) -- Adjusted EBITDA* down 7.6% to $18.1 million (2016: $19.6 million) -- Profit after tax down 6.1% to $9.2 million (2016: $9.8 million) -- Adjusted EPS of 10.1 cents per share (2016: 13.1 cents per share) -- Implied Net Asset Value (NAV) of 163 pence per share (218 cents per share ) -- Year-end net debt of $73.1 million (2016: $61.8 million)
— Proposed final dividend of 1.75 pence per share, resulting in a full year dividend of 5.25 pence per share
Operational Highlights
— Successful acquisition, refurbishment and reopening of Treasure Beach Hotel in Barbados, bringing room count up 6.3% to 588 (2016: 553)
— Signed management contract for Hodges Bay Resort & Spa in Antigua, the Group’s first property outside Barbados
— Agreement signed in March to provide sales and marketing services to The Landings Resort & Spa in St. Lucia
— Closure and renovation of The House as part of the ongoing strategy of refurbishing, repositioning and repricing the portfolio
-- Occupancy increased to 63.9% (2016: 62.9%)
* The Group uses adjusted EBITDA as a measure of performance as it better represents underlying performance. Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and one-off costs that are outside the ordinary course of business. Adjusted profit and adjusted EPS reflect the adjusted EBITDA figure.
based on an exchange rate of GBP1 : $1.34
Please note that due to rounding, numbers presented throughout this document may not add up precisely to the totals provided. Percentage changes are calculated on unrounded figures.
Analyst conference call
A presentation and conference call for analysts and institutional investors with the Company’s management team will take place at 9am (GMT) today, the details of which are as follows:
International access +44 (0) 20 3003 2666 UK Toll Free 0808 109 0700 Barbados Toll Free 1 877 562 2218 Password Elegant
