 took a hit on Thursday, dropping over 15 percent after a "very challenging year" for the company.){kind=link}
Shares in Peel Hotels (LON:PHO) took a hit on Thursday, dropping over 15 percent after a “very challenging year” for the company.
Turnover decreased 1.3 percent in the 12 months to 29th January 2017, dropping to £16,790,320. Operating profit also fell 18.7 percent to £1,268,734, with profit before tax dropping to £575,387 from £993,607 the previous year.
Earnings per share almost halved, to 3.1 pence from 5.7 pence in 2016.
The group also announced that Keith Benham will also step down from his directorship, after 19 years on the board. Robert Peel, the group’s chairman, said Benham’s contribution to Peel Hotels had been “exceptional”, and that he will be “greatly missed”.
Looking to the future, Peel said it was: “Very difficult to forecast the current year’s outcome as so much depends on staycation and increased Tourist activity stimulated by the weak pound.”
“However our refinancing with Allied Irish Bank and the repayment of the Director’s Loan and Loan Notes will provide significant savings in the costs of finance and the subsequent benefits of improved cash flow and lessening net debt.”
The company also took a hit during 2017 after having to pay an exceptional expense of £170,500 for back land rent re the Strathdon Hotel, Nottingham.
£710,701 was spent during the year, higher than in 2016, completing the restructuring of bedrooms at the Crown and Mitre in Carlisle. The company said it had continued to invest in internet access throughout all hotels, adding that “tge service is absolutely free to our guests and is a vital component to them having a satisfactory stay with us.”
Shares fell in early trading on the back of the results, down 15.71 percent 115.00 (0936GMT).