Jurys slips in tough trading conditions

A combination of currency pressures and harsh trading conditions led to slippage in profits at Jurys Doyle over the first six months of the year.

The hotel group reported pre-tax profits of €29.7 million for the period to June 30th before depreciation and a small profit on hotel disposals, down 4.9 per cent on the same months of 2002.

After an increased depreciation charge of €2 million and a €3.6 million profit on the sale of its three-star Green Isle and Tara Hotels, pre-tax profits were flat on last year.

The strength of the euro hit turnover, which dropped back 6.5 per cent to €123.7 million over the same period.

Jurys chief executive, Mr Pat McCann said the results displayed the firm's resilience against a tough market backdrop, which included SARS and continued economic uncertainty.

He forecast continued "satisfactory" growth over the rest of the year.

Analysts welcomed management's upbeat outlook and said the first-half numbers were in line with expectations.

The group's three-star "budget-plus" Inns were particularly strong over the first six months, with a new Inn established at Newcastle in England breaking even within two weeks of opening in February.

Mr McCann underlined the group's continued commitment to expansion, particularly in the UK. He said Jurys was well-placed to take advantage of the market upturn which he expects to come next year.

Jurys currently operates 30 hotels in Britain, the US and Ireland, with Jurys Inns accounting for 31 per cent of turnover and 40 per cent of operating profits.

In the Republic, the group is planning to add 146 new rooms to the Burlington Hotel in Dublin, while considering the divestment of the remainder of its three-star properties.

Shares in Jurys gave up some of their recent strength after the numbers were posted, closing 25 cents lower at €9.35.

The firm will pay a dividend of 8.14 cents, which is flat on the comparable period of last year.