TIDMEZH
RNS Number : 3884A
easyHotel PLC
29 May 2019
29(th) May 2019
easyHotel plc
easyHotel plc
("easyHotel", "the Group" or "the Company")
INTERIM RESULTS FOR THE SIX MONTHSED 31 MARCH 2019
NETWORK GROWTH AND CONTINUED MARKET OUTPERFORMANCE
easyHotel, the owner, developer and operator of super budget
branded hotels, today announces its results for the six months
ended 31 March 2019 ("the period").
Financial Highlights
Six Months Ended 31 March 2019 2018
(GBPm)
Total system sales([1]) 20.2 16.1 +25.3 %
Revenue 7.26 4.76 +52.6 %
Adjusted EBITDAR([2]) 1.80 1.12 +60.7%
Adjusted EBITDAR margin 24.8% 23.6% +1.2 ppts
Adjusted EBITDA 1.46 0.98 +48.2 %
(Loss)/Profit before tax (0.12) 0.09 (237)%
Basic earnings per share
(pence) (0.1) 0.1 (0.1)
Interim dividend per share
(pence) 0.08p 0.07p
-- Adjusted EBITDA growth of +48.2% reflects strength of proposition
and continued market outperformance.
-- Adjusted EBITDAR margin increased by +1.2 ppts to 24.8% (2018:
23.6%) from central costs representing a lower percentage
of total revenue.
-- Loss before tax of GBP0.12m (2018: profit of GBP0.09m) impacted
by the temporary closure of Old Street and higher depreciation
from new hotels.
-- GBP14.2m invested in new hotel development with GBP30.3m of
cash and GBP33.9m of bank financing headroom (committed and
uncommitted facilities) to continue to expand hotel estate.
-- Our newly developed self-contained office accommodation (15,500
sq. ft) at our property at Old Street, London (3(rd) - 5(th)
floors), has been pre-let to a single tenant.
Business Highlights
Fourth Year Market Outperformance Across Owned Hotels
-- Owned hotel RevPAR up 10.1%, outperforming the market([3])
by 9.7 ppts
-- Franchise like-for-like RevPAR down 3.5%, driven primarily
by the hotels in the Benelux region.
Continued Network Expansion - 9% increase in total continuing
rooms during first half of the year
-- Three new hotels totalling 290 rooms opened during the period
and trading in-line with expectations.
-- Five new hotels totalling 517 rooms due to open during the
second half and a further nine new owned hotels (1,096 rooms)
planned to open in next 24 months.
-- 354 owned hotel rooms added to the development pipeline,
including the Group's first owned hotel in France.
Commenting, Guy Parsons, CEO of easyHotel plc, said:
"easyHotel has delivered a market outperformance and good
profitable growth in the first half of the year against a
challenging market. The tactical decisions taken early in the
period to drive market share through our OTA strategy has
underpinned this, and we have continued to benefit from the impact
of our ambitious opening programme.
"Over the course of the last two years we have added a total of
18 hotels to our portfolio, significantly expanding our network in
key business and tourist destinations across the UK and Europe. Our
most recent openings have not only traded in line with our
expectations but have also tracked the good performance seen from
our new hotels opened in the prior year, which in the current
trading environment is very encouraging. Our UK network of owned
hotels is already well established, with a strong opening programme
in place for the next two years. The Group is now focussed on
replicating this success across Europe.
"The hotel market outlook remains uncertain, particularly in the
UK where the ongoing Brexit negotiations continue to dampen
consumer confidence. We are by no means immune, but the maturing
profile of our hotels and our strong development pipeline will
support continued growth and enhance our earnings profile. Combined
with the careful control of our central costs, these efforts give
the Board confidence in meeting its expectations for the year
ending 30 September 2019."
A conference call for analysts will be held today, 29 May 2019
at 09.30 am. Dial-in details are below. A presentation is available
to download at https://ir.easyhotel.com/
Analyst Call Dial in Details:
United Kingdom Toll-Free: 0800 358 9473 PIN: 69725984#
United Kingdom Toll: +44 3333000804 PIN:69725984#
For international dial in details please contact Houston PR
Enquiries:
easyHotel plc
Guy Parsons, Chief Executive www.easyhotel.com
Officer
Gary Burton, Chief Financial http://ir.easyhotel.com
Officer
Investec (Nominated Adviser
and Broker) +44 (0) 20 7597 5970
David Anderson
Houston PR (Financial PR) +44 (0) 20 3701 7660
Kate Hoare / Laura Stewart
Notes to Editors:
www.easyhotel.com http://ir.easyhotel.com
easyHotel is the owner, developer, operator and franchisor of
branded hotels. Its strategy is to target the super budget segment
of the hotel industry by marketing "clean, comfortable and safe"
hotel rooms to its customers.
Operating hotels
easyHotel's eleven owned hotels currently comprise 1,216 rooms,
and it has a further 25 franchised hotels with 2,139 rooms.
Owned hotels:
United Kingdom: Old Street (London), Glasgow, Croydon,
Birmingham, Manchester, Liverpool, Newcastle*, Leeds, Sheffield and
Ipswich.
Spain: Barcelona
Franchise locations:
United Kingdom: Edinburgh, London Heathrow, Central London,
Luton, Reading and Belfast.
Europe: Belgium (Brussels), Bulgaria (Sofia), Germany (Berlin,
Frankfurt, Bernkastel-Kues), Hungary (Budapest), The Netherlands
(Amsterdam: City, Arena & Zaandam, Rotterdam, The Hague, The
Hague Scheveningen Beach, Maastricht), Portugal (Lisbon),
Switzerland (Basel, Zurich).
International: UAE (Dubai).
Hotel development pipeline
The Company's committed development pipeline of owned and
franchised hotels currently consists of:
Owned hotels:
United Kingdom: Milton Keynes, Chester, Cardiff, Oxford*,
Blackpool. Subject to planning consent: Cambridge* and Bristol.
Europe: Subject to planning consent: Ireland (Dublin), France
(Paris-Charles de Gaulle Airport*).
Franchise hotels:
Europe: Spain (Malaga), Switzerland (Zurich, Basel), Netherlands
(Amsterdam Schiphol Airport).
International: Iran, Sri Lanka, Turkey (Istanbul), UAE
(Dubai).
*Hotels under an operating lease.
BUSINESS REVIEW
Trading Overview
The Group has continued to outperform its hotel markets in the
UK and across Europe during the period, despite a weakening trading
environment.
Ongoing political and economic uncertainty in the UK has
continued to dampen consumer sentiment over the last six months,
resulting in a softening hotel market, where demand weakened
quarter-on-quarter. RevPAR across the wider UK hotel market grew by
just 0.4% during the period (STR MSE UK) with relatively strong
market demand in London off-set by a weakening regional market.
Whilst European markets have generally outperformed the UK, overall
demand across Europe has softened in 2019.
Against this backdrop, the strength of the easyHotel brand as a
leader in super budget sleep segment, underpinned by our growing
network of hotels in key international tourist destinations, drove
a fourth year of market outperformance across the Group's owned
hotels. This resulted in a strong performance across the platform,
delivering a 25.3% growth in system sales to GBP20.2m (H1 2018:
GBP16.1m).
On a like-for-like basis, owned hotel RevPAR for the period was
up 10.1% increasing to GBP36.3 (H1 2018: GBP33.0). Occupancy rates
reduced to 82.1% (2018: 84.4%) reflecting the more challenging
market but ADR increased by 13.1% to GBP44.2 (2018: GBP39.1).
Like-for-like RevPAR from franchised hotels fell by 3.5% to
GBP38.7 (2018: GBP40.0) with occupancy rates reducing to 77.9%
(2018: 80.5%) and ADR decreasing slightly to GBP49.64 (2018:
GBP49.72). The Group's European franchised hotels performed less
strongly than those in the UK, despite European hotel markets
generally outperforming the UK. Trading was mixed on a country by
country basis. Our Benelux franchise hotels underperformed the
market, and this is expected to continue to year-end.
New Hotel Openings
During the period the Group expanded its portfolio of super
budget hotels across the UK and Europe. Openings included a new
owned hotel in Ipswich (89-rooms) and two further franchised hotels
in Lisbon (101-rooms) and Bernkastel-Kues (100-rooms), with all
three hotels already trading in line with management's
expectations.
Combined, these openings add a further 290 rooms to the network
bringing the Group's total portfolio at the period end to 1,216
owned hotel rooms and 2,139 franchised hotel rooms.
Development Pipeline
In line with its ambitious growth strategy, easyHotel continues
to target carefully selected locations to expand its portfolio of
owned and franchised hotels. We believe the opportunity to develop
our portfolio in key European cities is significant and the Group's
newly established European development team has been focussed on
pursuing opportunities in these markets. For owned hotels, the
Group believes there is potential for approximately 12,000
easyHotel rooms primarily in the UK, France and Spain with an
additional opportunity for approximately 15,000 franchised
easyHotel rooms across the UK, Europe and the Middle East.
Owned Hotel Development
The Group continued to expand its pipeline of owned hotels
during the period. In the UK, this includes a 145-bedroom easyHotel
Bristol development (subject to planning permission). In Europe,
the Group is pleased to have secured its first hotel in France, the
209 room easyHotel at Paris-Charles de Gaulle Airport, for which a
planning decision is expected shortly.
New hotels in Oxford (180 bedrooms) and Blackpool (104 rooms)
both received planning permission during the period and are
expected to open in the 2020/21 financial year. Other new owned
hotel projects currently in development include Cardiff (120 rooms)
which is due to open during the next financial year and Cambridge
(100 rooms), Chester (109 rooms), and Dublin (130 rooms) which are
anticipated to open in the Group's 2020/2021 financial year.
easyHotel Milton Keynes (124 bedrooms) and our refurbished Old
Street hotel (89 rooms) are well advanced. Both hotels are expected
to open in June 2019, earlier than originally expected.
The Group currently has a total of 1,221 owned hotel rooms in
its development pipeline.
Old Street Offices
Our newly developed self-contained office accommodation (15,500
sq. ft) at our property at 80 Old Street, London (3(rd) - 5(th)
floors), has been pre-let to a single tenant. This is on a ten-year
FRI (fully repairing and insuring) lease at an annual rent of
GBP59.50 per sq. ft with an upward only rent review at year five.
There is an initial rent-free period. The new tenant, Knotel, is a
global flexible office operator that currently manages
approximately 3 million sq. ft of space across 200 locations
spanning New York, San Francisco, Los Angeles, Sao Paolo, Berlin as
well as London.
Franchised Hotel Development
Franchised hotel openings for the current financial year include
Zurich (71 rooms, across two hotels) and Amsterdam Schiphol Airport
(154 rooms) expected to open in the next financial year.
The Group currently has a total of 1,450 franchised hotel rooms
in its committed pipeline.
STRATEGIC PROGRESS
The Group continues to make good progress against its strategic
priorities. The growing strength of the brand's simple "no frills"
super budget offer is well aligned to the needs of today's
discerning and value conscious traveller and the long-term
structural growth drivers in the international branded budget hotel
sector remain strong.
With the Group now in its fourth year of market out-performance,
we continue to drive improvements in our revenue management
strategy in order to maximise sales. Over the period the Group has
worked with its OTA partners to drive revenues in a softening hotel
market. Whilst the OTAs remain an important part of our strategy
the Group is taking steps to strengthen its percentage of direct
bookings through the roll out of a new PMS system in 2019 with
planned enhancements to build direct revenue share. This will
enable us to improve our customer booking experience even further
and will be supported by investment in our CRM platform to drive
improved returns from our more targeted marketing activity.
With a current portfolio of 36 hotels across 30 cities, the
Board is focussed on the accelerated expansion of the easyHotel
brand through both owned hotel and franchised hotel development, to
take advantage of the significant opportunity across the UK,
Continental Europe and Middle Eastern markets.
In the UK, where the Group already has significant established
owned hotel presence and a strong committed pipeline to deliver
seven further hotels by the 2021 financial year end, the Group
intends to focus further owned hotel development on primary city
targets, refocussing its wider UK expansion plans on franchised
development.
In Continental Europe, the Group's newly appointed European
Development Team are pursuing a number of owned and franchised
development opportunities. The Group intends to expand its European
owned hotel network in key primary and secondary tourist
destinations with a focus on France and Spain. The Group's strong
balance sheet and cash generation underpins the funding for future
owned hotel growth in these markets.
Further expansion across mainland Europe and the Middle East
will be led through an increased focus on franchised development,
enabling the Group to broaden its presence, without the need for
direct capital investment.
FINANCIAL REVIEW
Revenue
Total Group revenue grew by 52.6% to GBP7.26m (H1 2018:
GBP4.76m).
Owned hotel revenues, including other income, increased by 63.3%
during the period to GBP6.46m (H1 2018: GBP3.96m), reflecting the
contribution from new hotel openings in 2018: Leeds (August),
Sheffield (September) and Barcelona (September), and a new hotel in
Ipswich in January 2019. These openings more than offset the impact
from the full closure of Old Street in December 2018, that is
planned to re-open in June 2019.
Owned hotel RevPAR was up 10.1% to GBP36.3 (H1 2018: GBP33.0)
which outperformed the wider UK MSE sector by 9.7% pts.
Total franchise revenue was broadly flat at GBP0.80m (H1 2018:
GBP0.80m). Like-for-like franchise revenue decreased by 3.1% as a
result of challenging trading conditions in some locations. This
was offset by the positive impact of new hotel openings in 2018:
The Hague-Scheveningen (March), Maastricht (July), Belfast
(August), Reading (September) and Lisbon (October) and
Bernkastel-Kues (January 2019).
Adjusted EBITDA and Profit Before Tax
Adjusted EBITDA was up 48.2% at GBP1.46m (H1 2018: GBP0.98m),
driven by new hotel openings and strong trading across owned
hotels. This was impacted by the temporary closure of Old Street
(refurbishing the hotel and developing a lettable office), use of
OTAs (driving revenues in a softening hotel market) and investment
in central resources (to support our future growth).
Adjusted EBITDAR margin of 24.8% (H1 2018: 23.6%) was up +1.2%
pts.
Rent during the period was GBP0.34m (H1 2018: GBP0.14m)
reflecting a full six months of our Newcastle operating lease and
six months of central office lease cost.
Depreciation and amortisation costs rose to GBP1.21m (H1 2018:
GBP0.71m) relating to the investment made in the Company's owned
hotel development strategy. Net finance income was GBP0.01m (H1
2018: net finance income of GBP0.03m) reflecting interest received
on the Group's cash balance and interest paid on debt facilities
during the period.
Adjusted profit before tax, stated before share-based payments,
pre-opening costs and other adjusting items decreased slightly to
GBP0.26m (H1 2018: GBP0.30).
Reported loss before tax was GBP0.12m (H1 2018: profit of
GBP0.09m). Adjusting for the temporary closure of Old Street would
have resulted in an (estimated) GBP0.3m increase to the Group's
reported profit before tax for the period.
Cash Flows and Balance Sheet
During the first half of the year, cash and cash equivalents
decreased by GBP11.1m to GBP30.3m (30 September 2018: GBP41.4m),
due to cash used in investing activities of GBP14.1m partially
offset by net cash generated from operations of GBP1.93m and bank
financing of GBP1.08m.
The Group's committed bank facilities were GBP28.6m with total
borrowings, at the end of the period, of GBP17.7m. Net cash, being
the cash balance reduced by drawn debt, at the end of the period
was GBP12.6m (30 September 2018: GBP24.9m).
The Board does not undertake valuations of the Group's hotels,
therefore, records the value of its hotel assets on the balance
sheet at cost. Were the Board to undertake a formal valuation of
its hotels it expects that the value would exceed that recorded on
the Group's balance sheet. Total non-current assets increased to
GBP109.1m (30 September 2018: GBP98.1m).
Earnings Per Share and Interim Dividend
Basic earnings per share during the period was a loss of 0.08p
(H1 2018: profit 0.06p).
The Board has announced an interim dividend of 0.08p per
ordinary share (H1 2018: 0.07p). The interim dividend will be paid
on 28 June 2019 to those shareholders on the register at the close
of business on 7 June 2019. The shares will go ex-dividend on 6
June 2019.
OUTLOOK
The hotel market outlook remains uncertain, particularly in the
UK where the ongoing Brexit negotiations continue to dampen
consumer confidence. We are by no means immune, but the maturing
profile of our hotels and strong development pipeline will support
continued growth and enhance our earnings profile. Combined with
the careful control of our central costs, these efforts give the
Board confidence in meeting its expectations for the year ending 30
September 2019.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 31 March
2019
Unaudited Unaudited Audited
6 months 6 months year ended
ended 31/03/19 ended 31/03/18 30/09/2018
------------------------------------------ -----
Note GBP GBP GBP
------------------------------------------ ----- ---------------- ----------------
System sales* 20,176,898 16,103,636 37,313,925
------------------------------------------ ----- ---------------- ----------------
Revenue 3 7,259,901 4,758,081 11,253,872
Cost of sales (3,876,134) (2,219,160) (5,231,963)
------------------------------------------ ----- ---------------- ---------------- ------------
Gross profit 3,383,767 2,538,921 6,021,909
Administrative expenses (3,518,949) (2,473,848) (5,337,832)
------------------------------------------ ----- ---------------- ---------------- ------------
Operating (loss)/ profit 4 (135,182) 65,073 684,077
------------------------------------------ ----- ---------------- ---------------- ------------
Analysed as:
Adjusted EBITDA ** 1,456,364 982,690 2,958,733
Depreciation and amortisation (1,206,806) (706,028) (1,502,313)
Hotel pre-opening and development
costs (124,729) (47,920) (246,971)
Share based payments 68,041 (129,944) (276,565)
Other Adjusting Items 4 (328,052) (33,725) (248,807)
(135,182) 65,073 684,077
------------------------------------------ ----- ---------------- ----------------
Finance income 8 126,570 93,283 304,893
Finance expense 9 (115,143) (68,237) (116,808)
------------------------------------------ ----- ---------------- ---------------- ------------
(Loss)/ Profit before taxation (123,755) 90,119 872,162
Taxation 9,461 (22,529) (225,658)
------------------------------------------ ----- ---------------- ---------------- ------------
(Loss)/ Profit for the year attributable
to equity holders of the Company (114,294) 67,590 646,504
------------------------------------------ ----- ---------------- ---------------- ------------
Exchange gain/ (loss) arising on
retranslation of foreign operations (621,038) (22,368) 63,323
Total Comprehensive income/ (loss)
attributable to equity holders
of the Company (735,332) 45,222 709,827
------------------------------------------ ----- ---------------- ---------------- ------------
Earnings per share for profit/(loss)
attributable to the ordinary equity
holders of the Company
Basic (pence) 6 (0.1) 0.1 0.5
------------------------------------------ ----- ---------------- ---------------- ------------
Diluted (pence) 6 (0.1) 0.0 0.5
------------------------------------------ ----- ---------------- ---------------- ------------
* System sales is a non-statutory measure and represents
the full amount that the customer pays for our owned and
operated hotels, as well as in respect of franchisee-owned
and operated hotels (excluding VAT and similar taxes).
It also includes initial sign-on fees paid by franchisees
to the Company.
** Adjusted EBITDA represents earnings before interest,
taxation, depreciation and amortisation adjusted for pre-opening
costs related to the development of hotels, organisational
restructuring costs, share based payments and other adjusting
items. Adjusted EBITDA is shown on the face of the consolidated
statement of comprehensive income as it reflects the profits
from underlying operations only and is the best indicator
of easyHotel's financial performance.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 March 2019
Company number 09035738
Unaudited Unaudited Audited
6 months 6 months year ended
ended 31/03/19 ended 31/03/18 30/09/2018
------------------------------------------ ------
Note GBP GBP GBP
------------------------------------------ ------ ---------------- ---------------- ------------
Assets
Non-current assets
Property, plant and equipment 107,364,489 62,355,070 96,259,366
Intangible assets 1,164,173 1,065,856 1,151,131
Long-term deposits 620,851 634,770 643,080
------------------------------------------ ------ ---------------- ---------------- ------------
Total non-current assets 109,149,513 64,055,696 98,053,577
------------------------------------------ ------ ---------------- ---------------- ------------
Current assets
Trade and other receivables 10 3,181,872 2,423,797 4,022,560
Cash and cash equivalents 30,255,648 71,262,688 41,390,018
------------------------------------------ ------ ---------------- ---------------- ------------
Total current assets 33,437,520 73,686,485 45,412,578
------------------------------------------ ------ ---------------- ---------------- ------------
Total assets 142,587,033 137,742,181 143,466,155
------------------------------------------ ------ ---------------- ---------------- ------------
Liabilities
Non-current liabilities
Trade and other payables 7 735,091 756,826
Bank borrowings 16,944,938 12,768,304 15,749,566
Deferred tax liability 459,823 334,197 418,349
------------------------------------------ ------ ---------------- ---------------- ------------
Total non-current liabilities 18,139,852 13,102,501 16,924,741
------------------------------------------ ------ ---------------- ---------------- ------------
Current liabilities
Trade and other payables 7 4,995,286 5,343,148 6,057,925
Bank borrowings 712,888 360,000 710,413
Corporate taxation 118,107 131,560
------------------------------------------ ------ ---------------- ---------------- ------------
Total current liabilities 5,826,281 5,703,148 6,899,898
------------------------------------------ ------ ---------------- ---------------- ------------
Total liabilities 23,966,133 18,805,649 23,824,639
------------------------------------------ ------ ---------------- ---------------- ------------
Total net assets 118,620,898 118,936,532 119,641,516
------------------------------------------ ------ ---------------- ---------------- ------------
Equity
Equity attributable to
owners of the Company
Share capital 1,459,545 1,459,545 1,459,545
Share premium 113,114,938 113,119,801 113,114,938
Merger reserve 2,750,001 2,750,001 2,750,001
Employee Benefit Trust
(EBT) reserve (1,067,405) (1,067,405) (1,067,405)
Currency translation
reserve (636,673) (101,326) (15,635)
Retained earnings 3,000,493 2,775,916 3,400,072
------------------------------------------ ------ ---------------- ---------------- ------------
Total equity 118,620,898 118,936,532 119,641,516
------------------------------------------ ------ ---------------- ---------------- ------------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 31 March 2019
Unaudited Unaudited Audited
6 months 6 months year ended
ended ended 30/09/2018
31/03/19 31/03/18
------------------------------------------------------
GBP GBP GBP
------------------------------------------------------ ------------- ------------- -------------
Cash flows from operating activities
(Loss) / Profit before taxation for the year (123,755) 90,119 872,162
Adjustments for:
Depreciation and amortisation 1,206,828 706,028 1,502,313
Share based payment charge/ (credit) (68,041) 129,944 276,565
Finance income (126,570) (93,283) (304,893)
Finance expense 115,143 59,762 116,808
------------------------------------------------------ ------------- ------------- -------------
Operating cash flows before movements in working
capital 1,003,605 892,570 2,462,955
(Increase) / decrease in trade and other receivables 270,182 (436,950) 183,560
Increase / (decrease) in trade and other payables 761,259 (794,895) 214,702
------------------------------------------------------ ------------- ------------- -------------
Cash generated from operations 2,035,046 (339,275) 2,861,217
Corporation tax received/ (paid) 50,934 (69,323) (71,123)
------------------------------------------------------ ------------- ------------- -------------
Net cash flows from / (used in) operating
activities 2,085,980 (408,598) 2,790,094
Interest received 129,885 93,283 346,627
Interest paid (286,230) (176,596) (488,049)
------------------------------------------------------ ------------- ------------- -------------
Net cash generated from/ (used in) operations 1,929,635 (491,911) 2,648,671
------------------------------------------------------ ------------- ------------- -------------
Investing activities
Purchase of property, plant and equipment (14,223,264) (10,738,954) (46,379,646)
VAT on investing activities 119,158 (389,533) (1,017,152)
------------------------------------------------------ ------------- ------------- -------------
Net cash used in investing activities (14,104,106) (11,128,487) (47,396,798)
------------------------------------------------------ ------------- ------------- -------------
Financing activities
Proceeds from issue of ordinary share capital - 50,000,000 50,000,000
Capitalised costs related to issue of ordinary
share capital - (1,201,447) (1,206,308)
Dividends paid (217,244) (218,625) (320,006)
Proceeds in bank loan 1,551,133 1,252,240 4,769,921
Repayment of bank loan (259,040) (180,000) (360,000)
Net cash generated from / (utilised by) financing
activities 1,074,849 49,652,168 52,883,607
------------------------------------------------------ ------------- ------------- -------------
Net increase / (decrease) in cash and cash
equivalents (11,099,622) 38,031,770 8,135,480
Cash and cash equivalents at the beginning
of the year 41,390,018 33,255,253 33,255,253
Exchange gains on cash and cash equivalents (34,748) (24,335) (715)
------------------------------------------------------ ------------- ------------- -------------
Cash and cash equivalents at the end of the
year 30,255,648 71,262,688 41,390,018
------------------------------------------------------ ------------- ------------- -------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended
31 March 2019
Currency
6 months ended 31 March Share Share Merger EBT translation Retained
2018 Unaudited
--------------------------
capital premium reserve reserve reserve earnings Total
--------------------------
GBP GBP GBP GBP GBP GBP GBP
-------------------------- ---------- ------------ ---------- ------------ ------------ ---------- ------------
At 30 September 2017 1,005,000 64,775,791 2,750,001 (1,067,405) (78,958) 2,797,009 70,181,438
Profit - - - - - 67,588 67,588
Other comprehensive
income - - - - (22,368) - (22,368)
Total comprehensive
income
for the period - - - - (22,368) 67,588 45,220
Share based payment
charge - - - - - 129,944 129,944
Dividends paid - - - - - (218,625) (218,625)
Issue of shares 454,545 48,344,010 - - - - 48,798,555
Balance at 31 March 2018 1,459,545 113,119,801 2,750,001 (1,067,405) (101,326) 2,775,916 118,936,532
Currency
year ended 30 September Share Share Merger EBT translation Retained
2018 Audited
--------------------------
capital premium reserve reserve reserve earnings Total
--------------------------
GBP GBP GBP GBP GBP GBP GBP
-------------------------- ---------- ------------ ---------- ------------ ------------ ---------- ------------
At 30 September 2017 1,005,000 64,775,791 2,750,001 (1,067,405) (78,958) 2,797,009 70,181,438
Profit - - - - - 646,504 646,504
FX Translation Movement 63,323 63,323
Total comprehensive
income
for the period 0 0 0 0 63,323 646,504 709,827
Share based payment
charge - - - - - 276,565 276,565
Dividends paid - - - - - (320,006) (320,006)
Issue of shares 454,545 48,339,147 - - - - 48,793,692
Balance at 30 September
2018 1,459,545 113,114,938 2,750,001 (1,067,405) (15,635) 3,400,072 119,641,516
Currency
year ended 31 March 2019 Share Share Merger EBT translation Retained
Unaudited
--------------------------
capital premium reserve reserve reserve earnings Total
--------------------------
GBP GBP GBP GBP GBP GBP GBP
-------------------------- ---------- ------------ ---------- ------------ ------------ ---------- ------------
At 30 September 2018 1,459,545 113,114,938 2,750,001 (1,067,405) (15,635) 3,400,072 119,641,516
Profit/ (Loss) - - - - - (114,294) (114,294)
FX Translation Movement - - - - (621,038) - (621,038)
Total comprehensive
income
for the period 0 0 0 0 (621,038) (114,294) (735,332)
Share based payment
charge - - - - - (68,041) (68,041)
Dividends paid - - - - - (217,244) (217,244)
Balance at 31 March 2019 1,459,545 113,114,938 2,750,001 (1,067,405) (636,673) 3,000,493 118,620,898
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
for the six months ended 31 March 2019
1 Statement of compliance
easyHotel plc (the "Company"), and its wholly owned subsidiaries (easyHotel
UK Ltd, easyHotel Spain S.L.U. and easyHotel Ireland Ltd), is an international
owner, developer, operator and franchisor of "easyHotel" branded hotels.
The Company is a public limited company whose shares are listed on
AIM under the ticker symbol EZH and is incorporated and domiciled
in the United Kingdom. The address of the registered office is 52
Grosvenor Gardens, London SW1W 0AU, United Kingdom.
The interim financial information set out in this interim report has
been prepared under the recognition and measurement requirements of
IFRS as adopted by the European Union but does not contain all of
the disclosures that are required under these standards, taking into
account International Financial Reporting Interpretations Committee
(IFRIC) interpretations and those parts of the Companies Act 2006
applicable to companies reporting under IFRS. Based on these adopted
IFRSs, the Directors have applied the accounting policies which they
expect to apply when the annual IFRS financial statements are prepared
for the year ended 30 September 2019.
The group's accounting policies remain as stated in the group's full
annual accounts for the year ended 30 September 2018, apart from those
later in the report.
2 Significant accounting policies
Basis of preparation
The accounts are prepared based on the historical cost convention.
The accounting policies set out below have been applied consistently
to all years presented in these accounts, unless otherwise stated.
After making appropriate enquiries and having reviewed the Group's
expenditure commitments, current financial projections and future
cash flows, together with available cash resources and undrawn committed
borrowing facilities, the Directors have a reasonable expectation
that the Group has adequate resources to continue in operational existence
for the foreseeable future. For these reasons, the Directors continue
to adopt the going concern basis in preparing these interim results.
All amounts are presented in Pound Sterling (GBP, GBP), except where
otherwise indicated.
In accordance with s 435 of the Companies Act, these accounts are
non-statutory. Statutory accounts dealing with the financial year
ending 30 September 2018 have been submitted to Companies House. The
auditor's report has been made on the company's statutory accounts
for the year ended 30 September 2018, the report was unqualified.
Basis of consolidation
The consolidated accounts incorporate those of easyHotel plc and its
subsidiaries for the year ended 30 September 2018 and the six months
ended 31 March 2019. The financial statements of the subsidiaries
are prepared for the same reporting period as the parent company,
using consistent accounting policies. On acquisition of its subsidiary,
easyHotel UK Ltd, merger accounting was the basis of consolidation.
Subsidiaries are all entities over which the Group has control. The
Group controls an entity when the Group is exposed to, or has rights
to, variable returns from its involvement with the entity and has
the ability to affect those returns through its power over the entity.
Subsidiaries are fully consolidated from the date on which control
is transferred to the Group.
Intragroup balances and transactions and any unrealised gains and
losses arising from intragroup transactions are eliminated in preparing
the consolidated accounts.
Investment in subsidiary
easyHotel plc has an investment in easyHotel UK Ltd (a wholly owned
subsidiary) of GBP3,825,683 (2017: GBP3,825,683). This investment
is held at cost less any reasonable provisions for impairment against
the investment of which there are currently none.
easyHotel UK Ltd has an investment in easyHotel Spain S.L.U. (a wholly
owned subsidiary) of GBP7,583,664 (2017: GBP7,583,664). This investment
is held within easyHotel UK Ltd at cost less any reasonable provisions
for impairment against the investment of which there are currently
none.
easyHotel UK Ltd has an investment in easyHotel Ireland Ltd (a wholly
owned subsidiary) of GBP8,243,453 (2018: GBP1). This investment is
held within easyHotel UK Ltd at cost less any reasonable provisions
for impairment against the investment of which there are currently
none.
Employee Benefit Trust (EBT)
The EBT's assets (other than investments in the Company's shares),
liabilities, income and expenses are included on a line-by-line basis
in the consolidated financial statements, and its investment in the
Company's shares is deducted from equity in the consolidated statement
of financial position as if they were treasury shares.
The EBT is not consolidated in the Company's own financial statements
but the Company recognises any transactions between itself and the
EBT in accordance with the relevant accounting policy.
Foreign currency
The primary economic environment in which a subsidiary operates determines
its functional currency. The consolidated accounts of easyHotel are
presented in Sterling, which is the Company's functional currency
and the Group's presentation currency.
Transactions arising in foreign currencies are recorded using the
rate of exchange ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies are translated into
Sterling using the rate of exchange ruling at the balance sheet date
and the gains or losses on translation are included in the income
statement. Non-monetary assets and liabilities denominated in foreign
currencies are translated into Sterling at foreign exchange rates
ruling at the dates the transactions were effected.
On consolidation the results of overseas operations are translated
into Sterling at rates approximating to those ruling when the transactions
took place. All assets and liabilities of overseas operations are
translated at the rate ruling at the reporting date. Exchange differences
arising on translating the opening net assets at opening rate and
the results of overseas operations at actual rate are recognised in
other comprehensive income and accumulated in the currency translation
reserve.
Revenue
Revenue from contracts with customers is recognised when control of
the services are transferred to the customer at an amount that reflects
the consideration to which the company expects to be entitled in exchange
for those services.
Provided the amount, if applicable, can be measured reliably and it
is probable that the Company will receive the consideration, revenue
for services is recognised as follows:
Owned - primarily derived from hotel operations, including the rental
of rooms and ad hoc utility services sales from owned hotels operated
under the "easy" brand name. Revenue is recognised when rooms are
occupied, and ad hoc utility services are provided.
Franchise fees - received in connection with the licence of the Company's
brand name, usually under long-term contracts with the hotel owner.
The Company charges franchise royalty fees and processing fees as
a percentage of room revenue and in some cases receives an upfront
fee on the grant of a franchise. Revenue is earned and recognised
when the customer has occupied the room at the franchisee's operated
hotel accommodation. Upfront fees are generally recognised immediately
as an initial sign-on income, with portions relating to legal, contractual,
marketing or similar items recognised over the period from signing
to opening. Where upfront fees specifically relate to exclusivity,
these fees are recognised over the franchisee exclusivity period.
Consideration received in advance for which the revenue recognition
criteria above have not been satisfied are deferred until such time
as the revenue recognition criteria have been satisfied.
Segmental reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker. The chief
operating decision maker has been identified as the Board of Directors.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction
or production of qualifying assets, which are assets that necessarily
take a substantial period of time to get ready for their intended
use or sale, are added to the cost of those assets, until such time
as the assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings,
if any, pending their expenditure on qualifying assets, is deducted
from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the
period in which they are incurred.
Provisions
Provisions are recognised for liabilities of uncertain timing or amounts
that have arisen as a result of past transactions and are discounted
at a pre-tax rate reflecting current market assessments of the time
value of money and the risks specific to the liability.
Changes in Accounting Policies
a) New standards, interpretations and amendments effective during
the period
New standards impacting the group that have been adopted for the interim
accounts
-- IFRS 9: Financial Instruments (replacing IAS 39)
-- IFRS 15: Revenue from contracts with customers (replaces IAS 18)
IFRS 9 brings together all three aspects of accounting for financial
instruments: classification and measurement, impairment and hedge
accounting. The accounting policy for financial assets and liabilities
were updated to comply with IFRS 9, the introduction of the new standard
was assessed and its impact is deemed immaterial on financial instruments
of the group as previously reported.
IFRS 15 applies to all revenue arising from contracts with customers,
unless those contracts are in scope of other standards. The new standard
establishes a five steps model to account for revenue arising from
contracts with customers. Under IFRS 15, revenue is recognised when
the control of services are transferred to the customer at an amount
that reflects the consideration to which an entity expects to be entitled
in exchange for transferring services to a customer.
The standard requires entities to exercise judgement, taking into
consideration all of the relevant facts and circumstances when applying
each step of the model for contracts with their customers. The standard
also specifies the accounting for the incremental costs of obtaining
a contract and the costs directly related to fulfilling a contract.
Based on the assessment, the accounting policy for Revenue was updated
to comply with IFRS 15 and there was no material impact of introduction
of this new standard on revenue recognition of the group as previously
reported.
Adoption of IFRS 16 will result in the group recognising right of
use assets and lease liabilities for all contracts that are, or contain,
a lease. For leases currently classified as operating leases, under
current accounting requirements the group does not recognise assets
or liabilities, and instead spreads the lease payments on a straight-line
basis over the lease term, disclosing in its annual financial statements
the total commitment.
The Board has decided it will apply the modified retrospective method
of adoption of IFRS 16, and therefore will only recognise leases on
the balance sheet as at 1 October 2018. In addition, it has decided
to measure right of-use-assets by reference to the measurement of
the lease liability on that date.
Instead of recognising an operating expense for its operating lease
payments, the group will instead recognise interest on its lease liabilities
and amortisation on its right-of-use assets.
The directors anticipate that the adoption of IFRS 16 in future periods
may have an impact on the results and net assets of the Company, however,
the board continues to assess and will quantify at year end. The directors
anticipate that the adoption of other Standards and interpretations
that are not yet effective in future periods will only have an impact
on the presentation in the financial statements of the Company.
Critical accounting estimates and judgements
The Group makes certain estimates and assumptions regarding the future.
Estimates and judgements are continually evaluated based on historical
experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances. In the
future, actual experience may differ from these estimates and assumptions.
The estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities
within the next financial year are discussed below.
(a) Impairment of assets
The Group is required to consider assets for impairment where such
indicators exist using value in use calculations or fair value estimates.
The use of these methods may require the estimation of future cash
flows and the choice of a discount rate in order to calculate the
value in use or fair value.
(b) Useful lives of property, plant and equipment
Property, plant and equipment are depreciated over their useful lives.
Useful lives are based on the management's estimates for the period
that the assets will generate revenue, which, along with their estimated
residual values, are periodically reviewed for continued appropriateness.
Changes to estimates can result in significant variations in the carrying
value and amounts charged to the consolidated statement of comprehensive
income in specific periods.
(c) Taxation
The Group is subject to income tax and significant judgement is required
in determining the provision for income taxes. During the ordinary
course of business, there are transactions and calculations for which
the ultimate tax determination is uncertain. As a result, the Group
recognises tax liabilities based on estimates of whether additional
taxes and interest will be due. These tax liabilities are recognised
when the Group believes that certain positions are likely to be challenged
and may not be fully sustained upon review by tax authorities. The
Group believes that its accruals for tax liabilities are adequate
for all open audit years based on its assessment of many factors including
past experience and interpretations of tax law. This assessment relies
on estimates and assumptions and may involve a series of complex judgements
about future events. To the extent that the final tax outcome of these
matters is different than the amounts recorded, such differences will
impact income tax expense in the period in which such determination
is made.
3 Revenue Unaudited Unaudited Audited
6 months ended 6 months ended year ended
31/03/19 31/03/18 30/09/2018
-----------------------------------------------
GBP GBP GBP
----------------------------------------------- --------------- --------------- -------------------------
Revenue arises from:
Owned hotel revenue 6,368,491 3,868,148 9,075,454
Franchised hotel revenue 801,410 802,933 1,810,918
Other income 90,000 87,000 367,500
----------------------------------------------- --------------- --------------- -------------------------
7,259,901 4,758,081 11,253,872
----------------------------------------------- --------------- --------------- -------------------------
Geographical information Unaudited Unaudited Audited
6 months ended 6 months ended year ended
31/03/19 31/03/18 30/09/2018
-----------------------------------------------
GBP GBP GBP
----------------------------------------------- --------------- --------------- -------------------------
Revenue by location
United Kingdom 5,219,117 4,118,484 9,575,363
Europe 2,016,013 592,425 1,619,136
Rest of the world 24,771 47,172 59,372
----------------------------------------------- --------------- --------------- -------------------------
7,259,901 4,758,081 11,253,872
----------------------------------------------- --------------- --------------- -------------------------
4 Operating profit and adjusted
EBITDA
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
31/03/19 31/03/18 30/09/2018
-----------------------------------------------
GBP GBP GBP
----------------------------------------------- --------------- --------------- -------------------------
The following have been included
in arriving at operating profit
before tax:
Staff Costs:
Wages and Salaries 1,494,439 1,114,328 2,350,291
Social Security Costs 161,759 130,877 230,909
Staff recruitment and training 51,486 52,065 102,784
----------------------------------------------- --------------- --------------- -------------------------
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
31/03/19 31/03/18 30/09/2018
-----------------------------------------------
GBP GBP GBP
----------------------------------------------- --------------- --------------- -------------------------
Other Adjusting items from reportable
segments include:
Other adjusting items include:
Recruitment fees and other related
costs (201,001) - (124,540)
Legal fees (91,567) - (124,213)
Other Adjustments (35,484) (33,671) -
Abortive fees - - (54)
Total non-recurring income/(costs) (328,052) (33,671) (248,807)
----------------------------------------------- --------------- --------------- -------------------------
5 Segment information
The Group has two main reportable segments:
-- Owned properties - This segment is involved in hotel
operations carried out in the Group's owned hotels and properties.
-- Franchising - This segment involves the Group's franchised hotel
operations, in connection with the licence of the Group's brand name.
Factors that management used to identify
the Group's reportable segments
These segments are considered on the basis of ownership.
Franchises are governed via franchise agreements and are
managed independently.
Measurement of operating segment profit
or loss, assets and liabilities
The accounting policies of the operating segments are the same as
those described in the summary of significant accounting policies.
The Group evaluates performance on
the basis of adjusted EBITDA.
Segment assets exclude tax assets. Segment liabilities exclude
tax liabilities. Even though loans and borrowings arise
from finance activities rather than operating activities,
they are allocated to the segments based on relevant factors
(e.g. funding requirements). Details are provided in the
reconciliation from segment assets and liabilities to the
Group position.
Owned
-----------------------------------------------
properties Franchising Total
-----------------------------------------------
GBP GBP GBP
----------------------------------------------- --------------- --------------- -------------------------
31 March 2019
Revenue
Total revenue from external customers 6,458,491 801,410 7,259,901
Adjusted EBITDA 2,221,597 398,740 2,620,337
Profit before taxation 994,252 371,435 1,365,686
Segment assets 138,075,125 1,543,108 139,618,233
Segment liabilities (21,763,855) (1,095,819) (22,859,674)
-----------------------------------------------
Other
Additions to non-current assets 11,779,567 - 11,779,567
Disposals of non-current assets - - -
Finance income 126,570 - 126,570
Finance cost (115,143) - (115,143)
Depreciation and amortisation (1,502,313) - (1,502,313)
-----------------------------------------------
31 March 2018
Revenue
Total revenue from external customers 3,955,148 802,933 4,758,081
Adjusted EBITDA 1,488,073 422,278 1,910,351
Profit before taxation 940,657 402,827 1,343,484
Segment assets 135,535,976 1,144,429 136,680,405
Segment liabilities (16,525,473) (1,522,978) (18,048,451)
-----------------------------------------------
Other
Additions to non-current assets 11,751,691 209,197 11,960,888
Disposals of non-current assets - - -
Finance income 93,383 - a93,383
Finance cost (59,762) - (59,762)
Depreciation and amortisation (580,937) (19,451) (600,388)
----------------------------------------------- --------------- --------------- -------------------------
30 September 2018
Revenue
Total revenue from external customers 9,442,954 1,810,918 11,253,872
Adjusted EBITDA 3,910,856 1,097,977 5,008,833
Profit before taxation 2,969,996 1,055,215 4,025,211
Segment assets 138,975,913 2,272,609 141,248,522
Segment liabilities (21,455,702) (1,708,099) (23,163,801)
-----------------------------------------------
Other
Additions to non-current assets 22,244,516 - 22,244,516
Disposals of non-current assets - - -
Finance income 358,074 - 358,074
Finance cost (141,010) - (141,010)
Depreciation and amortisation (1,502,313) - (1,502,313)
-----------------------------------------------
Reconciliation of reportable adjusted EBITDA, profit or loss,
assets and liabilities to the Group's corresponding amounts
is shown below:
Unaudited Unaudited Audited
6 months 6 months ended year ended
ended 31/03/19 31/03/18 30/09/2018
-----------------------------------
GBP GBP GBP
----------------------------------- ---------------- --------------- -------------
Adjusted EBITDA of reportable
segments 2,620,337 1,910,351 5,008,833
Adjusted EBITDA of corporate
office (1,163,974) (927,661) (2,050,100)
------------------------------------ ---------------- --------------- -------------
Total adjusted EBITDA 1,456,364 982,690 2,958,733
------------------------------------ ---------------- --------------- -------------
Profit before income tax
Total profit of reportable
segments 1,365,686 1,343,484 4,025,211
Corporate office expenses
and interest (1,104,701) (1,041,778) (2,380,705)
Other adjusting items (328,052) (33,725) (248,807)
Hotel pre-opening and development
costs (124,729) (47,920) (246,971)
Share based payments 68,041 (129,944) (276,565)
---------------
Profit before tax per statement
of comprehensive income (123,755) 90,117 872,163
------------------------------------ ---------------- --------------- -------------
Assets
Total assets for reportable
segments 139,618,233 136,680,405 141,246,929
Cash in Employee Benefit
Trust 1,593 1,593 1,593
Corporate office assets 2,967,207 1,060,183 2,217,632
------------------------------------ ---------------- --------------- -------------
Total assets per statement
of financial position 142,587,033 137,742,181 143,466,154
------------------------------------ ---------------- --------------- -------------
Liabilities
Total liabilities for reportable
segments (22,859,674) (18,048,453) (23,163,801)
Corporation tax (118,107) 47,334 (131,561)
Corporate office liabilities (528,529) (423,000) (110,929)
Deferred tax liabilities (459,823) (381,531) (418,349)
------------------------------------ --------------- -------------
Total liabilities per statement
of financial position (23,966,133) (18,805,650) (23,824,640)
------------------------------------ ---------------- --------------- -------------
Geographical information Unaudited Unaudited Audited
6 months 6 months ended year ended
ended 31/03/19 31/03/18 30/09/2018
-----------------------------------
GBP GBP GBP
----------------------------------- ---------------- --------------- -------------
Revenue by location
United Kingdom 5,219,117 4,118,484 9,575,363
Europe 2,016,013 592,425 1,619,136
Rest of the world 24,771 47,172 59,372
------------------------------------ ---------------- --------------- -------------
7,259,901 4,758,081 11,253,871
----------------------------------- ---------------- --------------- -------------
6 EPS
Basic earnings per ordinary share are calculated using the weighted
average number of ordinary shares in issue during the financial
period of 144,829,546 (31 March 2018: 104,120,255; 30 September
2018: 126,896,794).
Diluted earnings per ordinary share are calculated using the weighted
average number of ordinary shares in issue during the financial
period of 145,072,879 (31 March 2018: 104,200,717; 30 September
2018: 127,039,707).
The company has 142,913 potentially dilutive options, issued or
outstanding. Earnings consist of profit/ (Loss) for the period attributable
to the shareholders amounting to GBP(114,294) (31 March 2018: GBP67,590;
30 September 2018: GBP646,504).
7 Trade and other
payables
Unaudited Unaudited Audited
-----------------------------
6 months ended 31/03/19 6 months ended 31/03/18 year ended 30/09/2018
-----------------------------
GBP GBP GBP
----------------------------- ------------------------- ------------------------ ----------------------
Trade payables 979,650 476,092 1,790,687
Other payables 317,228 85,953 341,609
Amounts payable
to franchisees
in future 581,823 1,308,267 1,099,645
Accruals 2,159,851 2,380,223 2,282,633
----------------------------- ------------------------- ------------------------ ----------------------
Total financial
liabilities classified
as financial liabilities
measured at amortised
cost 4,038,552 4,250,535 5,514,574
Other taxation
and social security 179,216 110,331 151,958
VAT payable - - -
Bookings in advance 1,317,549 743,057 963,057
Deferred income 195,060 239,225 185,162
----------------------------- ------------------------- ------------------------ ----------------------
Total trade and
other payables 5,730,377 5,343,148 6,814,751
----------------------------- ------------------------- ------------------------ ----------------------
Classified as follows:
Non-current portion 735,091 - 756,826
Current portion 4,995,286 5,343,148 6,057,926
----------------------------- ------------------------- ------------------------ ----------------------
8 Finance income
Unaudited Unaudited Audited
6 months ended 31/03/19 6 months ended 31/03/18 year ended 30/09/2018
-----------------------------
GBP GBP GBP
----------------------------- ------------------------- ------------------------ ----------------------
Finance income
Interest income
on financial assets
measured at amortised
cost 120,978 93,283 358,074
Foreign exchange
gain 5,593 - (53,181)
----------------------------- ------------------------- ------------------------ ----------------------
Total finance income
recognised in profit
or loss 126,570 93,283 304,893
----------------------------- ------------------------- ------------------------ ----------------------
9 Finance expense
Unaudited Unaudited Audited
6 months ended 31/03/19 6 months ended 31/03/18 year ended 30/09/2018
-----------------------------
GBP GBP GBP
----------------------------- ------------------------- ------------------------ ----------------------
Finance expense
Interest expense
on financial liabilities
measured at amortised
cost 356,231 208,703 509,891
Amount capitalised
* (241,088) (148,941) (393,083)
Foreign exchange - 8,475 -
loss
----------------------------- ------------------------- ------------------------ ----------------------
Total finance expense
recognised in profit
or loss 115,143 68,237 116,808
----------------------------- ------------------------- ------------------------ ----------------------
* Interest expense attributable to construction works
has been capitalised to property, plant and equipment.
10 Trade and other receivables
Unaudited Unaudited Audited
--------------------------------------
6 months 6 months year ended
ended 31/03/19 ended 31/03/18 30/09/2018
--------------------------------------
GBP GBP GBP
-------------------------------------- ---------------- ---------------- ------------
Trade receivables 246,819 221,438 216,076
Accrued income 25,635 28,098 34,542
--------------------------------------- ---------------- ---------------- ------------
Total financial assets other
than cash and cash equivalents
classified as loans and receivables 272,454 249,536 250,618
Prepayments 982,961 406,742 831,363
VAT receivable 1,591,801 1,758,376 2,323,269
Other receivables 334,656 9,143 617,310
--------------------------------------- ---------------- ---------------- ------------
Total trade and other receivables 3,181,872 2,423,797 4,022,560
--------------------------------------- ---------------- ---------------- ------------
Classified as follows:
Current portion 3,181,872 2,423,797 4,022,560
--------------------------------------- ---------------- ---------------- ------------
There is no material difference between the net book value and the
fair values of trade and other receivables due to their short-term
nature.
[1] Total system sales a non-statutory measure that represents
the full amount that the customer pays for our owned and franchised
hotels, including initial sign-on fees paid by franchisees to the
Company
[2] Adjusted EBITDAR is a non-statutory measure that represents
earnings before interest, tax, depreciation, amortisation and rent,
adjusted for pre-opening costs related to the development of
hotels, share based payments and other adjusting items such as
organisational restructuring costs. Adjusted EBITDA reflects
Adjusted EBITDAR after rent.
[3] Market source: Midscale & Economy (MSE) segment from the
UK Performance Monitor report, produced by STR Global
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR EAXSPAFANEFF
(END) Dow Jones Newswires
May 29, 2019 02:00 ET (06:00 GMT)
Easyhotel (LSE:EZH)
Historical Stock Chart
From Apr 2024 to May 2024
Easyhotel (LSE:EZH)
Historical Stock Chart
From May 2023 to May 2024