| To : Business Editor | 18th September 1997 For immediate release |
The following announcement was today issued to the London Stock Exchange.
MANDARIN ORIENTAL INTERNATIONAL LIMITED
INTERIM REPORT 1997 HIGHLIGHTS
Results
"Our two Hong Kong hotels are performing relatively well, but the market has turned considerably weaker than in 1996. This, together with the effect of the current financial uncertainty in some of the Group's primary Asian markets, means that the level of profit growth achieved in the first half is most unlikely to be maintained for the full year."
Simon Keswick, Chairman
18th September 1997
The interim dividend of US¢1.65 per share will be payable on 25th November 1997 to Shareholders on the register of members at the close of business on 3rd October 1997 and will be available in cash with a scrip alternative. The share registers will be closed from 6th to 10th October 1997, inclusive.
MANDARIN ORIENTAL INTERNATIONAL LIMITED
INTERIM REPORT 1997
RESULTS
Mandarin Oriental International Limited today announced that its net profit after tax and minority interests for the six months ended 30th June 1997 was US$34 million, an 18% increase over the same period in 1996.
Earnings per share for the half year were US¢4.82, also an increase of 18%.
The Board has declared an interim dividend of US¢1.65 per share, the same as for 1996. The dividend will be payable in cash, with a scrip alternative at Shareholders' option.
GROUP REVIEW
Turning to the operations, the Chairman, Simon Keswick, said that Mandarin Oriental produced excellent results in the first half of 1997. The Group's two Hong Kong hotels out-performed their sector and enhanced Mandarin Oriental's position as an industry leader. The more recently acquired hotels in London, Hawaii and Surabaya made steady progress in establishing the Group's presence in these markets.
The strong performance by the two Hong Kong hotels and Mandarin Oriental, Manila, together with a first-time contribution from Mandarin Oriental Hyde Park, London, resulted in a 25% growth in Group turnover to US$134 million. Improved margins by the subsidiary hotels also contributed to an increase of 33% in operating profit.
Of the associate hotels, The Oriental, Bangkok did well in an increasingly difficult market. The Oriental, Singapore, increased its profit contribution due to improved cost control and lower interest charges. The Mandarin Orientals in Macau and Jakarta, however, made lower contributions, reflecting reduced visitor arrivals in those markets.
Hotel Majapahit, Surabaya in Indonesia, and Kahala Mandarin Oriental, Hawaii, which both re-opened in the first half of 1996, are steadily building their markets and have reduced losses.
DEVELOPMENTS
Construction of the Group's 25%-owned Mandarin Oriental, Kuala Lumpur is progressing and the hotel will be fully opened prior to the Commonwealth Games in September 1998. The 645-room hotel, with an excellent location in Kuala Lumpur City Centre, will establish the Group in another of Asia's major capital cities. The Group recently acquired a further 10% in Mandarin Oriental, Jakarta which in future will be reported as a subsidiary hotel. Mandarin Oriental continues to seek opportunities to expand in Asia and in other selective international locations.
OUTLOOK
In conclusion, Simon Keswick said, "Our two Hong Kong hotels are performing relatively well, but the market has turned considerably weaker than in 1996. This, together with the effect of the current financial uncertainty in some of the Group's primary Asian markets, means that the level of profit growth achieved in the first half is most unlikely to be maintained for the full year."
Mandarin Oriental International Limited
Notes
1 BASIS OF PREPARATION
The unaudited half-year results have been prepared in conformity with International Accounting Standards. There have been no changes to the accounting policies described in the 1996 Financial Statements.
2 PROFIT BEFORE INTEREST AND TAXATION
3 TAXATION
Tax on profits has been calculated at rates of taxation prevailing in the territories in which the Group operates. Taxation includes United Kingdom tax of US$97,000 (1996: US$11,000).
4 EARNINGS PER SHARE
Earnings per share are calculated on the profit after taxation and minority interests of US$33.5 million (1996: US$28.3 million) and on the weighted average number of 696.1 million (1996: 691.7 million) shares in issue during the period. The weighted average number excludes the shares held by the Trustee under the Company's Senior Executive Share Incentive Schemes. Full exercise of the options under the Senior Executive Share Incentive Schemes would not result in a material dilution of the earnings per share.
5 INTERIM REPORT
The Interim Report will be posted to Shareholders on or about 13th October 1997. Copies may be obtained from Butterfield Corporate Services Limited, P.O. Box HM 1540, Hamilton HM FX, Bermuda; Independent Registrars Group Limited, Bourne House, 34 Beckenham Road, Beckenham, Kent BR3 4TU, England; Coopers & Lybrand, Level 8, 580 George Street, Sydney NSW 2000, Australia and M & C Services Private Limited, 16 Raffles Quay #23-01, Hong Leong Building, Singapore 048581.
The interim dividend of US¢1.65 per share will be payable on 25th November 1997 to Shareholders on the register of members at the close of business on 3rd October 1997 and will be available in cash with a scrip alternative. The share registers will be closed from 6th to 10th October 1997, inclusive. Shareholders will receive their cash dividends in United States Dollars, unless they are registered on the United Kingdom branch register where they will have the option to elect for Sterling. These Shareholders may make new currency elections by notifying any one of the Company's registrars or the United Kingdom transfer agent in writing by 6th November 1997. The Sterling equivalent of dividends declared in United States Dollars will be calculated by reference to a rate prevailing ten business days prior to the payment date. Shareholders holding their shares through The Central Depository (Pte) Limited ("CDP") in Singapore will receive United States Dollars unless they elect, through CDP, to receive Singapore Dollars or the scrip alternative.
- end -
For further information, please contact:
| Mandarin Oriental Hotel Group International Limited Stuart Burnett |
(852) 2895 9288 (office) |
| Ludgate Asia Limited Martin Spurrier |
(852) 2543 5413 (office) |
Full text of this announcement can be accessed through the Internet at "http://www.irasia.com/listco/sg/mandarin" and is also available through "First Call".
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