MCK
19/02/2016 15:46
FLLYR
PRICE SENSITIVE
REL: 1546 HRS Millennium & Copthorne Hotels New Zealand Limited
FLLYR: MCK: MCK: 2015 Results Announcement
MCK provides its audited financial statements for the period ended 31
December 2015, Chairman's Review and Press Release, the text of which follows
below:
CHAIRMAN'S REVIEW
Financial Performance & Financial Position
The Directors of Millennium & Copthorne Hotels New Zealand Limited ("MCK")
are pleased to report a profit attributable to owners of the parent of $21.7
million (2014: $30.2 million which included a one-off gain of $17.6 million)
for the year ended 31 December 2015. MCK's revenue for the year increased to
$136.5 million (2014: $130.1 million). The increases in revenue and profit on
a like-for-like basis is pleasing given the closure of Copthorne Hotel
Auckland Harbourcity for refurbishment from July 2015.
Profit before tax and non-controlling interests totaled $40.0 million (2014:
$45.0 million which included a one-off gain of $17.6 million). The key
contributors to profit were CDL Investments New Zealand Limited's (CDLI) land
development and the company's core New Zealand hotels businesses.
Shareholders' funds excluding non-controlling interests as at 31 December
2015 totaled $389.3 million (2014: $371.4 million).
Total assets at 31 December 2015 were $590.0 million (2014: $585.4million).
Net asset backing (with land and building revaluations and before
distributions) as at 31 December 2015 has increased to 245.9 cents per share
(2014: 234.6 cents per share).
Earnings per share increased to 13.70 cents per share (2014: 9.54 cents per
share).
New Zealand Hotel Operations
Increased occupancy from higher visitor numbers and improved demand has
resulted in further increases in average room rates and gross operating
profits across MCK's portfolio of New Zealand hotels. Revenue for the hotels
increased by 3.6% to $86.1 million (2014: $83.1 million) and revenue per
available room (RevPAR) increased by 14.7% over 2014. Occupancy also
increased to 77.1% in 2015 (2013: 73.7%). The Board is pleased with the
efficiencies made which has enabled these increases to be achieved.
Millennium Hotel Queenstown and Copthorne Hotel Rotorua continued to make
gains after completion of their refurbishment projects. The performance of
these hotels and Copthorne Hotel, Oriental Bay Wellington reflected the fact
that New Zealand remains a popular destination for Chinese, United States and
European visitors.
As announced In July 2015, Copthorne Hotel Auckland Harbourcity was closed
for a refurbishment program which is expected to be completed by the first
quarter of 2017. The hotel will be extensively refurbished and its operations
will be appropriately repositioned to reflect the new look and the investment
which will be made to the property.
Canterbury Update
The lease on Millennium Hotel Christchurch ended in November 2015. MCK's
insurance claim for its chattels and property is in the process of being
finalized and we expect the claim to be settled in the first half of 2016.
MCK is studying development options for its former Copthorne Hotel
Christchurch Central site.
CDL Investments New Zealand Limited ("CDLI")
CDLI continued to perform strongly and announced another increased operating
profit after tax for the year ended 31 December 2015 of $17.5 million (2014:
$14.7 million) and reported an increase in its section sales from 248 in 2014
to 255 in 2015 reflecting ongoing demand for residential sections across
CDLI's geographically diverse portfolio.
CDLI maintained its ordinary dividend at 2.2 cents per share. MCK's stake in
CDLI reduced slightly to 66.91% as a result of MCK taking its dividend in
cash and not shares.
Australia Update
In Australia, short term leasing of the units at the Zenith Residences
continued during the year with occupancy of over 95% recorded. No sales of
the owned units were made last year.
Progress in resolving the litigation affecting a wholly-owned subsidiary is
being made with a view to resolution during the year.
Dividend Announcement
MCK has resolved to declare and pay all shareholders a fully imputed ordinary
dividend of 2.8 cents per ordinary share (2014: 2.4 cents per share) which
represents a 17% increase over the 2014 dividend per ordinary share). This
increased dividend reflects the increased operational profitability in 2015
as well as the Board's confidence in the future consistent profitability from
MCK's core operations.
The dividend, payable to all shareholders, will be paid on 20 May 2016. The
record date will be 13 May 2016.
Outlook
2016 will be an exciting year for the company as we continue work on the
refurbishment of Copthorne Hotel Auckland Harbourcity. We are looking forward
to showcasing to our customers and stakeholders one of the best locations in
New Zealand.
The benefits of MCK's recent refurbishment programme of its hotels are also
showing results on our top and bottom lines with increases in occupancy,
average rate and gross profit. Tourism in New Zealand is experiencing
positive growth in visitor numbers and we expect current trends to continue
in the near term. As a result of this, we believe that MCK can deliver
consistent results and returns over that time.
Management and staff
On behalf of the Board, I thank the Company's management and staff for their
work and commitment to the Company during the last twelve months.
Wong Hong Ren
Chairman
19 February 2016
**MEDIA RELEASE**
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND REPORTS INCREASED 2015 REVENUES AND
OCCUPANCY
Millennium & Copthorne Hotels New Zealand Limited (NZX: MCK) today reported
its preliminary results for the year ended 31 December 2015 and announced a
profit after tax and attributable to owners of the parent of $21.7 million
(2014: $30.2 million which included a one-off gain of $17.6 million) on total
revenue of $ 136.5 million (2014: $ 130.1 million).
Continued improvements in MCK's core operations in hotels together with
strong sales at MCK's land development subsidiary CDL Investments New Zealand
Limited contributed to the improved results. MCK's core New Zealand hotel
operations also saw improvements in revenue, gross operating profit and
revenue per available room and the company increased overall hotel occupancy
to 77.1%.
MCK Chairman Mr. HR Wong said that the Board was pleased with the continued
improvement in the core hotel business and the resulting increases in revenue
that the company had achieved over the past twelve months.
"Our continued focus on our core businesses and the efficiencies we have been
making in both areas are producing results for our shareholders", he said.
MCK has resolved to declare and pay all shareholders a fully imputed dividend
of 2.8 cents per share for 2015. This increased dividend reflects the
increased operational profitability in 2015 as well as the Board's confidence
in the future consistent profitability from MCK's core operations. The
dividend will be paid to shareholders on 20 May 2016. The record date will be
13 May 2016.
Summary of results:
-- Profit after tax and non-controlling interests = $21.7 million (2014:
$30.2 m*)
--Profit before tax and non-controlling interests = $40.0 million (2014:
$45.0 m*)
--Group revenue = $136.5 million (2014: $130.1 m)
--Shareholders' funds excluding non-controlling interests = $389.3 million
(2014: $371.4 m)
--Total assets = $590.0 million (2014: $585.4m)
--Earnings per share (cents per share) = 13.70 cents (2014: $9.54 cents)
*includes one-off gains in 2014 of $17.6 million resulting from the
distribution in specie of its shareholding in First Sponsor Group Limited.
ENDS
Issued by Millennium & Copthorne Hotels New Zealand Limited
Enquiries to:
B K Chiu
Managing Director
(09) 353 5058
End CA:00278003 For:MCK Type:FLLYR Time:2016-02-19 15:46:39
