Holiday Inn 2003 Annual Report Download - page 2

Download and view the complete annual report

Please find page 2 of the 2003 Holiday Inn annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

FINANCIAL HIGHLIGHTS
1 OPERATING AND
FINANCIAL REVIEW
14 DIRECTORS’ REPORT
16 CORPORATE
GOVERNANCE
19 REMUNERATION REPORT
28 FINANCIAL STATEMENTS
60 AUDITORS’ REPORT
61 THREE YEAR REVIEW
64 GLOSSARY
65 SHAREHOLDER PROFILE
Unaudited Unaudited
12 months to 12 months to 15 months to 12 months to
31 Dec 31 Dec 31 Dec 30 Sept
2003* 2002* Change 2003 2002
£m £m % £m £m
HOTELS
Tur nover 1,487 1,538 -3.3 1,870 1,532
EBITDA 357 385 -7.3 446 405
Operating profit 200 239 -16.3 251 266
SOFT DRINKS
Tur nover 674 611 10.3 820 602
EBITDA 124 115 7.8 149 109
Operating profit 83 68 22.1 95 63
GROUP
Tur nover 2,161 2,149 0.6 3,483 3,615
EBITDA 481 500 -3.8 786 889
Operating profit 283 307 -7.8 483 618
Exceptional items
Operating –––(51) (77)
Non-operating –––(349) 53
Profit before tax 244 258 -5.4 36 534
Earnings per share
Pro forma 20.8p 21.9p -5.0 ––
Basic –––2.6p 62.5p
Adjusted –––48.4p 51.4p
Operating profit in the above table is before exceptional items.
* The results for the 12 months are pro forma figures.
•Hotels pro forma operating profit for the 12 months to 31 December 2003 down 16%
to £200m (down 11% at constant currency);
•Total Hotels pro forma operating profit improved in third and fourth quarters ended
31 December 2003 with fourth quarter up 11% to £49m;
•Continued excellent performance for Soft Drinks with pro forma operating profit up 22%,
for the 12 months to 31 December 2003 against prior year, to £83m;
•Overhead cost reductions in 2003 of $76m against 2003 budget; annualised savings
of $110m exceeding target of $75m;
•Significant disposals made in 2003 at or above net book value with proceeds of £254m
for the 12 months to 31 December 2003. Further disposals with proceeds of £20m already
completed in 2004;
•Continued strong cash and capital control. Net debt reduced to £569m at
31 December 2003;
•£250m share repurchase programme announced;
•Disposal programme to involve further sale of assets with net book value of between
£800m and £1 billion subject to no significant adverse changes in market conditions; and
•Soft Drinks exclusive bottling agreement with PepsiCo Inc. renewed.
Opportunity for an initial public offering from 2005.