1996 Preliminary Announcement of Results
| To: Business Editor | 19th March 1997 For immediate release |
Mandarin Oriental International Limited
PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE YEAR ENDED 31ST DECEMBER 1996
RESULTS
Mandarin Oriental International Limited today announced that its consolidated net profit after taxation and minority interests for the year ended 31st December 1996 was US$60 million, an increase of 12% over 1995. Earnings per share were US¢8.66, an increase of 11%.
After a revaluation of the Group’s properties at 31st December 1996, Shareholders' funds rose to US$1,261 million, an increase of 27%. Net assets per share increased 26% to US$1.81.
DIVIDENDS
The Directors recommend a final dividend of US¢4.65 per share, payable in cash with a scrip alternative, which, together with the interim dividend of US¢1.65 per share, will make a total annual dividend of US¢6.30 per share, an increase of 7% over the total for 1995.
GROUP REVIEW
Turning to the operations, the Chairman, Mr Simon Keswick, said that Mandarin Oriental's two Hong Kong hotels again benefited from the strength of the Hong Kong hotel market. In addition, each hotel improved its competitive position in its own market sector.
Mandarin Oriental, Manila achieved a record occupancy in 1996, thanks to a strengthening economy and successful positioning of the hotel in the market.
The Group’s existing associate hotels in Southeast Asia overcame increasing competition to produce increased profit contributions from all locations except Jakarta. These improvements, however, were offset by the costs incurred in 1996 to establish Kahala Mandarin Oriental, Hawaii and Hotel Majapahit, Surabaya in Indonesia in their respective markets after their extensive renovation and re-opening as Mandarin Oriental hotels in early 1996.
In November 1996, Mandarin Oriental acquired the Hyde Park Hotel in London for £86 million (US$143 million). This 185-room, freehold property, with its prime location in Knightsbridge, is ideally positioned to take advantage of the strengthening London hotel market and to extend hospitality to the Group’s existing guests in Asia.
Work is progressing towards opening the new Mandarin Oriental, Kuala Lumpur at the end of 1997. When fully operational in mid 1998, this 645-room hotel is expected to be a strong competitor in the Kuala Lumpur market.
PROSPECTS
In conclusion, Mr Simon Keswick said, "The positive trends at the Group's Hong Kong and Manila hotels have continued into 1997. With an overall improvement anticipated in the performance of the Group's other Asian hotels and the Hyde Park in London expected to make a positive contribution to Group profit in its first full year, the outlook for 1997 is encouraging."
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