MCK
30/07/2015 14:28
HALFYR
PRICE SENSITIVE
REL: 1428 HRS Millennium & Copthorne Hotels New Zealand Limited
HALFYR: MCK: MCK: 2015 Interim Financial Statements and media release
MCK's 2015 H1 results for the period ended 30 June 2015 are attached to this
announcement. These include:
-NZX Appendix 1
-(Unaudited) financial statements for the period ended 30 June 2015;
-Chairman's Review;
-Media Release.
CHAIRMAN'S REVIEW
Financial Performance:
The Directors of Millennium & Copthorne Hotels New Zealand Limited ("MCK")
announced an unaudited profit after tax and non-controlling interests of
$12.01 million for the six month period ended 30 June 2015 (2014: $6.22
million). Profit before income tax and non-controlling interests was $20.38
million (2014: $14.94 million). The increase in profit was largely driven by
improved operating performance at the company's New Zealand hotels generally
and continued profitability from MCK's majority-owned land development
subsidiary CDL Investments New Zealand Limited.
Group revenue and other income for the period under review increased to
$69.95 million from $67.41 million in the same period in 2014. Gross profit
for the period also increased to $39.26 million from $36.37 million the
previous year. Consequently, operating profit for the period increased from
$17.38 million to $20.16 million. Earnings per share also increased to 7.59
cents per share (2014: 1.40 cps).
New Zealand Hotel Operations:
Reflecting the current level of business, total revenue for the New Zealand
hotel operations (13 owned or leased and operated hotels excluding 8
franchised properties) for the period under review increased to $44.68
million (2014: $40.57 million). Occupancy for those owned / leased hotels
for the period increased to 78.2% (2014: 72.7%) across the Group allowing for
the closure of the three Christchurch CBD hotels. RevPAR also increased by
15.8% from $81.80 in 2014 to $94.75 in the same period in 2015.
Following on from increases in 2014, the increases in revenue and gross
profit seen in 2015 confirm the benefits from the capital expenditure
programme together with operational, sales and marketing initiatives and
delivery across our hotels.
Refurbishment of 41 rooms at Copthorne Hotel & Resort Queenstown Lakefront is
in progress with a total refresh of those guestrooms. The project is
expected to be completed in the fourth quarter of this year.
Last week, we announced the commencement of a significant refurbishment
project for Copthorne Hotel Auckland Harbourcity. This project, valued at
over $40 million, is an exciting and strategically important project for the
Millennium & Copthorne Hotels group globally and will include complete
replacement of building services, completely new guestroom configurations and
new reception and food & beverage areas. The hotel will be closed until
early 2017 while this work is being done.
CDL Investments New Zealand Limited ('CDLI'):
CDLI announced an unaudited operating profit after tax for the six months
ended 30 June 2015 of $8.51 million, (2014: $8.22 million). Strong sales from
its subdivisions in Hamilton, Hawkes Bay and Rolleston (Canterbury) underline
CDLI's continued level of profitability and reflect current market
conditions. CDLI expects to exceed its 2014 results this year.
Offshore investments - Australia :
Occupancy at the Zenith Residences, Sydney remains steady at 97%. Good
progress in resolving the litigation affecting a majority-owned subsidiary
has been made during the year to date.
Appointment of Aloysius Lee :
In April, we welcomed Mr. Aloysius Lee, the Group Chief Executive Officer of
Millennium & Copthorne Hotels plc to the Board. As required under MCK's
constitution, Mr. Lee stood for and was duly elected at the last annual
meeting of shareholders and we look forward to his contribution to MCK.
Outlook:
MCK's results in the first half of 2015 reflect its renewed focus on its core
operations of hotel management and property development and the Board welcome
the continued improvements from the same period in 2014.
With the significant refurbishment of Copthorne Hotel Auckland Harbourcity
now under way, MCK's revenue for 2015 will be affected in part due to the
reduction of revenue and profit previously available from that hotel. Having
said that, the Board currently believes that a similar result to 2014 is
achievable from the remaining hotels as visitor activity remains positive and
the hotels' performance continues to improve.
Wong Hong Ren
Chairman
30 July 2015
**Media release**
30 July 2015
MCK REPORTS STRONG INCREASES IN REVENUE AND OPERATING PROFIT IN FIRST HALF OF
2015
New Zealand hotel owner / operator, Millennium & Copthorne Hotels New Zealand
Limited (NZX:MCK), today announced its (unaudited) results for the six months
to 30 June 2015:
--Average hotel occupancy across the Group 78.2% (2014: 72.7%)
--Group revenue and other income $69.95 million (2014: $67.41 million)
--Operating profit $20.16 million (2014: $17.38 million)
--Profit before income tax and non-controlling interests $20.38 million
(2014: $14.94 million)
--Profit after tax and non-controlling interests $12.01 million (2014: $6.22
million)
MCK's Managing Director Mr. B K Chiu said that the result reflected the
continued improved performance of the company's New Zealand hotel operations
and land development activity through majority-owned subsidiary CDL
Investments New Zealand Limited.
"It is pleasing to be able to report further improvements on our 2014 and
this confirms our current strategies of our short and medium-term capital
expenditure programme dovetailing with our operational, sales and marketing
initiatives in a fast changing market environment", he said.
Mr. Chiu also referred to the major refurbishment of Copthorne Hotel Auckland
Harbourcity which was announced last week.
"It is an exciting as well as strategically important project for both MCK
and the Millennium & Copthorne Hotels group globally. The hotel's building
services will be completely replaced, guestrooms will get a totally fresh and
contemporary look and the hotel's public areas and food and beverage
offerings will be very different".
Mr. Chiu also spoke to MCK's prospects for the rest of the year.
"We are currently working on delivering a similar result to 2014 even with
one earnings-significant hotel less. It is achievable as our recent capital
expenditure continues to deliver the return on investment coupled with an
agile organization in a fast changing environment", he said.
ENDS
Issued by Millennium & Copthorne Hotels New Zealand Ltd
Any inquiries please contact:
B K Chiu, Managing Director
Millennium & Copthorne Hotels New Zealand Ltd
(09) 353 5058
End CA:00267700 For:MCK Type:HALFYR Time:2015-07-30 14:28:37
