Snoozebox Holdings (LSE:ZZZ) shares rallied on Wednesday, after the company posted an ecouraging interim report to the market.
The company, specialising in UK-based portable hotels, revealed in its half-year results that it had narrowed first-half losses despite shrinking profits.
The firm posted a pre-tax loss of £1.0 million in the six months to June 30, progress from the £2.1 million reported a year earlier.
This was attributed to a decrease in administrative expenses to £910,000 from £2.6 million as a result of successful restructuring and cost saving efforts.
Chris Errington, Executive Chairman, commented:
“We have made progress with improvements to trading in the first half of 2017, achieving improved contributions from both Semi-Permanent and Event deployments and benefiting from a significantly reduced cost base and more stable operations.
Looking ahead, Errington said:
“We are making good progress towards securing opportunities for 2017 and 2018 deployment.”
Regarding funding, Snoozebox noted that the board had agreed back in June a debt capital and interest repayment holiday with its lender in light of upcoming four quarterly payments due in July 17 to April 18.
In the company statement, Snoozebox commented:
“The Group remains in constructive discussions with its primary lender, concerning repayment obligations and longer-term capital structure, and they remain supportive of the Directors’ strategy and plans.”
Snoozebox has provided accomodation for the Youth Hostel Association (The Eden Project, Cornwall), 2012 London Olympics, Isle of Man TT, Glastonbury, Silverstone F1 GP and the Premier Oil (LON:PMO) workers in the Falkland Islands.
Snoozebox describes itself as “a leading provider of rapidly deployed quality accommodation for semi-permanent and temporary deployment” with over 700 rooms available to hire.
The company has been listed on the AIM-market as of May 2012.
Shares in Snoozebox are currently up 12.50 percent as of 11.59AM (GMT), as investors react to the trading update.