Wednesday, 30 May 2012
Final Post
Peel Hotels Plc. has started trading with strong positioning in the market. However, in a last 4 years the Company found themselfs in very hard and chalanging environment of downturn worlds economic situation and was trying very hard to survive. Combination of excellent customer service, banqueting premisses in each hotel with clever room pricing (yield management) and room price packages, etc. they have managed to remain in the market. In last 3 month their price per share grown from 39p to 43p, hopefuly it is a sign of again growing business.
Tuesday, 29 May 2012
Ratio analysis
Ratio analysis are quantitative information tool presented in percentages, calculated and compared from last year and the year before P&L account and balance sheet. These analysis important recap the business success and for preparation to following year (Investopedia, 2012).
Peel Hotel Ratios:
In compare the two years of trade and their ratios in above tab, we can see, that the Comany is doing better in 2011 by simply looking at Earnings per share, which are higher by 3.4p from the previous year - 2010. Earnings with a combination of Return of capital employed and invested are the sign that Peel Hotels despite the same Gross Profit margin in 2011 as in previous year, still managed their finances well and is ready for the next year of trading.
Peel Hotel Ratios:
| 2010 | 2011 | |
| Gross Profit | 20.50% | 20% |
| ROCE | 0.13% | 2,3% |
| ROCI | 0.25% | 4,5% |
| Acid Test | 25% | 23% |
| Gearing | 60,6% | 55,7% |
| Earnings per share | 0.2p | 3.6p |
In compare the two years of trade and their ratios in above tab, we can see, that the Comany is doing better in 2011 by simply looking at Earnings per share, which are higher by 3.4p from the previous year - 2010. Earnings with a combination of Return of capital employed and invested are the sign that Peel Hotels despite the same Gross Profit margin in 2011 as in previous year, still managed their finances well and is ready for the next year of trading.
Tuesday, 22 May 2012
Monday, 14 May 2012
The Future
Peel hotels manages to continue to decline in Revpar and thereby gain a cash in order to pay loans and re-investing. Also the interest costs are now also decreasing with decreasing debt profile.
The Company now promotes all hotels and gets involved in number of special events. All 9 hotels are now using affiliating system to get clientele from third parties as well. The key objective is a return of growth in Revpar by the end of the financial years, says Peel (2011).
Peel hotels are prepared for another tough year of trading, but expects additional activity in summer 2012, when Olympic Games come to UK.
The Company now promotes all hotels and gets involved in number of special events. All 9 hotels are now using affiliating system to get clientele from third parties as well. The key objective is a return of growth in Revpar by the end of the financial years, says Peel (2011).
Peel hotels are prepared for another tough year of trading, but expects additional activity in summer 2012, when Olympic Games come to UK.
Monday, 16 April 2012
NEWS: £1M of unsecured loane notes 2013
Peel Hotels Plc
Creation of £1,000,000 7% Unsecured Loan Notes 2013
Peel Hotels Plc (the "Company") announces that the Board of Directors of the Company has resolve to create up to £1,000,000 of Loan Notes (the "Loan Notes"), of which £850,000 is now being issued by way of a subscription for £350,000 of Loan Notes by Robert Peel (a Director and substantial Shareholder of the Company, owning 5,496,900 shares - representing 39.2% of the Company) and by way of subscription for £500,000 of Loan Notes by Charles Peel (also a substantial Shareholder, owning 2,608,748 shares - representing 20.3% of the Company).
The funds will be used to meet short-term forecast peak borrowing requirements beyond the Company's agreed Bank overdraft facility.
The Loan Notes, which are unsecured, carry a 7% per annum coupon (payable quarterly) and are repayable as to 50% on 30 June 2013 and as to the balance on 31 December 2013, or earlier in other limited circumstances including certain events of default. The Loan Notes may also be repaid at any time at the discretion of the Company.
Robert Peel and Charles Peel, who subscribes to Loan Notes of £850,000, constitutes a related party transaction under the AIM Rules.
Peel Hunt LLP consider the subscription by Robert and Charles Peel for an aggregate £850,000 of the Loan Notes to be fair and reasonable as far as Shareholders are concerned.
Sunday, 1 April 2012
PESTE analisys
PEST analysis are important macro-environment factors for directors and managers, which will have an effect on decisions made with in any organisation.
Political - additional VAT 2.5% - unable to recover this from their customers as the economic situation is still extremely challenging.
Economical - all 9 hotels of Peel hotels are based in UK, which along with Europe and rest of the world straggled in past few years by economic downturn.
Socio-cultural - Warm-welcoming feel by the chairman Robert Peel and his brother Charles (own together almost 60% of shares), they are the key to the success this chain, not just for their accounting skills but customers service as well - "everyone must receive the best possible service" - Charles Peel.
Technological - Website is another key to succeed (commerce, promotions, on-line booking, etc.), however they still need to work on better marketing strategies. One thing must be given - throughout the browsing the web pages it felt as rather very honest business.
Political - additional VAT 2.5% - unable to recover this from their customers as the economic situation is still extremely challenging.
Economical - all 9 hotels of Peel hotels are based in UK, which along with Europe and rest of the world straggled in past few years by economic downturn.
Socio-cultural - Warm-welcoming feel by the chairman Robert Peel and his brother Charles (own together almost 60% of shares), they are the key to the success this chain, not just for their accounting skills but customers service as well - "everyone must receive the best possible service" - Charles Peel.
Technological - Website is another key to succeed (commerce, promotions, on-line booking, etc.), however they still need to work on better marketing strategies. One thing must be given - throughout the browsing the web pages it felt as rather very honest business.
Monday, 12 March 2012
Share price history
The 5 years history chart of company's share price shows (bellow) a significant drop in May 2008, which suggests an affect on credit crunch situation in worlds economy.
This continues declines are also cause of events and decision made over those 5 years, for example:
August 2007 company decided to sell the Avon Hotel and buy planning permission for an extension of hotel in Bradford. After the official announcement, the graph shows immediate drop. Within a month however, the trust was regained and share price went up to 190 per share.
Once there, in September 2007, the Peel Hotels PLC bought 2 new lease holds in Peterborough and leased out the basement of Midlands hotel for 25 years.
Drop of average price per room is most significant from July 2008 to November 2008, where in this relatively short period the price of around 175/share declined to 100/share. Also Mr Peel commented in full-year result 2009: "It is impossible to predict when the economy will start to recover. In the current environment our strategy will continue to be one of further investment in our product, weightedto our freeholds, in order to gain market share and a higher average room rate" (Caterersearch, 2009).
Followed by recovery to 125/share and drop again caused by £1M refurbishment of Cosmopolitan Hotel.
This continues declines are also cause of events and decision made over those 5 years, for example:
August 2007 company decided to sell the Avon Hotel and buy planning permission for an extension of hotel in Bradford. After the official announcement, the graph shows immediate drop. Within a month however, the trust was regained and share price went up to 190 per share.
Once there, in September 2007, the Peel Hotels PLC bought 2 new lease holds in Peterborough and leased out the basement of Midlands hotel for 25 years.
Drop of average price per room is most significant from July 2008 to November 2008, where in this relatively short period the price of around 175/share declined to 100/share. Also Mr Peel commented in full-year result 2009: "It is impossible to predict when the economy will start to recover. In the current environment our strategy will continue to be one of further investment in our product, weightedto our freeholds, in order to gain market share and a higher average room rate" (Caterersearch, 2009).
Followed by recovery to 125/share and drop again caused by £1M refurbishment of Cosmopolitan Hotel.
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