Holiday Inn 2011 Annual Report Download - page 5

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PERFORMANCE
Revenue increased nine per cent to
$1.8 billion, with operating profit before
exceptional items of $559 million, up 26 per
cent. Adjusted earnings per share increased
32 per cent from 98.6 cents to 130.4 cents.
The Board is recommending an 11 per
cent increase to the final dividend for 2011,
taking it to 39.0 cents. This will give a
full-year dividend of 55.0 cents per share,
15 per cent higher than 2010. This converts
to a sterling full-year dividend of 34.5 pence,
up 15 per cent compared with 2010.
Subject to shareholder approval, the final
dividend will be paid on 1 June 2012.
BOARD
On 30 June 2011 Andy Cosslett stepped
down from his role as Chief Executive of
IHG. We were very sorry to see Andy leave
and I would like to thank him for his
outstanding leadership during his six-year
tenure. Richard Solomons was appointed
Chief Executive on 1 July 2011. Formerly
Chief Financial Officer and Head of
Commercial Development, Richard has
been a member of the Board since IHG
listed as an independent company in 2003.
He has a proven track record as a business
leader and a deep understanding of IHG
drawn from his time in a number of senior
roles and he has impressed me greatly in
his first six months as Chief Executive.
Taking over from Richard as Chief
Financial Officer is Tom Singer, who joined
us on 26 September 2011 from global
healthcare group Bupa, where he had
been Group Finance Director since 2008.
His broad commercial and international
experience makes him an ideal addition
to the team, and I am pleased to welcome
him to the Board as an Executive Director.
On 13 June 2011, Jim Abrahamson,
President, The Americas and an Executive
Director of IHG since 1 August 2010, left the
Company to take up a role as the CEO of an
independent US lodging company. He was
succeeded by Kirk Kinsell, who has held
a number of senior leadership positions
at IHG, including President, Europe,
Middle East and Africa, and has been an
Executive Director since 1 August 2010.
I am pleased to welcome three additional
new Board members to IHG. Tracy Robbins
was promoted to Executive Director on
9 August 2011 having been an Executive
Committee member since joining IHG in
December 2005. She retains her
responsibility for global talent
management, leadership development,
employee reward and group operations
support. This appointment recognises
both Tracy’s exceptional capabilities and
the critical importance of attracting,
developing and retaining top talent as we
implement our ambitious expansion plans.
We made two Non-Executive Director
appointments during the year. Dale
Morrison, formerly President and CEO
of McCain Foods Limited, joined the
Board on 1 June 2011 and on 1 July 2011
Luke Mayhew joined as Chairman of the
Remuneration Committee, a role he has
fulfilled at Brambles Limited since 2005.
He replaces Ralph Kugler who has retired
from the Board after over eight years at IHG.
I would like to welcome both Dale and Luke
to the Board and thank Ralph for his highly
valuable contribution to the Board and in
particular his exemplary chairmanship
of the Remuneration Committee.
FINANCIAL POSITION AND
SHAREHOLDER RETURNS
Careful control over cash has enabled us
to reduce our overall net debt position by
$205 million to $538 million. In November
2011 we refinanced our bank debt, putting
in place a five-year $1.07 billion facility,
providing certainty over funding until
November 2016. No returns above normal
dividends were made to shareholders in
2011. Total funds returned since March
2004 amount to more than $6 billion.
OUTLOOK
The hard work of our people is central
to IHG’s success. On behalf of the Board,
I would like to thank everyone in IHG for
their focus, dedication and commitment
during the year.
2012 is likely to be a year dominated by
economic and political uncertainty in
several geographies. IHG has a business
model which has proven to be resilient,
a wide geographic spread and a strong
balance sheet. This means we are
confident in our ability to continue to
deliver strong results.
David Webster
Chairman
Headlines and Chairman’s statement 3
OVERVIEW GREAT BRANDS HOW WE OPERATE WHERE WE OPERATE FACTS AND FIGURES
“IHG has a business model which
has proven to be resilient, a wide
geographic spread and a strong
balance sheet, meaning we are
confident in our ability to
continue to deliver strong results.”
David Webster
Chairman
CHAIRMAN’S STATEMENT
Dear Shareholder