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Interim Results

Millennium & Copthorne's H1 pretax profit slips

03 August 2016 07:44

Millennium & Copthorne's H1 pretax profit has eased to £56m, from £62m, with interim dividend steady at 2.08p a share.

RevPAR in reported currency was £67.91, from £68.28. RevPAR in constant currency was £67.91, from £70.88.

"We are disappointed by our hotel operating performance during the first half of 2016, particularly in New York and Singapore, which remain areas of focus for the Group," said chairman Kwek Leng Beng.

"The UK referendum vote to leave the European Union, together with recent terrorist activity, has further intensified uncertainty over the direction of the global economy.

"The Group has a history of successfully navigating difficult economic environments given its broad geographic exposure and strong balance sheet.

"Against a backdrop of economic uncertainty, we are adopting a prudent strategy to protect the Group's strong financial position, including a review of capital expenditure, whilst taking appropriate steps to strengthen areas of operating weakness."

HIGHLIGHTS:

- Group RevPAR in constant currency fell by 4.2% in the first half of 2016 compared to the same period last year. This is due to decreases in both occupancy and average room rate of 1.4% points and 2.2% respectively.

- Total revenue for the first six months grew by 3.5% to £418m, in part reflecting higher land sales.

- Hotel revenue declined by 1.4% to £360m during the first six months of 2016. In constant currency, hotel revenue declined by 4.3% during the same period. This was due to deterioration of trading in our key gateway cities of New York, London and Singapore.

- Hotel operating profit fell by 21.7% to £47m (H1 2015: £60m).

- The Board has declared an interim dividend of 2.08p per share. The final dividend for the year, however, remains under review.

Story provided by StockMarketWire.com

Related Company: MLC

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