Interim Results - Part 2
July 29 2003 - 5:05AM
UK Regulatory
RNS Number:0654O
Mandarin Oriental International Ld
29 July 2003
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Mandarin Oriental International Limited
Notes
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1. ACCOUNTING POLICIES AND BASIS OF PREPARATION
The unaudited interim condensed financial statements have been
prepared in accordance with IAS 34 - Interim Financial
Reporting.
There have been no changes to the accounting policies described
in the 2002 annual financial statements. As in 2002, the Group
is required to account for leasehold land at amortized cost in
order to comply with IFRS. This treatment does not reflect the
generally accepted accounting practice in the territories in
which the Group has significant leasehold interests, nor how
management measures the performance of the Group. Accordingly,
the Group has presented supplementary financial information on
pages 4 to 7 prepared in accordance with IFRS as modified by
the revaluation of leasehold properties.
The Directors continue to review the appropriateness of the
Group's accounting policies and disclosures in the light of
developments in IFRS.
2. REVENUE
Prepared in accordance with IFRS
Six months ended 30th June
2003 2002
US$m US$m
------------- -------------
By geographical area:
Hong Kong & Macau 39.4 59.1
Southeast Asia 11.7 13.8
Europe 25.4 23.1
The Americas 14.1 15.8
------------- -------------
90.6 111.8
------------- -------------
3. OPERATING PROFIT
Prepared in accordance with IFRS
Six months ended 30th June
2003 2002
US$m US$m
------------- -------------
By geographical area:
Hong Kong & Macau 0.1 8.6
Southeast Asia 0.3 2.2
Europe 3.0 3.9
The Americas 0.4 6.1
------------- -------------
3.8 20.8
------------- -------------
The following items have been credited
in arriving at operating profit:
Insurance proceeds 2.5 -
Release of provision relating to
development costs of Manadarin
Oriental, Washington D.C. - 4.8
------------- -------------
4. SHARE OF OPERATING RESULTS OF ASSOCIATES AND JOINT VENTURES
Prepared in accordance with IFRS
Six months ended 30th June
2003 2002
US$m US$m
------------- -------------
By geographical area:
Hong Kong & Macau 0.8 1.3
Southeast Asia 2.5 5.3
Europe 0.3 1.2
The Americas 0.4 0.8
------------- -------------
4.0 8.6
------------- -------------
5. TAX
Prepared in accordance with IFRS
Six months ended 30th June
2003 2002
US$m US$m
------------- -------------
Company and subsidiaries - 2.5
Associates and joint ventures 0.5 0.9
------------- -------------
0.5 3.4
------------- -------------
Tax on profits has been calculated at rates of taxation
prevailing in the territories in which the Group operates. No
United Kingdom tax charge has been provided (2002: tax charge
of US$5,000).
6. (LOSS)/EARNINGS PER SHARE
Basic earnings per share are calculated on the net loss of
US$6.7 million (2002: net profit of US$11.8 million) and on
the weighted average number of 851.5 million (2002: 851.5
million) shares in issue during the period. The weighted
average number excludes the Company's shares held by the
Trustee under the Company's Senior Executive Share Incentive
Schemes.
Diluted earnings per share are calculated on the weighted
average number of shares after adjusting for the number of
shares which are deemed to be issued for no consideration under
the Senior Executive Share Incentive Schemes based on the
average share price during the period. The convertible bonds
are anti-dilutive and therefore are ignored in calculating
diluted earnings per share.
Ordinary shares in millions
2003 2002
------------- -------------
Weighted average number of shares in issue 851.5 851.5
Adjustment for shares deemed to be
issued for no consideration - 0.1
------------- -------------
Weighted average number of shares
for diluted earnings per share 851.5 851.6
------------- -------------
7. TANGIBLE ASSETS AND CAPITAL COMMITMENTS
Prepared in accordance with IFRS
Year ended
31st
Six months ended 30th June December
2003 2002 2002
US$m US$m US$m
---------- ----------- -----------
Opening net book value 548.1 491.7 491.7
Translation differences 10.9 16.8 27.9
Additions 35.0 28.6 45.9
Disposals - - (2.1)
Depreciation (8.0) (7.6) (15.3)
---------- ----------- -----------
Closing net book value 586.0 529.5 548.1
---------- ----------- -----------
Tangible assets at 30th June 2003 include a property under
development of US$62.4 million (2002: US$25.1 million), which
is stated net of tax increment financing of US$33.0 million
(2002: US$10.3 million) (refer note 10).
At 31st
At 30th June December
2003 2002 2002
US$m US$m US$m
---------- ----------- -----------
Capital commitments 83.9 115.3 109.9
---------- ----------- -----------
8. BORROWINGS
Prepared in accordance with IFRS
At 31st
At 30th June December
2003 2002 2002
US$m US$m US$m
---------- ----------- -----------
Bank loans 437.6 392.4 408.7
6.75% convertible bonds 73.4 72.1 72.7
Finance lease 7.9 7.7 7.9
Tax increment financing
(refer note 10) 1.7 1.7 1.7
---------- ----------- -----------
520.6 473.9 491.0
---------- ----------- -----------
Current 4.9 5.6 8.0
Long-term 515.7 468.3 483.0
---------- ----------- -----------
520.6 473.9 491.0
---------- ----------- -----------
9.DIVIDENDS
Prepared in accordance with IFRS
Six months ended 30th June
2003 2002
US$m US$m
---------- -----------
No final dividend in respect of 2002 (2001: Nil) - -
---------- -----------
No interim dividend in respect of 2003 is proposed (2002: Nil).
10. TAX INCREMENT FINANCING
Prepared in accordance with IFRS
At 31st
At 30th June December
2003 2002 2002
US$m US$m US$m
---------- --------- ------------
Netted off against the net book value
in respect of a property under
development (refer note 7) 33.0 10.3 29.4
Loan (refer note 8) 1.7 1.7 1.7
---------- --------- ------------
34.7 12.0 31.1
---------- --------- ------------
In relation to Mandarin Oriental, Washington D.C., a
development agreement was entered into with the District of
Columbia ('District') by one of the Group's subsidiaries,
pursuant to which the District agreed to provide certain funds
to the subsidiary out of the net proceeds obtained through the
issuance and sale of certain tax increment financing bonds
('TIF Bonds') for the development and construction of a 400-
room luxury hotel.
The District agreed to contribute to the subsidiary US$33.0
million through the issuance of TIF Bonds in addition to US$1.7
million issued in the form of a loan, bearing simple interest
at an annual rate of 6.0%. The US$1.7 million loan plus all
accrued interest will be due on the earlier of 10th April 2017
or the date of the consummation of the first sale of the hotel.
The receipt of the TIF Bonds of US$33.0 million (2002: US$10.3 million)
has been treated as a government grant and netted off against the net
book value in respect of the property under development (refer
note 7). The loan of US$1.7 million (2002: US$1.7 million) is included in
long-term borrowings (refer note 8).
- end -
For further information, please contact:
Mandarin Oriental Hotel Group International Limited
John R Witt / Jill Kluge/ Chantal Hooper (852) 2895 9610
Matheson & Co Limited
Martin Henderson (44) 20 7816 8135
Golin/Harris Forrest
Debbie Chu (852) 2501 7916
Weber Shandwick Square Mile
Richard Hews/ Christian San Jose (44) 20 7067 0700
This and other Group announcements can be accessed through the
Internet at 'www.mandarinoriental.com'.
NOTE TO EDITORS
Mandarin Oriental Hotel Group is an international hotel
investment and management group operating 23 deluxe and first
class hotels and resorts worldwide including five under
development in New York, Washington D.C., Hong Kong, Tokyo and
Boston. The Group has equity interests in most of its
properties and net assets of approximately US$900 million at
30th June 2003. Mandarin Oriental now operates 6,600 rooms in
eleven countries with nine hotels in Asia, six in The Americas
and three in Europe.
The parent company, Mandarin Oriental International Limited, is
incorporated in Bermuda, and has its primary share listing in
London. It has further listings in Singapore and Bermuda and
has a sponsored American Depositary Receipt programme.
Mandarin Oriental Hotel Group International Limited, which
operates from Hong Kong, manages the activities of the Group's
hotels. Mandarin Oriental is a member of the Jardine Matheson
Group.
Mandarin Oriental's aim is to be recognized as one of the top
global luxury hotel groups, providing exceptional customer
satisfaction in each of its hotels. This will be achieved
through a strategy of investing in facilities and people, while
maximizing profitability and long-term shareholder value. The
Group regularly receives recognition and awards for outstanding
service and quality management. The growth strategy of the
Group is to progress towards operating 10,000 rooms in major
business centres and key leisure destinations around the world.
This information is provided by RNS
The company news service from the London Stock Exchange
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