Millennium & Copthorne's FY pretax profit dips

Writer, Stock Market Wire
Friday, February 17, 2017 - 07:26

Millennium & Copthorne's (MLC) has noted intense pressure on revenue and profit in all its key gateway cities, particularly New York and Singapore, as it posted a marginally lower FY pretax profit of £108m, from £109m.

Chairman Kwek Leng Beng said MLC was taking steps to increase revenue and profit across its estate, particularly in New York and Singapore.

"This includes an ongoing restructuring of our sales function and strategy, and continuing improvement of our e-commerce capability," he added.

Ordinary dividend was 7.74p a share, from 6.42p. MLC said its RevPAR for the FY was £76.71 in reported currency terms, from £71.98. Total revenue came in at £926m, from £847m.

"Our trading performance in 2016 declined with Group RevPAR in constant currency falling in each quarter of the year," said Kwek Leng Beng.

"Pressure on revenue and profit was intense in all of our key gateway cities," he added in the results statement.

In London, leisure business in the first quarter was impacted by the November 2015 Paris terror attacks and in the second half of the year trading was affected by reduced corporate business, the chair said.

New York results were affected by significant under-performance at Millennium Broadway as well as the refurbishment of ONE UN's east tower, which was now complete.

In Singapore, Kwek Leng Beng noted there was an overall increase in visitor numbers, but a reduction in the average length of visitor stay.

"Our rate strategy was not suited to Singapore market conditions," he said.

"This resulted in less corporate business, compounding the effect of the recent increase in available hotel rooms and further reducing average room rates and occupancy. However, New Zealand performed very well."

Separately, the company announced the appointment of Tan Kian Seng as interim Chief Executive Officer and other board changes.

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