Mandarin Oriental International Ltd Interim Management Statement (3649J)
April 09 2020 - 4:21AM
UK Regulatory
TIDMMDO TIDMJAR TIDMJDS
RNS Number : 3649J
Mandarin Oriental International Ltd
09 April 2020
The following announcement has been issued to a Regulatory
Information Service approved by the Financial Conduct Authority in
the United Kingdom.
MANDARIN ORIENTAL INTERNATIONAL LIMITED
Interim Management Statement
9th April 2020 - Mandarin Oriental International Limited today
issues its Interim Management Statement for the first quarter of
2020.
The Group's performance was severely impacted by the COVID-19
pandemic, resulting in an unaudited underlying loss of some US$40
million in the first quarter. A majority of the Group's hotels are
now effectively closed and, while most hotels in Asia remain open,
they are experiencing single digit percentage occupancy levels.
The Group has taken a number of actions to manage costs and
preserve cash. These include the suspension of non-essential
expenses and capital expenditure, significantly reducing payroll
costs through unpaid leave, furloughing, substantial voluntary
salary reductions at all levels and participation in government
support measures wherever possible. The payroll measures have been
taken proportionate to the seniority and means of colleagues. The
Directors would like to express their deep gratitude for the
continuing dedication and resolve of colleagues during these
difficult times.
It is too early to forecast the duration of the impact of
COVID-19 on the business but, as a result of the substantial
reduction in revenue and management fees from the Group's hotels,
the underlying loss in the second quarter is expected to be larger
than in the first quarter.
In light of the exceptional circumstances, the Directors have
withdrawn their recommendation of a final dividend in respect of
the 2019 financial year and the relevant resolution seeking
approval for the payment of the dividend will no longer be put to
shareholders at the Company's AGM on 6th May 2020.
The Group's balance sheet and liquidity position both remain
strong and will enable it to sustain the current low levels of
business activity for an extended period of time. At 31st March
2020, net debt was US$363 million compared to net debt of US$300
million at the end of 2019. Gearing was 6% of adjusted
shareholders' funds. During the quarter, the Group invested US$19
million in the restoration of Mandarin Oriental Ritz, Madrid.
At 31st March 2020, in addition to US$229 million of cash
reserves, the Group also had US$207 million in available debt
facilities that are committed for four years. The Group's
facilities are not subject to any cash flow covenants.
While the Group's operations are currently being dramatically
impacted by events associated with the COVID-19 pandemic, Mandarin
Oriental remains a powerful brand that is well positioned to
benefit over the long-term, when demand for luxury travel
returns.
Mandarin Oriental International Limited is incorporated in
Bermuda and has a standard listing on the London Stock Exchange,
with secondary listings in Bermuda and Singapore. It is a member of
the Jardine Matheson Group.
- end -
For further information, please contact:
Mandarin Oriental Hotel Group International Limited
James Riley (852) 2895 9288
Craig Beattie (852) 2895 9288
Brunswick Group Limited
David Ashton (852) 3512 5063
This and other Group announcements can be accessed through the
Internet at 'www.mandarinoriental.com'.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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