EHG – DirectorsTalk Interviews https://www.directorstalkinterviews.com LSE London Stock Exchange PLC Company Interviews Mon, 15 Jul 2019 06:22:00 +0000 en-GB hourly 1 https://wordpress.org/?v=5.2.3 Elegant Hotels Group plc Non-Executive Chairman purchases more shares in company https://www.directorstalkinterviews.com/elegant-hotels-group-plc-non-executive-chairman-purchases-more-shares-in-company/412787735 Mon, 15 Jul 2019 06:21:59 +0000 https://www.directorstalkinterviews.com/?p=787735 Elegant Hotels Group plc (LON: EHG) announced today that it was notified on 12 July 2019 that, on that day, Simon Sherwood, Non-Executive Chairman of the Company, purchased a total of 57,224 ordinary shares of 1 pence in the capital of the Company at a price of 69.9 pence per Ordinary Share. Following the purchase, ...

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Elegant Hotels Group plc (LON: EHG) announced today that it was notified on 12 July 2019 that, on that day, Simon Sherwood, Non-Executive Chairman of the Company, purchased a total of 57,224 ordinary shares of 1 pence in the capital of the Company at a price of 69.9 pence per Ordinary Share. Following the purchase, Mr Sherwood is beneficially interested in 1,929,252 Ordinary Shares, representing approximately 2.17 per cent. of the Company’s issued share capital.

Elegant Hotels Group owns and operates seven luxury freehold hotels and a beachfront restaurant, Daphne’s, on the island of Barbados. The Group’s portfolio currently comprises 588 rooms, making it twice as large (by room number) as the closest competitor in the Barbados luxury hotel room market. Six of the seven properties are situated along the prestigious west coast of Barbados commonly known as the “Platinum Coast”. The properties are all freehold, with a total aggregate plot size of approximately 23 acres and an aggregate beachfront of 2,600 feet.

In the year ended 30 September 2018, the Group reported revenue of $62.9 million and EBITDA before non-recurring items of $19.7 million.

Together, the Group’s seven existing hotels – Colony Club, Tamarind, The House, Crystal Cove, Turtle Beach, Waves Hotel & Spa and Treasure Beach – offer styles encompassing classic and contemporary, family-friendly and adults-only.

The Group’s strategy is to leverage its position as a leading hotel operator in Barbados and to expand both on Barbados as well as further into the Caribbean.

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PRESENTATION: Elegant Hotels Group Interim H1 2019 Results https://www.directorstalkinterviews.com/presentation-elegant-hotels-group-interim-h1-2019-results/412786411 Fri, 28 Jun 2019 06:59:25 +0000 https://www.directorstalkinterviews.com/?p=786411 Elegant Hotels Group (LON: EHG) Interim results for the 6 months ended 31st March 2019 presented by CEO Sunil Chatrani and CFO Jeff Singleton. Elegant Hotels Group owns and operates seven luxury freehold hotels and a beachfront restaurant, Daphne’s, on the island of Barbados. The Group’s portfolio currently comprises 588 rooms, making it twice as ...

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Elegant Hotels Group (LON: EHG) Interim results for the 6 months ended 31st March 2019 presented by CEO Sunil Chatrani and CFO Jeff Singleton.

Elegant Hotels Group owns and operates seven luxury freehold hotels and a beachfront restaurant, Daphne’s, on the island of Barbados. The Group’s portfolio currently comprises 588 rooms, making it twice as large (by room number) as the closest competitor in the Barbados luxury hotel room market. Six of the seven properties are situated along the prestigious west coast of Barbados commonly known as the “Platinum Coast”. The properties are all freehold, with a total aggregate plot size of approximately 23 acres and an aggregate beachfront of 2,600 feet.

In the year ended 30 September 2018, the Group achieved revenue of $63 million and EBITDA before non-recurring items of $19.7 million.

Together, the Group’s seven existing hotels – Colony Club, Treasure Beach, Tamarind, The House, Crystal Cove, Turtle Beach and Waves Hotel & Spa – offer styles encompassing classic and contemporary, family-friendly and adults-only. The Group also has a management contract for Hodges Bay Resort in Antigua and a sales and marketing contract for The Landings Resort & Spa in St. Lucia.

The Group’s strategy is to leverage its position as a leading hotel operator in Barbados and to expand both on Barbados as well as further into the Caribbean.

This article PRESENTATION: Elegant Hotels Group Interim H1 2019 Results was written by DirectorsTalk Interviews.


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PRESENTATION: Elegant Hotels Group Interim H1 2019 Results Elegant Hotels Group (LON: EHG) Interim results for the 6 months ended 31st March 2019 presented by CEO Sunil Chatrani and CFO Jeff Singleton. EHG
Elegant Hotels Group PLC Q&A: Half year results (LON:EHG) https://www.directorstalkinterviews.com/elegant-hotels-group-plc-qa-half-year-results-lonehg/412774733 Mon, 13 May 2019 10:26:12 +0000 https://www.directorstalkinterviews.com/?p=774733 Elegant Hotels Group PLC (LON:EHG) Chief Executive Officer Sunil Chatrani caught up with DirectorsTalk for an exclusive interview to discuss their half-year results, the drivers behind the revenue increase and the company’s strategy.   Q1: We’ve just seen that you’ve published your unaudited results for the 6 months ended 31st March, if we can start ...

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Elegant Hotels Group PLC (LON:EHG) Chief Executive Officer Sunil Chatrani caught up with DirectorsTalk for an exclusive interview to discuss their half-year results, the drivers behind the revenue increase and the company’s strategy.

 

Q1: We’ve just seen that you’ve published your unaudited results for the 6 months ended 31st March, if we can start by talking through the market context in Barbados at the moment, and what the general trends are around visitor numbers?

A1: The overall picture in Barbados is positive, arrivals to the island from the UK increased by 7% during the first half of the financial year versus the prior period. We think that this is partly due to the England cricket tour of the West Indies back in February but in fact demand from the UK has remain strong.

Clearly, this is good news for Elegant Hotels Group and UK guests increased to 79% of our room nights compared to 77% in the prior period. We also think the general uncertainty in the UK market at the moment has driven a trend towards the all-inclusive properties, given the added uncertainty of having the cost of the holiday locked-in at the time of booking.

Visitors from North America to Barbados were up 2% and this is an area that we’re still focussing on in order to push that number higher. There’s still quite a bit of competition on the island, particularly the all-inclusive value segments but we’re continuing in our strategy in investing in our properties in order to enhance our guest experience and to keep our offering as attractive and competitive as possible.

 

Q2: What were the factors behind the revenue increase during the period?

A2: The increase was primarily driven by the addition to the portfolio of Treasure Beach, it delivered a significantly improved performance and contributed a full year of results, having opened in mid-December 2017 following the acquisition in May 2017.

The wider trend towards the all-inclusive segment that I mentioned earlier was also in evidence of our performance with strong contributions from all of our all-inclusive properties which are Crystal, Waves and Turtle Beach. This also helped to boost our occupancy rate which was further enhanced when we targeted a tactical discount in certain areas of the portfolio.

Finally, an important point that should be noted is that the nature of our business means that we have good visibility of bookings and therefore earnings for the remainder of the financial year. As of now, we have about just over 90% of our business on the books for the rest of the year which is obviously a pleasing position to be in.

 

Q3: Can you talk us through Elegant Hotels Group’s underlying strategy and perhaps give us some examples of it in action from the period that you’ve been announcing today?

A3: Our strategy is really comprised of three core elements and has been from day one, that is the day-to-day operational excellence; the existing portfolio enhancement and expansion.

In the area of operational excellence, we are constantly looking to improve our day-to-day performance and continue to receive great feedback from guests and guest satisfaction scores. We have a range of ongoing initiatives in this area and, during the period, we successfully renegotiated our key union contract which gave the majority of our employees an increase in wages of 2% each for the next 3 years.

In terms of enhancing our existing portfolio, we’ve continued with our tried and tested strategy of what we call the ‘3 R’s’, refurbish, reposition, reprice, in our hotels in addition to the regular capex spend of 3-4% of each hotel’s revenue. This year we’re spending approximately another $1 million on special projects, recent works in this area has included a refurbishment of a restaurant at Turtle Beach, and there’s a signature restaurant on the beach actually, and the opening of a unique rum vault at Colony Club which is one of its kind.

Lastly, in the area of expansion, there continues to be a number of compelling opportunities in the Caribbean, I’ve already mentioned the success of our most recent acquisition Treasure Beach and during this period Hodges Bay Resort and Spa Antigua, which is our first management contract and our first property outside of Barbados, opened to our guests. However, it’s worth noting that whilst further expansion is key to our strategy, in the long-term we want to continue to strengthen our balance sheet before expanding further.

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Elegent Hotels Group PLC Q&A with Zeus Capital (LON:EHG) https://www.directorstalkinterviews.com/zeus-capital-analyst-qa-elegent-hotels-group-plc-lonehg/412774580 Fri, 10 May 2019 11:01:11 +0000 https://www.directorstalkinterviews.com/?p=774580 Elegant Hotels Group PLC (LON:EHG) is the topic of conversation when Zeus Capital’s Head of Research Mike Allen caught up with DirectorsTalk for an exclusive interview.   Q1: EHG, they’ve published their H1 results today, can you talk us through the highlights? A1: The H1 highlights were robust, revenues was up 3% year-on-year, RevPAR within ...

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Elegant Hotels Group PLC (LON:EHG) is the topic of conversation when Zeus Capital’s Head of Research Mike Allen caught up with DirectorsTalk for an exclusive interview.

 

Q1: EHG, they’ve published their H1 results today, can you talk us through the highlights?

A1: The H1 highlights were robust, revenues was up 3% year-on-year, RevPAR within that was up 1%, they saw 1 percentage point growth in occupancy but the ADR, i.e. the rates, were down 1%. However, despite that, the adjusted EBITDA was up 7% year-on-year, adjusted PBT was up 5% and EPS was actually up at 27% year-on-year but that was largely due to a significantly lower tax rate of 1.5%. The interim dividend was confirmed at 1.3p and that was in line with the rebased policy and flat year-on-year and the NAV that we’ve seen at this stage of the year was reported at 156p per share.

 

Q2: Did you note any themes in the results?

A2: I think in terms of performance, one of the Elegant Hotels Group’s more recent hotels, Treasure Beach performed very well and that delivered a lot of the growth, I think there were always strong performances at Crystal Cove, Waves and Turtle Beach as well. I think some of the non-all-inclusive hotels found it a bit more difficult albeit with the exception of Treasure Beach.

I think there was a bit of discounting in the rates, that was required, and I think the consumers had seen a bit more tax increases particularly in VAT but also room rate tax as well so there was a little bit of pressure on rates as a result of that.

 

Q3: Has your forecast changed in any way?

A3: Yes, we’ve reshaped our forecasts a little bit. So, you’ll see our revenue forecasts are up about 9% from 2019 to 2021, that’s really in recognition of IFRS 15 and that was flagged about 6 months ago but we’ve put that into the forecast now as well.

We have reduced the rate assumption that we previously had, particularly due to increasing competition and increasing taxes for the consumer so that reduced our adjusted EBITDA by about 4% in the forecast period. However, EPS, there’s a minimal impact there as we’ve reduced our tax rate assumptions from 10% to 5% so the overall impact on earnings is about 2%.

 

Q4: In terms of company valuation, how do you see Elegant Hotels Group PLC at the moment?

A4: We think the valuation is compelling, if you look at it on a 2019 PE basis it’s on about 7 times, dividend yield is about 6% and it’s got very strong asset-backing as well at 156p, we’d expect the NAV to grow in future years as we see net debt falling from here. Also, what we haven’t included in our forecast is potentially the impact of refinancing which could further reduce that debt and therefore increase NAV going forward.

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INTERVIEW: Elegant Hotels Strong demand and an increase in rating https://www.directorstalkinterviews.com/interview-elegant-hotels-strong-demand-and-an-increase-in-rating/412774287 Thu, 09 May 2019 06:01:15 +0000 https://www.directorstalkinterviews.com/?p=774287 Elegant Hotels Group (LON: EHG) CEO Sunil Chatrani joins DirectorsTalk to discuss half year results. Sunil talks us through the market context in Barbados at the moment, what the general trends are around visitor numbers, factors behind the revenue increase during the period and the underlying strategy with examples. Elegant Hotels Group was also the ...

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Elegant Hotels Group (LON: EHG) CEO Sunil Chatrani joins DirectorsTalk to discuss half year results. Sunil talks us through the market context in Barbados at the moment, what the general trends are around visitor numbers, factors behind the revenue increase during the period and the underlying strategy with examples.

Elegant Hotels Group was also the topic for conversation when Mike Allen, Head of Research at Zeus Capital spoke with DirectorsTalk. Mike talks us through the highlights of H1 results, explains any themes he noted, how this affects his forecast and how he views the company valuation at the moment.

The company owns and operates seven luxury freehold hotels and a beachfront restaurant, Daphne’s, on the island of Barbados. The Group’s portfolio currently comprises 588 rooms, making it twice as large (by room number) as the closest competitor in the Barbados luxury hotel room market. Six of the seven properties are situated along the prestigious west coast of Barbados commonly known as the “Platinum Coast”. The properties are all freehold, with a total aggregate plot size of approximately 23 acres and an aggregate beachfront of 2,600 feet.

In the year ended 30 September 2018, the Group achieved revenue of $63 million and EBITDA before non-recurring items of $19.7 million.

Together, the Group’s seven existing hotels – Colony Club, Treasure Beach, Tamarind, The House, Crystal Cove, Turtle Beach and Waves Hotel & Spa – offer styles encompassing classic and contemporary, family-friendly and adults-only. The Group also has a management contract for Hodges Bay Resort in Antigua and a sales and marketing contract for The Landings Resort & Spa in St. Lucia.

The Group’s strategy is to leverage its position as a leading hotel operator in Barbados and to expand both on Barbados as well as further into the Caribbean.

This article INTERVIEW: Elegant Hotels Strong demand and an increase in rating was written by DirectorsTalk Interviews.


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INTERVIEW: Elegant Hotels Strong demand and an increase in rating Elegant Hotels Group (LON: EHG) CEO Sunil Chatrani joins DirectorsTalk to discuss half year results. Sunil talks us through the market context in Barbados EHG
Elegant Hotels Group Plc Robust performance despite rate environment https://www.directorstalkinterviews.com/elegant-hotels-group-plc-robust-performance-despite-rate-environment/412774284 Wed, 08 May 2019 11:53:22 +0000 https://www.directorstalkinterviews.com/?p=774284 Elegant Hotels Group Plc (LON:EHG) has this morning announced H1 results that should position it well to deliver market expectations. There was a marginal decline in ADR offset by slightly higher levels of occupancy, delivering a 1.0% increase in RevPAR. We are tweaking down our forecasts to move in line with the lower end of ...

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Elegant Hotels Group Plc (LON:EHG) has this morning announced H1 results that should position it well to deliver market expectations. There was a marginal decline in ADR offset by slightly higher levels of occupancy, delivering a 1.0% increase in RevPAR. We are tweaking down our forecasts to move in line with the lower end of the consensus range to reflect a tougher rate environment driven by increased competition in the all-inclusive segment of the market as well as increased VAT. That said, we believe the shares represent good long-term value, trading at a 54% discount to NAV, with a yield of 5.7%.

H1 results: Revenue was +3% YOY with REVPAR +1% YOY (+1% occupancy and -1% ADR). This led to a YOY increase in adjusted EBITDA of 7.0%, with adjusted PBT +5%. This resulted in a 27% YOY increase in adjusted EPS to 13.3c, which was largely driven by a significantly lower tax rate of 1.5%. The interim dividend was confirmed at 1.33p per share, in line with the rebased dividend policy and flat year on year. The NAV has been reported at 156p per share.

Key performance drivers: Elegant Hotels saw revenue grow 3% YoY driven by a strong performance at Treasure Beach, the group’s most recently acquired property, delivering its first full period of results having opened in mid-December 2017. There were also strong performances at Crystal Cove, Waves and Turtle Beach, offset by weaker performances in non-all-inclusive hotels, with the exception of Treasure Beach. Overall occupancy was up one percentage point to 68% driven by Treasure Beach and the all-inclusive properties, as the group used targeted discounting to drive higher occupancy in key hotels. Discounting activities resulted in a 1.0% decline in ADR across the group despite modest rate increases at most of the properties. RevPAR at a group level was up 1.0% to $364. Adjusted EBITDA was $16.4m up 7.0% YOY, this represents 67% of our full year forecast (76% in 2018A). The group reported NAV per share of 156p 118% above the current share price and a 13p increase YOY.

Forecasts: We have reflected the IFRS 15 changes into our forecasts as previously flagged. While this changes the shape of margin structure of the business the impact on adjusted EBITDA is minimal. However, we have taken this opportunity to reduce our rate assumptions throughout the forecast period reflecting increased competition and VAT. This reduces adjusted EBITDA by 3.7% and 3.8% in 2019 and 2020E albeit the impact on EPS is minimal as we now assume a lower tax rate of 5% vs. 10% previously assumed.

Investment view: We believe the valuation remains compelling trading on a 2019E P/E of 7.2x and an EV/EBITDA of 7.1x. The shares have significant asset backing and are trading at a 56% discount to current NAV of 156p. We therefore believe there is long-term value in the shares

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Market Risers: Elegant Hotels Group PLC, Informa PLC & Micro Focus International plc https://www.directorstalkinterviews.com/market-risers-elegant-hotels-group-plc-informa-plc-micro-focus-international-plc/412774276 Wed, 08 May 2019 11:07:42 +0000 https://www.directorstalkinterviews.com/?p=774276 Shares of Elegant Hotels Group PLC company symbol: LON:EHG has climbed 3.62% or 2.5 points during today’s session so far. Traders have remained optimistic throughout the session. The periods high has already touched 72.75 dipping to 70.22. The amount of shares exchanged has so far reached 79,083 while the daily average number of shares exchanged ...

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Shares of Elegant Hotels Group PLC company symbol: LON:EHG has climbed 3.62% or 2.5 points during today’s session so far. Traders have remained optimistic throughout the session. The periods high has already touched 72.75 dipping to 70.22. The amount of shares exchanged has so far reached 79,083 while the daily average number of shares exchanged is 76,192. A 52 week share price high is 88 amounting to 19 points in difference on the previous days close and a 52 week low being 61 a difference of some 8 points. Elegant Hotels Group PLC now has a 20 moving average of 70.76 and also a 50 day SMA of 72.26. The market capitalisation currently stands at £63.50m at the time of this report. The currency for this stock is GBX. Market cap is measured in GBP. This article was written with the last trade for Elegant Hotels Group PLC being recorded at Wednesday, May 8, 2019 at 11:17:45 AM GMT with the stock price trading at 71.5 GBX.

 

The stock price for Informa PLC with ticker code: LON:INF has increased 2.42% or 18.4 points in today’s trading session so far. Traders have remained positive during this period. The high for the period has reached 784.4 while the low for the session was 763.2. The total volume of shares exchanged so far has reached 1,169,668 while the daily average number of shares exchanged is 3,606,787. A 52 week high for the stock is 869.6 around 109.6 points in difference on the previous days close and a 52 week low being 602.8 which is a difference of 157.2 points. Informa PLC now has a 20 moving average of 789.62 and now its 50 day simple moving average now at 758.38. The current market capitalisation is £9,744.00m at the time of this report. The share price is in Great British pence. Mcap is measured in GBP. This article was written with the last trade for Informa PLC being recorded at Wednesday, May 8, 2019 at 11:59:46 AM GMT with the stock price trading at 778.4 GBX.

 

Shares of Micro Focus International plc with EPIC code: LON:MCRO has gained 1.35% or 23.6 points during today’s session so far. Investors are a positive bunch during this period. The period high was 1790.6 dropping as low as 1745.59. Volume total for shares traded at this point reached 364,215 while the daily average number of shares exchanged is 1,418,880. The 52 week high for the shares is 2084 amounting to 339.4 points difference from the previous days close and putting the 52 week low at 1131.5 a difference of some 613.1 points. Micro Focus International plc now has a 20 simple moving average of 1931.29 and now the 50 day moving average of 1943.05. This puts the market cap at £6,069.85m at the time of this report. The share price is in Great British pence. Mcap is measured in GBP. This article was written with the last trade for Micro Focus International plc being recorded at Wednesday, May 8, 2019 at 12:02:30 PM GMT with the stock price trading at 1768.2 GBX.

This article Market Risers: Elegant Hotels Group PLC, Informa PLC & Micro Focus International plc was written by DirectorsTalk Interviews.


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Elegant Hotels Group plc A solid performance with good visibility for the remainder of the year https://www.directorstalkinterviews.com/elegant-hotels-group-plc-a-solid-performance-with-good-visibility-for-the-remainder-of-the-year/412774225 Wed, 08 May 2019 06:32:02 +0000 https://www.directorstalkinterviews.com/?p=774225 Elegant Hotels Group plc (LON: EHG), the owner and operator of seven upscale freehold hotels and a beachfront restaurant on the island of Barbados, today announced its unaudited results for the six months ended 31 March 2019. Unaudited highlights · Revenue* up 3% to $43.7m (H1 2018: $42.5m) primarily driven by encouraging performance at Treasure ...

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Elegant Hotels Group plc (LON: EHG), the owner and operator of seven upscale freehold hotels and a beachfront restaurant on the island of Barbados, today announced its unaudited results for the six months ended 31 March 2019.

Unaudited highlights

· Revenue* up 3% to $43.7m (H1 2018: $42.5m) primarily driven by encouraging performance at Treasure Beach, the Group’s most recently acquired property

· ADR* (average daily rates) down 1% to $532 (H1 2018: $539)

· Occupancy increased to 68% (H1 2018: 67%)

· RevPAR* (revenue per available room) up 1% at $364 (H1 2018: $362)

· Adjusted EBITDA** up 7% to $16.4m (H1 2018: $15.4m)

· Adjusted profit before tax up 5% to $12.0m (H1 2018: $11.4m)

· Adjusted EPS (cents per share) up 27% to 13.3c (H1 2018: 10.5c)

· Implied Net Asset Value (NAV) of 203 cents per share (156 pence per share†)

· Interim dividend declared at 1.33 pence per share (H1 2018: 1.33 pence per share)

· Commitment received on debt refinancing to extend loans and facilities to 2024 on similar commercial terms

· Capital expenditure projects included a refurbished restaurant at Turtle Beach

Please note that due to rounding, numbers presented throughout this document may not add up precisely to the totals provided. Percentage changes are calculated on unrounded figures.

* From 1 October 2018, the Group recognises service charge within revenue as a result of the implementation of IFRS 15. In addition, the Group has changed its classification of revenue, impacting the calculation of ADR and RevPAR. Prior period amounts have been restated in line with this change. Please see the Reporting changes section and note 3 to the Interim financial statements for more detail.

** The Group uses adjusted EBITDA as a measure of performance as it better represents underlying performance. Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and one-off items that are outside the ordinary course of business. Adjusted profit and adjusted EPS reflect the adjusted EBITDA figure.

† based on an exchange rate of £1 : $1.30

Commenting on the results, Sunil Chatrani, CEO of Elegant Hotels, said:

“Elegant Hotels continues to perform well in the context of a competitive market and against a backdrop of ongoing uncertainty in its core visitor market of the UK. We are particularly pleased with the contribution during the period of our most recently acquired property, Treasure Beach, and are constantly assessing a range of opportunities for further expansion, whilst ensuring our balance sheet remains robust.

We continue to execute our strategy in a measured and consistent manner, and we have good visibility of bookings for the remainder of the financial year. As a result, we remain comfortable with the FY19 outlook versus market expectations and confident in the Group’s longer-term prospects.”

BUSINESS REVIEW

Market overview

Arrivals to Barbados from the UK increased by 7% in the period versus H1 2018 according to the Barbados Tourism Marketing Inc. This was partially due to England’s cricket tour of the West Indies in February 2019. The Group benefited from these arrivals, with UK guests increasing to 79% of the Group’s room nights compared to 77% in the prior period. However, the USD/£ exchange rate remains under pressure due to the current political uncertainty in the UK. This has the effect of both increasing the cost of holidays to Barbados for UK guests and increasing the appeal of all-inclusive properties where the cost of the holiday is effectively “locked in” at the time of booking.

The pace of growth in North American arrivals to Barbados slowed in H1 2019 to a 2% period-on-period increase (H1 2018: 7%). Partially as a result of the strong UK customer growth, the Group’s percentage of North American room nights were stable at 19% and room revenue from direct bookings reduced from 22% in the prior period to 21%.

There is increased competition in Barbados, particularly in the all-inclusive and value segments. However, this is partly mitigated by reduced all-inclusive room stock on the island due to ongoing renovations. The Group continues to invest in its properties in response to growing competition. There has been specific focus on projects such as upgrading Wi-Fi infrastructure at the properties in order to enhance guest experience.

The Group continues to work with the Government of Barbados to ensure the tourism sector is fairly represented in changes to taxation and other matters. During the period, the Government announced several changes to taxation that affect the Group.

Firstly, in October 2018, the Government lowered the corporation tax rate from 30% to rates of between 1% and 5.5%. This followed the increase of the corporation tax rate in June 2018 from 25% to 30%. The change was required in order to align the applicable rates for the domestic and offshore sectors in order to meet Organisation for Economic Cooperation and Development (OECD) requirements. This change significantly reduced the Group’s corporation tax obligation for the period.

In March 2019, the Government announced that the previously announced proposed increase in VAT on all tourism services from 7.5% to 15% (effective from 1 January 2020) would be reduced to an increase from 7.5% to 10% on room revenue only. This change reflects a substantial benefit to the Group as any increase in VAT affects either the prices charged to or margin retained from customers.

While the reduction in the proposed increase in VAT is positive for the Group, the Government indicated that water charges and property taxes would increase by approximately 50% and 35% respectively.

Revenue

Revenue for the first half of the year was $43.7 million, which was $1.2 million (3%) higher than H1 2018 ($42.5 million*). This increase was driven primarily by Treasure Beach, which delivered a significantly improved performance and contributed a full period of results, having opened in mid-December 2017 following its acquisition in May 2017.

The market trend towards all-inclusive properties was reflected in the Group’s results, with strong performances from Crystal Cove, Waves and Turtle Beach offset by lower revenue from the European Plan hotels, with the exception of Treasure Beach.

As noted at the year end, Daphne’s restaurant, whilst a small contributor in terms of the Group’s results, continues to struggle against the increased competition on the island.

Overall occupancy grew by one percentage point to 68% (H1 2018: 67%), driven by Treasure Beach and the all-inclusive properties; Crystal Cove, Waves and Turtle Beach. Targeted discounting drove higher occupancy at Treasure Beach and Turtle Beach. Turtle Beach also benefited from the refurbishment of one of its restaurants during the period. However, ADR declined 1% to $532 (H1 2018: $539*), due to reduced rates- at Turtle Beach and Treasure Beach offsetting modest rate increases at most of the other properties.

RevPAR for the Group increased 1% to $364 from $362* in the prior period.

* Comparative figures have been restated as a result of IFRS 15 and revenue classification changes. See the Reporting changes section for more detail.

Profitability

After adjusting for one-off items, EBITDA was $16.4 million (H1 2018: $15.4 million), 7% higher than the prior period, while adjusted EBITDA margin increased one percentage point to 37.5% from 36.1% in the prior period*. This reflected a gross margin increase of three percentage points to 62.4%*.

During H1 2019, the Group increased the level of purchases through its centralised warehouse, which became fully operational at the end of H1 2018. The cost savings from direct importation, combined with some positive impact from the repeal of the National Social Responsibility Levy in July 2018, offset the underlying revenue shift towards lower-margin all-inclusive properties and utility and other operational cost increases as a result of recently implemented Barbados Government policies.

The Group’s depreciation and amortisation expense was consistent with the prior period. There was an increase in finance costs of $0.5 million primarily resulting from movements in the US LIBOR rate (from an average of circa 155 basis points in H1 2018 to an average of circa 240 basis points in H1 2019) and from utilising the Group’s overdraft facility.

As a result of the above, adjusted profit before tax increased 5% in the period to $12.0 million (H1 2018: $11.4 million).

The lowering of the corporate tax rate from 30% to rates of between 1% and 5.5% has resulted in a significant decrease in the Group’s corporation tax obligation. Primarily as a result of restating the balances at the new tax rates, the Group’s deferred tax assets and liabilities have reduced from $5.4 million and $5.6 million respectively to $0.4 million and $0.6 million respectively during the period. As a result of the lowering of the corporate tax rate, the tax charge fell from $2.0 million in the six months ending 31 March 2018 to $0.2 million in H1 2019.

Adjusted profit after tax increased to $11.8 million from $9.3m in the prior year, while adjusted basic and diluted EPS increased from 10.5 cents per share to 13.3 cents per share.

Reported profit after tax also increased to $11.8 million in H1 2019 from $8.8 million in the prior period. In H1 2019, reported profit did not include any one-off costs (H1 2018: acquisition and other one-off costs of $0.7 million, primarily reflecting Treasure Beach pre-opening costs and restructuring expenses).

Reported basic and diluted EPS was 13.3 cents per share compared to 9.9 cents per share in H1 2018.

* Comparative figures have been restated as a result of the adoption of IFRS 15. See the Reporting changes section for more detail.

Net debt and net asset value

The Group’s net debt position of $68.9 million is set out in the table below. Based on adjusted EBITDA for the trailing 12 months, the Group has an adjusted EBITDA to net debt ratio of 3.3 times, reduced from 4.0 times at 31 March 2018. This internal KPI is used by the Board to assess the Group’s levels of debt. The Group continues to comply with all covenants with comfortable headroom.

The Group has third party debt in the form of term loans of $59.3 million. In addition, the Group has an overdraft facility of $10 million, of which $6.1 million was drawn down at 31 March 2019, and a revolving credit facility of $5 million, which was fully drawn down at 31 March 2019. The Group also has a vendor loan remaining in relation to the Waves acquisition of $0.5 million.

In October 2018, the Group syndicated a portion of its loans with The Bank of Nova Scotia (Scotiabank) to FirstCaribbean International Bank (Bahamas) Limited on the same terms and conditions existing with Scotiabank. This syndication provides the Group with greater capacity in respect of future expansion activities.

The Group’s current facilities (excluding the vendor loan) are due to expire in May 2020. During the period, the Group renegotiated its loans and facilities with its finance partners. A commitment has been received in this regard to extend the loans and facilities to 2024 at similar commercial terms to those currently in place. However, the repayment term of the loans will be extended from 10 years currently remaining to 15 years. Completion of the refinancing is expected by the start of June.

The Group’s property portfolio was valued by CBRE at $249.5 million as at 1 January 2018. Based on net debt of $68.9 million as at 31 March 2019, this equates to an implied net asset value (NAV) of approximately $180.6 million (203 cents per share or 156 pence share at £1 : $1.30).

Reconciliation of net debt and net asset value

31 Mar

2019

30 Sep

2018

$m

$m

Term loan (due 2020)

(59.3)

(62.4)

Revolving facility

(5.0)

(5.0)

Waves vendor loan

(0.5)

(0.5)

Total loans and borrowings

(64.8)

(67.9)

Bank overdraft

(6.1)

(6.6)

Cash and cash equivalents

2.1

2.4

Net debt

(68.9)

(72.2)

Implied total property value

249.5

249.5

Net asset value

180.6

177.3

 

Cash flow

The Group’s free cash flow (defined as cash flow from operations less capital expenditure) was $8.4 million in H1 2019 (H1 2018: $4.5 million). The free cash flow movement reflects improved cash flow from operations ($10.1 million versus $8.6 million in H1 2018) and a reduction in capital expenditure to $1.7 million (H1 2018: $4.1 million, which included the refurbishment of Treasure Beach hotel).

Reporting changes

The Group has applied IFRS 15 Revenue from Contracts with Customers from 1 October 2018. As a result of adopting this standard, non-discretionary service charge collected from customers is now recognised within revenue. Prior period amounts have been restated in line with this change as follows:

H1 2018

previously reported

IFRS 15 change

H1 2018

restated

Revenue

$38.8m

$3.7m

$42.5m

Gross profit

$25.1m

$0.3m

$25.4m

Gross margin (%)

64.7%

(4.9%)

59.8%

Adjusted EBITDA

$15.4m

$15.4m

Adjusted EBITDA margin (%)

39.6%

(3.5%)

36.1%

Further, in order to improve comparability with industry peers, the Group has adjusted how it classifies revenue. From 1 October 2018, the Group will classify revenue as either Package or Non-package revenue. Comparative figures have been represented.

All Package revenue is now included in the calculation of both ADR and RevPAR. The changes to prior period ADR and RevPAR as a result of the implementation of IFRS 15 and the revenue classification adjustment are as follows:

Key performance indicators

H1 2018

previously reported

Reporting changes

H1 2018

restated

Average Daily Rate (ADR)

433

106

539

Revenue per Available Room (RevPAR)

292

70

362

 

Delivering on the Group’s strategy

Day-to-day operational excellence

The Group is constantly seeking to improve its day-to-day operational performance, and continues to receive positive feedback and guest satisfaction scores, which in turn lead to healthy levels of repeat business. Key to the Group’s strategy is its people. The Group employs over 1,000 local people in its operations. During the period, the Group successfully renegotiated its key union contract. The renegotiation gave the majority of employees an increase in wages of 2% each year for three years, in line with expectations.

Existing portfolio enhancement

The Group continues with its strategy of enhancing the portfolio by refurbishing, repositioning and repricing the hotels. These steps interplay to find the best combination of physical structure (refurbish), guest experience (reposition) and yield management (reprice). In addition to the regular capex spend of 3-4% of each hotel’s revenue, the Group will spend approximately $1m on special projects. During the period, two such projects have been completed – the Rum Vault at Colony and a refurbishment of one of the restaurants at Turtle Beach.

The Group sees an opportunity to enhance the profitability of several of its hotels through a selective refurbishment programme as some of the hotels were last refurbished up to eight years ago. These refurbishments are expected to be funded from continued reinvestment of internally generated cash. Historically, the Group has been able to achieve significant uplift in the performance of refurbished assets.

Expansion

Treasure Beach hotel was acquired in May 2017 and reopened in December 2017 following extensive renovations. This hotel is now contributing a good return to the Group in its first period of full operation. The reviews for the property and feedback from Tour Operators have been very positive.

Hodges Bay Resort & Spa in Antigua opened to guests in December 2018. While the hotel is open, the management agreement is not yet in operation due to some areas of the hotel remaining incomplete. Therefore, no management fee income has been earned in this period. The hotel is expected to be completed in H2 2018/19 and, when finished, this hotel will be one of the best properties on the island of Antigua.

The Group’s sales and marketing contract in St. Lucia continues to perform well.

There continue to be a number of compelling expansion opportunities in the Caribbean. However, the strategy of the Board is to continue to strengthen the Group’s balance sheet during 2019 before expanding further. While further expansion in the Caribbean is key to the Group’s strategy, the Group is mindful of the impact that macro-economic issues – such as change in the Barbados Government and Brexit in the UK – could have on the Group.

Dividend

The Board is pleased to report that an interim dividend of 1.33 pence per share has been declared. This reflects the Board’s dividend policy whereby the Company will be paying an interim dividend equal to one third of the full year dividend for the financial year ending 30 September 2019.

The dividend will be paid on 28 June 2019 to shareholders on the register on 24 May 2019, and the Company’s ordinary shares will be marked ex-dividend on 23 May 2019.

Board and advisers

The Board is currently undertaking a search for an additional Independent Non-Executive Director. A search firm has been appointed and due regard is being taken to ensuring any new appointment contributes to the Board’s skills, capabilities, experience and diversity.

Following the resignation of Jeff Singleton, Chief Financial Officer, on 14 January 2019, the Group initiated a search for a new Chief Financial Officer. Led by an Executive Search firm, this search is at an advanced stage and the Board will announce an appointment in due course. Jeff will continue to work with the Group in the near term to ensure a smooth transition with his successor.

The Board announces that Zeus Capital will step down as the Company’s joint corporate broker with immediate effect. Liberum will now be the Group’s sole corporate broker.

Current trading and outlook

Elegant Hotels has continued to trade in line with market expectations since the period end and has good visibility of its bookings pipeline for the remainder of the financial year. As a result, the Group remains comfortable with the FY19 outlook versus market expectations and confident in the Group’s longer-term prospects.

This article Elegant Hotels Group plc A solid performance with good visibility for the remainder of the year was written by DirectorsTalk Interviews.


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Zeus Capital Q&A: Elegant Hotels Group PLC (LON:EHG) https://www.directorstalkinterviews.com/elegant-hotels-group-plc-qa-with-zeus-capital-lonehg-2/412764678 Fri, 18 Jan 2019 09:54:44 +0000 https://www.directorstalkinterviews.com/?p=764678 Elegant Hotels Group PLC (LON:EHG) is the topic of conversation when Zeus Capital’s Head of Research Mike Allen caught up with DirectorsTalk for an exclusive interview.   Q1: Elegant Hotels announced their full-year results 2018 which I see you actually published a note on. Can you run us through those results? A1: The results showed ...

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Elegant Hotels Group PLC (LON:EHG) is the topic of conversation when Zeus Capital’s Head of Research Mike Allen caught up with DirectorsTalk for an exclusive interview.

 

Q1: Elegant Hotels announced their full-year results 2018 which I see you actually published a note on. Can you run us through those results?

A1: The results showed some very good operational progress versus last year, revenues was up 5% year-on-year with REVPAR broadly flat versus last year as well which was broadly in line with our expectations. A little bit of margin pressure there due to pressures from the National Social Responsibility Levy as previously flagged. Adjusted EBITDA was up 11% year-on-year and adjusted EPS was up 16% year-on-year due to a lower tax rate, mainly due to increased capital allowances. The full year dividend of 4p was in line with our expectations and net debt at $72.2 million was below last years’ level as well.

 

Q2: So, how would you describe the outlook for the company?

A2: Clearly, there is some economic concern related to the UK consumer at present however, booking trends are ahead of last year. They’ve actually got just over 60% revenue visibility fore the forthcoming financial year which is good news and management are talking about trading in line with expectations.

 

Q3: I see you’ve made some changes to your forecasts, can you talk us through those?

A3: We’ve tweaked our FX assumption on the pound to dollar from 1.35 to 1.30 to better reflect the current spot environment. We have tweaked down our occupancy assumptions on the business as well due to some pf the Brexit uncertainty and stronger dollar to reflect that but we’re still reasonably confident of modest pricing growth given what the business has delivered to date.

The big impact on our forecasts is the change in the affected tax rates, about 23% to about 10% to reflect the corporate tax rates in Barbados at the moment. The upshot of all these changes is the 2% reduction of adjusted EBITDA by 12% uprate to earnings which is largely tax-rate driven.

 

Q4: Finally, what are your thought on Elegant Hotels Group valuation?

A4: We think the valuation is compelling. The stock on our advice forecast is trading on a September 2019 PE of about 7 times price earnings and there’s a yield of just over 6% on offer as well. If you look at the current net asset value of the business based on the 2018 outturn, it’s in excess of 150p a share and I think the company is paying down its debt fairly rapidly at the moment as well. So, we think the NAV of the shares could well increase there in excess of 160p over the next couple of years which will be a 60% discount to the market cap of the business.

So, to our minds, it’s a strong operator in an interesting market with a very significant discount to some of its peers in the hotel sector, also of a decent yield on offer and a significant, discount to NAV.

This article Zeus Capital Q&A: Elegant Hotels Group PLC (LON:EHG) was written by DirectorsTalk Interviews.


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Elegant Hotels Group PLC Q&A: Full-Year Results (LON:EHG) https://www.directorstalkinterviews.com/elegant-hotels-group-plc-qa-full-year-results-lonehg/412764512 Thu, 17 Jan 2019 10:24:55 +0000 https://www.directorstalkinterviews.com/?p=764512 Elegant Hotels Group PLC (LON:EHG) Chief Executive Officer Sunil Chatrani caught up with DirectorsTalk for an exclusive interview to discuss the increase in revenue, operational progress, the current market dynamics in Barbados, attracting new visitors and what to expect in the coming year.   Q1: This morning, we saw the full-year results for the year ...

This article Elegant Hotels Group PLC Q&A: Full-Year Results (LON:EHG) was written by DirectorsTalk Interviews.


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Elegant Hotels Group PLC (LON:EHG) Chief Executive Officer Sunil Chatrani caught up with DirectorsTalk for an exclusive interview to discuss the increase in revenue, operational progress, the current market dynamics in Barbados, attracting new visitors and what to expect in the coming year.

 

Q1: This morning, we saw the full-year results for the year ended 30th September, a year of progress for the company. Can you tell us what’s been behind the 5% increase in revenue for the year?

A1: The increase in revenue was driven largely by our acquisition of Treasure Beach hotel in Barbados in December 2017. Treasure is a 35-room all-suite hotel situated right next door to another one of our properties on the west coast, Tamarind hotel. Its addition to the portfolio has given us almost 300 metres of continuous beachfront on the prestigious Platinum west coast of Barbados. Despite opening a little later than we would’ve wanted, for reasons beyond our control, we’re delighted with how the renovation has turned out and we expect it to perform well as it becomes more established in the coming years.

Another factor behind the revenue increase was the renovations at House which is an adults-only property right next door to Tamarind, this is in line with our ongoing strategy of refurbishing, reposition and repricing our properties. In this particular case, some of the renovations to the public areas and the addition of a new spa allowed us to add a 6% increase in EBITDA at the property over the year.

Lastly, one of our all-inclusive properties also made a good contribution and continue to go from strength to strength. This is part of a wider trend at the moment towards the all-inclusive segment as guests, especially those from the UK, like to lock-in the cost of their holiday.

 

Q2: Apart from the acquisition of Treasure Beach, can you please describe for us the other areas of operational progress since we’ve last spoke?

A2: Hodges Bay Resort and Spa opened in Antigua in December 2018 which is subsequent to year-end, it’s one of the best properties in Antigua and we’re very pleased with how it’s turned out. It’s our first full management contract and first operation outside of Barbados so it’s exciting for a couple of reasons and we intend to use it as a template for further expansion across the Caribbean region.

In addition to some ‘business as usual’ type of renovations at a couple of our properties, we also added a rum vault to Colony Club towards the end of the financial year. This is the first of its kind in Barbados and features a collection of 150 rums from all over the world, it offers unique experiences such as rum pairings with a dedicated rum sommelier and multi-course dining options along with rum-themed mixology and cooking classes.

It’s this kind of renovation and high-class offering that our guests love, and it plays an important role in attracting new business as well as increasing the chances of them making a repeat booking in the future.

A little bit less glamorous but nevertheless important development during the year was the creation of a centralised warehouse which allows us to deliver savings on a large portion of our food and beverage items. We think that, together with the streamlining and centralisation of certain functions, it will result in annual savings of around $500,000 a year.

 

Q3: Can you talk us through the market dynamics in Barbados at the moment and I think you alluded to this earlier but has the political uncertainty here in the UK resulted in a drop-off in visitors at all?

A3: Overall, visitor numbers to Barbados has increased by 3% over the year and in terms of the UK specifically, the visitor numbers actually grew by 1% during the year. The UK now represents 32% of the visitors to Barbados which basically tells how resilient it is, it’s the main market for us.

The real growth has come from the US which saw a 9% increase in visitor numbers and now represents around 30% of all visitors to Barbados. This is partly due to the increase from Miami and Charlotte and tallies nicely with our efforts to increase our market penetrations in North America. For Elegant, the percentage of customers from the region based on room nights increased 20% from 18% in the year before which is very pleasing to see.

More generally, Barbados continues to enjoy a fantastic reputation as a safe country with great weather and a range of attractions and activities. Although this makes it a competitive market, we are confident that visitor numbers will remain resilient for the foreseeable future from the UK and elsewhere.

 

Q4: Now, you’re well-known for the high level of repeat business that you enjoy but how do you go about attracting new visitors?

A4: First of all, we have extremely strong relationships with our tour operators, and we work hard to maintain our excellent reputation with them. However, we’re also increasing the direct business that we’re attracting through our own website and as a result of our efforts in this area, the percentage of revenue from the tour operators decreased during the year from 80% to 78%.

As I said already, North American business is another major focus and we’ve recently appointed a marketing agency in the US to help drive customers from that region. We’re also focusing more and more on a millennial segment for whom repeat visits are less common, these customers have been shown to value experiences and sustainability. So, our property refurbishments focussed on appealing to this segment in particular and for more established guests, the level of service and quality that they have come to expect from us.

Lastly, we attach great importance to the training and development of our staff, and we have rigorous programmes in place which are key to improving our guest satisfaction scores. So, once we have attracted a new visitor, we have a high chance of them coming back.

 

Q5: How is the coming year looking for Elegant Hotels Group, both in terms of the underlying trading as well as your expansion plans?

A5: We’re pleased with how trading has gone since the start of the financial year and our bookings are currently tracking ahead of the same period last year. We’re very aware of the current uncertainties in the UK market and continue to monitor it closely but nevertheless we’re confident in our prospects for 2019.

In terms of our further expansion, we took a decision last year to strengthen our balance sheet before expanding further and it is likely this approach will continue into the current financial year.

This article Elegant Hotels Group PLC Q&A: Full-Year Results (LON:EHG) was written by DirectorsTalk Interviews.


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INTERVIEW: Elegant Hotels Group A Strong Operator in an Interesting Market https://www.directorstalkinterviews.com/interview-elegant-hotels-group-a-strong-operator-in-an-interesting-market/412764298 Wed, 16 Jan 2019 07:41:47 +0000 https://www.directorstalkinterviews.com/?p=764298 Elegant Hotels Group plc (LON:EHG) CEO Sunil Chatrani talks to DirectorsTalk about its FY 2018 results. Sunil explains what has been behind the 5% increase in revenue for the year, other areas of operational progress, the market dynamics in Barbados at the moment, how they attract new visitors and how the year is looking in ...

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Elegant Hotels Group plc (LON:EHG) CEO Sunil Chatrani talks to DirectorsTalk about its FY 2018 results. Sunil explains what has been behind the 5% increase in revenue for the year, other areas of operational progress, the market dynamics in Barbados at the moment, how they attract new visitors and how the year is looking in terms of underlying trading as well as expansion plans.

We also caught up with Zeus Capital Director of Research Mike Allen, who talks us through the FY18 results, the outlook for the company, explains how and why he has tweaked the forecast and shares his thoughts on the company’s valuation.

Elegant Hotels owns and operates seven luxury freehold hotels and a beachfront restaurant, Daphne’s, on the island of Barbados. The Group’s portfolio currently comprises 588 rooms, making it twice as large (by room number) as the closest competitor in the Barbados luxury hotel room market. Six of the seven properties are situated along the prestigious west coast of Barbados commonly known as the “Platinum Coast”. The properties are all freehold, with a total aggregate plot size of approximately 23 acres and an aggregate beachfront of 2,600 feet.

In the year ended 30 September 2018, the Group achieved revenue of $63 million and EBITDA before non-recurring items of $19.7 million.

Together, the Group’s seven existing hotels – Colony Club, Treasure Beach, Tamarind, The House, Crystal Cove, Turtle Beach and Waves Hotel & Spa – offer styles encompassing classic and contemporary, family-friendly and adults-only. The Group also has a management contract for Hodges Bay Resort in Antigua and a sales and marketing contract for The Landings Resort & Spa in St. Lucia.

The Group’s strategy is to leverage its position as a leading hotel operator in Barbados and to expand both on Barbados as well as further into the Caribbean.

This article INTERVIEW: Elegant Hotels Group A Strong Operator in an Interesting Market was written by DirectorsTalk Interviews.


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INTERVIEW: Elegant Hotels Group A Strong Operator in an Interesting Market Elegant Hotels Group plc (LON:EHG) CEO Sunil Chatrani talks to DirectorsTalk about its FY 2018 results. Sunil explains what has been behind the 5% EHG,ZEUS
Elegant Hotels Group On track, current NAV of 153p https://www.directorstalkinterviews.com/elegant-hotels-group-on-track-current-nav-of-153p/412764275 Tue, 15 Jan 2019 13:45:00 +0000 https://www.directorstalkinterviews.com/?p=764275 Elegant Hotels Group (LON:EHG) has announced FY 2018 results that show good progress vs. last year and are within 3% of our forecasts at the adjusted EBITDA level, and ahead at the adjusted EPS level albeit due to lower tax. The Group is trading in line with expectations in FY 2019 with over 60% revenue ...

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Elegant Hotels Group (LON:EHG) has announced FY 2018 results that show good progress vs. last year and are within 3% of our forecasts at the adjusted EBITDA level, and ahead at the adjusted EPS level albeit due to lower tax. The Group is trading in line with expectations in FY 2019 with over 60% revenue visibility for 2019E. We increase our adj. EPS forecast by 12% and 13% in FY19 E and FY20E which is largely driven by changes to corporate tax rates in Barbados. We continue to believe the shares offer strong value.

Final results: Revenue was +5% YOY with REVPAR broadly flat at $225 vs. $227 last year (ADR was +2%, with occupancy dropping 160 bps to 62.3%). Gross profits were ahead of last year by $1.8m reflecting the growth in revenue, albeit on flat margins due to pressures from the National Social Responsibility Levy (NSRL). Adjusted EBITDA was $19.7m vs. $17.8m and +10.6% and -2.5% vs. our forecasts. Adjusted EPS (diluted) actually came in at 11.3 cents per share and +15.9% YOY. This was mainly due to increased capital allowances of $0.7m due to the construction of Treasure Beach, which was not in our forecasts. The full year dividend of 4.0p was in line with our forecasts. Net debt at $72.2m was 5% ahead of our forecast but below $73.1m last year.

Key drivers: Revenues were boosted during the year by the acquisition of Treasure Beach as well as the renovation of The House and continued strong performance of Waves. Beachfront restaurant Daphne’s had a mixed year, and while improved vs. the prior year is facing increased competition. As previously flagged, occupancy fell 1.6 percentage points, and was the key area of underperformance in our forecasts. However, this was largely driven by the impact of Treasure Beach, which was opened in December 2017 and missed the peak tourist season. The modest growth in ADR was largely driven by The House following its refurbishment as well as the increasing popularity of Waves.

Forecasts: We have slightly tweaked our FX assumptions from 1.35 to 1.30 to better reflect current spot rates. However, to offset this, we have also tweaked down our occupancy assumptions reflecting the current underlying run rate of the business (some growth is expected due to the impact of Treasure Beach). We still anticipate modest pricing growth, albeit this largely be determined by FX trends during the course of the year. We also update our effective tax rate assumptions to ac.10% rate to reflect the new corporate tax rates in Barbados resulting in a 12% earning upgrade in FY19E.

Investment view: We believe the valuation remains compelling trading on a 2019E P/E of 7.0x falling to 6.6x in 2020E and an EV/EBITDA of 6.8x and 6.1x respectively. The shares have significant asset backing and are trading at a 55% discount to current NAV of 153p. We therefore believe there is significant long-term value in the shares and are reassured by management’s approach to strengthening its balance sheet given current UK economic uncertainty. The dividend yield of 6.1% in 2019E is also attractive in our

This article Elegant Hotels Group On track, current NAV of 153p was written by DirectorsTalk Interviews.


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Elegant Hotels Group plc A year of good financial and operational progress https://www.directorstalkinterviews.com/elegant-hotels-group-plc-a-year-of-good-financial-and-operational-progress/412764121 Tue, 15 Jan 2019 07:08:58 +0000 https://www.directorstalkinterviews.com/?p=764121 Elegant Hotels Group plc (LON: EHG), the owner and operator of seven upscale freehold hotels and a beachfront restaurant on the island of Barbados, today announced its audited results for the year ended 30 September 2018. Financial Highlights · Revenue up 5.0% to $62.9m (2017: $59.9 million), reflecting the acquisition of Treasure Beach, the renovation ...

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Elegant Hotels Group plc (LON: EHG), the owner and operator of seven upscale freehold hotels and a beachfront restaurant on the island of Barbados, today announced its audited results for the year ended 30 September 2018.

Financial Highlights

· Revenue up 5.0% to $62.9m (2017: $59.9 million), reflecting the acquisition of Treasure Beach, the renovation of the House, and a continued strong performance from Waves

· RevPAR (revenue per available room) broadly flat at $225 (2017: $227)

· ADR (average daily rates) up 2.0% to $361 (2017: $354)

· Adjusted EBITDA* up 10.6% to $19.7 million (2017: $17.8 million)

· Profit after tax up 3.5% to $9.5 million (2017: $9.2 million)

· Adjusted diluted EPS up 15.9% to 11.3 cents per share (2017: 9.8 cents per share)

· Implied Net Asset Value (NAV) of 200 cents per share (153 pence per share†)

· Year-end net debt of $72.2 million (2017: $73.1 million)

· Proposed final dividend of 2.66 pence per share, resulting in a full year dividend of 4.0 pence per share

Operational Highlights

· Opened Treasure Beach hotel, a 35-suite property, in December 2017, in line with the Group’s expansion strategy, having refurbished, repositioned and repriced the property

· Hodges Bay Resort in Antigua, operated by Elegant Hotels under management contract, opened subsequent to year end, in December 2018. This is the Group’s first managed property outside Barbados

· Refurbishment projects during the year have included: the public area renovations and new spa at The House; the addition of a rum vault to Colony Club; and renovations of some rooms and bathrooms at Turtle Beach and Crystal Cove, respectively

· Established a centralised warehouse in order to increase operational efficiencies and take advantage of direct importation of food and beverage

* The Group uses adjusted EBITDA as a measure of performance as it better represents underlying performance. Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and one-off costs that are outside the ordinary course of business. Adjusted profit and adjusted EPS reflect the adjusted EBITDA figure. Comparative figures have been re-presented to include non-exceptional share-based payments in line with best practice.

†based on an exchange rate of £1 : $1.30

Please note that due to rounding, numbers presented throughout this document may not add up precisely to the totals provided. Percentage changes are calculated on unrounded figures.

Commenting on the results, Sunil Chatrani, CEO of Elegant Hotels Group, said:

“We are pleased to have had a year of good financial and operational progress. The revenue increase reflects our strategy of delivering day-to-day excellence, developing our existing properties, and expanding our portfolio. The acquisition, refurbishment and subsequent relaunch of Treasure Beach in Barbados was a notable highlight, and since the year end Hodges Bay Resort & Spa in Antigua has opened under management contract.

Barbados continues to be a hugely attractive destination for visitors and holidaymakers from all over the world, and visitor numbers from the key markets of the UK and the US have continued to increase. While the market remains competitive, we firmly believe that we are well positioned due to the quality of our properties, our relentless focus on providing our guests with outstanding service, and the viability of our strategy. Our trading since the start of the new financial year has remained in line with market expectations, and our bookings are currently tracking ahead of the same period last year. While we are confident in our prospects for FY19, the Board continues to monitor macroeconomic conditions closely, which have the potential to reduce UK consumer discretionary spend.”

Analyst conference call

A presentation and conference call for analysts and institutional investors with the Company’s management team will take place at 9.00am (GMT) today, the details of which are as follows:

Standard International Access +44 (0) 20 3003 2666

Barbados Toll Free 1 877 562 2218

Password Elegant

BUSINESS REVIEW

Market overview

Barbados arrivals and competition

Recent data from the Barbados Tourism Marketing Inc shows that between January and October 2018, Barbados recorded over 540,000 visitors staying on the island, an increase of 3% on the prior period (2017: 6%). US visitors represented the strongest area of growth in this period with an increase in visitors of 9% (2017: 14%), accounting for circa 30% of all visitors to Barbados, while the 32% of visitors arriving from the UK grew by around 1% (2017: 1%). However, those UK visitors continued to spend more due to their longer average length of stay.

The increase in US arrivals was partly due to increased airlift (with additional flights from both Miami, Florida and Charlotte, North Carolina) providing even greater connectivity between Barbados and this strategically important market. In the UK, following the success of its additional direct daily flight from Heathrow over the 2017/18 peak season, Virgin has resumed this service for the 2018/19 peak season. In addition, a new air route from Panama commenced in July 2018.

The Sterling/USD exchange rate continues to affect the Group. Our rates are priced in USD while the majority of customers are from the UK (around 76% on a room night basis). The increased cost of a holiday to Barbados for our UK guests inevitably affects demand and also impacts the rates that the Group is able to achieve.

However, as outlined at our H1 2018 results in May, Barbados continues to be an attractive destination for UK travellers, and overall market conditions are stabilising. Its reputation as a safe country that is rarely affected by hurricanes allows it to be a year-round destination, as reflected by the solid H2 (low season) revenue performance for the Group.

Barbados’ attractiveness does mean that we face competition on the island, especially in the all-inclusive segment, with new hotel openings continuing throughout 2018. This effect is partially mitigated by reduced room stock due to ongoing renovations as well as a slightly more difficult environment for new entrants due to the government changes outlined below. We continue to see a trend toward value accommodation, but the impact of this is being mitigated by increased airlift and visitor numbers to the island.

In response to this growing competition, we continue to enhance and differentiate our properties and services. In addition, the increase in airlift and general profile for Barbados that results from the new competitive offerings represents an opportunity for the Group.

Change in Barbados Government

On taking office in June 2018, the recently elected Barbados Labour Party reviewed the financial position of Barbados and determined that it was in a weaker position than previously believed. In order to improve the state of the country’s finances, foreign reserves and debt position, the government prepared a ‘mini-budget’ which sought to raise US$0.6bn over three years.

Measures announced in the budget include an increase in taxes and levies which began to affect the Elegant Hotels Group from 1 July 2018. However, the Group has, with the help of its partners in the travel industry, passed the majority of these additional costs through to customers. Given the size of the new taxes and levies compared with the total cost of a holiday to Barbados, we believe the changes are at a level that the market will be able to absorb. We did not see a material impact of these changes on the results for the year to 30 September 2018 and , while we continue to monitor the situation closely, we do not currently believe that the outlook for the Group in 2019 and beyond will be materially affected.

As part of the measures, the Government also currently plans to increase VAT for the tourism industry from 7.5% to 15% from 1 January 2020. This increase is expected to be offset by the reduction in other levies currently in place such as the room night levy (a charge on each night of accommodation) and the Direct Tourism Services levy (a 2.5% charge on all tourism services save rooms). The Group continues to work with the Government to ensure any changes in taxes and levies are appropriate for the industry.

In the longer term, the Company is supportive of the Government’s plans to invest both in the tourism industry and the infrastructure of the island.

Review of performance against strategy

Day-to-day operational excellence

Revenue – pricing and occupancy

Revenue for 2017/18 was $62.9 million, up 5% on the prior year (2017: $59.9 million). The increase was primarily driven by the addition of our recent acquisition of Treasure Beach from December 2017, our renovation of The House, and a continued strong performance from Waves.

Occupancy fell in the period by 1.6 percentage points to 62.3% from 63.9%. However, excluding Treasure Beach, which was opened in December 2017 and missed the peak tourist season, the Group’s occupancy would have been largely consistent with the prior year.

ADR improved $7 or 2% in the period from $354 to $361. This was largely driven by The House, following its refurbishment, and Waves, as it continues to gain popularity. There is currently a trend towards our all-inclusive properties as guests, especially those from the UK, look to lock-in the cost of their holiday.

As in the prior year, the Group reviewed the pricing strategy for some of its properties in response to the weakening of Sterling. Rates were discounted on a targeted and tactical basis in certain cases in order to maximise occupancy based on the season.

Targeted promotions were used to boost occupancy during slower periods. Over the high demand periods, our specialist US-based revenue team continues to be disciplined and cautious with discounting, leveraging both the Group’s excellent relationships with tour operators as well as its scale and its substantial share of available luxury rooms in Barbados.

Daphne’s, our beachfront restaurant, had a mixed year in 2017/18. While performance was improved on the prior year when it was closed for a portion of the peak season due to renovations, the restaurant is underperforming due to increased competition. We are looking at new initiatives to improve its performance in 2018/19.

Target market and go-to-market strategy

We continue to focus on maintaining our strong relationships with tour operators, but are also increasing the direct business that we are attracting through our direct booking website. Reflecting this, the percentage of revenue from tour operators decreased from 80% to 78%. We are equally focussed on increasing our market penetration in North America, and have recently appointed a marketing agency in the US to help drive customers from this strategically important region. The percentage of customers from North America, based on room nights, increased to 20% from 18% in 2016/17.

In the longer term, we are looking to attract more of the millennial segment which includes families and “double income no kids”, and for whom repeat visits are less common. These customers have been shown to value experiences and sustainability. Our property refurbishments therefore focus on appealing to this segment as well as our more established guest-type.

Product and service

In order to ensure all of our guests enjoy their stay at our hotels, we attach great importance to the training and development of staff. The Group has rigorous programmes in place which are key to improving its guest satisfaction scores, which in turn will encourage a high level of repeat business. During 2017/18, we delivered over 25,000 hours of training to our staff, compared to 18,000 hours in 2016/17. Our focus on training also creates confidence in our brand with travel agents and tour operators.

Cost control

Cost control continues to be a key focus for the Group. The increase and subsequent repeal of the National Social Responsibility Levy (or NSRL, a tax on most goods which was increased to 10% in the prior year and repealed in July 2018) has disrupted the costs of many goods. The majority of suppliers increased prices in excess of the NRSL increase, but these prices have yet to fall by the same level following the removal of the NSRL.

In response to the NSRL increase, we streamlined and centralised our functions in order to achieve economies of scale. We also commenced direct importation of goods in the financial year and established a centralised warehouse in order to deliver savings on a large proportion of food and beverage items. This programme has been a success and we are looking to increase its use in the 2018/19 financial year. As stated previously, the programme is expected to save $0.5m annually.

Existing portfolio enhancement

We have continued with our strategy of enhancing our portfolio by refurbishing, repositioning and repricing our hotels. These steps interplay to find the best combination of physical structure (refurbish), guest experience (reposition) and yield management (reprice). In addition to our regular capex spend of 3-4% of each hotel’s revenue, we spent approximately $2m on special projects.

We started the year by completing the public area renovations and new spa at The House. These renovations enabled The House to deliver a 6% increase in EBITDA in the year. Additionally, we added a rum vault to Colony Club towards the end of the financial year. The rum vault is the first of its kind on the island of Barbados, featuring a collection of 150 rums from all over the world. It offers unique experiences such as rum pairings (with a dedicated rum sommelier) and multi-course dining options along with rum-themed mixology and cooking classes. In addition, we carried out renovations of some rooms and bathrooms at Turtle Beach and Crystal Cove, respectively.

Several properties have not been refurbished for a number of years. Historically, the Group has been able to significantly enhance profitability of properties as a result of refurbishment programmes. We are currently reviewing our refurbishment plans to focus capital expenditure on the areas providing the most compelling return on investment.

Expansion

We are delighted with the renovation of Treasure Beach which opened in December 2017. The 35 all-suite hotel is located next to Tamarind Hotel on the west coast and now gives the Group almost 300 meters of continuous beachfront on the prestigious ‘Platinum Coast’.

In Treasure Beach, we saw an underperforming hotel that could be refurbished, repositioned and repriced in line with our enhancement strategy. Prior to opening, we conducted a full renovation of the property to create a modern hotel that is focussed on art and food. Unfortunately, Treasure Beach opened later than originally anticipated due in part to extreme weather events in Miami that delayed imports of materials. This meant that it missed the peak tourist season and has therefore contributed less in 2017/18 than was previously anticipated. However, we expect the property to perform well as it becomes more established.

Hodges Bay Resort & Spa, which we operate under management contract, opened in December 2018. This hotel is one of the best properties on the island of Antigua. As the Group’s first full management contract, and its first operation outside Barbados, we intend to use this as a template for further expansion in the region. Our sales and marketing contract in St. Lucia continues to perform well.

There continue to be a number of compelling expansion opportunities in the Caribbean. However, the Board took the decision to strengthen our balance sheet during 2017/18 before expanding further. While further expansion in the Caribbean is key to the Group’s strategy, the Group was mindful of the impact that macro-economic issues – such as the recent change in the Barbados Government and Brexit in the UK – could have on the Group. It is likely that this approach will continue into the current financial year.

Dividend

Elegant Hotels set out its dividend policy in the prior year. The Board is recommending a 2.66p final dividend in line with that policy. This, combined with the 1.33p interim dividend we paid in July, gives a full year dividend of 4.00p per share. The final dividend is subject to the approval of the Company’s shareholders and will be paid on 8 March 2019 to shareholders who are on the register on 8 February 2019.

Board

During the year, David Adams stepped down from his role as Non-Executive Director and Chair of the Remuneration Committee. The Board is currently undertaking a search for an additional Independent Non-Executive Director with due regard to ensuring any new appointment contributes to the Board’s skills, capabilities, experience and diversity.

As announced separately today, Jeff Singleton, Chief Financial Officer, has informed the Board of his intention to leave the Company. Jeff will remain with the Company for a period of time to ensure a smooth transition with his successor. As a result, Elegant Hotels has initiated a search for a new CFO and an appointment will be made in due course.

Outlook

Our trading since the start of the new financial year has remained in line with market expectations, and our bookings are currently tracking ahead of the same period last year. As a result, the Group remains confident in its prospects for FY19. However, the Board continues to monitor macroeconomic conditions closely, which have the potential to reduce UK consumer discretionary spend.

This article Elegant Hotels Group plc A year of good financial and operational progress was written by DirectorsTalk Interviews.


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Elegant Hotels Group PLC Q&A with Zeus Capital (LON:EHG) https://www.directorstalkinterviews.com/elegant-hotels-group-plc-qa-with-zeus-capital-lonehg/412759612 Mon, 08 Oct 2018 09:12:55 +0000 https://www.directorstalkinterviews.com/?p=759612 Elegant Hotels Group PLC (LON:EHG) is the topic of conversation when Zeus Capital’s Head of Research Mike Allen caught up with DirectorsTalk for an exclusive interview.   Q1: Elegant Hotels issued a trading update on Thursday, what are your thoughts on the statement? A1: The trading statement was quite short, but it was very robust ...

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Elegant Hotels Group PLC (LON:EHG) is the topic of conversation when Zeus Capital’s Head of Research Mike Allen caught up with DirectorsTalk for an exclusive interview.

 

Q1: Elegant Hotels issued a trading update on Thursday, what are your thoughts on the statement?

A1: The trading statement was quite short, but it was very robust which confirms that it was trading in line with expectations to the full year to September 2018. Encouragingly, they also said their booking trends were ahead of last year which is encouraging as we enter the key trading period. They have added a hotel in that period, but we understand that the underlying portfolio is also ahead, so we take that as good news.

 

Q2: Does that change your forecast in any way?

A2: No, we’ve left our forecasts unchanged on the back of this update. We’ve assumed a sterling rate of 1.35 against current spot rate of about 1.29, we’ll look at that year-end, but the underlying assumptions are unchanged.

 

Q3: In terms of company valuation and perhaps as an investment, what’s your view there?

A3: We think the shares look very cheap at the moment, it’s trading on a September 2018 PE of 8.2 times, falling to around 7 times in 2019, they did rebase the dividend yield about a year ago and that’s now yielding 6% based on 2 times cover.

Also, the current NAV is 1.43 pence per share, that was the last reported NAV and based on a recent asset valuation. Longer term, we’d forecast the NAV to increase above 150 as the net debt starts to come down as well.

So, from a number of different perspectives, Elegant Hotels Group shares look good value to us.

 

Elegant Hotels Group plc (LON:EHG) operates nine award winning resorts throughout the Caribbean. Set on the most desirable of the island’s beaches, they offer styles to suit every taste, from classic to contemporary, wellness, family-friendly to adults-only and bed & breakfast to premium all-inclusive.

This article Elegant Hotels Group PLC Q&A with Zeus Capital (LON:EHG) was written by DirectorsTalk Interviews.


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INTERVIEW: Elegant Hotels Group Look good value from a number of perspectives https://www.directorstalkinterviews.com/interview-elegant-hotels-group-look-good-value-from-a-number-of-perspectives/412759552 Fri, 05 Oct 2018 10:40:20 +0000 https://www.directorstalkinterviews.com/?p=759552 Elegant Hotels Group (LON:EHG) is the topic of conversation when Mike Allen, Head of Research at Zeus Capital joins DirectorsTalk. Mike shares his thoughts on the recent trading update, how this might affect its forecast and Mikes view on the company valuation as an investment. Elegant Hotels Group plc owns and operates seven luxury freehold ...

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Elegant Hotels Group (LON:EHG) is the topic of conversation when Mike Allen, Head of Research at Zeus Capital joins DirectorsTalk. Mike shares his thoughts on the recent trading update, how this might affect its forecast and Mikes view on the company valuation as an investment.

Elegant Hotels Group plc owns and operates seven luxury freehold hotels and a beachfront restaurant, Daphne’s, on the island of Barbados. The Group’s portfolio currently comprises 588 rooms, making it twice as large (by room number) as the closest competitor in the Barbados luxury hotel room market. Six of the seven properties are situated along the prestigious west coast of Barbados commonly known as the “Platinum Coast”. The properties are all freehold, with a total aggregate plot size of approximately 23 acres and an aggregate beachfront of 2,600 feet.

In the year ended 30 September 2017, the Group achieved revenue of $59.9 million and EBITDA before non-recurring items of $18.1 million.

Together, the Group’s seven existing hotels – Colony Club, Tamarind, The House, Crystal Cove, Turtle Beach, Waves Hotel & Spa and Treasure Beach – offer styles encompassing classic and contemporary, family-friendly and adults-only. The Group also has a management contract for Hodges Bay Resort in Antigua and a sales and marketing contract for The Landings Resort & Spa in St. Lucia.

The Group’s strategy is to leverage its position as a leading hotel operator in Barbados and to expand both on Barbados as well as further into the Caribbean.

This article INTERVIEW: Elegant Hotels Group Look good value from a number of perspectives was written by DirectorsTalk Interviews.


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INTERVIEW: Elegant Hotels Group Look good value from a number of perspectives Elegant Hotels Group (LON:EHG) is the topic of conversation when Mike Allen, Head of Research at Zeus Capital joins DirectorsTalk. Mike shares his EHG
Elegant Hotel Group Plc Trading update https://www.directorstalkinterviews.com/elegant-hotel-group-plc-trading-update/412759469 Thu, 04 Oct 2018 09:03:41 +0000 https://www.directorstalkinterviews.com/?p=759469 Elegant Hotel Group Plc (LON:EHG) has delivered a short but robust trading update, which confirms it continues to trade in line with expectations. Encouragingly, booking trends are also ahead of last year as we enter the peak trading period. We are maintaining our forecast assumptions on the back of this, and believe the valuation, asset ...

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Elegant Hotel Group Plc (LON:EHG) has delivered a short but robust trading update, which confirms it continues to trade in line with expectations. Encouragingly, booking trends are also ahead of last year as we enter the peak trading period. We are maintaining our forecast assumptions on the back of this, and believe the valuation, asset backing, and yield look attractive.

Trading update: Elegant Hotel Group has issued a trading update in relation to the 12 months ended 30 September 2018, which essentially confirms that the Group is trading in line with expectations. Full year results will be announced on 15th January 2019.

Booking trends: Bookings are said to be tracking ahead of the same period last year. While Elegant now has an extra hotel in the portfolio vs. last year with Treasure Beach, we believe booking trends across the rest of the portfolio is also ahead YOY, which is encouraging, particularly as we move towards the key trading period. Perhaps the only near-term risk is sterling weakening from here ahead of Brexit. That could have an impact on booking trends, but this clearly is not occurring at present.

Barbados tax changes: As we flagged in our note on 31 August, the changes to taxation implemented by the newly elected Government of Barbados has not had a material impact on results during the period. In the statement, the Board has also indicated that it does not believe such changes will impact the financial year to September 2019, albeit the matter continues to be monitored closely. On the back of this, we remain confident that given the low relative cost of the tax for the consumer, and the already stated intention of a number of operators to pass this on to the consumer, the impact both from a demand and margin perspective should be limited for Elegant.

Forecasts: We are maintaining our forecasts on the back of this update. We base our Sterling EPS forecast on an assumed GBP:USD of 1.35 vs. the current spot rate of 1.29. We leave this assumption unchanged for now and will update at the year-end or if there is a more near term significant movement.

Investment view: The Elegant Hotel group share price has weakened further post our last note, leaving a highly attractive valuation in our view. The shares are now trading on a 2018E P/E of 8.2x falling to 7.7x in 2019E, with an EV/EBITDA of 7.3x and 6.7x respectively. The dividend yield is now c.6% based on 2x cover. The shares also have significant asset backing and are trading at a c60% discount to NAV (143p per share – this was the last reported and based on a recent asset valuation). We are forecasting the NAV to increase above 150p in the forecast period as we anticipate net debt to fall from here.

This article Elegant Hotel Group Plc Trading update was written by DirectorsTalk Interviews.


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Elegant Hotels Group plc Bookings up, ahead of last year https://www.directorstalkinterviews.com/elegant-hotels-group-plc-bookings-up-ahead-of-last-year/412759427 Thu, 04 Oct 2018 06:05:48 +0000 https://www.directorstalkinterviews.com/?p=759427 Elegant Hotels Group plc (LON:EHG), the owner and operator of seven upscale freehold hotels and a beachfront restaurant on the island of Barbados, has today issued the following trading update in relation to the year ended 30 September 2018. Current trading and outlook Trading since the interim results in May has remained in line with ...

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Elegant Hotels Group plc (LON:EHG), the owner and operator of seven upscale freehold hotels and a beachfront restaurant on the island of Barbados, has today issued the following trading update in relation to the year ended 30 September 2018.

Current trading and outlook

Trading since the interim results in May has remained in line with market expectations. In addition, bookings for the year ended 30 September 2019 are currently tracking ahead of the same period last year.

Barbados tax changes

The Group notes the recent changes to taxation implemented by the newly elected Government of Barbados and, in line with its initial assessment, can confirm that it has not seen a material resulting impact on the results for the year ended 30 September 2018. Moreover, while the Board continues to monitor the matter closely, at this point it does not expect these changes to materially affect expectations for the year ended 30 September 2019. More generally, the Group welcomes the Government’s plans to invest both in the Barbados tourism industry and in the wider infrastructure of the island.

Notice of results

The Company intends to announce its full year results for the year ended 30 September 2018 on Tuesday, 15 January 2019.

Elegant Hotels Group plc owns and operates seven luxury freehold hotels and a beachfront restaurant, Daphne’s, on the island of Barbados. The Group’s portfolio currently comprises 588 rooms, making it twice as large (by room number) as the closest competitor in the Barbados luxury hotel room market. Six of the seven properties are situated along the prestigious west coast of Barbados commonly known as the “Platinum Coast”. The properties are all freehold, with a total aggregate plot size of approximately 23 acres and an aggregate beachfront of 2,600 feet.

In the year ended 30 September 2017, the Group achieved revenue of $59.9 million and EBITDA before non-recurring items of $18.1 million.

Together, the Group’s seven existing hotels – Colony Club, Tamarind, The House, Crystal Cove, Turtle Beach, Waves Hotel & Spa and Treasure Beach – offer styles encompassing classic and contemporary, family-friendly and adults-only. The Group also has a management contract for Hodges Bay Resort in Antigua and a sales and marketing contract for The Landings Resort & Spa in St. Lucia.

The Group’s strategy is to leverage its position as a leading hotel operator in Barbados and to expand both on Barbados as well as further into the Caribbean.

This article Elegant Hotels Group plc Bookings up, ahead of last year was written by DirectorsTalk Interviews.


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Elegant Hotels Group PLC Shares off 18% since interims https://www.directorstalkinterviews.com/elegant-hotels-group-plc-shares-off-18-since-interims/412757524 Fri, 31 Aug 2018 06:38:45 +0000 https://www.directorstalkinterviews.com/?p=757524 Zeus Capital note the recent weakness in Elegant Hotels Group PLC (LON:EHG) share price, which is down 18% since the interim results and now at the lowest point since December 2016 when the shares were recovering from a c.30% downgrade to forecasts as the company faced a variety of trading headwinds post Brexit. In our ...

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Zeus Capital note the recent weakness in Elegant Hotels Group PLC (LON:EHG) share price, which is down 18% since the interim results and now at the lowest point since December 2016 when the shares were recovering from a c.30% downgrade to forecasts as the company faced a variety of trading headwinds post Brexit. In our view, the market is beginning to stabilise and the current share price, which is significantly below the recently mooted bid price of 110p and at a large discount to the sector, represents significant value. In our view, trading patterns are now beginning to stabilise and we believe the shares offer good long-term value at this level given the NAV of 147p per share (GBP:USD of 1.35), attractive yield of 5.7% and undemanding multiples at a significant discount (c.50%) to the sector. We expect a trading update from the company in the first week of October.

Tax changes: Barbados’ newly elected government recently introduced a new tax to be levied on tourists which will range from $2.50 – $10.00 per room per night, depending on the class of their accommodation and a $70 increase in the exit tax. While it is unlikely to have a positive impact on demand across the island, the incremental cost for a guest of Elegant Hotels, of under £200 (for a 10 night stay), is low compared to the average £4k – £5k cost per couple per week of a booking. The increase in cost of c.4.0% – 5.0% is in line with a number of European destinations including Berlin, Amsterdam, Vienna and Budapest which all have tourist taxes at similar levels of between 4.0% – 5.0%. A number of other operators including Kuoni and Virgin Holidays have already stated their intention to pass this cost on to the consumer. We are confident that given the low relative cost of the tax for consumers, and the already stated intention of a number of operators to pass this on to the consumer the impact on Elegant from both a demand and margin perspective should be limited.

Forecasts unchanged: Elegant Hotels Group PLC noted “a strong pipeline of bookings for the remainder of the financial year”, at the time of the interims. We therefore leave our forecasts unchanged and will review our assumptions at the next update – which we expect will be in the first week of October. We base our Sterling EPS forecast on an assumed GBP:USD rate of 1.35 vs the current spot rate of 1.29. We leave this assumption unchanged for now and will update at the company’s year-end or if there is a more significant movement in the rate.

Investment view: We believe the valuation is undemanding at the current share price, which is at the lowest level since December 2016. At the current price Elegant is trading on a P/E of 9.1x to 2018E EPS falling to 8.6x in 2019E. The shares have significant asset backing and are trading at a c.53% discount to NAV (147p per share). We therefore continue to believe there is good long-term value in the shares at current levels, and its better positioned to capitalise on its consolidation strategy taking into account current market conditions.

This article Elegant Hotels Group PLC Shares off 18% since interims was written by DirectorsTalk Interviews.


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Market Risers: DS Smith plc, easyJet plc, Elegant Hotels Group PLC, European Metals Holdings Ltd https://www.directorstalkinterviews.com/market-risers-ds-smith-plc-easyjet-plc-elegant-hotels-group-plc-european-metals-holdings-ltd/412751505 Tue, 22 May 2018 14:34:06 +0000 https://www.directorstalkinterviews.com/?p=751505 The stock price for DS Smith plc ticker code: LON:SMDS has climbed 1.33% or 7.4 points throughout the session so far. Traders have remained optimistic during the trading session. Range high for the period so far is 564.2 and hitting a low of 553.8. The volume total for shares traded up to this point was ...

This article Market Risers: DS Smith plc, easyJet plc, Elegant Hotels Group PLC, European Metals Holdings Ltd was written by DirectorsTalk Interviews.


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The stock price for DS Smith plc ticker code: LON:SMDS has climbed 1.33% or 7.4 points throughout the session so far. Traders have remained optimistic during the trading session. Range high for the period so far is 564.2 and hitting a low of 553.8. The volume total for shares traded up to this point was 2,286,703 with the average number of shares traded daily being 2,939,195. The stock 52 week high is 565 which is 8.2 points in difference to the previous days close of business and a 52 week low sitting at 5.26 which is a difference of 551.54 points. DS Smith plc now has a 20 moving average of 537.85 and the 50 day moving average now at 509.77. The current market capitalisation is £6,038.50m at the time of this report. The share price is in Great British pence. Mcap is measured in GBP. This article was written with the last trade for DS Smith plc being recorded at Tuesday, May 22, 2018 at 2:59:59 PM GMT with the stock price trading at 564.2 GBX.

 

 

Shares of easyJet plc ticker lookup code: LON:EZJ has gained 1.82% or 32.15 points in today’s trading session so far. Investors have stayed positive while the stock has been in play. The period high has peaked at 1796 dropping as low as 1758. The total volume traded so far comes to 1,214,945 whilst the daily average number of shares exchanged is just 2,405,244. The stock 52 week high is 1796 some 32.5 points difference from the previous days close and the 52 week low at 1136 a difference of some 627.5 points. easyJet plc now has a 20 moving average of 1681.05 and now the 50 day MA at 1656.28. The market cap now stands at £7,055.62m at the time of this report. All share prices mentioned for this stock are traded in GBX. Mcap is measured in GBP. This article was written with the last trade for easyJet plc being recorded at Tuesday, May 22, 2018 at 3:00:18 PM GMT with the stock price trading at 1795.65 GBX.

 

 

Stock in Elegant Hotels Group PLC with ticker code: LON:EHG has climbed 5.09% or 4.25 points throughout the session so far. Market buyers have so far held a positive outlook during the session. The periods high has reached 88 dropping as low as 83.05. Volume total for shares traded at this point reached 148,482 whilst the average number of shares exchanged is 145,837. The 52 week high for the share price is 97.5 equating to 14 points difference from the previous days close and the 52 week low at 79 which is a difference of 4.5 points. The current market cap is £76.46m at the time of this report. The currency for this stock is GBX. Market cap is measured in GBP. This article was written with the last trade for Elegant Hotels Group PLC being recorded at Tuesday, May 22, 2018 at 2:56:44 PM GMT with the stock price trading at 87.75 GBX.

 

 

Stock in European Metals Holdings Ltd with ticker code: LON:EMH has increased 4.71% or 0.9 points during today’s session so far. Buyers seem confident during the session. Range high for the period so far is 20 while the low for the session was 18.39. The total volume of shares exchanged so far has reached 151,361 with the daily average at 196,056. A 52 week share price high is 60.67 some 41.57 points difference from the previous days close and the 52 week low at 17.39 making a difference of 1.71 points. The market cap now stands at £28.94m at the time of this report. The share price is in GBX. Mcap is measured in GBP. This article was written with the last trade for European Metals Holdings Ltd being recorded at Tuesday, May 22, 2018 at 2:16:00 PM GMT with the stock price trading at 20 GBX.

This article Market Risers: DS Smith plc, easyJet plc, Elegant Hotels Group PLC, European Metals Holdings Ltd was written by DirectorsTalk Interviews.


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Elegant Hotels Group PLC Q&A: Half-Year Results Statement (LON:EHG) https://www.directorstalkinterviews.com/elegant-hotels-group-plc-qa-half-year-results-statement-lonehg/412751162 Wed, 16 May 2018 07:45:49 +0000 https://www.directorstalkinterviews.com/?p=751162 Elegant Hotels Group PLC (LON:EHG) Chief Executive Officer Sunil Chatrani caught up with DirectorsTalk for an exclusive interview to discuss their half-year results statement.   Q1: You’ve announced some decent increases in revenue, RevPAR daily rate and occupancy today, what’s behind those positive numbers? A1: Well, the revenue increase was driven by good performance by Colony ...

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Elegant Hotels Group PLC (LON:EHG) Chief Executive Officer Sunil Chatrani caught up with DirectorsTalk for an exclusive interview to discuss their half-year results statement.

 

Q1: You’ve announced some decent increases in revenue, RevPAR daily rate and occupancy today, what’s behind those positive numbers?

A1: Well, the revenue increase was driven by good performance by Colony Club, Waves, Treasure Beach as well as Daphne’s which was actually closed for refurbishment during some of prior comparative years.

In addition, Treasure Beach, which is our newest hotel which we acquired in May last year and which opened in December, contributed a modest amount of new revenue in the period, although less than originally anticipated due to its opening later than was expected.

The increase in ADR, or average daily rate, was largely driven by Waves. This is one of our all-inclusive properties which was able to add over 20% to its rates as the property becomes more well established having been acquired in 2016.

From the occupancy side, this was driven primarily by Colony, House and Turtle. In the case of The House, the increase was due to, at least in part of it anyway, to the recent refurbishment that we did at that property.

This represents the latest example of our ability to improve the financial performance of our hotels through our 3-step programme of refurbish, reposition and repricing.

 

Q2: Now, it sounds like the market conditions are becoming a little less volatile in Barbados after quite a long period of uncertainty. Can you talk us through the latest dynamics of the operating environment over there?

A2: It appears that market conditions in Barbados are stabilising after several challenging years, however we’re certainly not saying that everything is now fine and that the market is entirely going our way.

There continues to be a trend towards the value accommodation and the value segments, but this has now been offset by the increase in visitors to the island. The fact that the Sterling has improved significantly recently is good news for us as our rates as priced in US dollars, so prices have effectively been lowered for UK guests who still account for 72% of the room nights with us. As a result, our advanced bookings for the next fiscal year are currently higher than they were at the same time last year.

In addition to that, our efforts to target the North American market more effectively appear to be paying off, room nights from that region now account for 17% as opposed to 16% at the same time last year. Waves Hotel is a good example of how we’ve managed to do this, we have just proved to be particularly popular with guests from that region. More broadly though, recent data from the Barbados Tourism Marketing Inc shows that arrivals from North America has increased by 3% in the last quarter of 2017.

So, all in all, the market for us is a little more settled than it has been for a while.

 

Q3: I think you touched on this earlier, but can you talk us through the recent acquisition of Treasure Beach? Are you happy with how it’s turned out following the recent refurbishment?

A3: Yes, we’re excited about the prospects at Treasure Beach. It’s a 35-suite hotel, it’s an adjoining property with Tamarind which in turn is situated next to Daphne’s and the House. As a result, 4 of the hotels are now accounting for a continuous 300 metre stretch of prestigious west coast of Barbados, as we refer to as the ‘Platinum Coast’.

Having acquired it in May, we immediately closed it and carried out an extensive refurbishing project. It re-opened in mid-December which was a little later than we’d originally planned due in part to the extreme weather events in Miami which delayed imports of materials. Unfortunately, that meant that it missed our peak season and therefore produced lower than expected revenue in the period.

However, we’re delighted how it’s turned out, it is a high-quality product and we expect it to perform well in 2018 and 2019.

 

Q4: Is Elegant Hotels’ underlying strategy of refurb, reposition and reprice still valid for the current environment in Barbados do you think?

A4: Absolutely, we certainly believe it is, the latest example of it was at The House which is a luxury adults-only property. The public areas were refurbished at the end of the last financial year which has enabled us to improve occupancy by 4 percentage points as well as increasing its rate.

There are a number of examples of us achieving significant performance uplift through refurbishments within our portfolio and it’s also an important aspect of our M&A strategy.

There’s a lot more to go after, within our current properties, and we see an opportunity to enhance its profitability of several of our hotels through a select and refurbishment programme, some of which were last refurbished as far back as 7 years ago.

 

Q5: What’s the outlook like for the remainder of this year and what are Elegant Hotels Group’s strategic priorities?

A5: We’ve continued to trade in line with market expectations since the end of the period and our booking pipeline for the remainder of the financial year looks good. As I’ve already mentioned, market conditions in Barbados also appear to be stabilising after a number of challenging years, we’re therefore comfortable with the FY18 outlook versus market expectations and confident in the group’s longer-term prospects.

In terms of strategic priorities in the near-term, construction of Hodges Bay in Antigua is nearly finished, and we’re excited to be adding to our portfolio under management contract.

We’re also continuing to assess a range of further expansion opportunities, both on and off island as well as making strategic improvements to drive the profitability of our existing portfolio.

This article Elegant Hotels Group PLC Q&A: Half-Year Results Statement (LON:EHG) was written by DirectorsTalk Interviews.


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INTERVIEW: Elegant Hotels Group Positive increase in Revenues https://www.directorstalkinterviews.com/interview-elegant-hotels-group-positive-increase-revenues/412751105 Tue, 15 May 2018 08:57:21 +0000 https://www.directorstalkinterviews.com/?p=751105 Elegant Hotels Group Plc (LON:EHG) CEO Sunil Chatrani talks to DirectorsTalk after the release of its unaudited results for the six months ended 31 March 2018. With increases in revenue, RevPAR average daily rate and occupancy Sunil explains what has driven the positive results, talks us through the latest dynamics of the operating environment in ...

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Elegant Hotels Group Plc (LON:EHG) CEO Sunil Chatrani talks to DirectorsTalk after the release of its unaudited results for the six months ended 31 March 2018. With increases in revenue, RevPAR average daily rate and occupancy Sunil explains what has driven the positive results, talks us through the latest dynamics of the operating environment in Barbados, the recent acquisition of Treasure Beach, the validity of its strategy of ‘refurbish, reposition, reprice’, the outlook for the remainder of this year and strategic priorities.

Unaudited Financial Highlights

· Revenue up 8% to $38.8m (H1 2017: $35.8m)

· RevPAR (revenue per available room) up 5% to $292 (H1 2017: $279)

· ADR (average daily rates) up 2% to $433 (H1 2017: $425)

· Adjusted EBITDA* up 1% to $15.4m (H1 2017: $15.3m)

· Adjusted profit before tax down 7% to $11.4m (H1 2017: $12.2m)

· Adjusted EPS (cents per share) of 10.5c (H1 2017: 11.0c)

· Implied Net Asset Value (NAV) of 199 cents per share (143 pence per share **)

· Interim dividend declared at 1.33 pence per share (H1 2017: 3.5 pence per share)

Operational Highlights

· Opened Treasure Beach hotel, a 35 suite hotel, in December 2017 resulting in a 6% increase in room count to 588 (H1 2017: 553)

· Established a centralised warehouse in order to increase operational efficiencies and take advantage of direct importation of food and beverage

· Construction of Hodges Bay Resort in Antigua, the Group’s first management contract and its first hotel outside Barbados, nearing completion

· Occupancy increased to 67% (H1 2017: 66%)

* The Group uses adjusted EBITDA as a measure of performance as it better represents underlying performance. Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and one-off items that are outside the ordinary course of business. Adjusted profit and adjusted EPS reflect the adjusted EBITDA figure.

Please note that due to rounding, numbers presented throughout this document may not add up precisely to the totals provided. Percentage changes are calculated on unrounded figures.

** based on an exchange rate of £1 : $1.40

Commenting on the results, Sunil Chatrani, CEO of Elegant Hotels Group, said: “We are pleased to have delivered a solid financial and operational performance in the first half of the financial year. The high end hotel market in Barbados appears to be stabilising after several challenging years, and we have a strong pipeline of bookings for the remainder of the financial year. As a result, we remain comfortable with the FY18 outlook versus market expectations and confident in the Group’s longer term prospects.”

This article INTERVIEW: Elegant Hotels Group Positive increase in Revenues was written by DirectorsTalk Interviews.


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INTERVIEW: Elegant Hotels Group Positive increase in Revenues Elegant Hotels Group Plc (LON:EHG) CEO Sunil Chatrani talks to DirectorsTalk after the release of its unaudited results for the six months ended 31 March EHG
Elegant Hotels Group plc Report, Accounts and AGM https://www.directorstalkinterviews.com/elegant-hotels-group-plc-report-accounts-agm/412744021 Thu, 18 Jan 2018 07:13:17 +0000 https://www.directorstalkinterviews.com/?p=744021 Elegant Hotels Group plc (LON:EHG), the owner and operator of seven upscale freehold hotels and a beachfront restaurant on the island of Barbados, announced today that copies of its Annual Report and Financial Statements for the year ended 30 September 2017, together with the Notice of Annual General Meeting and Form of Proxy, will be ...

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Elegant Hotels Group plc (LON:EHG), the owner and operator of seven upscale freehold hotels and a beachfront restaurant on the island of Barbados, announced today that copies of its Annual Report and Financial Statements for the year ended 30 September 2017, together with the Notice of Annual General Meeting and Form of Proxy, will be posted to shareholders today.

Electronic copies of the Annual Report and Financial Statements, the Notice of Annual General Meeting and Form of Proxy are available to view on the Company’s website, www.eleganthotelsgroup.com.

The Annual General Meeting will be held at the offices of Macfarlanes LLP at 20 Cursitor Street, London, EC4A 1LT on Monday 19 February 2018 at 11:00 a.m.

Elegant Hotels Group plc owns and operates seven luxury freehold hotels and a beachfront restaurant, Daphne’s, on the island of Barbados. The Group’s portfolio currently comprises 588 rooms, making it twice as large (by room number) as the closest competitor in the Barbados luxury hotel room market. Six of the seven properties are situated along the prestigious west coast of Barbados commonly known as the “Platinum Coast”. The properties are all freehold, with a total aggregate plot size of approximately 23 acres and an aggregate beachfront of 2,600 feet.

In the year ended 30 September 2017, the Group achieved revenue of $59.9 million and EBITDA before non-recurring items of $18.1 million.

This article Elegant Hotels Group plc Report, Accounts and AGM was written by DirectorsTalk Interviews.


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Elegant Hotels Group PLC Q&A: Preliminary Results (LON:EHG) https://www.directorstalkinterviews.com/elegant-hotels-group-plc-qa-preliminary-results-lonehg/412743435 Wed, 10 Jan 2018 11:24:48 +0000 https://www.directorstalkinterviews.com/?p=743435 Elegant Hotels Group PLC (LON:EHG) Chief Executive Officer Sunil Chatrani caught up with DirectorsTalk for an exclusive interview to discuss their preliminary results for the year ended 30th September 2017.   Q1: This morning we saw the announcement of your preliminary results for the year ended 30th September 2017 in which you mentioned a rebased ...

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Elegant Hotels Group PLC (LON:EHG) Chief Executive Officer Sunil Chatrani caught up with DirectorsTalk for an exclusive interview to discuss their preliminary results for the year ended 30th September 2017.

 

Q1: This morning we saw the announcement of your preliminary results for the year ended 30th September 2017 in which you mentioned a rebased market. Sunil, can you talk us through what you meant by that?

A1: For the financial year 2017, this was the full year a rebased Sterling/US dollar exchange rate which impacted demand from UK travellers for Barbados as a luxury tourist destination. As a result, it has been necessary to discount rates at certain properties on a targeted basis which has inevitably affected profit margins of the business. However, we believe that the pricing environment is now more stable and that this is the new norm.

 

Q2: What are the measures that you’ve taken as a result of these changed market conditions?

A2: In response to the weakening of the Sterling, the pricing strategy has been reviewed at some properties, we discounted some on a targeted and tactical basis in order to drive occupancy while holding rates at other areas for example, The House and Colony, in order to maintain differentiation in the portfolio. The US-based revenue team remained disciplined and cautious with their discounting, leveraging our strong relationships with our tour operators as well as our strength due to our size.

We took several actions to expand the target markets which included both the sales team, both in the US and the UK, and launched a new website in January 2017 to improve direct bookings from the US and North America in general which saw an increase of 14% in 2016 to 17% in 2017, of our total business. Also, increasing our focus on the important millennial segment, for example the marketing of Waves which has seen a tremendous increase in arrivals from the US as well as millennials coming to stay at that particular property. There is also the ongoing focus on cost controls, the impact of implemented measures would be expected in 2018.

 

Q3: Can you tell us a bit more about the Treasure Beach acquisition? What was the strategic rationale for it and how does it fit in with the rest of your portfolio?

A3: Treasure Beach is a 35 all-suite hotel located next to Tamarind Hotel on the platinum west coast and if you remember Tamarind is located next to Daphne’s as well as The House, so we now have four properties connected on that platinum coast.

It fits our long-held acquisition criteria of being a property that complements our portfolio and will benefit from our scale. Along with being a great geographic fit, it was an under-performing hotel that could be refurbished, re-positioned and repriced in line with our enhancement strategy. It reopened in December, middle of December, following a $2.8 million refurbishment and we’re delighted with the outcome. It means that our total room count now on island is 588 rooms, compared to 483 rooms at the time of the IPO, this is now more than twice the nearest competitor in Barbados and gives us significant influence and leverage over our tour operators.

 

Q4: How different is the operating environment in Antigua, given what you’ve seen since signing the Hodges Bay management contract?

A4: We’re confident in the Elegant Hotels’ strategy and way of working is transferrable into Antigua. We have strong relationships locally there and we have a team on the ground who understand both the island as well as Elegant’s approach. There are more similarities than differences and we believe that the synergies and opportunities there are significant for us.

 

Q5: In terms of the underlying portfolio, has anything changed in terms of the strategy you outlined at the time of the IPO?

A5: No, we’ve been very consistent although we have had to be more flexible on rate in some instances given the change in market, we are still pursuing a refurbish, reposition and repricing strategy. In addition to the regular capex where we spent 4% of our hotels’ revenue, we also spent an additional $1.5 million on special projects as planned, all these remains consistent with our strategy as outlined at IPO. The close and renovation of The House resulted in a 9% increase in business on the books since reopening which is a great example of the strategy working and in addition, the food and beverage offered to Turtle Beach and Crystal alongside targeted discounting led to increased year-on-year occupancy. Waves is another great example of the success of the underlying strategy.

 

Q6: Can we see more in terms of M&A and other expansion initiatives in FY18?

A6: Yes, whilst we can’t comment on specifics, we are continually assessing potential acquisition opportunities, both in Barbados and throughout the wider Caribbean. The Board has recently been in advanced discussions, at this point of time, with a specific opportunity and hope to be in a position to note something very soon. Along with that, we see a number of other compelling opportunities ahead of us and are constantly managing our cash flow and that availability in order to ensure we can take advantage of them as they present themselves.

 

Q7: How do you think the current year started for Elegant Hotels Group?

A7: Trading, since start of the new financial year, has remained in line with market expectations and bookings are currently trading ahead for the same period last year. I’m confident in its prospects for 2018 and beyond as Barbados is a fundamentally attractive destination where we have most of our rooms now.

This article Elegant Hotels Group PLC Q&A: Preliminary Results (LON:EHG) was written by DirectorsTalk Interviews.


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INTERVIEW: Elegant Hotels Group Confident for 2018 and beyond https://www.directorstalkinterviews.com/interview-elegant-hotels-group-confident-2018-beyond/412743315 Tue, 09 Jan 2018 09:44:59 +0000 https://www.directorstalkinterviews.com/?p=743315 Elegant Hotels Group Plc (LON:EHG) CEO Sunil Chatrani talks to DirectorsTalk about the release of it’s pre-lim results for the year ended 30th September 2017. Sunil explains what he meant by a ‘rebased market’, measures taken to deal with changed market conditions, more info on the Treasure Beach acquisition, the operating environment in Antigua, strategy, ...

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Elegant Hotels Group Plc (LON:EHG) CEO Sunil Chatrani talks to DirectorsTalk about the release of it’s pre-lim results for the year ended 30th September 2017. Sunil explains what he meant by a ‘rebased market’, measures taken to deal with changed market conditions, more info on the Treasure Beach acquisition, the operating environment in Antigua, strategy, M&A / expansion for 2018 and Sunils thoughts on 2018 so far.

 

The Group’s audited results for the year ended 30 September 2017 will be posted to shareholders in due course, at which point a further announcement will be made.

This was the first full year of a rebased Sterling/USD exchange rate. As a result, given Elegant Hotels’ rates are priced in USD while the majority of its customers are from the UK, it has been necessary for the Group to discount rates at certain of its properties on a targeted and tactical basis. This has inevitably affected the profit margins of the business, but the Group believes that the pricing environment is now much more stable. As such, these market conditions should be seen as the new normal.

Unaudited Financial Highlights

· Revenue up 5.1% to $59.9 million (2016: $57.0 million), reflecting an improvement in occupancy and the addition of Waves Hotel & Spa to the portfolio

· RevPAR (revenue per available room) down 4.6% to $227 (2016: $238)

· ADR (average daily rates) down 6.3% to $354 (2016: $378)

· Adjusted EBITDA* down 7.6% to $18.1 million (2016: $19.6 million)

· Profit after tax down 6.1% to $9.2 million (2016: $9.8 million)

· Adjusted EPS of 10.1 cents per share (2016: 13.1 cents per share)

· Implied Net Asset Value (NAV) of 163 pence per share (218 cents per share†)

· Year-end net debt of $73.1 million (2016: $61.8 million)

· Proposed final dividend of 1.75 pence per share, resulting in a full year dividend of 5.25 pence per share

Operational Highlights

· Successful acquisition, refurbishment and reopening of Treasure Beach Hotel in Barbados, bringing room count up 6.3% to 588 (2016: 553)

· Signed management contract for Hodges Bay Resort & Spa in Antigua, the Group’s first property outside Barbados

· Agreement signed in March to provide sales and marketing services to The Landings Resort & Spa in St. Lucia

· Closure and renovation of The House as part of the ongoing strategy of refurbishing, repositioning and repricing the portfolio

· Occupancy increased to 63.9% (2016: 62.9%)

* The Group uses adjusted EBITDA as a measure of performance as it better represents underlying performance. Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and one-off costs that are outside the ordinary course of business. Adjusted profit and adjusted EPS reflect the adjusted EBITDA figure.

†based on an exchange rate of £1 : $1.34

Please note that due to rounding, numbers presented throughout this document may not add up precisely to the totals provided. Percentage changes are calculated on unrounded figures.

Commenting on the results, Sunil Chatrani, CEO of Elegant Hotels, said: “The Group delivered a solid performance in 2017 against a background of changed market conditions. The team remains firmly focused on delivering our strategy, and we are pleased with the operational progress that has been made during the year. We have continued to strive for day-to-day excellence, and have invested in our people and systems to ensure that our hotels continue to provide exceptional guest experiences. We have also successfully expanded our sales and marketing presence in the US in order to drive further growth in visitor numbers from that market.

During the year we acquired another hotel in Barbados, in the form of Treasure Beach. We also expanded outside of the island for the first time through a management contract and a sales and marketing agreement on hotels in Antigua and St Lucia, respectively. Trading since the start of the new financial year has remained in line with market expectations, and our bookings are currently tracking ahead of the same period last year. As a result, the Group remains confident in its prospects for FY18 and beyond.”

This article INTERVIEW: Elegant Hotels Group Confident for 2018 and beyond was written by DirectorsTalk Interviews.


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INTERVIEW: Elegant Hotels Group Confident for 2018 and beyond Elegant Hotels Group Plc (LON:EHG) CEO Sunil Chatrani talks to DirectorsTalk about the release of it's pre-lim results for the year ended 30th September EHG
Market Risers: Deltex Medical Group plc, Diageo plc, Elegant Hotels Group PLC, Falanx Group Ltd https://www.directorstalkinterviews.com/market-risers-deltex-medical-group-plc-diageo-plc-elegant-hotels-group-plc-falanx-group-ltd/412741418 Mon, 04 Dec 2017 13:20:06 +0000 https://www.directorstalkinterviews.com/?p=741418 Shares in Deltex Medical Group plc with EPIC code: LON:DEMG has climbed 4.21% or 0.1 points throughout the session so far. Investors have so far held a positive outlook during this period. Range high for the period so far is 2.47 and a low of 2.35. The amount of shares exchanged has so far reached ...

This article Market Risers: Deltex Medical Group plc, Diageo plc, Elegant Hotels Group PLC, Falanx Group Ltd was written by DirectorsTalk Interviews.


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Shares in Deltex Medical Group plc with EPIC code: LON:DEMG has climbed 4.21% or 0.1 points throughout the session so far. Investors have so far held a positive outlook during this period. Range high for the period so far is 2.47 and a low of 2.35. The amount of shares exchanged has so far reached 300,000 with the daily average number around 122,494. A 52 week share price high is 4.5 amounting to 2.12 points in difference on the previous days close and a 52 week low being 2.25 a difference of some 0.13 points. Market capitalisation for the company is £4.61m at the time of this report. Share price is traded in GBX. Mcap is measured in GBP. This article was written with the last trade for Deltex Medical Group plc being recorded at Monday, December 4, 2017 at 8:50:36 AM GMT with the stock price trading at 2.47 GBX.

 

 

Shares in Diageo plc with ticker code: LON:DGE has climbed 1.07% or 27.5 points in today’s trading session so far. Buyers have remained optimistic throughout the trading session. Range high for the period has seen 2595.5 dropping as low as 2573.5. The amount of shares exchanged has so far reached 1,146,362 whilst the daily average number of shares exchanged is just 3,853,041. The 52 week high is 2654.5 some 89.5 points difference from the previous days close and the 52 week low at 1946 which is a variance of 619 points. Diageo plc now has a 20 SMA at 2606.93 and also a 50 day moving average now at 2569.25. This puts the market cap at £64,684.95m at the time of this report. The share price is in GBX. Mcap is measured in GBP. This article was written with the last trade for Diageo plc being recorded at Monday, December 4, 2017 at 1:10:50 PM GMT with the stock price trading at 2592.5 GBX.

 

 

The share price for Elegant Hotels Group PLC EPIC code: LON:EHG has climbed 4.18% or 3.49 points during the course of today’s session so far. Traders have so far held a positive outlook while the stock has been in play. The periods high has reached 89 meanwhile the session low reached 85. The volume total for shares traded up to this point was 65,652 whilst the daily average number of shares exchanged is just 77,743. The stock 52 week high is 97.5 equating to 14 points difference from the previous close and the 52 week low at 68.86 a difference of some 14.64 points. This puts the market capitalisation now at £77.58m at the time of this report. The share price is in Great British pence. Mcap is measured in GBP. This article was written with the last trade for Elegant Hotels Group PLC being recorded at Monday, December 4, 2017 at 1:00:22 PM GMT with the stock price trading at 86.99 GBX.

 

 

The stock price for Falanx Group Ltd found using EPIC: LON:FLX has gained 11.27% or 0.47 points during today’s session so far. Investors have remained positive during the session. The periods high has reached 4.75 dropping as low as 4.13. The total volume of shares exchanged so far has reached 1,588,719 whilst the average number of shares exchanged is 2,281,650. The 52 week high price for the shares is 10 amounting to 5.87 points different to the previous business close and a 52 week low sitting at 0.05 which is a variance of 4.08 points. Market capitalisation for the company is £4.25m at the time of this report. The share price is in Great British pence. Mcap is measured in GBP. This article was written with the last trade for Falanx Group Ltd being recorded at Monday, December 4, 2017 at 12:54:38 PM GMT with the stock price trading at 4.59 GBX.

This article Market Risers: Deltex Medical Group plc, Diageo plc, Elegant Hotels Group PLC, Falanx Group Ltd was written by DirectorsTalk Interviews.


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