Regulatory Story
Go to market news section View chart   Print
RNS
Action Hotels PLC  -  AHCG   

Interim Financial Statements

Released 07:00 19-Sep-2017

RNS Number : 0940R
Action Hotels PLC
19 September 2017
 

Action Hotels plc

Interim financial statements for the six months ended 30 June 2017

Action Hotels plc, the leading owner, developer and asset manager of branded three and four-star hotels in the Middle East and Australia, is pleased to announce its unaudited results for the six months ended 30 June 2017.

 

Key Highlights and Financial Overview

 

Year-on-year growth in key financial performance indicators - Revenue (up 10%) and Gross profit (up 6%)

 

Total reported revenue increased to $28.1m (30 June 2016: $25.6m), driven by new hotel rooms

 

Gross profit increased to $19.5m (30 June 2016: $18.4m)

 

Adjusted EBITDA1 decreased by 6.3% to $6.8m (30 June 2016: $7.2m), mainly due to the full year effect of non-operating expenses in the newly opened hotels as they grow through the maturity stage

 

Net loss before tax of $5.3m (30 June 2016: Net loss of $3.9m), as expected and primarily driven by the impact of increased financing costs to develop the pipeline and the impact of depreciation newly opened hotels

 

LTV of 55% (2016: 51%)

 

Property asset values have increased by $35m to $493m since 31 Dec 2016, resulting in a net asset value (NAV) of $192m at 30 June 2017 (31 December 2016: $195 m)

 

Adjusted NAV (adding back deferred tax liability and assets) is $201m compared to $206m as at year end.

 

Adjusted NAV per share was USD 1.36/GBP 1.06 (2016: USD 1.40/GBP 1.09)

 

Interim dividend of GBP 0.77p, a 1.3% increase on the same period last year

 

Operational Highlights

 

2,181 operating rooms at the end of June, a 13% increase from H1 2016 (30 June 2016: 1,928) with the openings of Tulip Inn, Ras Al Khaimah (September 2016) and Mercure Sohar (December 2016)

 

Strong occupancy levels from our mature hotels2, being maintained on a like-for-like basis at 72.7% (30 June 2016: 74.7%)

 

Average EBITDA breakeven occupancy levels across the portfolio remain low at c. 37% (30 June 2016: 35%)

 

Continued strong operational and financial performances from the two hotels in Kuwait, ibis Salmiya and ibis Sharq, with both hotels operating over 80% occupancy

 

Ibis Budget Melbourne Airport also continues to perform strongly with at 90% occupancy (30 June 2016: 91%)

 

On 2 August 2017 Action's thirteenth hotel, ibis Styles Diplomatic Area, Manama Bahrain with 95 rooms opened, taking the total of operational rooms to 2,276.

Current Trading and Portfolio update

The Board confirms that, current trading remains on track with market expectations, despite certain markets in the Middle East facing headwinds impacting the performance of businesses throughout the region. Growth comes from the newly opened rooms and the occupancy of the Groups seven mature hotels2 at 72.7% underpins Action's resilient business model in the economy and midmarket hotel sector, with low break-even levels and the recently opened hotels delivering growth.

After a thorough review of the pipeline, and to efficiently manage the Company's cash and debt position, the board have decided to slightly delay the openings of two of its leasehold hotels in Saudi Arabia, Tulip Inn Modon Jeddah and Mercure Riyadh Olaya. These hotels, which are currently under development, were due to be substantially completed by the end of 2017 but will now be opened towards the end of H1 2018. This minimally impacts the 2017 forecast which is expected to improve the net loss position slightly with the concurrent delay of two hotel pre-opening costs in the region of $0.5-1.0m.

The Board has also taken the decision to remove the 112-key leasehold hotel, Staybridge Suites Abu Dhabi from the pipeline, choosing instead to focus Management's resources on projects offering a better return on capital employed, such as Novotel Melbourne South Wharf, due to open in H1 2018.

 

 

Alain Debare, Action Hotels CEO said:

 

"We are pleased to update the market on a solid first half, with a good performance across the Action Hotels portfolio.  We are seeing good growth from the new rooms, with trading impacted by some headwinds in the Middle East whilst Australia continues to perform strongly. We remain focused on delivering the pipeline and working with our Hotel partners to drive performance at our operating hotels with a special focus on ensuring the early success of our recently opened hotels as they grow within their markets and consolidating the solid performance from our mature hotel portfolio. "

 

Commenting on the results, Sheikh Mubarak A.M. Al Sabah, Founder and Chairman of Action Hotels said:

"It is my pleasure to announce another six months of growth for Action Hotels on the back of a very positive performance in 2016.  We continue to meet the increasing demand for quality, internationally branded economy and mid-market hotels and have outperformed expectations set out at IPO with regards to the number of rooms operating and in pipeline with rooms totaling 3,090. 

 

We remain committed to growing our portfolio and are continuously exploring new hotel opportunities on both a freehold and leasehold basis. In May, we announced our partnership with AccorHotels on our second Novotel branded hotel in Melbourne South Wharf, Action's fourth hotel in Australia and being developed on the largest convention center in the Southern hemisphere. We look forward to updating the market on other further developments to our pipeline in due course."


 

 

For more information, contact:

 

Action Hotels PLC

Tel: +44 (0) 7799770588

Alain Debare, Chief Executive Officer


Katie Shelton, Director of Corporate Affairs


 

Zeus Capital Limited (Nomad and Joint Broker)


Dan Bate / Andrew Jones

Tel: +44 (0) 161 831 1512

Victoria Ayton

Tel: +44 (0) 20 3829 5000

 

Beaufort Securities Limited (Joint Broker)

Tel: +44 (0) 020 7382 8300

Tim Chandler


Gavin Burnell


 

Notes to Editors

Action Hotels PLC

Action Hotels is a leading owner, developer and asset manager of branded three and four star hotels in the Middle East and Australia. Established in 2005, Action Hotels currently has 13 completed hotels with 2,276 rooms in aggregate across the Middle East and Australia, with further properties in development in both regions.

More information is available at http://www.actionhotels.com/

Notes

1.   Adjusted EBITDA is defined as operating profit before depreciation, amortisation, restructuring and listing costs, gains and losses arising from the disposal of property, plant and equipment and pre-opening costs.

2.   On a like-for-like basis - a comparison of the mature trading hotels; ibis Glen Waverly, ibis Budget Melbourne Airport, ibis Sharq, ibis Salmiya, ibis Amman, Holiday Inn Muscat and ibis Muscat, excluding any currency movements.

3.   Adjusted NAV is the net asset value of the Group adjusted for the deferred tax provision required on the revaluation of properties to the Statement of Financial Position.

 

All currency amounts are in US $ unless otherwise stated.

 

Cautionary Statement

This announcement contains unaudited information and forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts and undue reliance should not be placed on any such statements because they speak only as at the date of this document and are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Action Hotel's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.  Action Hotels undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.

 

 

Operating performance


Six months ended 30 June 2017

Six months ended 30 June 2016

% change

Revenue

$28.1m

$25.6m

+10%

 

Total Occupancy

  64.0%

  65.6%

-1.6%

 

Occupancy2

  72.7%

  74.7%

-2.0%

 





 

Total Portfolio

 

Consolidated revenues were 10% higher over the period, with contribution from new rooms and Middle East and Australian hotels continuing to contribute strong average occupancies. Total occupancy is lower than the mature (like for like) occupancy by 8.7% (30 June 2016: 9.1%) due to the weighting of lower occupancies in the newly opened hotels as they grow to maturity in their respective markets.

 

Total operating rooms reached 2,181 as at 30 June 2017, a 13% increase on the same period last year. The opening of ibis Styles Bahrain on the 2nd August 2017 added a further 95 rooms taking the current operating and completed hotel portfolio to 2,276 rooms.

Despite pressure across the Middle Eastern markets, the Group's seven mature hotels2 continue to deliver strong occupancy levels at a combined 72.7%, (30 June 2016: 74.7%) broadly in line with previous years illustrating the resilient business model.

Middle East

In the Middle East, hotels showed a drop-in occupancy of 4.9% and in ADR of 8.1% (on a like for like basis, excludes hotels opened in the last 12 months) due to the headwinds across the Middle East particularly impacting markets in Jordan, Oman and Bahrain.  Kuwait, however, remained strong with an average occupancy of 81.1% across the two hotels. Management is working closely with its hotel operators to ensure that hotels continue to grow their market share and maintain a low-cost base resulting in low breakeven levels.

Australia

The Australian hotels performed well, performing above last year and delivering an increase of 43% in revenue, driven predominantly from the opening of our largest hotel, Ibis Styles Brisbane, which completed one year of operations in March 2017 and continues to show encouraging trading with occupancy at 64.5%. Ibis Budget Melbourne Airport recorded the highest occupancy in the portfolio with year to date occupancy of 89.3%.

 

Hotel pipeline

Action Hotels now has 13 operating/completed hotels with 2,276 rooms.  The Group's pipeline currently consists of a further four hotels, and a total of 3,090 rooms upon completion of the pipeline hotel developments.

 

 

 

Financial Performance

 


Six months ended 30 June 2017

Six months ended 30 June 2016

% change

Total revenue

$28.1m

$25.6m

+9.9%

Gross Profit

Adjusted EBITDA 1

$19.5m 

 $6.8m

$18.4m 

 $7.2m

+5.9%

-6.3%

Adjusted EBITDA 1 margin

     24%

     28%

-4.0%

Reported (loss) / profit before tax

   $(5,307k)

   $(3,853k)


 

Adjusted EBITDA amounted to $6.8m, a 6.3% decrease over the same period last year with adjusted EBITDA margin reducing slightly to 24%, mainly due to the full year effect of non-operating expenses of the newly opened hotels as they progress through the maturity cycle.

 

The operating performance is stable with the growth coming predominantly from the new rooms in Australia and the UAE. The steady central overheads of the Head Office helped to support EBITDA margin at 24%.

 

Gross Finance costs have increased by $1.18m over the same period versus last year as the company has, as planned, utilised debt facilities to fund the pipeline of hotels, some of the funds are also directed to the operation increasing interest payments reported in the financial statements. With the opening of three hotels in 2016 the Depreciation and Amortisation charge has also increased by $0.6m as expected over last year with the full year effect coming through as the hotels mature. However, the company has been able to reduce pre-opening costs compared to the same period last year (a reduction of $0.7m), with one hotel opening in August 2017.

 

 

 

Net Asset Value

 

Net asset value reduced by $3m to $192m at 30 June 2017 (2016: $195m), mainly due to the operating loss. NAV will be reviewed at year end as we roll out and fair value our portfolio at the end of the reporting period by certified valuers JLL and CBRE.

 


Six months ended 30 June 2017

Year ended 31 December 2016

% change

Net asset value

$192m

$195m

-1.5%

Adjusted NAV 3

$201m

$206m

-2.5%

Adjusted NAV 3 per share

$1.36

$1.40

-2.5%

 

 

Interim Dividend         

The Group is pleased to announce an interim dividend for the six-month period ended 30 June 2017 of GBP 0.77p per share, which is expected to be paid on 1 December 2017. The Company's ordinary shares are expected to be marked entitlement to such dividend on 19 October 2017 and the dividend will be payable to all shareholders on the Company's share register at the close of business on 20 October 2017.

 

Payment of the dividend will require shareholders approving a number of administrative matters at a general meeting which will be convened in due course.

 

Outlook

The Group has had a good start to 2017 and the Board remains optimistic about the future as growth in the Middle East is forecast to recover to a 3.1% pace this year (World Bank: Global Economic Prospects 2017: Middle East and North Africa).

 

The Group has demonstrated execution capabilities that will continue to be applied to the pipeline.

 


Review report on the condensed interim consolidated financial information to the shareholders of Action Hotels plc

 

Introduction

We have reviewed the accompanying condensed interim consolidated statement of financial position of Action Hotels plc and its subsidiaries (together "the Group") as at 30 June 2017 and the related condensed interim consolidated statements of income, comprehensive income, changes in equity and cash flows for the six-month period then ended and other explanatory notes. Management is responsible for the preparation and presentation of this condensed interim consolidated financial information in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted for use in the European Union. Our responsibility is to express a conclusion on this condensed interim consolidated financial information based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of interim financial information performed by the independent auditor of the entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim consolidated financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted for use in the European Union.

 

 

 

PricewaterhouseCoopers

19 September 2017

 

Note:

The maintenance and integrity of Action Hotels plc's website is the responsibility of the directors; the work carried out by the independent auditors does not involve consideration of these matters and, accordingly, the independent auditors accept no responsibility for any changes that may have occurred to the condensed interim consolidated financial statements and half-yearly report since they were initially presented on the website.


Condensed interim consolidated income statement

 


Six month ended 30 June


2017


2016


USD'000


USD'000


(Unaudited)


(Unaudited)





Revenue

28,079


25,563

Cost of sales 

(8,619)


   (7,123)

Gross profit

19,460 


18,440

General and administrative expenses

(18,014)


(16,711)

Operating profit

1,446


1,729





Adjusted EBITDA

6,751


7,202

Depreciation and amortisation

(5,230)


(4,669)

Pre-opening expenses

(95)


(804)

Other expenses - net

20


-

Operating profit

1,446


1,729





Finance income

117 


101

Finance costs

(6,870)


(5,683)

Finance costs - net

(6,753)


(5,582)

Loss before tax

(5,307)


(3,853)

Income tax

(273)


(87)

Deferred tax

2,296


-

Loss for the period

(3,284)


(3,940)

Profit is attributable to:




Owners of Action Hotels plc

(3,118)


(3,672)

Non-controlling interests

(166)


(268)





Loss per share attributable to equity holders of the Company:




Basic

 (2.1)c


(2.7)c

Diluted

 (2.1)c


(2.7)c

 

All operations were continuing throughout the periods. The accompanying notes on pages 7 to 24 are an integral part of this condensed interim consolidated financial information.

 

 

 

 


Condensed interim consolidated statement of comprehensive income

 



Six month ended 30 June



2017


2016



USD'000


USD'000



(Unaudited)


(Unaudited)






Loss for the period


(3,284)


(3,940)






Other comprehensive income










Items that will not be reclassified to profit or loss:





Loss on revaluation of land and buildings


-


(1,228)



-


(1,228)

Items that may be reclassified to profit or loss:





Exchange differences on translation of foreign operations


3,208


1,062

Other comprehensive income/(loss) for the period net of tax


3,208


(166)

Total comprehensive loss for the period


(76)


    (4,106)

Total comprehensive loss for the period is attributable to:





Owners of Action Hotels plc


90


(3,224)

Non-controlling interests


(166)


(882)



(76)


(4,106)






 

Total comprehensive income attributable to equity shareholders arises from continuing operations. The accompanying notes on pages 7 to 24 are an integral part of this condensed interim consolidated financial information.

 

 


Condensed interim consolidated statement of financial position

 



30 June


31 December



2017


2016


Note

USD'000


USD'000



  (Unaudited)


(Audited)

Assets





Non-current assets




 

Property and equipment

8

459,936


427,561

Investment property

7

14,725


14,725

Intangible assets


15,502


15,382

Deferred tax assets


3,105 


809

Cash and bank balances


-


175



493,268


458,652

Current assets





Inventories


269


247

Trade and other receivables


11,949


8,182

Receivables due from related parties

9

8,808


8,720

Cash and bank balances


4,238


4,351



25,264


21,500

Total assets


518,532


480,152






Liabilities





Current liabilities





Trade and other payables


26,281


24,167

Due to related parties


6,443


4,344

Borrowings

10

116,727


75,939

Loan due to related parties

9

-


4,287

Derivative financial instruments


44


-

Finance lease liabilities


531


544



150,026


109,281

Net current liabilities


(124,762)


(87,781)






Non-current liabilities





Borrowings

10

136,488


152,491

Loan due to related parties

9

15,964


-

Deferred tax liabilities


12,277


12,278

Provision for employees end of service benefits


1,004


999

Other payables


2,380


1,703

Finance lease liabilities


8,541


8,612



176,654


176,083

Total liabilities


326,680


285,364

Net assets


191,852


194,788






Equity





Share capital

11

24,102


24,102

Share premium

11

24,479


24,479

Revaluation reserve


                 84,123


84,123

Merger and other reserves

12

                 (6,205)


(9,417)

Retained earnings


                 49,879


55,861

Net equity attributable to owners of Action Hotels plc


176,378


179,148

Non-controlling Interests


15,474


15,640

Total equity


191,852


194,788

 

 

 

 

 

The accompanying notes on pages 7 to 24 are an integral part of these condensed interim consolidated financial information. The condensed interim consolidated financial information was approved by the Board of Directors and authorised for issue on 19 September 2017. They were signed on its behalf by:

 

 

.............................................                                                  .............................................

Alain Debare                                                                           Andrew Lindley

Chief Executive Officer                                                           Finance Director


Condensed interim consolidated statement of changes in equity


Attributable to owners of Action Hotels plc






Share


Share


Revaluation


Other 


Accumulated losses / retained


 

 


 

Non-

Controlling


Total


capital


premium


reserve


reserves


earnings


        Total


Interests


equity


USD'000


USD'000


USD'000


USD'000


USD'000


USD'000


USD'000


USD'000











 

 





At 1 January 2016 (Audited)

24,102


124,479


73,946


(10,293)


(32,895)


179,339


16,550


195,889

Loss for the period

-


-


-


 -


(3,672)


(3,672)


(268)


(3,940)

Other comprehensive income for the period

-


-


(614)


1,062


-


448


(614)


(166)

Total comprehensive income for the period

-


-


(614)


1,062


(3,672)


(3,224)


(882)


(4,106)

Transactions with owners:
















Dividends

-


-


-


       -


(3,162)


(3,162)


-


(3,162)

Share based payments

-


-


-


1


-


1


-


1

Transfer to statutory reserve

-


-


-


1,574


(1,574)


-


-


-

At 30 June 2016 (Unaudited)

24,102


124,479


73,332


(7,656)


(41,303)


172,954


15,668


188,622

















At 1 January 2017 (Audited)

24,102


24,479


84,123


(9,417)


55,861


179,148


15,640


194,788

Loss for the period

-


-


-


-


(3,118)


(3,118)


(166)


(3,284)

Other comprehensive income for the period

-


-


-


3,208


-


3,208


-


3,208

Total comprehensive income for the period

-


-


-


3,208


(3,118)


90


(166)


(76)

Transactions with owners:
















Share based payments

-


-


-


4


-


4


-


4

Dividends (note 13)

-


-


-


-


(2,864)


(2,864)


-


(2,864)

At 30 June 2017 (Unaudited)

24,102


24,479


84,123


(6,205)


49,879


176,378


15,474


191,852

 

The accompanying notes on pages 7 to 24 are an integral part of this condensed interim consolidated financial information.


Condensed interim consolidated statement of cash flows


Six months ended 30 June


2017


2016


USD'000


USD'000


(Unaudited)


(Unaudited)

Cash flows from operating activities:




Loss before tax

(5,307)


(3,853)

Adjustments for:

 



Finance costs

6,751


5,683

Finance income

(117)


(101)

Depreciation of property and equipment

4,907


4,415

Amortisation of intangible assets

323


254

Provision for end of service benefits

373


230

Share based payments

                     4


56

Operating cash flows before payment of employees' end of service benefits and changes in working capital:

6,934


6,684

Payment of employees end of service benefits

(375)


(169)

(Increase)/decrease in trade and other receivables

(7,260)


6,475

Decrease/(increase) in receivables due from related parties

3,656


(1,794)

Increase in inventories

(20)


(56)

Increase/(decrease) in trade and other payables

1,883


(5,807)

Increase in due to related parties

1,496


107

Cash generated from operation

6,314


5,440

Tax paid

-


(214)

Net cash generated from operating activities

6,314


5,226





Cash flow from investing activities




Interest received

117


101

Capital expenditure from restricted cash

842


1,139

Transfers to restricted cash

(821)


(758)

Purchase of investment property

   -


(10,214)

Purchase of intangible assets

(63)


-  

Purchase of property and equipment

(27,986)


(21,496)

Net cash used in investing activities

(27,911)


(31,228)





Cash flow from financing activities




Repayment of borrowings

(41,182)


(12,035)

Drawdown of borrowings

60,891


43,166

Drawdown of loan from related parties

11,254


   -

Finance costs paid

(6,979)


(5,677)

Dividend paid

(2,864)


(3,161)

Net cash generated from financing activities

21,120


22,293





Net decrease in cash and cash equivalents

(477)


(3,709)

Cash and bank balances at the beginning of the period

3,595


7,844

Effect of foreign exchange changes

188


57

Unrestricted Cash and cash equivalents at end of the period

3,306


4,192

Restricted cash and cash equivalents

751


1,370

Total Cash and cash equivalents at the end of the period

4,057


5,562





Cash and cash equivalents

4,057


5,562

Deposits having original maturity of more than three months

181


-

Cash and bank balances

4,238


5,562

 

The notes on pages 7 to 24 are an integral part of this condensed interim consolidated financial information

 


 

1       General information

 

Action Hotels plc ("the Company") is incorporated in Jersey under the Companies (Jersey) Law 1991 with the registered number 112945. The address of the registered office is 5th Floor, 37 Esplanade, St Helier Jersey, JE 12TR.

 

The Company is a public limited company and has its primary listing on the AIM division of the London Stock Exchange. The principal activities of the Company and its subsidiaries ("the Group") are owning, developing, operating and managing hotel assets in the Middle East and Australia. The Group's principal administrative subsidiary, Action Hotels Limited, is domiciled in Dubai International Financial Centre, which is its principal place of business.

 

Action Hotels plc was incorporated in Jersey on 7 May 2013 and took control of the Action Hotels business on 9 December 2013 through a common control transaction with its shareholder. The Company issued 100 million shares to its shareholder in return for 100% of the beneficial interest in and voting control over the issued share capital of Action Hotels Limited. Action Hotels Limited in turn acquired 100% of the issued share capital of Action Hotels Company LLC, a company incorporated in Kuwait, through a share for share exchange.

 

Action Hotels plc was subsequently admitted to trading on the AIM division of the London Stock Exchange and issued a further 47,637,195 shares on 23 December 2013.

 

Pursuant to the transaction, Action Hotels Company LLC, which had previously been the parent company of the Group became a subsidiary of Action Hotels plc and the existing shareholder of Action Hotels Company LLC became the shareholder in Action Hotels plc.

 

The half year results and condensed interim consolidated financial information for the six months ended 30 June 2017 (the "interim financial statements") comprise the results of the Group.

 

These interim financial statements have been reviewed, not audited.

 

2        Basis of preparation

 

The interim financial statements have been prepared in accordance with IAS 34 'Interim financial reporting' as adopted by the European Union. The interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2016, which have been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union and IFRS Interpretation Committee interpretations as adopted by the European Union and the Companies (Jersey) law 1991.

 

The interim financial statements have been prepared on the going concern basis. The Directors have made this assessment for a period of at least twelve months from the date of the approval of these interim financial statements after consideration of the Group's expenditure commitments, current financial projections and expected future cash flows, together with the available cash resources and undrawn committed borrowing facilities.


2        Basis of preparation (continued)

The Group prepares detailed forward cash flow projections for future periods. There are number of assumptions and estimates involved in calculating these future projections, including Management's expectations of increase in gross sales from maturing hotels and hotels still due to open from the pipeline; growth in EBITDA; timing and quantum of future capital expenditure; the estimation of future funding and the cost of such funding. In arriving at their going concern assessment, the Directors have also taken account of agreed term-sheets for additional bank borrowings totalling USD 20,000,000.

 

Management is also in the process of refinancing existing and negotiating further new funding facilities, in addition to the term-sheets noted above. The principal shareholder and a shareholder have also confirmed their intention to provide continued financial support to the Group so as to enable the Group both to meet its liabilities as and when they fall due and to carry on its business without significant curtailment of operations for a period of at least twelve months from the date of the approval of these interim financial statements.

 

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for adoption of new and amended standard as set out below:

 

(a)        New and amended standard adopted by the Group

 

The following new standards, amendments to standards and interpretations are mandatory for the first time for the financial period beginning 1 January 2017, but do not have a material impact to the Group.

 

·          Recognition of deferred tax assets for unrealised losses - amendments to IAS 12 (effective 1 January 2017);

·          Disclosure initiative - amendments to IAS 7 (effective 1 January 2017); and

·          Annual Improvements to IFRSs 2014-2016 cycle: amendments to IFRS 12 (effective 1 January 2017).

 

(b)        Impact of standards issued but not yet applied by the Group 

The following new standards, amendments to standards and interpretations have been issued, but are not effective for the financial period beginning 1 January 2017 and have not been early adopted.

 

·          IFRS 9, 'Financial instruments' (effective 1 January 2018);

·          IFRS 15 'Revenue from contracts with customers' (effective 1 January 2018); and

·          IFRS 16 'Leases' (effective 1 January 2019).

 

Management is currently assessing the above standards and amendments which are likely to have an impact on the Group's interim financial statements.


3        Financial risk management

The Group's activities expose it to a variety of financial risks: market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

 

The condensed interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements; they should be read in conjunction with the Group's annual financial statements as at 31 December 2016. There have been no changes in the risk management department or in any risk management policies since the year end.

 

4        Critical judgements and accounting estimates

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

 

In preparing these interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the Group's annual consolidated financial statements for the year ended 31 December 2016.

 

5        Segment information

 

The Board of Directors of the Group is the Group's chief operating decision-maker. Management has determined the operating segments based on the information reviewed by the Board for the purposes of allocating resources and assessing performance of the Group.

The Group is organised within two geographical regions, Middle East and Australia excluding central functions. These geographical regions along with hotels under construction and undeveloped land sites comprise the Group's four reportable segments. No operating segments have been aggregated to form these reportable segments.

Central management costs represent the head office and management costs incurred at the Group level, which have not been subsequently allocated to any operating segment. Each of the geographical segments derives its revenue from the ownership and management of hotel operations.

The Board of Directors use a measure of adjusted EBITDA to assess performance.

 


5        Segments information (continued)

(a)        Segmental revenue and results

 

The following is an analysis of the Group's revenue and results by reportable segments:

Six months ended 30 June 2017 (Unaudited)

Middle East


Australia


Consolidated


USD'000


USD'000


USD'000

Revenue

19,881


8,198


28,079

Adjusted EBITDA - hotel operations

7,896


3,313


11,209

Central management and other costs





(9,763)

Operating profit





1,446

Finance income





117 

Finance costs

 

 

 





(6,870)

Loss before tax





(5,307)

 

Six months ended 30 June 2016 (Unaudited)

Middle East


Australia


Consolidated


USD'000


USD'000


USD'000

Revenue

19,838


5,725


25,563

Adjusted EBITDA - hotel operations

8,222


1,610


9,832

Central management and other costs





(8,103)

Operating profit





1,729

Finance income





101

Finance costs

 

 

 





(5,683)

Loss before tax





(3,853)

 

The revenue of each segment for each period arises wholly from external sales.

Adjusted EBITDA for hotel operations represent the profit earned by each segment without allocation of central administration costs including Directors' salaries, pre-opening costs, investment revenue and finance costs, and tax.

 

(b)        Segmental assets

 


30 June

2017


31 December

2016


USD'000


USD'000


(Unaudited)


(Audited)





Middle East hotel operations

280,082


287,585

Australia hotel operations

116,778


110,636

Hotels under construction

94,546


57,585

Undeveloped land sites

14,725


14,725

Not allocated

12,401


9,621


518,532


480,152

 


5        Segment information (continued)

(b)        Segmental assets (continued)

 

For the purposes of monitoring segment performance and allocating resources between segments, the Group's management monitor the tangible, intangible and financial assets attributable to each segment. Assets classed as not allocated represent the current assets attributable to the central management function of the business and mainly relate to head office cash balances and certain balances with related parties.

Other segmental information

 


30 June

2017


31 December

2016


USD'000


USD'000


(Unaudited)


(Audited)





Additions and contributions to property and equipment




Middle East hotel operations

544


23,980

Australia hotel operations

75


1,443

Hotels under construction

27,367


58,699


27,986


84,122

 

(c)            Geographical information - Revenue

 

The country of domicile for the Group's head office is United Arab Emirates (UAE); the table below shows the revenue from external customers split between those attributed to the country of domicile and all other foreign countries.

 


30 June

2017


30 June

2016


USD'000


USD'000


(Unaudited)


(Unaudited)





UAE

2,246


1,264

Kuwait

6,828


7,254

Oman

7,242


6,814

Bahrain

2,363


2,823

Jordan

1,202


1,683

Australia

8,198


5,725


28,079


25,563

 


 

5   Segment information (continued)

 

(d)        Geographical information - Non-current assets

 

The country of domicile for the Group's head office is United Arab Emirates (UAE); the table below shows the non-current asset split between those attributed to the country of domicile and all foreign countries.

 


30 June

2017


31 December

2016


USD'000


USD'000


(Unaudited)


(Audited)





UAE

80,200


79,291

KSA

17,167


16,512

Kuwait

49,479


49,553

Oman

111,945


113,141

Bahrain

56,720


55,406

Jordan

19,600


19,635

Australia

158,157


125,114


493,268


458,652

 

6        Loss per share

 

(a)        Basic loss per share

 

Basic loss per share is calculated by dividing the profit/(loss) attributable to the equity holders of the Company by the weighted average number of ordinary shares in issue during the period.

 

Loss per share attributable to equity holders of the Company:

30 June

2017


30 June

2016


(Unaudited)


(Unaudited)





Loss for the period (USD'000)

(3,118)


(3,672)

Weighted average number of shares

 147,637,195


147,637,195

Basic loss per share (USD)

(0.021)


(0.025)

 


6        Loss per share (continued)

(b)        Diluted loss per share

 

Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.

 


30 June

 2017


30 June

 2016


(Unaudited)


(Unaudited)





Loss for the period (USD'000)

(3,118)


(3,672)

Weighted average number of shares

 147,637,195


147,637,195

Diluted loss per share (USD)

(0.021)


              (0.025)

 

The 5,179,116 options (30 June 2016: 5,179,116 options) are not included in the calculation of diluted earnings per share because they are antidilutive for the period ended 30 June 2017 and 2016. These options could potentially dilute basic earnings per share in future.

 

The 3,690,930 warrants (30 June 2016: 3,690,930 warrants) are not included in the calculation of diluted earnings per share because they are antidilutive for the period ended 30 June 2017 and 2016. These options could potentially dilute basic earnings per share in future.

 

7        Investment property


30 June

 2017


31 December

 2016


USD'000


USD'000


(Unaudited)


(Audited)





At 1 January

14,725


33,440

Addition during the period/year

-


10,219

Disposal during the period/year

-


(13,623)

Transfer to property and equipment

-


(19,859)

Net gain from fair valuation

-


4,506

Exchange differences

-


42


14,725


14,725

 

At 30 June 2017 and 31 December 2016, investment property represent the Group's interest in land held for undetermined use situated in the UAE. Investment properties are carried at fair value. The valuation method adopted to determine the fair value is based on inputs not based on observable data (that is, unobservable inputs - level 3).


8          Property and equipment

 


Operational Hotels










Land


Buildings


Fixture, Fittings & Equipment


Hotels under construction


Other FF&E


Vehicles


Total


USD'000


USD'000


USD'000


USD'000


USD'000


USD'000


USD'000

Cost or fair value:














At 1 January 2017 (Audited)

117,299


238,688


44,266


53,200


4,533


391


458,377

Additions

-


20


465 


27,363


93 


45


27,986

Exchange differences

2,477


4,807


1,027


1,580


40


1


9,932

At 30 June 2017 (Unaudited)

119,776


243,515


45,758


82,143


4,666


437


496,295















Accumulated depreciation:














At 1 January 2017 (Audited)

-


12,730


15,783


-


2,102


201


30,816

Charge for the period

-


2,552


2,065


-


228


62 


4,907

Exchange differences

-


254 


361


-


21


-


636 

At 30 June 2017 (Unaudited)

-


15,536


18,209


-


2,351


263


36,359















Net book value:














At 30 June 2017 (Unaudited)

119,776


227,979


27,549


82,143


2,315


174


459,936

At 1 January 2017 (Audited)

117,299


225,958


28,483


53,200


2,431


190


427,561
















8        Property and equipment (continued)

 

Leased assets

 

Buildings includes the following amounts where the Group is a lessee under a finance lease (note 16):

 

Leasehold building

              30 June 2017


31 December

 2016


USD'000


USD'000


(Unaudited)


(Audited)





Cost

9,338


9,330

Accumulated depreciation

(700)


(466)

Net book amount

8,638


8,864

 

Hotels in operation and under construction are carried at fair value. The valuation method adopted to determine the fair value is based on inputs not based on observable data (that is, unobservable inputs - level 3).

 

At 30 June 2017, had the land and buildings of the Group been carried at historical cost less accumulated depreciation and impairment losses, their carrying amount would have been USD 317,573,000 (31 December 2016: USD 312,928,000). The revaluation surplus is disclosed in the condensed interim consolidated statement of changes in equity. The revaluation surplus cannot be distributed due to legal restrictions.

 

Total assets under construction as at 30 June 2017 include a hotel in Dubai Healthcare City, amounting to USD 25,177,000 (31 December 2016: USD 23,774,000), hotels in the Kingdom of Saudi Arabia amounting to USD 8,530,000 (31 December 2016: USD 7,649,000), a hotel in Bahrain amounting to USD 8,037,000 (31 December 2016: USD 6,278,000) and a hotel in Australia amounting to USD 41,187,000 (USD 16,313,000).

 

Land, buildings and fixtures and fittings of operational hotels and hotels under construction with a carrying amount of USD 413,520,000 (31 December 2016: USD 341,591,000) have been pledged to secure borrowings of the Group. The Group is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

 

9                                    Related party balances and transactions

 

The Group has entered into various transactions with related parties in the normal course of its business concerning financing and other related services. Prices and terms of payment are approved by the Group's management. All significant related party transactions and balances are listed below and are principally with entities under control of the Group's principal shareholder, Action Group Holding Co. KSCC:


 

9        Related party balances and transactions (continued)

 


30 June 2017


31 December 2016


USD'000


USD'000


(Unaudited)


 (Audited)  





Due from related parties

8,808


8,720

Due to related parties

(6,443)


(4,344)


2,365


4,376

 

Due from related parties

 

Name of related parties


Relationship


30 June

 2017


31 December 2016





USD'000


USD'000





(Unaudited)


(Audited)








Action Real Estate Co. Dubai


Shareholder


8,064


7,971

Action Realty Australia Pty Ltd


Others


511


456

Action Business Center Ltd


Others


213


274

Action Group Holding Company K.S.C.C


Shareholder


16


14

Others


Others


4


5





8,808


8,720








 

Interest is charged on amounts due from related parties in Australia at a rate of 6%. The total interest charge is of USD 24,000 (30 June 2016: USD 23,000).

 

Interest is charged on the advance paid to Action Real Estate Co. Dubai amounting to USD 3,714,000 (31 December 2016: USD 3,714,000) at a rate of 5% (30 June 2016: 5%). The total interest charged during the period amounted to USD 93,000 (30 June 2016: nil).

 

During the period, the Group received rent from related parties for leasing of premises amounting to USD 86,000 (30 June 2016: USD 46,000).


9        Related party balances and transactions (continued)

 

Due to related parties

 

Name of related parties

Relationship

30 June

 2017


31 December 2016



USD'000


USD'000



(Unaudited)


(Audited)






Action Real Estate Co. K.S.C.C.

Others

3,133


 1,329

Action Real Estate Co. Dubai

Shareholder

2,429


             2,428

Action Group Holding Company

    K.S.C.C

Shareholder

400

284

Action Business Center Ltd

Others

63


62

Action Group Holding Company (Oman)

Others

60


                  63

Action Group Australia

Others

8


                    -

Others

Others

350


178



6,443


4,344

 

Expenditure incurred on services provided by related parties:

 

Name of related parties

Relationship

30 June

2017


30 June

2016



USD'000


USD'000



(Unaudited)


(Unaudited)






Action Real Estate Co. K.S.C.C.

Others

    2,187


1,274

Dr. Suad M. S. Al Sabah

Others

       172


           -

Action Group Holding Company

    K.S.C.C

Shareholder

       156


104

Action Business Center

Others

           -


38



    2,515


1,416






 

Expenditure incurred by related parties on behalf of the Group and subsequently recharged:

 

Name of related parties

Relationship

30 June 2017


 30 June 2016



USD'000


USD'000



(Unaudited)


(Unaudited)






Action Real Estate Co. K.S.C.C.

Others

              991


                  57

Action Group Australia

Others

                  8


-

Action Group Holding Company (Oman)

Others

-


                  48

Action Group Holding Company

    K.S.C.C

Shareholder

            -


                  18



999 


       123

 

 

 







9        Related party balances and transactions (continued)

Expenditure incurred by the Group on behalf of the related parties and subsequently recharged:

 

Name of related parties

Relationship

30 June 2017


30 June

2016



USD'000


USD'000



(Unaudited)


(Unaudited)






Action Real Estate Co. K.S.C.C.

Others

66


48

Action Group Holding Company (Oman)

Others

2


14

Action Group Holding Company K.S.C.C

Shareholder

1


-



                 69 


                   62






Related party guarantees

Further, one of the shareholders of the Group and the ultimate owner of the shareholder have provided performance guarantees on behalf of the Group for certain borrowings. These guarantees, issued in the normal course of business, are outstanding at the end of the period and no outflow of resources embodying economic benefits in relation to these guarantees is expected by the Group.

During 2016, the Group entered into a conditional agreement with Sheikh Mubarak Al Sabah to purchase his interest in Action Hotels FZ-LLC. An amount of USD 3,700,000 was paid as refundable advance against this agreement. Further in December 2016, Sheikh Mubarak Al Sabah transferred his interest in Action Hotels FZ-LLC together with the advance to Action Real Estate Co. Dubai. The amount of advance paid has been included within due from related parties above.

Loans due to related parties


Relationship

30 June

2017


31 December

2016



USD'000


USD'000



(Unaudited)


(Audited)

Action Real Estate Company Kuwait

Others

11,187


1,892

Water Front Place Development Trust

Others

2,412


2,161

Action Group Kuwait

Others

2,097


-

Action Group Australia

Others

268


234



15,964


4,287

 

During the period, the Group obtained loans amounting to USD 11,326,000 (31 December 2016: USD 4,287,000) from various related parties for investment in the Group's development pipeline and general working capital purposes repayable at various dates within 6 months from the date of draw down. In June 2017, the loans were extended by mutual agreement and are now repayable within 13 months from the date of the interim financial statements. The loans carry an interest rate of 9.9% (31 December 2016: 9.9%) per annum. As at 30 June 2017, there is no material variance between the carrying value of the loans and their fair value.


9        Related party balances and transactions (continued)

During the period, the Group paid an interest on these loans amounting to USD 428,000 (30 June 2016: nil).

At 30 June 2017, the Group had total undrawn borrowing facilities from a related party amounting to USD 9,036,000 (31 December 2016: nil).

Remuneration of Key Management Personnel:


30 June

2017


30 June 2016


USD'000


USD'000


(Unaudited)


(Unaudited)





Salaries and consultancy fees

513


313

Share based payments

-


56

Other benefits

127


18


640


387

 

10      Borrowings

 


30 June

 2017


31 December

2016


USD'000


USD'000


(Unaudited)


(Audited)

Secured




Borrowings

253,215


228,430

Less: non-current borrowings

(136,488)


(152,491)

Current borrowings

116,727


75,939

 

The table below analyses the borrowings into relevant maturity groupings based on the remaining period as at the condensed interim consolidated statement of financial position date to the contractual maturity date.

 


30 June

 2017


31 December 2016


USD'000


USD'000


(Unaudited)


(Audited)

Due:




6 months or less

114,210


71,906

6 - 12 months

2,517


4,033

1 - 2 years

5,906


9,204

2 - 5 years

103,280


94,111

More than 5 years

27,302


49,176


253,215


228,430

 


 

10      Borrowings (continued)

 

The annual interest rate on loans is as following:


30 June

 2017


31 December 2016


USD'000


USD'000


(Unaudited)


(Audited)





Kuwaiti Dinar with an annual interest rate

4.45%


3.91%

Bahraini Dinar with an annual interest rate

4.98%


4.95%

Omani Riyal with an annual interest rate

5.20%


5.04%

United States Dollar with an annual interest rate

7.80%


8.16%

Australian Dollar with an annual interest rate

3.97%


5.29%

Arab Emirates Dirham with an annual interest rate

5.19%


-

 

Bank facilities are secured by Hotel Properties, Group's corporate guarantees and letter of undertakings. There is no material variance between the carrying value of loans and their fair value.

The current borrowings in local currency is as follows:

 

Local

30 June

 2017

31 December 2016

30 June 2017

31 December 2016

Currency

Currency '000

In USD '000






US Dollar (USD)

19,179

34,235

19,179

34,235

Bahraini Dinar (BHD)

12,400

12,550

33,104

33,327

Kuwait Dinar (KWD)

850

850

2,810

2,781

Omani Rial (OMR)

23,046

2,155

59,848

5,596

UAE Dirhams (AED)

6,563

-

1,786

-




116,727

75,939

 

The non-current borrowings in local currency is as follows:

 

Local

30 June

2017

31 December 2016

30 June 2017

31 December 2016

Currency

             Currency '000

           In USD '000






US Dollar (USD)

7,437

7,990

7,437

7,990

Kuwait Dinar (KWD)

7,750

8,150

25,617

26,666

Australian Dollar (AUD)

110,282

88,379

84,772

63,650

Omani Rial (OMR)

-

20,866

-

54,185

UAE Dirhams (AED)

68,528

-

18,662

-




136,488

152,491

        

          


 

10      Borrowings (continued)

 

At 30 June 2017, the Group has undrawn banking facilities of USD 82,952,000 (31 December 2016: USD 43,389,000) with commercial banks. The facilities include short-term and long-term loans. Unamortised arrangement fees and other transaction costs amount to USD 3,856,000 (31 December 2016: USD 1,446,000).

 

During the period, the Group did not comply with certain terms of a loan agreement. However, this non-compliance was remedied before the period end date and the lenders have not requested accelerated repayment of this loan amounting to USD 28,426,000 and accordingly, the Group continues to classify this loan based on its original term.

 

During the period, the Group did not comply with certain terms in certain loan agreements. This non-compliance was not renegotiated before the period end, however, in August 2017 the Group successfully entered into a refinancing agreement with a new lender for a total facility amounting to USD 75,000,000. The proceeds of this refinancing are expected to be realised during 2017. In accordance with IAS 1, Presentation of financial statements, the Group has therefore reclassified these loans, amounting to USD 59,848,000 as current.

 

During the period, the Group did not comply with certain terms in certain loan agreements. The Group has not remedied this non-compliance during the period and continues to classify these loans amounting to USD 33,100,000 as current in accordance with IAS 1. In addition, and up to the date of authorisation of these interim financial statements for issue the Group has not received any notice for accelerated repayment of banking facilities from any of its lenders.

 

11      Share capital and share premium account

 


Number of


USD'000

Share capital

shares







At 1 January 2016 (Audited)

147,637,195


24,102

At 31 December 2016 (Audited)

 

147,637,195


 24,102

At 30 June 2017 (Unaudited)

147,637,195


  24,102

 

 


USD'000

Share premium


At 1 January 2016 (Audited)

           124,479

Transfer to retained earnings

(100,000)

At 31 December 2016 (Audited)

 

             24,479

At 30 June 2017 (Unaudited)

             24,479

 

The authorised share capital of the Company is GBP 40 million divided into 400 million shares of 10 pence each. They entitle holders to participate in dividends and to share proceeds of winding up of the Company in proportion to the number and of amounts paid on the shares held.

During 2016, the Shareholders authorised the transfer of USD 100,000,000 from the share premium account to accumulated losses.


 

12                         Other reserves

 


Statutory reserve


Voluntary reserve


Foreign currency translation reserve

Share-based payment reserve


Merger reserve


Total


USD'000


USD'000


USD'000

USD'000


USD'000


USD'000












At 1 January 2016 (Audited)

2,966


2,802


(11,012)

600


(5,649)


(10,293)

Transfers to reserves

1,541


105


(722)

-


-


924

Share based payments

-


-


-

228


-


228

Total comprehensive income for the year

-


-


(276)

-


                                 -


(276)

At 31 December 2016 (Audited)

4,507


2,907


(12,010)

828


(5,649)


(9,417)












At 1 January 2017 (Audited)

4,507


2,907


(12,010)

828



(9,417)

Transfer to reserves

-


-


-

4


-


4

Total comprehensive income for the period

-


-


3,208

-


-


3,208

At 30 June 2017 (Unaudited)

4,507


2,907


(8,802)

832


(5,649)


(6,205)












 

13      Dividends

The Company declared final dividend amounting to USD 2.9 million (GBP 1.50p per share) in respect of year ended 31 December 2016 and was approved by the shareholders at their meeting on 13 June 2017. This dividend was paid during the period ended 30 June 2017.

14      Fair value measurements of non-current assets

The change in fair value measurements of investment property and hotels in operation for the six months ended 30 June 2017 is considered by the management to be immaterial.

 

The Directors' believe that these valuations, on the basis of current use, represent the highest and best use of the respective assets. The valuation technique has remained unchanged from 31 December 2016 and the Directors of the Group review the valuation process undertaken and consider whether it remains appropriate.

 

The Group uses the following hierarchy for determining the fair value of assets and liabilities held at fair value by valuation technique:

 

-        Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;

Level 2: other techniques for which all inputs which have significant effect on the recorded fair value are observable, either directly or indirectly; and

Level 3: techniques which use inputs which have significant effect on the recorded fair value that are not based on observable market data.


14      Fair value measurements of non-current assets (continued)

 

The fair value measurements of property and equipment and investment properties are classified as Level 3 in the fair value hierarchy in their entirety, due to the fact that significant unobservable inputs are used in arriving at an appropriate fair value.

The fair value measurement is sensitive to changes in unobservable inputs. The discount and yield rates used to establish a net present value for each separately valued property are as follows and if changed, could result in a materially different fair value.

 


At 30 June 2017


At 30 June 2016


(Unaudited)


(Unaudited)





Discount rate: owned asset

9.1%-12.5%


       10% - 12%

Exit yield

6% - 10.0%


           8% - 9%

 

The future forecast results represent an unobservable input for each property. Each separate property valuation is directly dependent on the forecast results and hence a significant/ sustained decrease in expected future results would result in a similar proportional reduction in the fair value of the property.

15                         Commitments

At 30 June 2017, the Group had entered into contractual commitments for hotels under construction amounting to USD 105,111,000 (31 December 2016: USD 125,234,000).

16      Lease arrangements

(a)       Operating lease arrangements

The Group leases land, building and office space under various operating lease agreements. The remaining lease terms of the majority of the leases are between one to twenty years and are renewable at mutually agreed terms.

 


30 June

2017


30 June

2016


USD'000


USD'000


(Unaudited)


(Unaudited)





Lease payments under operating leases recognised as an expense during the period

1,366


1,376


 

16      Lease arrangements (continued)

(a)       Operating lease arrangements (continued)

 

At the condensed interim consolidated statement of financial position date, the future minimum lease payments payable under operating leases are as follows:

 


30 June

2017


31 December

2016


USD'000


USD'000


(Unaudited)


(Audited)





Within one year

4,514


4,364

Between two and five years

17,771


17,831

After 5 years

76,285


77,764


98,570


99,959

 

(b)       Finance lease arrangements

 

During 2016, the Group entered into a finance lease for a property in the Kingdom of Saudi Arabia for a period of twenty years. Management has determined that this lease should be accounted for as finance lease. Accordingly, the Group recognised a finance lease asset and a liability amounting to USD 9,330,000 in 2016. At the condensed interim consolidated statement of financial position date, the commitments in relation to finance leases are payable as follows:


30 June

2017


31 December

2016


USD'000


USD'000





Within one year

611


610

Between two and five years

2,711


2,642

After 5 years

12,093


12,456

Minimum lease payments

15,415


15,708

Future finance charges

(6,343)


(6,552)


9,072


9,156





The present value of finance lease liabilities is as follows:

 

           

30 June

2017


31 December

2016


USD'000


USD'000





Within one year

531


544

Between two and five years

2,085


2,081

After 5 years

6,456


6,531


9,072


9,156

17      Seasonality of operations

Due to the seasonal nature of the hospitality business, higher revenues and operating profits are usually expected in the second half of the year than the first six months.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR VVLFFDKFEBBZ
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Interim Financial Statements - RNS