Trading Update Bass PLC
Trading Update Bass PLC
Bass PLC today (26 September 2000) issued a trading statement covering the first 48 weeks of the financial year to 30 September 2000.
Sir Ian Prosser, Chairman, commented: "I am pleased to report that we continue to see a strong performance from our hotel business, whilst our restaurants and pubs division has held its position well in a difficult market. Overall we are trading in line with our expectations."
"The disposal of Bass Brewers has now been completed at an excellent price and the Group is well placed to invest selectively in its two core businesses. We are looking to invest primarily in the hotels division, where we see the greatest potential for creating long term growth, based on our existing position as the leading global hotel company."
Hotels & ResortsInter-Continental continues to perform well with RevPAR growth across the brand of 5.3 per cent. RevPAR in the owned and leased estate has grown 3.7 per cent in North America and 9.1 per cent in Europe. On a like-for-like basis, excluding renovations and acquisitions, the North Americas grew RevPAR by 7.4 per cent. The brand has expanded further with the $75 million acquisition of the San Juan property in Puerto Rico. Good progress has also been made with the modernisation programme, with seven major projects now underway.
In North America, Crowne Plaza and Holiday Inn have improved RevPAR by 7.2 per cent and 4.8 per cent respectively. Holiday Inn Express has increased RevPAR by 6.5 per cent and continues to add new properties.
We now have 2,254 mid scale hotels in the Americas, with 311,980 rooms, compared with 2,109 hotels and 301,475 rooms a year ago.
In EMEA, where we have 482 hotels, the performance has been very strong. The European market has shown particularly good growth, supported by the UK, which has also improved. RevPAR in the owned and leased estate is up 9.0 per cent for Holiday Inn and 4.3 per cent for Crowne Plaza.
Leisure RetailIn Bass Leisure Retail there has been a further polarisation of performance between the branded high take outlets, where profits growth has been over 10 per cent, and the smaller unbranded locals, which are dependent on beer sales. Overall divisional sales, excluding the Development Estate, are ahead by 4.3 per cent, with uninvested like-for-like sales down 2.6 per cent. Food sales are ahead by 11.4 per cent and drink by 2.3 per cent.
Amongst Bass Leisure Retail's brands, particularly strong performances have been achieved by All Bar One, Vintage Inns, Ember Inns, Harvester and Goose. In the year to date 72 new branded outlets have opened, not counting the conversions within the Development Estate, generating returns of 18 per cent.
We are progressing plans to rationalise a substantial proportion of the smaller unbranded outlets in which the declines are concentrated and which do not have development potential within our brand strategy.
In the Development Estate, acquired at the start of the financial year, we are now running ahead of the conversion programme that we set out in May. The first 51 outlets to be completed, most of which have recently re-opened, are delivering an encouraging sales uplift supporting our pre-acquisition appraisals. A further 44 sites are currently being converted. In the unconverted Development Estate, sales are down 7 per cent on a like-for-like basis.
Branded DrinksFollowing a strong first half Britvic has performed well against the background of a very poor summer for the soft drinks industry. As a result, volumes in the year to date are up 2.8 per cent on the comparable period last year.
-- ends --
For further information, please contact:
|Richard North, Finance Director||020 7409 1919|
|Jonathan Atack, Investor Relations||020 7409 8153|
|Mark Rigby, Media Relations||020 7409 8571|
Appendix - US Hotels Performance - 3rd Quarter
US Hotels Performance - 3rd Quarter*
Bass Hotels & Resorts: Fiscal Year 99 / 00 U.S. Results
|3rd Fiscal Quarter||YTD, FY 00|
|Apr 00 - Jun 00||Oct 99 - Jun 00|
|Occupancy %||C/Y||% Pts +/- P/Y||CY||% Pts +/- P/Y|
|Holiday Inn Express||69.7||0.91||62.6||0.51|
|Ave Rate $||$ C/Y||% Growth||C/Y||% Growth|
|Holiday Inn Express||70.32||5.8||67.81||5.9|
|RevPAR $||$ C/Y||% Growth||C/Y||% Growth|
|Holiday Inn Express||49.01||7.2||42.42||6.8|
|YTD, CY 00|
|Jan 00 - Jun 00|
|Occupancy %||CY||% Pts +/- P/Y|
|Holiday Inn Express||64.6||0.49|
|Ave Rate $||$ C/Y||% Growth|
|Holiday Inn Express||68.85||5.8|
|RevPAR $||$ C/Y||% Growth|
|Holiday Inn Express||44.48||6.7|
|System Size as of 30th June 2000|
|Holiday Inn Express||977||15.8|
|Holiday Inn Express||76,152||15.3|
* Based on returns submitted by franchisees up to the date of this announcement.