Reduced profits hit Jurys' shares

HOTEL group Jurys Doyle delivered results slightly below market expectations yesterday as pre-tax profits fell 10.65% to €45.8 million. The market responded by shedding 12% off its share price.

Total revenues fell by 5% to €253.8 million due to adverse currency movements and depressed demand for hotel rooms. Income from the group's British and American hotels were worth less in euro terms following a 10% slide in sterling and a 25% fall in the dollar.

However, the negative effects of the euro's surge were cushioned by the group's policy of hedging foreign currency exposure and lower interest costs on its sterling and dollar debt. Tougher economic conditions meant the group struggled to maintain average room rates, which stayed constant in local currency terms during the year. Revenue per available room, a key industry measure, was unchanged in local currency terms but down 7% when converted to euro.