Thistle Hotels today blamed looming conflict in the Middle East and volatile stock markets for a 32 per cent fall in annual profits and warned of an uncertain outlook.
The company said there had been no perceptible improvement in economic conditions worldwide in early 2003. It announced a fall in profit before tax and exceptionals, reflecting the challenging trading environment and the loss of profits from the disposal of 37 hotel businesses during the year.
Pre-tax profit before exceptionals dropped back to £30.9 million sterling (€48.3 million) from £45.5 million and adjusted EPS, excluding the exceptional profit on sale of fixed assets and loss on disposal of businesses, was 5.2 pence, compared with 7 pence last year.
Analysts had been expecting the hotelier to report profits before tax and exceptionals of £27.5 million to £34.9 million.
Its final dividend has been maintained at 3.4 pence per share. Thistle said it is continuing its cost reduction initiatives in response to the poor market conditions, having disposed of 37 hotel businesses for 3598.6 million during the year.
Second half turnover in owned or leased hotels was up 1.9 per cent compared with the same period of the previous year.
Thistle said it has decided to retain its surplus cash for the time being and its net cash position on December 29th was £107.7 million. But depending on the outcome of BIL's possible offer for the group, this policy will be reviewed.