Island Hotels Group Holdings’ board of directors today approved the audited financial statements for the financial year ended October 31, reporting a profit after tax of €2,732,456.
The group reported a turnover from continuing operations of €36,558,717, representing an increase of 19 per cent over the previous year, and earnings before interest, taxation, depreciation and amortisation (EBITDA) of €8,793,625, an increase of 46 per cent.
After taking into consideration depreciation, investment income and finance costs, the group reported a profit before tax of €2,466,995 compared to €685,561 in 2013.
A further net gain of €1,202,385 from discontinued operations was recorded, and after a provision for tax of €936,924, the profit for the year after tax was €2,732,456 (2013 - €554,719).
The group reported exchange gains of €1,437,025, arising almost entirely from the year-end translation of a goodwill balance on foreign operations and a final total comprehensive income for the year attributable to the owners of the holding company of € 4,169,481.
Total shareholders’ funds at the year-end amounted to €40,372,697 (2013 - €36,203,216).
The group noted that despite difficult market conditions continuing to prevail in many of the its source markets, tourist arrivals in 2014 were buoyant and reached record levels.
This, together with the group’s own marketing efforts, resulted in slightly higher occupancy levels and significantly better rates and higher profits in the hotels.
The group also experienced a higher level of vacation ownership sales and this, coupled with the efforts initiated in previous years to reduce the cost base of this part of the business, resulted in significantly higher profits.
An increased volume of activity in the event catering area of the business was also registered, while the Costa Coffee outlets in Malta also began to realise the potential expected from this investment.
Focus on that area of the business will in future also include Spain as through its investment in Buttigieg Holdings Limited, the group opened its first Costa Coffee outlet in Barcelona (after the year end) with a further seven outlets contracted to open in the forthcoming months.
On January 16, the directors issued a statement whereby the major shareholders of the group had reached an agreement in principle for the sale of the entire shareholding of the group to International Hotel Investments plc (IHI).
This transaction was subject to the satisfaction of various conditions, including but not limited to the usual due diligence processes, and was expected to be concluded in this financial year.
The conclusion of this deal should lead to Island Hotels Group Holdings becoming a subsidiary of IHI and, in the process, will be placed in a position to leverage the strength of the IHGH operations with those of IHI.
The directors said they believed that through this transaction the combined operations would be placed in a stronger position to achieve further growth in an important segment of the Maltese economy.