easyhotel plc Interim Results for the six months ended 31 March 2017

Transcription

1 Interim Results for the six months ended 31 March 2017

2 Introduction Guy Parsons Chief Executive Officer p2

3 Highlights H1 Profitable Growth Trading slightly ahead of Board expectations Revenue +21.2% Like for like owned hotels revenue +17.4% Adjusted EBITDA +13.2% New Openings 5 hotels / 535 new rooms opened Openings exceeding maturity expectations Development 5 Owned hotels in development 7 Franchised hotels in development Strong pipeline p3

4 Market Update Continued Market Outperformance H1 2016/2017 Owned hotels Like-for-like sales: +17.4% YoY RevPAR outperformance vs. market: +19.4pts Franchised hotels: Like-for-like Sales: +6.8% H2 2016/ Outlook United Kingdom Consumer spending has slowed leaving easyhotel perfectly positioned to cater for people looking for best value Market outperformance to continue Europe Strong growth has continued into H2 p4

5 Old Street Update 92 rooms operating from 3 rd October 2017 FY2016 gross contribution: 10.5k per room All strategic options being considered: Partial / full sale No sale Realisable value expected to be significantly above Net Book Value of 12.9m at 31 March 2017 Tax roll over relief available on any capital gain Decision by end of current financial year p5

6 Financial Review Marc Vieilledent Chief Financial Officer p6

7 Financial Summary for half year ended 31 March % Total system sales 1 up 24.7% to 12.05m (2016: 9.66m) Total revenue up 21.2% to 3.14m (2016: 2.59m) Strong like for like owned hotels revenue growth of 17.4% Adjusted EBITDA 2 up 13.2% to 0.65m (2016: 0.58m) Profit before tax was 0.06m (2016: 0.14m), reflecting increased costs relating to development Earnings per share 0.01p (2016: 0.14p) Interim dividend of 0.11p per share (2016: 0.11p per share) on the enlarged share base Robust balance sheet with significant headroom for further investment 1 Total system sales is the full amount that the customer pays for owned and franchised hotels, including initial sign-on fees paid by franchisees to the Company 2 Adjusted EBITDA represents Earnings before Interest, Taxation, Depreciation and Amortisation, adjusted for pre-opening costs related to the development of hotels, This excludes South Africa one-off fee organisational restructuring costs, share based payments and other non-recurring items p7

8 Profit Before Tax & One-Offs 15% H H Change % Revenue 3,137 2, Gross profit* 1,853 1, Gross profit margin 59.1% 64.6% -5.5pts Central costs (1,202) (1,096) 9.7 Adjusted EBITDA Depreciation (266) (224) 18.8 Interest (87) (70) n/a FX gains and losses n/a Profit before tax & one-offs Revenue +21% Gross profit +11% Adjusted EBITDA +13% * Excluding pre-opening costs p8

9 Profit After Tax and One-Offs 15% H H Profit before tax before one-offs One-offs* (275) (182) Profit before tax Taxation (54) (57) Profit for the year 5 83 *One-offs Pre-opening & development costs (111) (49) Share Based Payments and other expenses (164) (133) Total (275) (182) This excludes South Africa one-off fee p9

10 Owned Hotel Performance 15% H H Growth % Owned Hotel Revenue 2,437 2, Adjusted EBITDA 1,111 1, Profit before tax Total Revenue Like for like Revenue Adjusted EBITDA Occupancy 85.3% 21% 17% 2% ADR 38.4 Strong new hotel trading Limited National Living Wage and business rates impact Profit before tax reflects increased costs relating to new openings p10

11 Franchise Hotel Performance 15% H H Growth % Franchised Hotel Revenue Adjusted EBITDA Profit before tax Total Revenue Like for like Revenue Adjusted EBITDA Occupancy 75.2% 23% 7% 59% ADR 43.7 Strong new hotel trading p11

12 Cash Flow Analysis 36,718k ( 18,235k) ( 585k) 635k ( 219k) 24,773k 6,459k p12

13 Financing Cash on the balance sheet of 36.3m at 31 March 2017 On 17 October 2016, the Group completed the placing of 38,000,000 new ordinary shares of 1 pence each in the capital of the Company to raise 38.0m ( 36.7m after expenses) In November 2016, the Group refinanced its 7.2m bank facility with a new facility, terms as follows: 12.0m 5 year term Interest at Libor +2.50% Capital amortising at 3.0% per annum In January 2017, the Group formalised a Spanish bank facility to part-fund the Barcelona development, terms as follows: 8.25m with 0.50m deposit 15 year term Interest at Euribor +2.50% First 2 years interest only, then amortising over 13 years with residual value of 15% Cash at 31 Mar m Spain financing 6.9m Committed pipeline 16.8m Cash available 26.4m p13

14 Development Update Guy Parsons Chief Executive Officer p14

15 Openings easyhotel Birmingham 201 owned rooms opened 85% occupancy* Birmingham 86 rooms Manchester 115 rooms (opened post period) 334 franchised rooms opened 84% occupancy* Brussels 107 rooms Amsterdam Arena 131 rooms Amsterdam Zandaam 96 rooms (opened post period) easyhotel Brussels * H1 2016/17 Occupancy p15

16 Development Pipeline - Owned Open 201 rooms Committed 601 rooms 2016/17 H1 Q3 Q4 2017/18 easyhotel Birmingham easyhotel Manchester easyhotel Liverpool easyhotel Ipswich easyhotel Barcelona easyhotel Sheffield easyhotel Leeds > Further 2,000 rooms under negotiation 700 approved by the Board We continue to adopt stringent investment criteria Leases considered on limited and specific basis where acquisition of freehold does not meet investment return target p16

17 Development Pipeline - Franchised Open 334 rooms Committed 1,236 rooms 2016/17 H1 Q3 Q4 2017/18 easyhotel Brussels easyhotel Amsterdam (Arena) easyhotel Amsterdam (Zandaam) easyhotel Lisbon easyhotel Bur Dubai easyhotel Istanbul easyhotel Reading easyhotel Belfast easyhotel Bernkastel-Kues easyhotel Kathmandu > Further 1,000 rooms under negotiation We are actively engaged in Franchise negotiations in the UK, Europe and the Middle East. p17

18 Summary 1 Good financial performance in H1 2 Strong pipeline in place 3 Old Street decision expected by year end 4 Trading on track to meet board expectations p18

19 Appendix

20 Appendix A: Profit and Loss H H System sales 12,050 9,663 Revenue 3,137 2,589 Cost of sales (1,353) (966) Gross profit 1,784 1,623 Administrative expenses (1,675) (1,453) Analysed as: Adjusted EBITDA Non-recurring costs (80) (8) Hotel pre-opening and development costs (111) (49) Depreciation and amortisation (266) (224) Share based payments (85) (124) Profit from operations Net finance income/(costs) (50) (29) Profit before taxation Taxation (54) (58) Profit for the year 5 83 p20

21 Appendix B: Balance Sheet H H Non-Current Assets Intangible assets Property, plant and equipment 46,364 25,339 Long-term deposits Total non-current assets 47,203 25,423 Current Assets Trade and other receivables 4, Cash and cash equivalents 36,313 17,614 Total current assets 40,416 18,325 Total assets 87,619 43,748 Non-Current Liabilities Trade and other payables Bank borrowings 11,541 - Deferred tax liability Total non-current liabilities 11, Current Liabilities Trade and other payables 6,306 3,743 Bank borrowings - 7,200 Corporation taxation Total current liabilities 6,384 10,980 Total liabilities 18,261 11,260 Total net assets 69,358 32,488 Equity Share capital 1, Share premium 64,776 28,592 Merger reserve 2,750 2,750 EBT reserve (1,067) (1,067) Currency translation reserve (287) - Retained earnings 2,181 1,588 Total equity 69,358 32,488 p21

22 Appendix C: Cash Flow Statement HY 2017 HY Profit before taxation for the year Adjustments for: Depreciation of property, plant and equipment Share based payments Finance income (131) (80) Finance expense Operating cash flows before movement in working capital Decrease in trade and other receivables (1,570) (4) (Decrease)/increase in trade and other payables 1,837 (716) Cash generated from operations 727 (202) Corporate tax paid (50) - Net cash flows from operating activities 677 (202) Finance income Finance expense (181) (109) Net cash generated from operations 627 (231) Purchase of property, plant and equipment (16,808) (4,424) VAT on investing activities (1,427) (166) Net cash used in investing activities (18,235) (4,590) Inflow from equity raise 36,719 - Inflow from bank financing 3,755 - Dividend paid (219) (203) Net cash utilised by financing activities 40,255 (203) Net decrease in cash and cash equivalents 22,647 (5,024) Cash and cash equivalents at the beginning of the period 13,659 22,636 Exchange gains on cash and cash equivalents 7 2 Cash and cash equivalents at the end of the period 36,313 17,614 p22

23 Appendix D: New opening Tripadvisor ratings easyhotel Birmingham 4* tripadvisor rating Great Establishment - Great value for money. Very friendly staff who go the extra yard to ensure your stay is as pleasant and comfortable as possible. Newly opened, so basic, clean and comfortable. I've stayed weekly and will keep returning - 12 visits so far - Garry S easyhotel Amsterdam Arena 3.5* tripadvisor rating Sleek,convenient and value for money - 24 hours desk. Located in Business district with plenty of food joints around. Well connected with Airport by Bus and Train. Helpful Staff. Automated check-in process which takes away any human interaction. The process is easy and intuitive. - Milindnamo easyhotel Brussels 4* tripadvisor rating Small but clean and nice - It's extremely small but the location is amazing. The place lacks amenities but the price and location is something you can't get anywhere else. It's surprisingly modern and very clean. We were only there to sleep anyways so I didn't mind the tiny space. Giving the place four stars because it's so small. - leana p easyhotel Manchester 4* tripadvisor rating First night - Wanted to be one of the first to experience this flagship hotel once it had opened in Manchester. Reception staff us a really warm welcome washing away the travel woes of the journey with a smile. Room was bigger than expected and the bed was sooooo comfy it was hard to leave for our evening in town! - Rose C p23

24 Appendix E: Hotel listing Hotel location Rooms Country Ownership Dubai Jebel Ali 216 UAE Franchisee Frankfurt 132 Germany Franchisee Amsterdam Arena 131 The Netherlands Franchisee Berlin Hackescher Markt 125 Germany Franchisee London Earls Court 109 United Kingdom Franchisee Den Haag 109 The Netherlands Franchisee Rotterdam City Centre 107 The Netherlands Franchisee Brussels 107 Belgium Franchisee London Victoria 105 United Kingdom Franchisee Amsterdam Zaandam 96 The Netherlands Franchisee Amsterdam City 80 The Netherlands Franchisee London Heathrow 82 United Kingdom Franchisee Sofia 57 Bulgaria Franchisee Budapest Oktogon 59 Hungary Franchisee Luton 68 United Kingdom Franchisee London Paddington 47 United Kingdom Franchisee London South Kensington 34 United Kingdom Franchisee Zurich 33 Switzerland Franchisee Edinburgh 29 United Kingdom Franchisee Basel 24 Switzerland Franchisee Old Street 162 United Kingdom Owned Glasgow 124 United Kingdom Owned Manchester 115 United Kingdom Owned Croydon 103 United Kingdom Owned Birmingham 86 United Kingdom Owned 25 Hotels Countries and 16 cities 20 Franchised, 5 Owned p24

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