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Financial statements for the quarter ended 30 November 2015
INTERNATIONAL HOTEL GROUP LTD
(Previously RBDL Investments Ltd)
(Incorporated in the British Virgin Islands, company number: 1862176)
JSE Share Code: IHL
ISIN: VGG7396G1046
("IHGL" or the "Company")
Quarterly report and Financial Statements for the quarter ended 30 November 2015
EXECUTIVE DIRECTOR SUMMARY
For the quarter ended 30 November 2015
CHIEF EXECUTIVE OFFICER OVERVIEW
During the three months to November 2015 International Hotel Group continued its growth through a secondary listing on the AltX of the Johannesburg Stock Exchange in
October 2015 and thereafter by raising the equivalent of approximately GBP32 million through three private placements in October and November 2015.
The equity raised enabled the Group to acquire the GBP23.5 million loan facility relating to three Travelodge properties in Leatherhead, Slough and Perth. The Group intends to
convert the loan facility into equity in the property owning SPVs and to raise debt of approximately 50% against the value of the assets, in line with the Group's stated
business objectives.
Despite yields having compressed during the last year, good assets are still available in the UK and mainland Europe which can provide stable income in the sector. The
balance of the equity raised will therefore be held in reserve to ensure the Group can take advantage of opportunities as they arise.
Following the appointments of Martin Wilsher, Marcel von Aulock and Mike Watters in October, the Board has been strengthened in preparation for the year ahead.
CHIEF FINANCIAL OFFICER OVERVIEW
The Group continued its growth phase during the quarter ended 30 November 2015 by issuing shares to raise a total equivalent of approximately GBP32 million with costs of
approximately GBP0.4 million, by way of three private placements. The Group has now raised a total of GBP35 million.
However, significant costs were incurred during the financial period, as would be anticipated in any new business, which has led to a loss after taxation of GBP215,308 for the
quarter. The significant costs included various legal and professional fees for the ongoing operation of the Group (such as asset management fees) and for potential
acquisitions currently being considered. A GBP0.3 million foreign exchange loss was also incurred due to the significant decline of the South African Rand during the capital
raises whilst foreign currency swaps were being put in place.
In anticipation of the disposal of the Worcester hotel, completed in December 2015, the property was classified as an Asset Held for Sale during the quarter. This resulted in
the financial statements showing an aggregation of all the property's revenues and costs on the Income Statement and all its assets and liabilities on the Statement of
Financial Position.
As the Holiday Inn Express Dunstable hotel is currently owned and operated within the Group, the revenues and costs of the business were shown on a gross, rather than an
aggregated, basis on the Group's Income Statement.
Other revenue streams recognised in the period include Finance Income, this being the interest accrued on the GBP23.5million loan facility that was acquired during the quarter.
In line with its pre-listing statement, the Group has continued to incur costs during the 'start-up' phase incorporating this first quarter, but it is expected that the Group
should shortly move into a position of profit.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the quarter ended 30 November 2015
Quarter ended Period ended
30 Nov 2015 31 Aug 2015
GBP GBP
Continuing operations
Hotel revenue 677,920 163,890
Finance income 106,121 -
Revenue 784,041 163,890
Hotel expenses (560,027) -
Other expenses (446,990) (484,917)
Other income - 166,124
Net finance expense (60,058) (27,588)
Finance expense (42,792) (88,790)
Fair value (loss) gain on interest rate cap (17,266) 61,202
Loss before tax from continuing operations (283,034) (182,491)
Taxation charge 1,925 (5,901)
Loss after taxation from continuing operations (281,109) (188,392)
Disposal group held for sale
Profit after tax for the period from discontinued operations 65,801 -
Loss for the period (215,308) (188,392)
Other Comprehensive Income (OCI)
Other comprehensive income not to be reclassified to profit or loss in subsequent periods:
Revaluation of land and buildings, net of tax 110,129 -
Other comprehensive income for the period, net of tax 110,129 -
Total comprehensive loss for the period (105,179) (188,392)
Earnings per share Note
Basic loss per share (pence) 1 (1.34) (7.67)
Diluted loss per share (pence) 1 (1.34) (7.67)
Basic headline loss per share (pence) 1 (1.34) (7.98)
Diluted headline loss per share (pence) 1 (1.34) (7.98)
Earnings per share for continuing operations
Basic loss per share (pence) 1 (1.75) (7.67)
Diluted loss per share (pence) 1 (1.75) (7.67)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the quarter ended 30 November 2015
As at 30 Nov 2015 As at 31 Aug 2015
ASSETS GBP GBP
Non-current Assets 36,860,671 15,554,613
Property, Plant and Equipment 8,800,000 8,800,000
Intangible assets 993,411 993,411
Investment Property 1,288,846 5,700,000
Non-current financial assets 25,778,414 61,202
Current Assets 5,879,366 1,160,916
Inventories 4,597 6,299
Trade and other receivables 3,195,395 421,986
Cash and cash equivalents 2,679,374 732,631
Assets of a disposal groups held for sale 5,389,243 -
Total Assets 48,129,280 16,715,529
EQUITY AND LIABILITIES
Capital and Reserves 34,337,928 2,376,874
Share capital 35,000 2,650
Share premium 34,596,499 2,562,616
Accumulated loss (500,215) (188,392)
Revaluation reserve 110,129 -
Reserves of a disposal group held for sale 96,515 -
Non-current Liabilities 5,088,914 7,433,230
Interest-bearing loans and borrowings 4,393,283 6,608,908
Deferred tax liability 695,631 824,322
Current Liabilities 6,125,512 6,905,425
Trade and other payables 1,304,531 1,064,053
Short term portion of interest bearing loans and borrowings 4,807,859 5,761,356
Corporate tax payable 13,122 80,016
Liabilities of a disposal group held for sale 2,576,926 -
Total Equity and Liabilities 48,129,280 16,715,529
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the quarter ended 30 November 2015
Retained Earnings / Reserve of disposal
Share Capital Share Premium Accumulated Loss Revaluation Reserve group held for sale Total Equity
GBP GBP GBP GBP GBP GBP
Balance as at 10 February 2015 - - - - - -
Issue of shares - 19 March 2015 1 - - - - 1
Cancellation of shares - 31 March 2015 (1) - - - - (1)
Issue of shares - 31 March 2015 2,650 2,562,616 - - - 2,565,266
Total comprehensive loss for the period - - (188,392) - - (188,392)
Balance as at 31 August 2015 2,650 2,562,616 (188,392) - - 2,376,874
Loss for the period - - (215,308) - - (215,308)
Other comprehensive income for the period - - - 110,129 - 110,129
Total comprehensive loss for the period - - (215,308) 110,129 - (105,179)
Issue of shares - 14 October 2015 12,350 12,154,141 - - - 12,166,491
Issue of shares - 20 October 2015 13,875 13,810,102 - - - 13,823,977
Issue of shares - 20 November 2015 6,125 6,069,640 - - - 6,075,765
Transfer of reserves of disposal group - - (96,515) - 96,515 -
Balance as at 30 November 2015 35,000 34,596,499 (500,215) 110,129 96,515 34,337,928
CONSOLIDATED STATEMENT OF CASH FLOWS
For the quarter ended 30 November 2015
Quarter ended Period ended
30 Nov 2015 31 Aug 2015
GBP GBP
CASH FLOWS FROM OPERATING ACTIVITIES:
Loss before tax from continuing operations (283,034) (182,491)
Adjustments to reconcile profit before tax to net cash flows:
Decrease in investment properties - 183,883
Bargain purchase of subsidiaries - (166,124)
Depreciation of Property, Plan and Equipment 138,978 -
Fair value loss on interest rate swap 17,266 -
Net finance expense 46,130 27,457
Finance Income (106,121) -
Working capital adjustments:
(Increase) / Decrease in trade and other receivables and prepayments (16,948) 181,740
Increase in trade and other payables 306,404 379,410
Decrease in inventories 1,702 -
Interest paid (35,036) (27,457)
Net cash outflow from disposal group (92,263) -
Net cash (outflow) / inflow from operating activities (22,922) 396,418
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of a subsidiary, net of cash acquired - 361,214
Acquisition of debt receivable (25,734,478) -
Development of Investment Property (488,846) -
Net cash flow from disposal group - -
Net cash (outflow) / inflow from investing activities (26,223,324) 361,214
CASH FLOWS FROM FINANCING ACTIVITIES:
(Decrease) / Increase in interest bearing borrowings (869,122) (25,000)
Proceeds from issue of share capital 29,536,000 -
Transaction costs on issue of shares (283,767) -
Net cash flow from disposal group (subsidiary) 25,000 -
Net cash inflow / (outflow) from financing activities 28,408,111 (25,000)
Net increase in cash and cash equivalents 2,161,865 732,631
Net foreign exchange differences (282,386) -
Balance at the beginning of the period 732,631 -
Cash equivalents of disposal group included in cash balance at beginning of period (376,094) -
Cash equivalents of disposal group at end of period 443,358 -
BALANCE AT PERIOD END 2,679,374 732,631
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the quarter ended 30 November 2015
1. EARNINGS PER SHARE (EPS)
Basic EPS amounts are calculated by dividing the profit for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares
outstanding during the period. Diluted EPS amounts are calculated by dividing the profit attributable to ordinary equity holders by the weighted average number of ordinary
shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into
ordinary shares.
The following reflects the income and share data used in the basic and diluted EPS computations:
Quarter ended Period ended
30 Nov 2015 31 Aug 2015
GBP GBP
(Loss) / Profit attributable to ordinary equity holders of the parent for basic earnings:
Continuing operations (281,109) (188,392)
Discontinued operations 65,801 -
Potential dilution - -
Loss attributable to ordinary equity holders adjusted for the effect of dilution (215,308) (188,392)
Number of ordinary shares in issue 35,000,000 2,650,000
Weighted average number of ordinary shares for basic EPS 16,100,833 2,457,273
Effects of dilution - -
Weighted average number of ordinary shares adjusted for the effect of dilution 16,100,833 2,457,273
Subsequent to the period ended there have been no shares issued.
To calculate the EPS for the disposal group held for sale, the weighted average number of ordinary shares for both the basic and diluted EPS is as per the table above.The
following table provides the profit/(loss) amount used:
Profit attributable to ordinary equity holders from the disposal group held for sale for the
basic and diluted EPS calculations 65,801 -
Headline earnings per share
The following table provides the profit/(loss) amount used:
Loss attributable to equity holders of the parent for the basic and diluted EPS calculations (215,308) (188,392)
Plus IAS 40 changes in fair value of Investment Property (net of deferred tax) - 158,498
Net fair value loss on Investment Property - 183,883
Deferred taxation - (25,385)
Less IFRS 3 Bargain gains on purchases of subsidiaries - (166,124)
Headline loss attributable to equity holders of the parent (215,308) (196,018)
Date: 31/12/2015 08:01:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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