LEI:213800OC94PF2D675H41
Hostelworld Group plc ("Hostelworld" or
the "Group")
2024 AGM Statement
Strong trading performance and cash
conversion enabling early repayment of debt
facility
Retirement of Chair and appointment
of Independent Non-Executive Directors and Chair
Designate
02 May 2024: Hostelworld, a leading global
social network powered OTA focused on the hostelling category, is
holding its AGM today at 12 noon at the offices of the Company,
Charlemont Exchange, Charlemont Street, Dublin 2.
At the AGM, Michael Cawley, Chairman of
Hostelworld, will make the following statement:
"I
am pleased to report that trading remains
consistent with the trends outlined in our March Preliminary
Results continuing into 2024. In particular, our highly
differentiated social strategy continues to deliver growth in
market share whilst marketing costs remain at the low end of the
guidance range. Building on 2023's strong performance, we are
confident we can deliver high single-digit booking and revenue
growth, in line with company guidance.
Accordingly,
the business now expects to repay the remaining €7.5m balance of
the AIB term loan by the end of H1 2024, two years ahead of
schedule. This early repayment will deliver a cash
interest saving of €0.5m, over the remaining lifetime of the
facility, and represents another positive milestone for the
business. It is also our intention to commence a share purchase
programme, in the second half of the year, which will address the
dilution to shareholders of shares issued in late April 2024 in
connection with the Company's Long Term Incentive Plan, subject to
market conditions.
Hostelworld is
well positioned with a product offering that resonates with our
customers and a business model characterised by cost discipline and
operational excellence. We are on track to deliver on the financial
commitments published at our Capital Markets Day in November 2022
and remain confident in the Group's long-term ability to deliver
increased profitability and shareholder value.
I am pleased
to announce the appointments of both Paul Duffy as Independent
Non-Executive Director and Chair of the Remuneration Committee and
Ulrik Bengtsson as Independent Non-Executive Director and Chair
Designate of Hostelworld with effect from the conclusion of the
AGM. Ulrik will succeed me as Chair when I step down from the Board
on 21 October 2024 next."
Retirement of
Chair and Appointment of Independent Non-Executive
Directors and Chair Designate
The Board of Hostelworld is pleased to announce
the appointment of Mr. Ulrik Bengtsson as Independent Non-Executive
Director, Chair Designate and a member of the Nomination Committee
and Remuneration Committee, with effect from the conclusion of the
Company's AGM today, 2 May 2024. Following a period of handover,
with effect from 21 October 2024 Ulrik will succeed Mr. Michael
Cawley, who will step down from the Board on 21 October next after
9 years of service, as Chair of both the Board and the Nomination
Committee. Michael joined the Company as a Non-Executive Director
in October 2015 and has served as Chairman of both the Board and
the Nomination Committee since 1 December 2017.
Ulrik is an experienced business leader and
brings extensive online platform and digital consumer services
experience, having served previously as Chief Commercial Officer
and Chief Operating Officer of Virgin Media O2, CEO and Executive
Director of William Hill plc, CEO of Betsson Group, and as CEO with
Emerging Markets and Swedish divisions of Viasat Broadcasting. An
experienced Non-Executive Director, Ulrik is currently Chair of the
Board and Remuneration Committee of Raketech Group Holding
plc.
The Board of Hostelworld is also pleased to
announce the appointment of Mr. Paul Duffy as Independent
Non-Executive Director and member of the Audit Committee,
Nomination Committee and member and Chair of the Remuneration
Committee, with effect from the conclusion of the Company's AGM
today, 2 May 2024. Carl G. Shepherd will remain a member of the
Remuneration Committee following Paul's appointment to the role of
Remuneration Committee Chair.
Paul is an experienced Chairman and Chief
Executive Officer with extensive knowledge of the consumer and
leisure industry and brings significant strategic and brand
experience, having served previously as Chairman and CEO of Pernod
Ricard North America. Paul is currently a Non-Executive Director
and Audit Committee Chair, Remuneration Committee member and
Development Committee member of Glanbia, plc. and was, until
December 2019, a director of Corby Spirit and Wine Limited, a
leading Canadian marketer and distributor of spirits and wines
listed on the Toronto Stock Exchange. Paul is also currently a
Non-Executive Director of W.A. Baxter & Sons, a UK food
processing group.
Mr. Michael
Cawley, Chair, commented:
"It has been
a privilege for me to serve as Chairman of Hostelworld and I am
proud of the achievements of the Board and management team. The
business demonstrated its resilience during COVID, subsequently
pivoting into a social network OTA, delivering strong growth and a
return to profitability. I remain confident in the Company's
long-term ability to enhance shareholder value.
I am pleased
to welcome Paul Duffy and Ulrik Bengtsson to the Board and I am
confident that under the leadership of Ulrik, who will succeed me
as Chair and Nomination Committee Chair from 21 October next, the
Company will continue to prosper."
Mr. Ulrik
Bengtsson, Chair Designate, commented:
"I am
delighted to be joining the Board of Hostelworld at this stage in
its development and I look forward to working with the Board and
with the broader management team. I was attracted to the role of
Chair because of Hostelworld's uniquely differentiated proposition
as a Social Network powered Online Travel Agent (OTA), the quality
of its operating model and the exciting opportunities to continue
increasing shareholder value over the coming
years."
This announcement includes the information
required by Listing Rules 9.6.11 to 9.6.13. There are no further
disclosures required under Listing Rule 9.6.13.
AGM
details:
The results of the resolutions relating to the
AGM will be published later today. Further information relating to
the AGM is published on the Company's website:
https://www.hostelworldgroup.com/investors/agm-information-and-general-meeting-information/agm-information/2024
For further information please
contact:
Hostelworld
Group plc
Corporate@hostelworld.com
Gary Morrison, Chief Executive
Officer
Caroline Sherry, Chief Financial
Officer
David Brady, Head of Commercial
Finance
Powerscourt
hostelworld@powerscourt-group.com
Eavan Gannon / Oliver Banks
Tel: +44 (0) 20 7250 1446
About Hostelworld
Group
Hostelworld Group PLC is a ground-breaking
social network powered Online Travel Agent ("OTA") focused on the
hostelling category, with a clear mission to help travellers find
people to hang out with. Our mission statement is founded on the
insight that most travellers go hostelling to meet other people,
which we facilitate through a series of social features on our
platform that connect our travellers in hostels and cities based on
their booking data. The strategy has been extraordinarily
successful, generating significant word of mouth recommendations
from our customers and strong endorsements from our hostel
partners.
Founded in 1999 and headquartered in Ireland,
Hostelworld is a well-known trusted brand with almost 230
employees, hostel partners in over 180 countries, and a
long-standing commitment to building a better world. To that end,
our focus over the last few years has been on improving the
sustainability of the hostelling industry. In particular, over the
last two years we have commissioned independent research to
validate the category's sustainability credentials, and recently
introduced a hostel specific sustainability framework which
encourages our hostel partners to move to even more sustainable
operations and also provides the data points for our customers to
make more informed decisions about where they stay. In addition,
our customers are now able to offset their trip's carbon emissions
should they wish to do so, and we have maintained our 'Funding
Climate Action' label awarded by South Pole.
Disclaimer
This announcement contains forward-looking statements. These
statements relate to the future prospects, developments and
business strategies of Hostelworld. Forward-looking statements are
identified by the use of such terms as "believe", "could",
"envisage", "estimate", "potential", "intend", "may", "plan",
"will" or variations or similar expressions, or the negative
thereof. Any forward-looking statements contained in this
announcement are based on current expectations and are subject to
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by those statements. If
one or more of these risks or uncertainties materialize, or if
underlying assumptions prove incorrect, Hostelworld's actual
results may vary materially from those expected, estimated or
projected. Any forward-looking statements speak only as at the date
of this announcement. Except as required by law, Hostelworld
undertakes no obligation to publicly release any update or
revisions to any forward-looking statements contained in this
announcement to reflect any change in events, conditions or
circumstances on which any such statements are based after the time
they are made.
