IKEJA HOTEL PLC (RC 10845)

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1 IKEJA HOTEL PLC (RC 10845) Unaudited Financial Statements For The Quarter Ended 31 March, 2017

2 IKEJA HOTEL PLC Contents Page The Company 1 Statement of Financial Position 2 Satement of Comprehensive Income 3 Statement of Changes in Equity 4 Statement of Cash Flows 5 Notes to Financial Statement 6 Income Statement Forecast 12 Operating Summary 13

3 IKEJA HOTEL PLC The Group The group comprise Ikeja Hotel Plc and its subsidiary Hans-Gremlin Limited, a special purpose vehicle which holds 51% of the ordinary shares in Capital Hotels Plc. The Company Ikeja Hotel Plc., formerly Properties Development Limited, was incorporated on 18 November, It owns the Sheraton Lagos Hotel, a core investor in Hans Gremlin Nigeria Limited and a shareholder in the Tourist Company of Nigeria Plc. (Owners of Federal Palace Hotel & Casino, Lagos). The registered office of the company is located at 84 Opebi Road, Ikeja, Lagos. The hotel is managed and operated by Starwood Eame License and Services Company BVBA (now Marriot) Principal activities The principal activities of the group are the operation of hotels and restaurants, apartment letting, recreational facilities, night clubs and business centre, advisory and consultancy services to undertakes advisory management on all type of businesses. Accounting Policies The same accounting policies and methods of computation are followed in the interim financial statements for the quarter ended 31 March, 2017 as were followed in the most recent financial statements. Statement of Compliance The financial statements have been prepared in accordance with Interim Financial Reporting (IAS 34) under the International Financial Reporting Standards. Going Concern Status The consolidated financial statements have been prepared on a going concern basis, which assumes that the entity will be able to meet its financial obligations as at when they fall due. There are no significant financial obligations that will impact on the entity's resources which will affect the going concern of the entity. Management is satisfied that the entity has adequate resources to continue in operational existence for the foreseable future. For this reason, the going concern basis has been adopted in preparing the consolidated financial statements. 1

Statement of Financial Position As at 31 March, 2017 The Group The Company Notes Non-Current Assets Property, plant and equipment 1 6,421,148 6,562,469 4,078,780 4,101,119 Capital Work in Progress 2

4 Statement of Financial Position As at 31 March, 2017 The Group The Company Notes Non-Current Assets Property, plant and equipment 1 6,421,148 6,562,469 4,078,780 4,101,119 Capital Work in Progress 2 4,451,730 4,268,744 3,927,927 3,744,941 Intangible Asset 3 30,697 32,767 11,702 12,208 Investment in Subsidiaries ,440,919 4,440,919 Investments in Joint Venture , , , ,722 Loans and Receivables 13 7,061,733 6,950,683 6,061,732 5,950,682 Due from Related Party , , , ,348 Total Non-Current Assets 19,093,221 18,942,010 19,821,698 19,549,940 Current Assets Inventories , , , ,132 Trade and Other Receivables 10 1,388,578 1,221, , ,959 Other Assets 11 1,062,299 1,008, , ,541 Cash and Cash Equivalents 15 4,611,742 3,520, , ,418 Total Current Assets 7,632,292 6,329,840 2,421,317 2,210,051 Total Assets 26,725,513 25,271,850 22,243,015 21,759,990 Equity and Reserves Share Capital 24 1,039,398 1,039,398 1,039,398 1,039,398 Share Premium 25 1,381,072 1,381,072 1,381,072 1,381,072 Retained Earnings 26 4,325,472 4,285,004 5,165,495 5,152,827 Equity attributable to equity holders of Parent 6,745,943 6,705,475 7,585,965 7,573,297 Non-Controlling interest ,354,654 2,275, ,100,596 8,980,674 7,585,965 7,573,297 Liabilities Non-Current Liabilities Due to Related Parties 20 5,167,315 5,016,810 6,804,700 6,694,896 Employee Benefits 23 2,224,892 2,445,299 1,517,545 1,414,572 Deferred Tax , , , ,835 Non-Total Current Liabilities 8,386,105 8,138,357 8,618,080 8,405,303 Current Liabilities Trade and Other Payables 18 3,288,559 2,477, , ,772 Deferred Income 17 4,756,873 4,626,811 4,691,920 4,580,870 Deposit for Shares 19 93,600 93,600 93,600 93,600 Dividend Payable 21 43,437 43,437 16,691 16,691 Bank Overdraft , , , ,269 Current Tax Payable , , , ,188 Total Current Liabilities 9,238,812 8,152,819 6,038,970 5,781,390 Total Liabilities 17,624,917 16,291,176 14,657,050 14,186,693 Total Equity and Liabilities 26,725,513 25,271,850 22,243,015 21,759,990 These financial statements were signed on behalf of the board of directors on 21 August 2017 by: Mr. Theo Eniola Netufo Chief Operating Officer FRC/2013/ICAN/ Mr. Olayiwola J. Osituwo Compliance Officer FRC/2013/ICAN/

5 Statement of Comprehensive Income For The Period Ended 31 March, 2017 The Group The Company Note 31-Mar Mar-16 # 31-Mar Mar-16 Revenue 4 2,788,850 2,412,138 1,519,846 1,204,929 Cost of Sales 5 (1,881,864) (1,467,407) (993,643) (893,911) Gross Profit 906, , , ,018 Other Income 6 15,337 77,080 13,618 76,025 Sales and Distribution Expenses 8 (119,010) (125,731) (51,425) (66,838) Administrative and General Expenses 7 (441,781) (399,544) (316,277) (276,715) Operating Profit 361, , ,119 43,490 Finance costs 9 (181,059) (151,859) (181,059) (151,859) Share of loss in investment accounted for using equity Profit/(Loss) before Taxation 180, ,677 (8,940) (108,369) Current Tax Expense 22 (60,551) (144,975) - - Profit/(Loss) for the for the period 119, ,702 (8,940) (108,369) Profit/(Loss) attributable to: Equity holders of the parent 40,468 9, Non-controlling interest 79, , , ,702 (8,940) (108,369) Other Comprehensive Income/(Loss) for the Period Total Comprehensive Income/(Loss) for the Period 119, ,702 (8,940) (108,369) Eanings per share (kobo) 6 10 (0.43) (5.21) 3

6 Ikeja Hotel Plc Statement of Changes in Equity as at 31 March, 2017 The Group The Company Issued Share Retained Noncontrolling Total Issued Share Retained Attributable to the Equity Holders of the Company Capital Premium Earnings interest equity Capital Premium Earnings Total =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 =N='000 Balance as at 31 December ,039,398 1,381,072 4,285,004 2,275,200 8,980,674 1,039,398 1,381,072 5,174,434 7,594,904 Changes in Equity for the Period Profit for the period 40,468 79, , (8,940) (8,940) Total Comprehensive Income for the Period - - (8,940) (8,940) At 31 March, ,039,398 1,381,072 4,325,472 2,354,654 9,100,596 1,039,398 1,381,072 5,165,495 7,585,965 At 31 December, ,039,398 1,381,072 2,096,037 1,915,096 6,431,603 1,039,398 1,381,072 5,218,058 7,638,529 Changes in Equity for the period Changes in Equity for the period Profit for the period 9, , , (108,369) (108,369) Total Comprehensive Income for the Period - - (108,369) (108,369) At 31 March, ,039,398 1,381,072 2,105,505 2,105,330 6,631,305 1,039,398 1,381,072 5,109,689 7,530,159 4

7 Condensed Statement of Cash Flows For the Period Ended 31 March, 2017 The Group The Company Notes 31-Mar Mar Mar Mar-16 Profit/(Loss) for the Period 119, ,702 (8,940) (108,369) Adjustment for: Depreciation of PPE 1 199, , , ,020 Amortisation of Intangible Asset Finance Costs 9 181, , , ,859 Post Employment Benefits 7 37, , ,973 - Income tax expense 22 60, , , , ,243 Changes in: Inventories 12 10,208 15,368 7,043 15,368 Trade and Other Receivables 10 (166,758) 167,910 (231,202) 167,910 Other Assets 11 (54,274) (255,393) (76,419) (255,393) Loans and Receivables 13 (111,050) (45,675) (111,050) (45,675) Due from Related Parties 14 (567) 49,715 (567) 49,715 Trade and Other Payables , ,468 (18,150) 826,468 Deferred Income , , , ,070 Due to Related Parties ,505 (826,468) 109,804 (826,468) Cash generated from Operating Activities 1,369, , , ,239 Income tax paid 22 (39,973) - - (40,000) Net Cash from Operating Activities 1,329, , , ,239 Cash Flows from Investing Activities Purchase of PPE 1 (134,638) (85,885) (85,885) - Additions/Utilization of Capital Work in Progress 2 (182,986) (182,986) (182,986) (155,922) Net Cash Flows used in Investing Activities (317,624) (268,871) (268,871) (155,922) Cash Flows from Financing Activities Finance Costs 9 (181,059) (151,859) (181,059) (151,859) Net Cash Flows used in Financing Activities (181,059) (151,859) (181,059) (151,859) Net Increase in Cash and Cash Equivalent 830, ,999 (275,598) (40,542) Cash and Cash Equivalents at the beginning of the year 3,520, , , ,008 Cash and Cash Equivalent at the end of the period 4,350, ,007 8, ,466 5

8 SCHEDULE OF PROPERTY PLANT AND EQUIPMENT For the Quarter Ended 31 March, 2017 The Group Hotel Equipment Office Equipment Computer Equipment Motor Vehicles Total 1 Cost/Valuation Land Buildings At 1st January 3,440,742 1,590,382 4,438,427 3,409, , ,228 13,554,324 Addition - 21,617 99,349 9,851 3, ,638 Adjustment ,000 (19,843) 404 (15,955) At 31 March, ,440,742 1,612,483 4,540,776 3,399, , ,633 13,673,007 Depreciation and impairment At 1st January 729,647 3,137,552 2,502, , ,939 6,991,855 Adjustment 4,706 (15) 50,764 5,426 60,881 Depreciation charge during the year - 12, ,200 53,051 5,416 4, ,124 At 31 March, ,119 3,260,737 2,606, , ,057 7,251,859 Carrying Amount At 31 March, ,440, ,364 1,280, ,869 17,558 24,576 6,421,148 At 31 December, ,440, ,735 1,300, ,676 19,153 34,289 6,562,469 The Company Hotel Equipment Office Equipment Computer Equipment Motor Vehicles Total 1 Cost/Valuation Land Buildings At 1st January 3,084, ,849 2,252,505 73, , ,214 6,594,897 Addition - 7,522 74, ,822-85,885 At 31 March, ,084, ,371 2,326,889 73, , ,214 6,680,783 Depreciation and impairment At 1st January - 460,275 1,566,330 57, , ,887 2,493,779 Depreciation charge during the year - 7,180 93,149 1,200 5,416 1, ,224 At 31 March, ,456 1,659,479 58, , ,165 2,602,003 Carrying Amount At 31 March, ,084, , ,410 14,498 17,558 9,049 4,078,780 At 31 December, ,084, , ,175 15,540 19,153 10,327 4,101,119 6

9 NOTES TO THE ACCOUNTS The Group The Company Note Capital Work in Progress 2 At 1 January 4,268,744 1,181,472 3,744, ,669 Additions in the period 182,986 3,087, ,986 3,087,272 Total 4,451,730 4,268,744 3,927,927 3,744,941 This represents on going renovation works at the hotel 3 Intangible Asset 3.1 Computer Software Cost/Valuation At 1 January 46,080 33,267 20,236 20,236 Additions for the year - 12, Total 46,080 46,080 20,236 20, Amortization At 1 January 13,312 9,866 8,028 6,004 Adjustment Charge for the period 1,335 3, ,024 At 31 March, ,383 13,312 8,534 8, Carrying Value 30,697 32,767 11,702 12, Mar Mar Mar Mar-16 4 Revenue Rooms 2,241,219 1,951, , ,012 Food & Beverage 411, , , ,222 Minor Operating Departments 16,023 12,669 16,023 12,669 Miscellaneous Income 119,715 99, ,715 99,027 Total 2,788,850 2,412,138 1,519,846 1,204, Mar Mar Mar Mar-16 5 Cost of Sales Rooms 1,108, , , ,608 Food & Beverage 337, , , ,664 Minor Operating Departments 9,909 40,564 9,909 40,564 Cost of Sales - Head Office 1,736 3,127 1,736 3,127 Administrative & General 200, , , ,734 Info & Telecom System 37,903 30,216 37,903 30,216 Property Operations & Maintenance 73,083 68,770 73,083 68,770 Rental Income Expenses - 72,396-72,396 Utilities 113,567 77, ,567 77,834 Total 1,881,864 1,467, , , Mar Mar Mar Mar-16 6 Other Income Sales of Scrap Exchange Gain on Translation of Currency 7,486 4,328 7,486 3,274 Others 7,851 72,296 6,132 72,296 15,337 77,080 13,618 76,025 7

10 31-Mar Mar Mar Mar-16 7 Administrative Expenses 441, , , , Mar Mar Mar Mar-16 8 Sales & Marketing Expenses 119, ,731 51,425 66, Mar Mar Mar Mar-16 9 Finance Income and Finance Cost Interest Expense 181, , , ,859 Net Finance Cost 181, , , ,859 Interest expense represents charges paid and/or payable on loans. 10 Trade and Other Receivables 1,511,565 1,269, , ,607 Allowances for Impairment Losses (223,669) (68,984) (76,968) (68,984) Net Trade Receivables 1,287,897 1,200, , ,624 Other Receivables 100,681 21,335 20,141 21,335 1,388,578 1,221, , , Other Assets Prepayments 317, , ,997 97,304 Withholding tax receivables 687, , , ,540 Advances to Suppliers 46, ,973 46, ,973 Advances to Employees 10, , Total 1,062,299 1,008, , , Inventories Food & Beverage 123, ,456 54,024 61,377 Maintenance Supplies 89, ,774 89,021 86,122 Operating Supplies 219, , , ,922 General Stores 136, ,829 26,528 34,711 Total 569, , , , Loans and Receivables At 1 January 6,950,683 4,653,928 5,950,682 3,653,928 Interest Capitalised 111, , , ,366 Exchange Revaluation - 2,013,389-2,013,389 7,061,733 6,950,683 6,061,732 5,950,682 Loans and receivable relate to receivable from The Tourist Company of Nig. Plc 14 Due from Related Party Federal Palace/Sun 17,337 16,770 17,337 16,770 Hans-Gremlin (Nigera) Ltd , ,578 Ikeja Hotel Plc Others 311, , Total 329, , , ,348 The carrying amount of due from related party relate to their fair value 15 Cash & Cash Equivalents Cash in Hand 5,016 4, Cash at Bank 1,054, , , ,485 1,059, , , ,418 Provision for Doubtful Balance ,059, , , ,418 Time Deposits 3,552,028 2,627, As per Statement of Financial position 4,611,742 3,520, , ,418 8

11 16 Bank Overdraft 515, , , , Deferred Income 4,756,873 4,626,811 4,691,920 4,580, Trade and Other Payables Trade Payables 289, ,835 49, ,958 Accrued Expenses 1,864,296 1,808, , ,828 Due to Starwood Eame License and Service Company 23,908 23,908 23,908 23,908 VAT Payables 20,742 16,348 20,742 16,348 Advance Deposit 4, , Service Charge Distribution 41,598 37,685 41,598 37,685 Other Credit Balances 1,043, , , ,271 Total 3,288,559 2,477, , , Deposit for Shares 93,600 93,600 93,600 93, Due to Related Parties Capital Hotel Plc - - 1,079,922 1,114,292 IHL Services limited , ,794 Alurum investment Ltd/Omamo Trust Limited 2,545,947 2,471,793 2,545,947 2,471,793 Minabo Limited 1,487,441 1,444,117 1,487,441 1,444,117 AVI Services/G. M. Ibru 1,133,927 1,100,900 1,133,927 1,100,900 5,167,315 5,016,810 6,804,700 6,694,896 At 1, January 43,437 43,437 16,691 16, Dividend 43,437 43,437 16,691 16, Taxation 22.1 Current Tax Payable As at January 560, , , ,095 Provision during the period 19, , Payment during the period (39,973) (654,116) - (464,907) At 31 March, , , , ,188 The charge for taxation has been computed in accordance with the provisions of the companies income tax Act CAP C21,LFN 2004 and the Education Tax, CAP E4, LFN 2004 as amended 22.2 Deferred Taxation At January 676, , , ,835 Write back/charge in the period 317, At 31 March, , , , , Current Tax Charges Income Tax 56, , Education Tax 3,784 9, , , Deferred Taxation Income Statement 60, ,

12 23 Employee Benefits At 1, January Provision during the period Payment during the period At 31 December, Defined Benefits N'000 N'000 At 1, January 2,445,299 3,050,524 1,414,572 1,694,643 Payment in the period (362,388) (605,465) - (264,847) Provision 141, ,973 - At 31 March, ,224,892 2,445,299 1,517,545 1,414, Share Capital 24.1 Authorised 4,000,000,000 Ordinary shares of 50 kobo each 2,000,000 2,000,000 2,000,000 2,000, Issued and fully paid At 1 January 1,039,398 1,039,398 1,039,398 1,039,398 At 31 March, ,039,398 1,039,398 1,039,398 1,039,398 Number: 2,078,796,396 ordinary shares of 50 kobo each 25 Share Premium Reserve At 1 January 1,381,072 1,381,072 1,381,072 1,381,072 At 31 March, ,381,072 1,381,072 1,381,072 1,381, Retained Earnings At 1 January Transfer from profit & loss account 4,285,004 40,468 4,275,536 9,468 5,174,434 (8,940) 5,218,058 (65,231) Other Comprehensive Income - - At 31 March, ,325,472 4,285,004 5,165,495 5,152, Non-controlling interest At 1 January 2,275,200 1,973, Share of profit 79, , Other Comprehensive Income At 31 March, ,354,654 2,275,

13 27 Investment in Subsidiary Hans Gremin Nigeria Limited - - 4,440,919 4,440,919 The Ikeja Hotel Plc holds 75% of the issued share of Hans Gremin Nigeria Limited a special purpose vehicle used in acquiring 51% of the issued share capital of Capital Hotels Plc. 28 Investment Accounted for the Equity Method At 1 January 798, , , ,722 At 31 March, , , , ,722 Investment relates to 273,529,085 units of stock in The Tourist Company of Nigeria Plc. 11

14 Statement of Comprehensive Income Forecast For the Period Ended 30 June, =N='000 Turnover 4,601,603 Cost of Sales (2,803,977) Gross Operating Profit 1,797,626 Operating Expenses (1,037,464) Result from Operating Activities 760,162 Net finance costs (271,588) Profit/(Loss) before Taxation 488,574 Current Tax Expense (156,344) Profit for the period 332,230

15 UNAUDITED RESULT FOR THE QUARTER ENDED 31 MARCH, % =N='000 =N='000 Change TURNOVER 2,788,850 2,412, OPERATING PROFIT 361, ,536 (27.19) FINANCE CHARGES (181,059) (151,859) (19.23) PROFIT/(LOSS) BEFORE TAX 180, , TAXATION (60,551) (144,975) PROFIT/(LOSS) AFTER TAX 119, ,

IKEJA HOTEL PLC (RC 10845)

IKEJA HOTEL PLC (RC 10845) Unaudited Financial Statements For The Half-Year Ended 30 June, 2017 IKEJA HOTEL PLC Contents Page 1 Statement of Financial Position 2 Satement of Comprehensive Income 3 Statement