New Mauritius Hotels sees revenue growing while profits dip
On a segmental basis, the hotel segment brought in the maximum revenue amounting to Rs 5.5 billion, Rs 617.5 million from the property segment and Rs 1.2 billion from others, for the 9 month period ending 30June15. (Image: Beachcomber Hotels)
Mauritius-based luxury hotels chain, New Mauritius Hotels (NMH), operating under the Beachcomber brand, reported a 9.0% decline in pretax profit to Rs 512.7 million for the nine months ended June 30, 2015 compared to the same period last year when it notched profits before tax of Rs 563.2 million.
However, the financial statement showed an increase in the hospitality major’s revenues by 11.5% to Rs 8.79 billion, compared to Rs 7.81 billion last year.
Mauritius contributed the most to the revenue with Rs 5.6 billion while Morocco and others brought Rs 894.7 million and Rs 896.2 million respectively as revenue.
On a segmental basis, the hotel segment brought in most revenue amounting to Rs 5.5 billion, Rs 617.5 million from the property segment and Rs 1.2 billion from others.
With the good result achieved in July and the forward bookings on hand at the time of writing, the hotels in Mauritius and Seychelles should perform better than last year in the fourth quarter.
However, the recent events in Tunisia and the surrounding region have impacted the Moroccan operation.
Whilst operating results for the current financial year are expected to be better than those of the previous year, the overall results may not improve due to finance costs being fully expensed and the possible reduction in fair value gains on investment property and lower gains on retranslation of foreign currency loans.
Bookings for the first few months of the next financial year are encouraging and show significant growth over the last year.
Should the prevailing conditions not deteriorate the group should achieve much improved results for the 2015-16 financial year.
As for the capital restructuring exercise, the first phase of the scheme consisting of the issue of 6% cumulative preference shares and corporate bonds in private placements has been successful completed with the shares being fully subscribed and an excess of some Rs 62 million of bonds raised.
The agreement regarding the rescheduling of the loans is being finalised with banks and should be shortly signed.