Holiday Inn 2010 Annual Report Download - page 5

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GROUP FINANCIAL
STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS USEFUL INFORMATION
THE BOARD,
SENIOR MANAGEMENT AND
THEIR RESPONSIBILITIES
Headlines and Chairman’s statement 3
OVERVIEW BUSINESS REVIEW
Chairman’s statement
Performance
Revenue increased 6 per cent to $1.6 billion, with operating prot before exceptional
items of $444 million, up 22 per cent. Adjusted earnings per share decreased
4 per cent from 102.8 cents to 98.6 cents.
The Board is recommending a 21 per cent increase to the nal dividend for 2010,
taking it to 35.2 cents per share. This will give a full-year dividend of 48.0 cents per
share, 16 per cent higher than 2009. This converts to a sterling full-year dividend of
30.0 pence, up 15 per cent compared with 2009. Subject to shareholder approval,
thenal dividend will be paid on 3 June 2011.
Board
I am pleased to welcome Jim Abrahamson and Kirk Kinsell to the Board as Executive
Directors. Their appointments were effective from 1 August 2010. Each has retained
his existing responsibilities as a member of IHG’s Executive Committee.
Jim joined IHG as President of the Americas region in January 2009 from Global Hyatt
Corporation. He has over 30 years of management experience in hotel operations,
branding, development and franchisee relations, including 12 years with Hilton Hotels
Corporation.
Kirk joined IHG in 2002 as Chief Development Ofcer for the Americas region, having
previously held senior franchise and brand operations roles with the former Holiday Inn
Corporation and ITT Sheraton. He was appointed to IHG’s Executive Committee as
President, EMEA, in September 2007.
Both Jim and Kirk are highly regarded within the industry and have a deep
understanding of the hotel business. This signicant operational experience will
be of great benet to IHG’s Board.
Financial position and shareholder returns
Given the uncertainty in the wider economic environment during 2010, we continued
with our prudent approach to managing our balance sheet. Careful control over cash
has enabled us to reduce our overall net debt position by $349 million to $743 million.
No returns above normal dividends were made to shareholders in 2010. Total funds
returned since March 2004 amount to more than £3.5 billion.
Outlook
Our people were central to our strong performance in 2010. On behalf of the Board
I should like to thank everyone in IHG for their hard work and commitment during
the year.
With improving business condence and corporate protability, combined with a
lower level of hotel openings expected across the industry, forward trends look
favourable. Our global scale, attractive brands, powerful system and experienced
management team position us well to drive market share and improve margins into
the future.
David Webster
Chairman
“During 2010 we grew both sales
and prots and delivered on our
priorities. The recommended
21 per cent growth in the nal
dividend reects our condence
in IHG’s prospects.”
David Webster
Chairman
Dear Shareholder