Jurys profits up 1.5%

Profits at Jurys Doyle hotel group are up 1.5% on the same period last year, the company announced today, adding the results were "satisfactory".

Before-tax profits were €21.96m, up from €21.64m in the same period last year (six months to end-June).

Turnover increased by 9.1% to €135m and gross profit increased by 12.8% to €46.7m.

The group, which sold the four-star Jurys Limerick Hotel for a small profit of €193,000 over book value, also benefited from a reduced tax charge during the period.

Adjusted diluted earnings per share (excluding goodwill amortisation and profit on hotel disposals) increased by 3.7% to 30.9 cent.

Net assets at June 30, 2004 amounted to €693m, up from €665.4m at June 30, 2003 and net asset value per share at 30 June 2004 increased by 4% to 11.01.

The directors have declared an interim dividend of 8.40 cent per share for the six months ended June 30, 2004. This is an increase of 3% on the interim dividend of 8.14 cent per share declared the six month period ended 30 June 2003.

A recovery in the London and Washington markets, where the group operates nine hotels, boosted figures for the period, Jurys Doyle said today.

The company's four-star hotels in Ireland did not fare so well, however, which the group blamed on "the continued weakness in conference and incentive travel business". There was a decline of 3% in revpar (revenue per available room).

"This was the principal factor in total revenues declining by 3%. This, combined with a 3% increase in operating costs, resulted in trading profits in our Irish four-star hotel group declining by 24% as compared to the first half of 2003," the company said.

By contrast, the UK hotel group reported solid growth in trading profits of 13% (in sterling) led by profit growth in the group's three four-star hotels in London.

The Jurys Inn division in Ireland and the UK reported growth in trading profits of 29% in the first half of 2004.