SECURITIES AND EXCHANGE COMMISSION
Washington DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 AND
15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For 11 August 2009
InterContinental Hotels Group PLC
(Registrant's name)
Broadwater Park, Denham, Buckinghamshire, UB9 5HJ, United
Kingdom
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F Form 40-F
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable
EXHIBIT INDEX
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99.1 |
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Half Yearly Report |
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Exhibit No: 99.1 Half Yearly Report
InterContinental Hotels Group PLC
Half Year Results to 30 June 2009
Financial results |
2009 |
2008 |
% change |
% change CER |
||
Total |
Excluding LDs1 |
Total |
Excluding LDs1 |
|||
R evenue 2 |
$726m |
$974m |
(25)% |
(24)% |
(21)% |
(20)% |
Adjusted operating profit 2 |
$179m |
$291m |
(38)% |
(35)% |
(41)% |
(38)% |
Total adjusted EPS 2 |
41.5 ¢ |
58.1 ¢ |
(29) % |
|||
Total basic EPS 3 |
(10.2) ¢ |
56.0 ¢ |
(118) % |
|||
Interim DPS |
12.2 ¢ |
12.2 ¢ |
- |
|||
Net debt |
$1,328 m |
$1,623 m |
All figures are before exceptional items unless otherwise noted. See appendices 3 and 4 for analysis of financial headlines. Constant exchange rate comparatives shown in appendix 5. (% CER) = change in constant currency.
1 – excluding $3m of significant liquidated damages (LDs) receipts in the first half 2009 and $22m in the first half 2008.
2 – h otels previously accounted for as discontinued operations have been re-presented as continuing operations and the relevant comparatives restated.
3 – total basic EPS after exceptional items.
Business headlines |
|
o |
Global constant currency first half RevPAR decline of 16.2%, with a second quarter decline of 18.6%. IHG’s brands outperform ed the industry in each of its three regions. |
o |
9,849 net rooms (117 hotels) added in the first half, tak ing system size to 629,700 rooms (4,303 hotels), up 5% year on year. |
o |
26,956 rooms (229 hotels) added to the system, 17,107 rooms (112 hotels) removed in line with our quality growth strategy. |
o |
22,754 rooms (159 hotels) s igned, taking the pipeline to 226,248 rooms (1,599 hotels). |
o |
On track to exceed 2009 targeted cost reductions with first half reported regional and central costs $51m below 2008 levels. |
o |
N et debt of $1.3bn held broadly flat on the position at 31 December 2008. |
o |
Interim dividend maintained at 12.2 ¢ , equivalent to 7.3p at the closing exchange rate on 7 August 2009. |
o |
Exceptional operating charges of $201m include $162m of non-cash asset impairment charges. |
Recent trading |
|
o |
July global constant currency RevPAR decline of 14.4%; -14.2% Americas, -15.1% EMEA and -14.5% Asia Pacific. |
o |
Forward bookings data, which provides limited visibility, shows no further deterioration in demand. July benefited from stronger leisure demand |
Update on priorities |
|
o |
Reduce costs. 2009 regional and central costs are now expected to be around $80m below 2008 levels comprising at least $40m of sustainable savings, $20m of currency benefit and $20m of non-sustainable savings. The drive to improve efficiency continues and by the end of 2010 compared to 2008 levels, IHG expects to achieve sustainable cost savings of between $65m and $70m, representing a c.20% reduction, net of increases such as inflation and investment in growth. The additional estimated cost to achieve these savings will be c.$25m with a c.$22m cash cost. |
o |
Open rooms. c.90,000 rooms under construction, c.25,000 of which are scheduled to open in the balance of the year (26,956 rooms opened in the half). Room removals are still expected to be in the region of 35,000 for both 2009 and 2010. |
o |
Drive share. US RevPAR outperformed the market by 2.7 percentage points (IHG US brands H1 RevPAR decline of 16.0% compared to US industry decline of 18.7%). |
o |
Relaunch Holiday Inn . 1,040 hotels now operatin g under the new standards. Results from the first relaunched hotels continue to show RevPAR outperformance of more than 5% compared to a control group. |
Commenting on the results, Andrew Cosslett, Chief Executive of InterContinental Hotels Group PLC said: |
“Trading
was
very challenging
throughout the first half of the year and we expect the remainder of 2009 to be
tough. |
Americas |
Revenue performance RevPAR declined 15.8% in the first half, with a second quarter decline of 18.0%. In the US, IHG ’s brands outperformed the industry by 2.7 percentage points in the first half, driven by the resilience of the midscale brands which represent 80% of IHG’s rooms in this market. Revenues declined 25% to $375m. Excluding one $13m liquidated damages receipt in the first half of 2008, revenues declined 23%. Operating profit performance Operating profit declined 40% from $249m to $149m. Excluding the $13m liquidated damages receipt, operating profit declined 37%. A 28.6% decline in RevPAR from owned and leased hotels, partially offset by strong cost control at hotel level, drove the drop in these hotels’ operating profit from $26m to $4m. In the managed business, excluding the $13m liquidated damages receipt in the first half of 2008, a RevPAR decline of 18.4 % caused a $34m drop in operating profit to a loss of $9m. This was primarily due to IHG funding shortfalls to the agreed owner’s priority return on a number of hotels managed for one owner. This operating profit decline is in line with the disclosed sensitivity that a 1% change in RevPAR has a $7m impact on annual operating profit across the global managed business, of which some $4m relates to the Americas. Franchised hotels’ operating profit fell by 18% to $177m driven by a 12% decline in royalty fees and an $11m reduction in fees associated with initial franchising, relicensing and termination , partially offset by a 5% increase in room count. |
EMEA |
Revenue performance RevPAR declined 16.4% in the first half, with a second quarter decline of 20.3% reflecting the impact of the movement of Easter from March to April. The Middle East and the UK were the most resilient markets with first half RevPAR declines of 8.5% and 10.7% respectively. Revenues declined 31% (20% at constant exchange rates (CER)) to $186m. Excluding one liquidated damages receipt of $3m in the first half of 2009 and one of $9m in the first half of 2008, revenues declined 30% (18% CER).
Operating profit
performance |
Asia Pacific |
Revenue performance RevPAR declined 17.9% in the first half, with a second quarter decline of 19.3% . Greater China was the weakest market with a first half RevPAR decline of 21.7%, significantly better than the industry down 33.3% which continues to be impacte d by the recent increases in supply, particularly by international brands. R evenues declined 25% (22% CER) to $106m.
Operating profit
performance |
St rong operating s ystem |
|
Revenue delivery to hotel owners through reservation channels and loyalty programmes continued to improve: |
|
o |
$4.4bn of rooms revenue or 66% of total rooms revenue, was booked through IHG's channels or by Priority Club Rewards members direct to hotel, up 4 percentage points on the first half of 2008. |
o |
Priority Club Rewards members of 44m, up from 42m at the end of 2008. |
o |
Int ernet revenues increased from 19% to 23% of total rooms revenue, 79% from IHG’s own websites. |
Interest, tax and exceptional items |
The interest charge for the period fell $ 27 m to $28 m due to a reduction in interest rates and lower average net debt. Based on the position at the end of the half, the tax charge has been calculated using an estimated annual tax rate of 22% (2008: 28%). The reported tax rate may continue to vary year-on-year but is expected to increase in the medium to long term. The $162m exceptional impairment charge comprises (i) $57m write down of goodwill and a $32m intangible asset write off, both relating to the Americas managed operation; and (ii) $73m impairment to hotels including $14m in catch-up depreciation resulting from their re-presentation from held for sale to continuing operations. |
Cash flow & net debt |
$91
m of cash was
generated from operating activities in the six months to 30 June
and $12m of cash was
generated from disposal
s. Growth capital
expenditure in the half
was $9m and m
aintenance capital
expenditure was $31m. Full year maintenance capital
expenditure
is
still expected to be
c.$75m
. |
Appendix 1: Asset disposal programme detail
Number of owned hotels |
Proceeds |
Net book value |
|
Disposed since April 2003 |
183 |
$5.5bn |
$5.2bn |
Remaining hotels |
16 |
- |
$1.6bn |
For a full list please visit www.ihg.com/Investors
Appendix 2: Rooms
Americas |
EMEA |
Asia Pacific |
Total |
|
Openings |
21,072 |
2,674 |
3,210 |
26,956 |
Removals |
(12,414) |
( 2,036 ) |
( 2,657 ) |
(17,107) |
Net openings |
8,658 |
638 |
5 5 3 |
9,849 |
Signings |
15,004 |
3,781 |
3,969 |
22,754 |
Appendix 3: First half financial headlines
Six months to 30 June $m |
Total |
Americas |
EMEA |
Asia Pacific |
Central |
||||||
200 9 |
200 8* |
200 9 |
200 8* |
200 9 |
200 8 |
200 9 |
200 8 |
200 9 |
200 8 |
||
O wned and leased operating profit |
25 |
65 |
4 |
26 |
10 |
19 |
11 |
20 |
- |
- |
|
Managed operating profit |
41 |
120 |
(9) |
38 |
33 |
56 |
17 |
26 |
- |
- |
|
Franchised operating profit |
209 |
253 |
177 |
215 |
30 |
35 |
2 |
3 |
- |
- |
|
Regional overheads |
(51) |
(71) |
(23) |
(30) |
(15) |
(21) |
(13) |
(20) |
- |
- |
|
O perating profit pre central overheads |
224 |
367 |
149 |
249 |
58 |
89 |
17 |
29 |
- |
- |
|
Central overheads |
(45) |
(76) |
- |
- |
- |
- |
- |
- |
(45) |
(76) |
|
O perating profit |
179 |
291 |
149 |
249 |
58 |
89 |
17 |
29 |
(45) |
(76) |
* 2008 comparatives restated for those owned hotels previously accounted for as discontinued operations, now re-presented as continuing operations.
Appendix 4: Second quarter financial headlines
Three months to 30 June $m |
Total |
Americas |
EMEA |
Asia Pacific |
Central |
||||||
200 9 |
200 8* |
200 9 |
200 8* |
200 9 |
200 8 |
200 9 |
200 8 |
200 9 |
200 8 |
||
O wned and leased operating profit |
18 |
40 |
5 |
16 |
9 |
14 |
4 |
10 |
- |
- |
|
Managed operating profit |
21 |
62 |
(5) |
15 |
17 |
35 |
9 |
12 |
- |
- |
|
Franchised operating profit |
112 |
139 |
97 |
118 |
14 |
20 |
1 |
1 |
- |
- |
|
Regional overheads |
(24) |
(36) |
(11) |
(15) |
(6) |
(10) |
(7) |
(11) |
- |
- |
|
O perating profit pre central overheads |
127 |
205 |
86 |
134 |
34 |
59 |
7 |
12 |
- |
- |
|
Central overheads |
(20) |
(41) |
- |
- |
- |
- |
- |
- |
(20) |
(41) |
|
O perating profit |
107 |
164 |
86 |
134 |
34 |
59 |
7 |
12 |
(20) |
(41) |
* 2008 comparatives restated for those owned hotels previously accounted for as discontinued operations, now re-presented as continuing operations.
Appendix 5: Constant currency operating profit movement before exceptional items.
Americas |
EMEA |
Asia Pacific |
Total*** |
|||||
Actual currency* |
Constant currency** |
Actual currency* |
Constant currency** |
Actual currency* |
Constant |
Actual currency* |
Constant currency** |
|
Growth / (decline) |
(40.2)% |
(40.2)% |
(34.8)% |
(30.3)% |
(41.4)% |
(34.5)% |
(38.5)% |
(41.2)% |
Exchange rates |
GBP:USD |
EUR: USD |
200 9 |
0.67:1 |
0.75:1 |
2008 |
0.51:1 |
0.65:1 |
* US dollar actual currency; ** Translated at constant 2008 exchange rates; *** After Central Overheads
Appendix 6: Investor information for 2009 interim dividend
Ex-dividend Date: 26 August 2009 |
Record Date: 28 August 2009 |
Payment Date: 2 October 2009 |
Dividend payment: Ordinary shares 7.3p per share: ADRs 12.2 ¢ per ADR |
For further information, please contact:
Investor Relations (Alex Shorland-Ball; Catherine Dolton): |
+44 (0) 1895 512 176 |
Media Affairs (Leslie McGibbon; Emma Corcoran): |
+44 (0) 1895 512 425 |
+44 (0) 7808 094 471 |
High resolution images to accompany this announcement are available for the media to download free of charge from www.vismedia.co.uk . This includes profile shots of the key executives.
Presentation for Analysts and Shareholders
A presentation with Andrew Cosslett (Chief Executive) and Richard Solomons (Chief Financial Officer and Head of Commercial Development) will commence at 9.30am (London time) on 11 August at Merrill Lynch Financial Centre, 2 King Edward Street, London, EC1A 1HQ. There will be an opportunity to ask questions. The presentation will conclude at approximately 10.30am (London time).
There will be a live audio webcast of the results presentation on the web address www.ihg.com/interims09. The archived webcast of the presentation is expected to be on this website later on the day of the results and will remain on it for the foreseeable future. There will also be a live dial-in facility
International dial-in |
+44 (0)203 037 9090 |
US Q&A conference call
There will also be a conference call, primarily for US investors and analysts, at 10.00am (Eastern Standard Time) on 11 August with Andrew Cosslett (Chief Executive) and Richard Solomons (Chief Financial Officer and Head of Commercial Development). There will be an opportunity to ask questions.
International dial-in |
+44 (0)20 7108 6370 |
US Toll Free |
866 692 5726 |
Conference ID: |
HOTEL |
A recording of the conference call will also be available for 7 days. To access this please dial the relevant number below and use the access number 5717.
International dial-in |
+44 (0)207 108 6347 |
US Toll Free |
866 851 6712 |
Website
The full release and supplementary data will be available on our website from 7.00 am (London time) on 11 August. The web address is www.ihg.com/interims09 .
To watch a video of Andrew Cosslett reviewing our results visit our YouTube channel at www.youtube.com/ihgplc
Notes to Editors:
InterContinental Hotels Group (IHG) [LON:IHG, NYSE:IHG (ADRs)] is the world's largest hotel group by number of rooms. IHG owns, manages, leases or franchises, through various subsidiaries, over 4,300 hotels and almost 630,000 guest rooms in nearly 100 countries and territories around the world. The Group owns a portfolio of well recognised and respected hotel brands including InterContinental® Hotels & Resorts, Hotel Indigo® , Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express® , Staybridge Suites® and Candlewood Suites® , and also manages the world's largest hotel loyalty programme, Priority Club® Rewards with 44 million members worldwide.
IHG has nearly 1,600 hotels in its development pipeline, which will create 140 ,000 jobs worldwide over the next few years.
InterContinental Hotels Group
PLC is the Group's holding company and is incorporated in Great Britain and registered in
England and Wales.
IHG offers information and online reservations for all its hotel brands at www.ihg.com and information for the Priority Club Rewards programme at www.priorityclub.com . For the latest news from IHG, visit our online Press Office at www.ihg.com/media .
Cautionary note regarding forward-looking statements
This announcement
contains certain forward-looking
statements as defined under US law (Section 21E of the Securities Exchange Act of 1934).
These forward-looking statements can be identified by the fact that they do not relate to
historical or current facts. Forward-looking statements often use words such as
‘anticipate’, ‘target’, ‘expect’,
‘estimate’, ‘intend’, ‘plan’, ‘goal’,
‘believe’ or other words of similar meaning. By their nature, forward-looking
statements are inherently predictive, speculative and involve risk and uncertainty. There
are a number of factors that could cause actual results and developments to differ
materially from those expressed in or implied by, such forward-looking statements. Factors
that could affect the business and the financial results are described in ‘Risk
Factors’ in the InterContinental Hotels Group PLC Annual report on Form 20-F filed
with the United States Securities and Exchange Commission.
Interim Management Review
This Interim Management Review discusses the performance of InterContinental Hotels Group (the Group or IHG) for the six months ended 30 June 2009.
GROUP PERFORMANCE
3 months ended |
6 months ended |
||||||
30 June |
30 June |
% |
30 June |
30 June |
% |
||
Group Results |
$m |
$m |
change |
$m |
$m |
change |
|
Revenue: |
|||||||
Americas |
196 |
258 |
(24.0) |
375 |
499 |
(24.8) |
|
EMEA |
99 |
156 |
(36.5) |
186 |
271 |
(31.4) |
|
Asia Pacific |
50 |
69 |
(27.5) |
106 |
141 |
(24.8) |
|
Central |
30 |
32 |
(6.3) |
59 |
63 |
(6.3) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Total |
375 |
515 |
(27.2) |
726 |
974 |
(25.5) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Operating profit before exceptional items: |
|||||||
Americas |
86 |
134 |
(35.8) |
149 |
249 |
(40.2) |
|
EMEA |
34 |
59 |
(42.4) |
58 |
89 |
(34.8) |
|
Asia Pacific |
7 |
12 |
(41.7) |
17 |
29 |
(41.4) |
|
Central |
(20) |
(41) |
51.2 |
(45) |
(76) |
40.8 |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
107 |
164 |
(34.8) |
179 |
291 |
(38.5) |
||
Exceptional operating items |
(175) |
6 |
- |
(201) |
(4) |
- |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
(68) |
170 |
(140.0) |
(22) |
287 |
(107.7) |
||
Net financial expenses |
(14) |
(25) |
44.0 |
(28) |
(55) |
49.1 |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
(Loss)/profit before tax |
(82) |
145 |
(156.6) |
(50) |
232 |
(121.6) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Earnings per ordinary share: |
|||||||
Basic |
(19.6)¢ |
34.8 ¢ |
(156.3) |
(10.2)¢ |
56.0¢ |
(118.2) |
|
Adjusted |
26.0¢ |
34.5¢ |
(24.6) |
41.5¢ |
58.1¢ |
(28.6) |
Revenue decreased
by 25.5% to $726m and
operating profit before
exceptional items decreased by
38.5% to $179m during the six months ended 30 June 2009. At
constant exchange rates, revenue and operating
profit before exceptional items
decreased 21.5%
and 41.2%
respectively. Included in these results is
$3m of liquidated damages received by IHG in the first half
of 2009 in respect of the settlement of a franchise contract in the EMEA region. In the
first half of 2008 $22m of liquidated damages were received relating to the settlement of
two management contracts; $13m relating to the Americas region and $9m
relating to the EMEA region. Excluding these receipts,
revenue and operating profit
before exceptional items
decreased by 24.1% and 34.6% respectively and at constant
exchange rates by 20.0% and 37.5% respectively.
In response to the effects of the global economic downturn
the Group has taken a number of actions to improve efficiency and reduce costs. This action
has resulted in a $51m reduction in regional and central overheads from $147m to $96m
during the first half of 2009, including a saving of $10m relating to variable remuneration
and a $20m currency benefit.
As a result of the declining real estate market the
InterContinental Atlanta and Staybridge Suites Denver
Cherry Creek no longer
meet the criteria for designation as held for sale assets and consequently the
results of these hotels
are no longer categorised as discontinued operations and comparative figures have been
restated accordingly. Depreciation not charged on
these assets from initial designation as held for sale assets
to 30 June 2009 has been
charged as an exceptional item
in the period.
Profit before tax decreased by 121.6%
to a loss of $50m
and adjusted earnings per ordinary share decreased by
28.6% to
41.5
¢
.
The IHG global system (the number of hotels and rooms which
are owned, leased, managed or franchised) increased in the first half of 2009 by 117 hotels
(9,849 rooms) with openings of 229 hotels (26,956
rooms) and removals of
112 hotels (17,107 rooms) continuing
IHG’s strategy to reinvigorate brands through the
removal of lower quality, non-brand conforming hotels.
This strategy is further supported by the ongoing relaunch of
the Holiday Inn brand family, which incorporates the consistent delivery of best in class
service and physical quality in all Holiday Inn and Holiday Inn Express hotels. At the
period end, 922
hotels were open under the updated signage and brand
standards.
At 30 June 2009, the IHG pipeline which represents hotels and rooms where a contract has been signed and the appropriate fees paid, totalled 1,599 hotels (226,248 rooms) a decline of 176 hotels (18,837 rooms) since the year end, primarily due to a decrease in signings of 197 hotels (25,528 rooms) compared to the same period last year.
THE AMERICAS
3 months ended |
6 months ended |
||||||
30 June |
30 June |
% |
30 June |
30 June |
% |
||
Americas Results |
$m |
$m |
change |
$m |
$m |
change |
|
Revenue: |
|||||||
Owned and leased |
57 |
80 |
(28.8) |
106 |
154 |
(31.2) |
|
Managed |
24 |
44 |
(45.5) |
55 |
97 |
(43.3) |
|
Franchised |
115 |
134 |
(14.2) |
214 |
248 |
(13.7) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Total |
196 |
258 |
(24.0) |
375 |
499 |
(24.8) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Operating profit before exceptional items: |
|||||||
Owned and leased |
5 |
16 |
(68.8) |
4 |
26 |
(84.6) |
|
Managed |
(5) |
15 |
(133.3) |
(9) |
38 |
(123.7) |
|
Franchised |
97 |
118 |
(17.8) |
177 |
215 |
(17.7) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
97 |
149 |
(34.9) |
172 |
279 |
(38.4) |
||
Regional overheads |
(11) |
(15) |
26.7 |
(23) |
(30) |
23.3 |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Total |
86 |
134 |
(35.8) |
149 |
249 |
(40.2) |
|
____ |
____ |
____ |
____ |
____ |
____ |
Revenue and operating profit before exceptional items decreased by 24.8% to $375m and 40.2% to $149m respectively during the six months ended 30 June 2009. IHG’s hotel brands experienced tough trading conditions in the first half of the year leading to a decline in RevPAR of 15.8%, however, overall they continued to outperform the market. Excluding the receipt of liquidated damages of $13m in the first half of 2008 revenue and operating profit declined by 22.8% and 36.9% respectively.
Owned and leased revenue decreased
by 31.2% to $106m and operating profit decreased by 84.6% to
$4m. RevPAR across the owned and leased estate declined 28.6% year on year. Trading at the
InterContinental New York was severely impacted by the collapse of the financial markets,
and whilst revenues were down at the InterContinental
Boston, cost saving measures implemented at the hotel reduced the negative impact on
operating profit. Results were further impacted by the sale of the Holiday Inn Jamaica,
which was sold in August
2008, leading to a $12m loss in revenue
and $1m loss in operating profit
when compared to the first half of 2008. As a result of the
declining real estate market the InterContinental
Atlanta and Staybridge Suites Denver Cherry
Creek no longer meet the criteria for designation as
held for sale assets and consequently the results
of these hotels are no longer categorised as
discontinued operations and comparative figures have been restated accordingly.
Depreciation not charged on these assets from initial
designation as held for sale assets to 30 June
2009 has been charged
as an exceptional item
in the period.
Managed revenue decreased by 43.3% to $55m with all managed portfolios being impacted by the global financial downturn. In the first half of the year, RevPAR across the managed estate declined by 18.4%. The year on year revenue variance is further impacted by the receipt of $13m in liquidated damages in the first half of 2008. Excluding this, revenues declined by 34.5% to $55m. Managed operating profit decreased by $47m to $( 9)m due to the RevPAR driven decline in revenues and IHG funding owner’s priority return shortfalls on a number of hotels managed by one owner. Excluding the $13m of liquidated damages operating profit was down by $34m.
The managed results include $36m (2008 $47m) of revenue and $3m (2008 $5m) of operating profit from four properties that are structured, for legal reasons, as operating leases but with the same characteristics as management contracts.
During the first half of 2009, franchised revenue and operating profit decreased by 13.7% to $214m and 17.7% to $177m respectively, compared to the same period in 2008. This decrease was predominantly driven by a fall in royalty revenues as a consequence of a RevPAR decline of 15.1%. Both rate and occupancy declined compared to the first half of 2008. Revenues were also impacted by a decline in real estate activity leading to lower fees associated with signings of new hotels and conversions. An increase in overall room supply partially offset the decline in revenues.
Regional overheads decreased by $7m, from $30m to $23m, as a result of improvements in efficiencies across the region and organisational restructuring to better align the corporate structure with the changing requirements of our owners and hotels, leading to ongoing cost savings across all overhead functions.
Hotels |
Rooms |
||||
Change over |
Change over |
||||
Americas hotel and room count |
2009 |
2008 |
2009 |
2008 |
|
Analysed by brand: |
|||||
InterContinental |
55 |
- |
18,496 |
(6) |
|
Crowne Plaza |
197 |
10 |
54,611 |
3,487 |
|
Holiday Inn |
891 |
(29) |
161,196 |
(7,581) |
|
Holiday Inn Express |
1,803 |
81 |
153,916 |
7,892 |
|
Staybridge Suites |
164 |
14 |
17,899 |
1,527 |
|
Candlewood Suites |
229 |
25 |
22,916 |
2,275 |
|
Hotel Indigo |
27 |
6 |
3,222 |
584 |
|
Holiday Inn Club Vacations |
6 |
5 |
2,892 |
480 |
|
____ |
____ |
______ |
_____ |
||
Total |
3,372 |
112 |
435,148 |
8,658 |
|
____ |
____ |
______ |
_____ |
||
Analysed by ownership type: |
|||||
Owned and leased |
10 |
- |
3,503 |
(2) |
|
Managed |
200 |
1 |
41,102 |
187 |
|
Franchised |
3,162 |
111 |
390,543 |
8,473 |
|
____ |
____ |
______ |
_____ |
||
Total |
3,372 |
112 |
435,148 |
8,658 |
|
____ |
____ |
______ |
_____ |
Hotels |
Rooms |
||||
Change over |
Change over |
||||
Americas pipeline |
2009 |
2008 |
2009 |
2008 |
|
Analysed by brand: |
|||||
InterContinental |
7 |
- |
2,293 |
- |
|
Crowne Plaza |
38 |
(5) |
7,962 |
(1,685) |
|
Holiday Inn |
246 |
(17) |
31,703 |
(1,149) |
|
Holiday Inn Express |
556 |
(83) |
49,861 |
(6,604) |
|
Staybridge Suites |
140 |
(14) |
15,040 |
(1,638) |
|
Candlewood Suites |
209 |
(33) |
18,668 |
(3,122) |
|
Hotel Indigo |
54 |
(1) |
6,950 |
(82) |
|
____ |
____ |
______ |
_____ |
||
Total |
1,250 |
(153) |
132,477 |
(14,280) |
|
____ |
____ |
______ |
_____ |
||
Analysed by ownership type: |
|||||
Owned and leased |
1 |
- |
210 |
25 |
|
Managed |
18 |
(2) |
3,910 |
(298) |
|
Franchised |
1,231 |
(151) |
128,357 |
(14,007) |
|
____ |
____ |
______ |
_____ |
||
Total |
1,250 |
(153) |
132,477 |
(14,280) |
|
____ |
____ |
______ |
_____ |
The Americas system increased in the first half of 2009 by 112 hotels (8,658 rooms), with 204 hotels (21,072 rooms) joining the system and 92 hotels (12,414 rooms) leaving the system, as part of the Group’s continued strategy to reinvigorate brands through the removal of lower quality, non-brand conforming hotels.
The Americas pipeline at 30 June 2009 totalled 1,250 hotels (132,477 rooms) representing a rooms decline of 9.7% over the pipeline at 31 December 2008 primarily due to a decrease in signings in the first half of 2009 at 130 hotels (15,004 rooms), compared to 294 hotels (32,669 rooms) in the first half of 2008.
Europe, Middle East and Africa (EMEA)
3 months ended |
6 months ended |
||||||
30 June |
30 June |
% |
30 June |
30 June |
% |
||
EMEA Results |
$m |
$m |
change |
$m |
$m |
change |
|
Revenue: |
|||||||
Owned and leased |
49 |
68 |
(27.9) |
87 |
121 |
(28.1) |
|
Managed |
31 |
57 |
(45.6) |
59 |
97 |
(39.2) |
|
Franchised |
19 |
31 |
(38.7) |
40 |
53 |
(24.5) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Total |
99 |
156 |
(36.5) |
186 |
271 |
(31.4) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Operating profit before exceptional items: |
|||||||
Owned and leased |
9 |
14 |
(35.7) |
10 |
19 |
(47.4) |
|
Managed |
17 |
35 |
(51.4) |
33 |
56 |
(41.1) |
|
Franchised |
14 |
20 |
(30.0) |
30 |
35 |
(14.3) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
40 |
69 |
(42.0) |
73 |
110 |
(33.6) |
||
Regional overheads |
(6) |
(10) |
40.0 |
(15) |
(21) |
28.6 |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Total |
34 |
59 |
(42.4) |
58 |
89 |
(34.8) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Revenue and operating profit before exceptional items decreased by 31.4% to $186m and 34.8% to $58m respectively during the first half of 2009. At constant currency exchange rates revenue and operating profit before exceptional items decreased by 19.9% and 30.3% respectively. The region received liquidated damages of $9m in the first half of 2008 and $3m in the first half of 2009. Excluding these receipts revenue declined 30.2% and operating profit before exceptional items declined 31.3%, and at constant currency exchange rates by 18.3% and 26.3% respectively.
In the owned and leased estate RevPAR declined by 16.8%, resulting in a revenue and operating profit decrease of 28.1% to $87m and by 47.4% to $10m respectively. Trading at the InterContinental Le Grand was adversely impacted by a decline in both business and international leisure travel and declined despite a boost from the biennial air show.
Managed revenue decreased by 39.2% to $59m and managed operating profit decreased by 41.1% to $33m. The managed revenue and operating profit variances are negatively impacted by the receipt of $9m liquidated damages in the first half of 2008. Excluding this, managed revenue and operating profit decreased by 33.0% and 29.8% respectively, driven by the annualisation of the reduced contribution from a portfolio of hotels in the UK and tough trading conditions throughout the European managed estate.
Franchised revenue and operating profit decreased by 24.5% to $40m and 14.3% to $30m respectively. The franchised performance was heavily impacted by an unfavourable sterling to dollar foreign exchange movement, and at constant currency exchange rates revenue declined by 11.3% whilst operating profit was in line with the same period last year. Excluding $3m of liquidated damages received relating to the settlement of one franchise contract during the first half of 2009, revenue and operating profit decreased by 30.2% and 22.9% respectively, and by 17.0% and 8.6% at constant currency exchange rates. Overall, RevPAR declined by 17.0% across the region however this was partially offset by an increase in hotel openings.
Regional overheads decreased by $6m to $15m compared to the first half of 2008 driven by a favourable movement in foreign exchange of $5m.
Hotels |
Rooms |
||||
Change over |
Change over |
||||
EMEA hotel and room count |
2009 |
2008 |
2009 |
2008 |
|
Analysed by brand: |
|||||
InterContinental |
63 |
(1) |
20,311 |
(525) |
|
Crowne Plaza |
92 |
3 |
21,593 |
864 |
|
Holiday Inn |
328 |
(4) |
52,427 |
(612) |
|
Holiday Inn Express |
191 |
5 |
22,347 |
783 |
|
Staybridge Suites |
3 |
1 |
400 |
128 |
|
Hotel Indigo |
1 |
- |
64 |
- |
|
Other brands |
1 |
- |
203 |
- |
|
____ |
____ |
______ |
_____ |
||
Total |
679 |
4 |
117,345 |
638 |
|
____ |
____ |
______ |
_____ |
||
Analysed by ownership type: |
|||||
Owned and leased |
4 |
- |
1,446 |
- |
|
Managed |
165 |
(14) |
39,384 |
(1,801) |
|
Franchised |
510 |
18 |
76,515 |
2,439 |
|
____ |
____ |
______ |
_____ |
||
Total |
679 |
4 |
117,345 |
638 |
|
____ |
____ |
______ |
_____ |
Hotels |
Rooms |
||||
Change over |
Change over |
||||
EMEA pipeline |
2009 |
2008 |
2009 |
2008 |
|
Analysed by brand: |
|||||
InterContinental |
24 |
(4) |
6,546 |
(516) |
|
Crowne Plaza |
25 |
- |
7,379 |
92 |
|
Holiday Inn |
43 |
(7) |
9,858 |
(346) |
|
Holiday Inn Express |
47 |
(10) |
6,579 |
(1,211) |
|
Staybridge Suites |
7 |
(5) |
859 |
(572) |
|
Hotel Indigo |
3 |
3 |
141 |
141 |
|
Other brands |
1 |
- |
90 |
- |
|
____ |
____ |
______ |
_____ |
||
Total |
150 |
(23) |
31,452 |
(2,412) |
|
____ |
____ |
______ |
_____ |
||
Analysed by ownership type: |
|||||
Managed |
65 |
(18) |
17,999 |
(1,597) |
|
Franchised |
85 |
(5) |
13,453 |
(815) |
|
____ |
____ |
______ |
_____ |
||
Total |
150 |
(23) |
31,452 |
(2,412) |
|
____ |
____ |
______ |
_____ |
During the first half of 2009, EMEA added
a net 4 hotels (638
rooms) to its portfolio, including openings of 16 hotels (2,674 rooms), offset by removals
of 12 hotels (2,036 rooms).
The region’s pipeline decreased by 13.3% to 150 hotels (31,452 rooms) at 30 June 2009. Signings during the period decreased by 16 hotels (2,910 rooms) to 16 hotels (3,781 rooms) compared to the first half of 2008.
Asia Pacific
3 months ended |
6 months ended |
||||||
30 June |
30 June |
% |
30 June |
30 June |
% |
||
Asia Pacific Results |
$m |
$m |
change |
$m |
$m |
change |
|
Revenue: |
|||||||
Owned and leased |
25 |
37 |
(32.4) |
57 |
77 |
(26.0) |
|
Managed |
22 |
28 |
(21.4) |
43 |
56 |
(23.2) |
|
Franchised |
3 |
4 |
(25.0) |
6 |
8 |
(25.0) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Total |
50 |
69 |
(27.5) |
106 |
141 |
(24.8) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Operating profit before exceptional items: |
|||||||
Owned and leased |
4 |
10 |
(60.0) |
11 |
20 |
(45.0) |
|
Managed |
9 |
12 |
(25.0) |
17 |
26 |
(34.6) |
|
Franchised |
1 |
1 |
- |
2 |
3 |
(33.3) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
14 |
23 |
(39.1) |
30 |
49 |
(38.8) |
||
Regional overheads |
(7) |
(11) |
36.4 |
(13) |
(20) |
35.0 |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Total |
7 |
12 |
(41.7) |
17 |
29 |
(41.4) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Revenue decreased by 24.8% to $106m whilst total operating profit before exceptional items decreased by 41.4% to $17m. At constant currency exchange rates revenue and operating profit before exceptional items decreased by 22.0% and 34.5% respectively. RevPAR declined by 17.9% compared to the first half of 2008.
In the owned and leased estate, revenue and operating profit
decreased by 26.0% to $57m and by
45.0% to $11m
respectively, reflecting a RevPAR decline of 28.1% at the
InterContinental Hong Kong.
Managed revenue decreased by 23.2% to $43m and managed operating profit decreased by 34.6% to $17m. Results in the region were impacted by a continued oversupply of rooms in key Chinese cities, including Beijing and Shanghai, and a reduced contribution from the ANA joint venture in Japan.
Franchised revenue decreased by 25.0% to $6m and operating profit fell by 33.3% to $2m, driven by a decline in franchise royalties as a result of the removal of 5 hotels (1,655 rooms) in the region in an effort to protect the quality of our brands.
Regional overheads decreased by $7m to $13m. This includes $3m of reduced marketing costs associated with the ANA Crowne Plaza marketing campaign.
Hotels |
Rooms |
||||
Change over |
Change over |
||||
Asia Pacific hotel and room count |
2009 |
2008 |
2009 |
2008 |
|
Analysed by brand: |
|||||
InterContinental |
40 |
- |
15,289 |
(109) |
|
Crowne Plaza |
68 |
2 |
22,487 |
958 |
|
Holiday Inn |
100 |
(1) |
27,783 |
(92) |
|
Holiday Inn Express |
24 |
- |
6,193 |
(13) |
|
Other brands |
20 |
- |
5,455 |
(191) |
|
____ |
____ |
______ |
_____ |
||
Total |
252 |
1 |
77,207 |
553 |
|
____ |
____ |
______ |
_____ |
||
Analysed by ownership type: |
|||||
Owned and leased |
2 |
- |
693 |
- |
|
Managed |
213 |
6 |
68,348 |
2,208 |
|
Franchised |
37 |
(5) |
8,166 |
(1,655) |
|
____ |
____ |
______ |
_____ |
||
Total |
252 |
1 |
77,207 |
553 |
|
____ |
____ |
______ |
_____ |
Hotels |
Rooms |
||||
Change over |
Change over |
||||
Asia Pacific pipeline |
2009 |
2008 |
2009 |
2008 |
|
Analysed by brand: |
|||||
InterContinental |
36 |
- |
12,221 |
(308) |
|
Crowne Plaza |
58 |
(7) |
21,476 |
(3,059) |
|
Holiday Inn |
75 |
1 |
21,199 |
(6) |
|
Holiday Inn Express |
28 |
5 |
7,093 |
1,078 |
|
Hotel Indigo |
2 |
1 |
330 |
150 |
|
____ |
____ |
______ |
_____ |
||
Total |
199 |
- |
62,319 |
(2,145) |
|
____ |
____ |
______ |
_____ |
||
Analysed by ownership type: |
|||||
Managed |
197 |
- |
61,993 |
(2,144) |
|
Franchised |
2 |
- |
326 |
(1) |
|
____ |
____ |
______ |
_____ |
||
Total |
199 |
- |
62,319 |
(2,145) |
|
____ |
____ |
______ |
_____ |
Asia Pacific hotel and room count increased by 1 hotel (553
rooms) in the first half of 2009 to 252 hotels (77,207 rooms), including openings of 9
hotels (3,210 rooms), offset by the removal of 8 hotels (2,657 rooms).
The pipeline in Asia Pacific remained at 199 hotels but decreased by 2,145 rooms to 62,319
rooms. Signings were down by 17 hotels (4,953 rooms) to 13 hotels (3,969 rooms) compared to
the first half of 2008.
Central
Net central costs decreased by $31m to $45m during the six months ended 30 June 2009 driven by savings relating to variable remuneration and a $14m currency benefit. The cost savings are a result of a number of actions taken to improve efficiency and drive benefits of scale, including the addition of a global procurement function.
System Funds
In the six months ended 30 June 2009, system fund revenues decreased by 3.5% to $473m primarily as a result of lower assessment fees driven by lower RevPARs across the system. However, the assessment revenue shortfall was partially offset by other revenues related to system wide promotional programmes targeting consumers and reservation channel promotions.
Exceptional Operating Items
Exceptional operating
items, a charge of $201m in the six months ended 30 June 2009,
consisted of:
· |
$14m in relation to the ongoing Holiday Inn relaunch; |
· |
$21m enhanced pension transfers to deferred members of the InterContinental Hotels UK Pension Plan who accepted an offer to receive the enhancement as either a cash lump sum or an additional transfer value to an alternative pension plan provider; |
· |
$162m of non-cash impairment charges reflecting the poorer trading environment in 2009 and included $45m relating to hotels reclassified from held for sale assets; and |
· |
$4m severance costs. |
Taxation
The tax charge on profit before tax, excluding the impact of
exceptional items, has been calculated using an estimated rate of 22%. By also excluding
the effect of prior year items, the equivalent effective tax rate would be approximately
39%. This rate is higher than the UK statutory rate of 28% due mainly to certain overseas
profits (particularly in the US) being subject to statutory rates higher than the UK
statutory rate, unrelieved foreign taxes and disallowable expenses.
Taxation within exceptional items totalled a credit of $52m.
This represents, primarily, deferred and current tax relief on exceptional costs together
with the release of exceptional prior year provisions.
Net tax paid in the six months ended 30 June 2009 totalled $43m.
Treasury
The Group has continued its focus on cash management during the six months ended 30 June 2009. Cash generated from operating activities was $91m, a decrease of $197m over the same period in 2008.
Net debt at 30 June 2009 of $1,328m comprised cash and cash equivalents of $109m and loans and other borrowings of $1,437m. Net financial expenses decreased from $55m to $28m for the six months ended 30 June 2009 due to significantly lower interest rates in the first half of 2009.
Dividends
The Board has proposed an interim dividend per share of 12.2¢ (7.3p).
Risks and Uncertainties
The principal risks and uncertainties which could affect the
Group for the remainder of the financial year remain those set out on pages
26 to
28 of the IHG Annual
Report and Financial Statements 2008.
In summary, the Group is exposed to risks relating to:
the reputation of its brands and the protection of intellectual property rights; |
|
· |
identifying, securing and retaining management and franchise agreements; |
· |
political and economic developments; |
· |
managing changes in key personnel and senior management; |
· |
events that adversely impact domestic or international travel; |
· |
reliance upon its proprietary reservation s system and exposure to the risk of failures in the system and increased competition in reservations infrastructure; |
· |
technology and systems; |
· |
hotel industry supply and demand cycle; |
· |
a lack of selected development opportunities; |
· |
corporate responsibility; |
· |
litigation; |
· |
difficulties insuring the business; |
· |
the ability to borrow and satisfy debt covenants; |
· |
compliance with data privacy regulations; |
· |
information security; and |
· |
funding in relation to the defined benefits under its pension plans. |
The current economic environment remains tough and at present
it is difficult to see any real signs of improvement in
the industry trading outlook.
Following the sharp deterioration in trading in the first
quarter of 2009, there are some signs that occupancy is stabilising but forward booking
visibility is poor and conditions for the rest of the year
are likely to remain tough. IHG
continues to sign new
deals into the pipeline across all brands but the pace of movement through the pipeline is
slowing as a result of financing restrictions and trading uncertainties.
The Holiday Inn relaunch continues to make good progress and
new rooms growth continues to deliver new revenue and
400 hotel
openings are still
expected in 2009. IHG’s focus on driving revenue
share from its
strong brands together with a focus on cash management and
cost control will help IHG outperform during these times of economic
uncertainty.
A copy of the IHG Annual Report and Financial Statements 2008 is available at www.ihgplc.com.
Directors' Responsibility Statement
The Directors confirm that to the best of their
knowledge:
· |
The condensed set of financial statements has been prepared in accordance with IAS 34; |
· |
The interim management report includes a fair review of the important events during the first six months and a description of the principal risks and uncertainties for the remaining six months of the year, as required by DTR 4.2.7R; and |
· |
The interim management report includes a fair review of disclosure of related party transactions and changes therein, as required by DTR 4.2.8R. |
On behalf of the Board
Andrew Cosslett Richard Solomons
Chief
Executive
Chief Financial Officer and
Head
of Commercial Development
10 August
2009 10
August 2009
InterContinental Hotels Group PLC
GROUP INCOME STATEMENT
For the three months ended 30 June 2009
3 months ended 30 June 2009 |
3 months ended 30 June 2008 |
||||||
Before |
Exceptional |
Total |
Before |
Exceptional |
Total |
||
$m |
$m |
$m |
$m |
$m |
$m |
||
Continuing operations |
|||||||
Revenue (note 3) |
375 |
- |
375 |
515 |
- |
515 |
|
Cost of sales |
(176) |
- |
(176) |
(226) |
- |
(226) |
|
Administrative expenses |
(67) |
(13) |
(80) |
(101) |
(5) |
(106) |
|
Other operating income and expenses |
1 |
- |
1 |
4 |
12 |
16 |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
133 |
(13) |
120 |
192 |
7 |
199 |
||
Depreciation and amortisation |
(26) |
- |
(26) |
(28) |
(1) |
(29) |
|
Impairment |
- |
(162) |
(162) |
- |
- |
- |
|
_____ |
_____ |
____ |
_____ |
_____ |
____ |
||
Operating profit/(loss) (note 3) |
107 |
(175) |
(68) |
164 |
6 |
170 |
|
Financial income |
1 |
- |
1 |
3 |
- |
3 |
|
Financial expenses |
(15) |
- |
(15) |
(28) |
- |
(28) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Profit/(loss) before tax (note 3) |
93 |
(175) |
(82) |
139 |
6 |
145 |
|
Tax (note 5) |
(19) |
43 |
24 |
(39) |
(5) |
(44) |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Profit/(loss) for the period from continuing operations |
74 |
(132) |
(58) |
100 |
1 |
101 |
|
Profit for the period from discontinued operations |
- |
2 |
2 |
- |
- |
- |
|
____ |
____ |
____ |
____ |
____ |
____ |
||
Profit/(loss) for the period attributable to the equity holders of the parent |
74 |
(130) |
(56) |
100 |
1 |
101 |
|
==== |
==== |
==== |
==== |
==== |
==== |
||
Earnings per ordinary share (note 6) |
|||||||
Continuing operations: |
|||||||
Basic |
(20.4)¢ |
34.8¢ |
|||||
Diluted |
(19.9)¢ |
34.1¢ |
|||||
Adjusted |
26.0¢ |
34.5¢ |
|||||
Adjusted diluted |
25.4¢ |
33.8¢ |
|||||
Total operations: |
|||||||
Basic |
(19.6)¢ |
34.8¢ |
|||||
Diluted |
(19.2)¢ |
34.1¢ |
|||||
Adjusted |
26.0¢ |
34.5¢ |
|||||
Adjusted diluted |
25.4¢ |
33.8¢ |
|||||
==== |
==== |
==== |
==== |
InterContinental Hotels Group
PLC
GROUP INCOME STATEMENT
For the six months ended 30 June 2009
6 months ended 30 June 2009 |
6 months ended 30 June 2008 |
||||||
Before |
Exceptional (note 4) |
Total |
Before |
Exceptional (note 4) |
Total |
||
$m |
$m |
$m |
$m |
$m |
$m |
||
Continuing operations |
|||||||
Revenue (note 3) |
726 |
- |
726 |
974 |
- |
974 |
|
Cost of sales |
(358) |
- |
(358) |
(439) |
- |
(439) |
|
Administrative expenses |
(140) |
(39) |
(179) |
(192) |
(14) |
(206) |
|
Other operating income and expenses |
2 |
- |
2 |
5 |
12 |
17 |
|
_____ |
____ |
____ |
_____ |
____ |
____ |
||
230 |
(39) |
191 |
348 |
(2) |
346 |
||
Depreciation and amortisation |
(51) |
- |
(51) |
(57) |
(2) |
(59) |
|
Impairment |
- |
(162) |
(162) |
- |
- |
- |
|
_____ |
____ |
____ |
_____ |
____ |
____ |
||
Operating profit/(loss) (note 3) |
179 |
(201) |
(22) |
291 |
(4) |
287 |
|
Financial income |
2 |
- |
2 |
6 |
- |
6 |
|
Financial expenses |
(30) |
- |
(30) |
(61) |
- |
(61) |
|
_____ |
____ |
____ |
_____ |
____ |
____ |
||
Profit/(loss) before tax (note 3) |
151 |
(201) |
(50) |
236 |
(4) |
232 |
|
Tax (note 5) |
(33) |
48 |
15 |
(67) |
(2) |
(69) |
|
_____ |
____ |
____ |
_____ |
____ |
____ |
||
Profit/(loss) for the period from continuing operations |
118 |
(153) |
(35) |
169 |
(6) |
163 |
|
Profit for the period from discontinued operations |
- |
6 |
6 |
- |
- |
- |
|
_____ |
____ |
____ |
_____ |
____ |
____ |
||
Profit/(loss) for the period attributable to the equity holders of the parent |
118 |
(147) |
(29) |
169 |
(6) |
163 |
|
==== |
==== |
==== |
==== |
==== |
==== |
||
Earnings per ordinary share |
|||||||
Continuing operations: |
|||||||
Basic |
(12.3)¢ |
56.0¢ |
|||||
Diluted |
(12.1)¢ |
54.9¢ |
|||||
Adjusted |
41.5¢ |
58.1¢ |
|||||
Adjusted diluted |
40.7¢ |
56.9¢ |
|||||
Total operations: |
|||||||
Basic |
(10.2)¢ |
56.0¢ |
|||||
Diluted |
(10.0)¢ |
54.9¢ |
|||||
Adjusted |
41.5¢ |
58.1¢ |
|||||
Adjusted diluted |
40.7¢ |
56.9¢ |
|||||
==== |
==== |
==== |
==== |
InterContinental Hotels Group PLC
GROUP STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2009
2009 $m |
2008 $ m |
||
(Loss)/profit for the period |
(29) |
163 |
|
Other comprehensive income |
|||
Gains on valuation of available-for-sale assets |
9 |
7 |
|
Losses on disposal of available-for sale assets |
- |
(15) |
|
Cash flow hedges: |
|||
(Losses)/gains arising during the period |
(3) |
2 |
|
Transferred to financial expenses |
7 |
1 |
|
Actuarial losses on defined benefit pension plans, net of asset restriction |
(15) |
(66) |
|
Exchange differences on retranslation of foreign operations |
12 |
22 |
|
Tax related to above components of other comprehensive income: |
|||
Actuarial losses |
(1) |
2 |
|
Tax related to share schemes |
- |
2 |
|
Tax related to pension contributions |
- |
7 |
|
____ |
____ |
||
Other comprehensive income/(loss) for the period |
9 |
(38) |
|
____ |
____ |
||
Total comprehensive (loss)/income for the period |
(20) |
125 |
|
==== |
==== |
||
Attributable to: |
|||
Equity holders of the parent |
(19) |
125 |
|
Minority equity interest |
(1) |
- |
|
____ |
____ |
||
(20) |
125 |
||
==== |
==== |
* |
Restated for IFRIC 14 (note 1). |
InterContinental Hotels Group PLC
GROUP STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2009
6 months ended 30 June 2009 |
|||||
Equity share capital |
Other reserves* |
Retained earnings |
Minority interest |
Total equity |
|
$m |
$m |
$m |
$m |
$m |
|
At beginning of the period |
118 |
(2,748) |
2,624 |
7 |
1 |
Total comprehensive income for the period |
- |
26 |
(45) |
(1) |
(20) |
Issue of ordinary shares |
3 |
- |
- |
- |
3 |
Movement in shares in employee share trusts |
- |
44 |
(44) |
- |
- |
Equity-settled share-based cost, net of payments |
- |
- |
8 |
- |
8 |
Equity dividends paid |
- |
- |
(83) |
- |
(83) |
Exchange adjustments |
16 |
(16) |
- |
- |
- |
____ |
____ |
____ |
____ |
____ |
|
At end of the period |
137 |
(2,694) |
2,460 |
6 |
(91) |
==== |
==== |
==== |
==== |
==== |
6 months ended 30 June 2008 |
|||||
Equity share capital |
Other reserves* |
Retained earnings |
Minority interest |
Total equity |
|
$m |
$m |
$m |
$m |
$m |
|
At beginning of the period |
163 |
(2,720) |
2,649 |
6 |
98 |
Total comprehensive income for the period |
- |
17 |
108 |
- |
125 |
Issue of ordinary shares |
2 |
- |
- |
- |
2 |
Purchase of own shares |
(3) |
- |
(136) |
- |
(139) |
Transfer to capital redemption reserve |
- |
3 |
(3) |
- |
- |
Movement in shares in employee share trusts |
- |
29 |
(39) |
- |
(10) |
Equity-settled share-based cost, net of payments |
- |
- |
12 |
- |
12 |
Equity dividends paid |
- |
- |
(86) |
- |
(86) |
Exchange adjustments |
(1) |
1 |
- |
- |
- |
____ |
____ |
____ |
____ |
____ |
|
At end of the period |
161 |
(2,670) |
2,505 |
6 |
2 |
==== |
==== |
==== |
==== |
==== |
* |
Other reserves comprise the capital redemption reserve, shares held by employee share trusts, other reserves, unrealised gains and losses reserve and currency translation reserve. |
InterContinental Hotels Group PLC
GROUP STATEMENT OF CASH FLOWS
For the six months ended 30 June 2009
2009
6 months |
2008
6 months |
||
$m |
$m |
||
(Loss)/profit for the period |
(29) |
163 |
|
Adjustments for: |
|||
Net financial expenses |
28 |
55 |
|
Income tax (credit)/charge |
(15) |
69 |
|
Gain on disposal of assets |
(6) |
- |
|
Exceptional operating items before depreciation |
201 |
2 |
|
Depreciation and amortisation |
51 |
59 |
|
Equity settled share-based cost, net of payments |
8 |
12 |
|
_____ |
_____ |
||
Operating cash flow before movements in working capital |
238 |
360 |
|
Increase in net working capital |
(34) |
(8) |
|
Retirement benefit contributions, net of cost |
- |
(25) |
|
Cash flows relating to exceptional operating items |
(43) |
(17) |
|
_____ |
_____ |
||
Cash flow from operations |
161 |
310 |
|
Interest paid |
(28) |
(58) |
|
Interest received |
1 |
6 |
|
Tax (paid)/received on operating activities |
(43) |
30 |
|
_____ |
_____ |
||
Net cash from operating activities |
91 |
288 |
|
_____ |
_____ |
||
Cash flow from investing activities |
|||
Purchases of property, plant and equipment |
(15) |
(11) |
|
Purchase of intangible assets |
(24) |
(22) |
|
Investment in associates and other financial assets |
(1) |
(5) |
|
Proceeds from associates and other financial assets |
12 |
28 |
|
_____ |
_____ |
||
Net cash from investing activities |
(28) |
(10) |
|
_____ |
_____ |
||
Cash flow from financing activities |
|||
Proceeds from the issue of share capital |
1 |
2 |
|
Purchase of own shares |
- |
(131) |
|
Purchase of own shares by employee share trusts |
(3) |
(12) |
|
Proceeds on release of own shares by employee share trusts |
1 |
2 |
|
Dividends paid to shareholders |
(83) |
(86) |
|
Increase in borrowings |
54 |
11 |
|
_____ |
_____ |
||
Net cash from financing activities |
(30) |
(214) |
|
_____ |
_____ |
||
Net movement in cash and cash equivalents in the period |
33 |
64 |
|
Cash and cash equivalents at beginning of the period |
82 |
105 |
|
Exchange rate effects |
(6) |
(4) |
|
_____ |
_____ |
||
Cash and cash equivalents at end of the period |
109 |
165 |
|
===== |
===== |
InterContinental Hotels Group PLC
GROUP STATEMENT OF FINANCIAL POSITION
30 June 2009
2009 30 June |
2008
30 June |
2008 |
|
$m |
$m |
$m |
|
ASSETS |
|||
Property, plant and equipment |
1,854 |
1,843 |
1,684 |
Goodwill |
95 |
228 |
143 |
Intangible assets |
284 |
342 |
302 |
Investment in associates |
44 |
50 |
43 |
Retirement benefit assets |
23 |
16 |
40 |
Other financial assets |
155 |
173 |
152 |
_____ |
_____ |
_____ |
|
Total non-current assets |
2,455 |
2,652 |
2,364 |
_____ |
_____ |
_____ |
|
Inventories |
4 |
5 |
4 |
Trade and other receivables |
437 |
489 |
412 |
Current tax receivable |
45 |
27 |
36 |
Cash and cash equivalents |
109 |
165 |
82 |
Other financial assets |
5 |
18 |
10 |
_____ |
_____ |
_____ |
|
Total current assets |
600 |
704 |
544 |
Non-current assets classified as held for sale |
22 |
239 |
210 |
______ |
______ |
______ |
|
Total assets (note 3) |
3,077 |
3,595 |
3,118 |
===== |
===== |
===== |
|
LIABILITIES |
|||
Loans and other borrowings |
(22) |
(17) |
(21) |
Trade and other payables |
(739) |
(783) |
(746) |
Current tax payable |
(341) |
(428) |
(374) |
_____ |
_____ |
_____ |
|
Total current liabilities |
(1,102) |
(1,228) |
(1,141) |
_____ |
_____ |
_____ |
|
Loans and other borrowings |
(1,415) |
(1,771) |
(1,334) |
Retirement benefit obligations |
(133) |
(124) |
(129) |
Trade and other payables |
(400) |
(305) |
(392) |
Deferred tax payable |
(118) |
(150) |
(117) |
_____ |
_____ |
_____ |
|
Total non-current liabilities |
(2,066) |
(2,350) |
(1,972) |
Liabilities classified as held for sale |
- |
(15) |
(4) |
_____ |
_____ |
_____ |
|
Total liabilities |
(3,168) |
(3,593) |
(3,117) |
===== |
===== |
===== |
|
Net (liabilities)/assets |
(91) |
2 |
1 |
===== |
===== |
===== |
|
EQUITY |
|||
Equity share capital |
137 |
161 |
118 |
Capital redemption reserve |
11 |
13 |
10 |
Shares held by employee share trusts |
(7) |
(53) |
(49) |
Other reserves |
(2,905) |
(2,918) |
(2,890) |
Unrealised gains and losses reserve |
23 |
33 |
9 |
Currency translation reserve |
184 |
255 |
172 |
Retained earnings |
2,460 |
2,505 |
2,624 |
______ |
______ |
______ |
|
IHG shareholders’ equity |
(97) |
(4) |
(6) |
Minority equity interest |
6 |
6 |
7 |
______ |
______ |
______ |
|
Total equity |
(91) |
2 |
1 |
===== |
===== |
===== |
* |
Restated for IFRIC 14 (note 1). |
InterContinental Hotels Group plc
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. |
Basis of preparation |
These condensed interim financial statements have been prepared in accordance
with the Disclosure and Transparency Rules of the United Kingdom’s
Financial Services Authority and IAS 34 ‘Interim Financial
Reporting’. Other than the changes listed below, they have been prepared
on a consistent basis using the accounting policies set out in the
InterContinental Hotels Group (the Group or IHG) Annual Report and Financial
Statements for the year ended 31 December 2008.
These condensed interim financial statements are unaudited and do not
constitute statutory accounts of the Group within the meaning of Section 240 of
the Companies Act 1985. The auditors have carried out a review of the financial
information in accordance with the guidance contained in ISRE 2410 (UK and
Ireland) ‘Review of Interim Financial Information Performed by the
Independent Auditor of the Entity’ issued by the Auditing Practices
Board. |
2. |
Exchange rates |
The results of operations have been translated into US dollars at the average rates of exchange for the period. In the case of sterling , the translation rate for the six months ended 30 June is $1= £0.67 ( 2009 3 mon ths, $1 = £0.65; 2008 6 months, $1 = £0.51; 2008 3 months, $1=£0.51). In the case of the euro, the translation rate for the six months ended 30 June is $1 = €0.75 ( 2009 3 months, $1 = €0.73; 2008 6 months, $1 = €0.65; 2008 3 months, $1 = €0.64). Assets and liabilities have been translated into US dollars at the rates of exchange on the last day of the period. In the case of sterling, the translation rate is $1=£0.60 (2008 31 December $1 = £0.69; 30 June $1 = £0.50). In the case of the euro, the translation rate is $1 = €0.71 (2008 31 December $1 = €0.71; 30 June $1= €0.63). |
3. |
Segmental information |
|||||
Revenue |
||||||
2009 |
2008 |
2009
6 months |
2008
6 months |
|||
$m |
$m |
$m |
$m |
|||
Americas |
196 |
258 |
375 |
499 |
||
EMEA |
99 |
156 |
186 |
271 |
||
Asia Pacific |
50 |
69 |
106 |
141 |
||
Central |
30 |
32 |
59 |
63 |
||
____ |
____ |
____ |
____ |
|||
Total revenue |
375 |
515 |
726 |
974 |
||
==== |
==== |
==== |
==== |
|||
All results relate to continuing operations. |
||||||
Profit |
|||||
2009 $m |
2008 $m |
2009 $m |
2008 $m |
||
Americas |
86 |
134 |
149 |
249 |
|
EMEA |
34 |
59 |
58 |
89 |
|
Asia Pacific |
7 |
12 |
17 |
29 |
|
Central |
(20) |
(41) |
(45) |
(76) |
|
____ |
___ |
____ |
____ |
||
Reportable segments’ operating profit |
107 |
164 |
179 |
291 |
|
Exceptional operating items (note 4) |
(175) |
6 |
(201) |
(4) |
|
____ |
____ |
____ |
____ |
||
Operating (loss)/profit |
(68) |
170 |
(22) |
287 |
|
Financial income |
1 |
3 |
2 |
6 |
|
Financial expenses |
(15) |
(28) |
(30) |
(61) |
|
____ |
____ |
____ |
____ |
||
Total (loss)/profit before tax |
(82) |
145 |
(50) |
232 |
|
==== |
==== |
==== |
==== |
||
All results relate to continuing operations. |
|||||
Assets |
2009 30 June $m |
2008
30 June $m |
2008 31 December $m |
|
Americas |
1,120 |
1,350 |
1,240 |
|
EMEA |
988 |
1,204 |
958 |
|
Asia Pacific |
617 |
684 |
613 |
|
Central |
198 |
165 |
189 |
|
____ |
____ |
____ |
||
Segment assets |
2,923 |
3,403 |
3,000 |
|
Unallocated assets: |
||||
Current tax receivable |
45 |
27 |
36 |
|
Cash and cash equivalents |
109 |
165 |
82 |
|
____ |
____ |
____ |
||
Total assets |
3,077 |
3,595 |
3,118 |
|
==== |
==== |
==== |
* |
Restated for IFRIC 14 (note 1). |
4. |
Exceptional items |
||||||
2009 $m |
2008 $m |
2009 $m |
2008 $m |
||||
Continuing operations: |
|||||||
Exceptional operating items |
|||||||
Administrative expenses: |
|||||||
Holiday Inn brand relaunch (a) |
(9) |
(3) |
(14) |
(9) |
|||
Office reorganisations (b) |
- |
(2) |
- |
(5) |
|||
Enhanced pensions transfer (c) |
- |
- |
(21) |
- |
|||
Severance costs (d) |
(4) |
- |
(4) |
- |
|||
____ |
____ |
____ |
____ |
||||
(13) |
(5) |
(39) |
(14) |
||||
Other operating income and expenses: |
|||||||
Gain on sale of other financial assets |
- |
12 |
- |
12 |
|||
Depreciation and amortisation: |
|||||||
Office reorganisations (b) |
- |
(1) |
- |
(2) |
|||
Impairment: |
|||||||
Property, plant and equipment (e) |
(28) |
- |
(28) |
- |
|||
Goodwill (f) |
(57) |
- |
(57) |
||||
Intangible assets (g) |
(32) |
- |
(32) |
- |
|||
On reclassification of hotels from assets held for sale (h) |
(45) |
- |
(45) |
||||
____ |
____ |
____ |
____ |
||||
(162) |
- |
(162) |
- |
||||
____ |
____ |
____ |
____ |
||||
(175) |
6 |
(201) |
(4) |
||||
==== |
==== |
==== |
==== |
||||
Tax |
|||||||
Tax on exceptional operating items |
43 |
(5) |
48 |
(2) |
|||
==== |
==== |
==== |
==== |
||||
Discontinued operations: |
|||||||
Gain on disposal of assets: |
|||||||
Gain on disposal of hotels (i) |
2 |
- |
2 |
- |
|||
Tax credit |
- |
- |
4 |
- |
|||
____ |
____ |
____ |
____ |
||||
2 |
- |
6 |
- |
||||
==== |
==== |
==== |
==== |
These items are treated as exceptional by reason of their size or nature. |
||
a) |
Relates to costs incurred in support of the worldwide relaunch of the Holiday Inn brand family that was announced on 24 October 2007. |
|
b) |
Related to costs incurred on the relocation of the Group’s head office and the closure of its Aylesbury facility. |
|
c) |
Relates to the payment of enhanced pension transfers to those deferred members of the InterContinental Hotels UK Pension Plan who had accepted an offer to receive the enhancement either as a cash lump sum or as an additional transfer value to an alternative pension plan provider. The exceptional item comprises the lump sum payments, the IAS 19 settlement loss arising on the pension transfers and the costs of the arrangement. The payments and transfers were made in January 2009. |
|
d) |
Severance costs relate to redundancies arising from a review of the Group’s cost base in light of the current economic climate. |
|
e) |
Comprises $20m relating to a North American hotel and $8m relating to a European hotel and arises from a review of estimated recoverable amounts taking into account the current economic climate. |
|
f) |
Arises in respect of the Americas managed cash-generating unit and reflects revised fee expectations in light of the current economic climate. Estimated future cash flows have been discounted at 12.5%. |
|
g) |
Relates to the capitalised value of management contracts accounted for as intangible assets and arises from a revision to expected fee income. Estimated future cash flows have been discounted at 12.5%. The charge relates to the Americas business segment. |
|
h) |
Relates to the valuation adjustments required on the reclassification to property, plant and equipment of four North American hotels no longer meeting the ‘held for sale’ criteria of IFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’ as sales are no longer considered highly probable within the next 12 months. The adjustments comprise $14m of depreciation not charged whilst held for sale and $31m of further write-downs to recoverable amounts, as required by IFRS 5. The results of two of the hotels, previously classified as discontinued operations, are now reported as continuing operations and prior year results have been represented on a consistent basis. |
|
i) |
Relates to the release of provisions no longer required in respect of hotels disposed of in prior years. |
5. |
Tax |
The tax charge on the combined profit from continuing and discontinued operations, excluding the impact of exceptional items (note 4), has been calculated using an estimated effective annual tax rate of 22% (2008 28%) analysed as follows. |
2009 |
2009 |
2009 |
2008 |
2008 |
2008 |
|||
3 months ended 30 June |
Profit $m |
Tax $m |
Tax |
Profit $m |
Tax $m |
Tax rate |
||
Before exceptional items |
||||||||
Continuing operations |
93 |
(19) |
20% |
139 |
(39) |
28% |
||
Exceptional items |
||||||||
Continuing operations |
(175) |
43 |
6 |
(5) |
||||
Discontinued operations |
2 |
- |
- |
- |
||||
____ |
____ |
____ |
____ |
|||||
(80) |
24 |
145 |
(44) |
|||||
==== |
==== |
==== |
==== |
|||||
Analysed as: |
||||||||
UK tax |
(6) |
(13) |
||||||
Foreign tax |
30 |
(31) |
||||||
____ |
____ |
|||||||
24 |
(44) |
|||||||
==== |
==== |
2009 |
2009 |
2009 |
2008 |
2008 |
2008 |
|||
6 months ended 30 June |
Profit $m |
Tax $m |
Tax |
Profit $m |
Tax $m |
Tax rate |
||
Before exceptional items |
||||||||
Continuing operations |
151 |
(33) |
22% |
236 |
(67) |
28% |
||
Exceptional items |
||||||||
Continuing operations |
(201) |
48 |
(4) |
(2) |
||||
Discontinued operations |
2 |
4 |
- |
- |
||||
____ |
____ |
____ |
____ |
|||||
(48) |
19 |
232 |
(69) |
|||||
==== |
==== |
==== |
==== |
|||||
Analysed as: |
||||||||
UK tax |
(2) |
(17) |
||||||
Foreign tax |
21 |
(52) |
||||||
____ |
____ |
|||||||
19 |
(69) |
|||||||
==== |
==== |
By also excluding the effect of prior year items, the equivalent effective tax rate would be approximately 39% (2008 6 months ended 30 June 37%; year ended 31 December 39%). Prior year items have been treated as relating wholly to continuing operations. |
6. |
Earnings per ordinary share |
Basic earnings per ordinary share is calculated by dividing the profit for the
period available for IHG equity holders by the weighted average number of
ordinary shares, excluding investment in own shares, in issue during the
period. |
2009 |
2008 |
|||||
3 months ended |
3 months ended 30 June |
|||||
Continuing |
Total |
Continuing |
Total |
|||
Basic earnings per share |
||||||
(Loss)/profit available for equity holders ($m) |
(58) |
(56) |
101 |
101 |
||
Basic weighted average number of ordinary shares (millions) |
285 |
285 |
290 |
290 |
||
Basic earnings per share (cents) |
(20.4) |
(19.6) |
34.8 |
34.8 |
||
==== |
===== |
==== |
===== |
|||
Diluted earnings per share |
||||||
(Loss)/profit available for equity holders ($m) |
(58) |
(56) |
101 |
101 |
||
Diluted weighted average number of ordinary shares (millions) |
291 |
291 |
296 |
296 |
||
Diluted earnings per share (cents) |
(19.9) |
(19.2) |
34.1 |
34.1 |
||
==== |
===== |
==== |
===== |
|||
Adjusted earnings per share |
||||||
(Loss)/profit available for equity holders ($m) |
(58) |
(56) |
101 |
101 |
||
Adjusting items (note 4): |
||||||
Exceptional operating items ($m) |
175 |
175 |
(6) |
(6) |
||
Tax ($m) |
(43) |
(43) |
5 |
5 |
||
Gain on disposal of assets, net of tax ($m) |
- |
(2) |
- |
- |
||
____ |
____ |
____ |
____ |
|||
Adjusted earnings ($m) |
74 |
74 |
100 |
100 |
||
Basic weighted average number of ordinary |
285 |
285 |
290 |
290 |
||
Adjusted earnings per share (cents) |
26.0 |
26.0 |
34.5 |
34.5 |
||
==== |
==== |
==== |
==== |
|||
Diluted weighted average number of ordinary |
291 |
291 |
296 |
296 |
||
Adjusted diluted earnings per share (cents) |
25.4 |
25.4 |
33.8 |
33.8 |
||
==== |
==== |
==== |
==== |
6. |
Earnings per ordinary share (continued) |
|||||
2009 |
2008 |
|||||
6 months ended |
6 months ended 30 June |
|||||
Continuing |
Total |
Continuing |
Total |
|||
Basic earnings per share |
||||||
(Loss)/profit available for equity holders ($m) |
(35) |
(29) |
163 |
163 |
||
Basic weighted average number of ordinary shares (millions) |
284 |
284 |
291 |
291 |
||
Basic earnings per share (cents) |
(12.3) |
(10.2) |
56.0 |
56.0 |
||
==== |
==== |
==== |
==== |
|||
Diluted earnings per share |
||||||
(Loss)/profit available for equity holders ($m) |
(35) |
(29) |
163 |
163 |
||
Diluted weighted average number of ordinary shares (millions) |
290 |
290 |
297 |
297 |
||
Diluted earnings per share (cents) |
(12.1) |
(10.0) |
54.9 |
54.9 |
||
==== |
==== |
==== |
==== |
|||
Adjusted earnings per share |
||||||
(Loss)/profit available for equity holders ($m) |
(35) |
(29) |
163 |
163 |
||
Adjusting items (note 4): |
||||||
Exceptional operating items ($m) |
201 |
201 |
4 |
4 |
||
Tax ($m) |
(48) |
(48) |
2 |
2 |
||
Gain on disposal of assets, net of tax ($m) |
- |
(6) |
- |
- |
||
____ |
____ |
____ |
____ |
|||
Adjusted earnings ($m) |
118 |
118 |
169 |
169 |
||
Basic weighted average number of ordinary shares (millions) |
284 |
284 |
291 |
291 |
||
Adjusted earnings per share (cents) |
41.5 |
41.5 |
58.1 |
58.1 |
||
==== |
==== |
==== |
==== |
|||
Diluted weighted average number of ordinary shares (millions) |
290 |
290 |
297 |
297 |
||
Adjusted diluted earnings per share (cents) |
40.7 |
40.7 |
56.9 |
56.9 |
||
==== |
==== |
==== |
==== |
Earnings per share from discontinued operations |
2009 cents per share |
2008 cents per share |
2009 cents per share |
2008 cents per share |
|
Basic |
0.8 |
- |
2.1 |
- |
|
Diluted |
0.7 |
- |
2.1 |
- |
|
==== |
==== |
==== |
==== |
The diluted weighted average number of ordinary shares is calculated as: |
|||||
2009 |
2008 |
2009 |
2008 |
||
Basic weighted average number of ordinary shares |
285 |
290 |
284 |
291 |
|
Dilutive potential ordinary shares – employee share options |
6 |
6 |
6 |
6 |
|
____ |
____ |
____ |
____ |
||
291 |
296 |
290 |
297 |
||
==== |
==== |
==== |
==== |
7. |
Dividends |
||||
2009 cents per share |
2008 cents per share |
2009 $m |
2008 $m |
||
Paid during the period: |
|||||
Final (declared for previous year) |
29.2 |
29.2 |
83 |
86 |
|
==== |
==== |
==== |
==== |
||
Proposed for the period: |
|||||
Interim |
12.2 |
12.2 |
35 |
35 |
|
==== |
==== |
==== |
==== |
8 |
Net debt |
|||
2009 30 June |
2008 30 June |
2008 |
||
$m |
$m |
$m |
||
Cash and cash equivalents |
109 |
165 |
82 |
|
Loans and other borrowings – current |
(22) |
(17) |
(21) |
|
Loans and other borrowings – non-current |
(1,415) |
(1,771) |
(1,334) |
|
____ |
____ |
____ |
||
Net debt |
(1,328) |
(1,623) |
(1,273) |
|
==== |
==== |
==== |
||
Finance lease liability included above |
(203) |
(201) |
(202) |
|
==== |
==== |
==== |
9. |
Movement in net debt |
|||
2009 30 June |
2008 30 June |
2008 |
||
$m |
$m |
$m |
||
Net increase in cash and cash equivalents |
33 |
64 |
25 |
|
Add back cash flows in respect of other components of net debt: |
||||
(Increase)/decrease in borrowings |
(54) |
(11) |
316 |
|
____ |
____ |
____ |
||
(Increase)/decrease in net debt arising from cash flows |
(21) |
53 |
341 |
|
Non-cash movements: |
||||
Finance lease liability |
(1) |
(1) |
(2) |
|
Exchange and other adjustments |
(33) |
(16) |
47 |
|
____ |
____ |
____ |
||
(Increase)/decrease in net debt |
(55) |
36 |
386 |
|
Net debt at beginning of the period |
(1,273) |
(1,659) |
(1,659) |
|
____ |
____ |
____ |
||
Net debt at end of the period |
(1,328) |
(1,623) |
(1,273) |
|
==== |
==== |
==== |
10. |
Capital commitments and contingencies |
At 30 June 2009, the amount contracted for but not provided for in the
financial statements for expenditure on property, plant and equipment was $16m
(2008 31 December $40m; 30 June $66m). |
11. |
Other commitments |
On 24 October 2007, the Group announced a worldwide relaunch of its Holiday Inn brand family. In support of this relaunch, IHG will make a non recurring revenue investment of $60m which will be charged to the Group income statement as an exceptional item. $48m has been incurred to date, including the $14m charged in the first six months of 2009. |
INDEPENDENT REVIEW REPORT TO
InterContinental Hotels Group
pLC |
|
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the interim financial report for the three and six months ended
30 June 2009 which comprises the Group income statement, Group statement of
changes in equity, Group statement of comprehensive income, Group statement of
cash flows, Group statement of financial position and the related notes 1 to
11. We have read the other information contained in the interim financial
report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of financial
statements.
Directors' Responsibilities
The interim financial report is the responsibility of, and has been approved
by, the Directors. The Directors are responsible for preparing the interim
financial report in accordance with the Disclosure and Transparency Rules of
the United Kingdom’s Financial Services Authority.
Our Responsibility
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity’ issued by the
Auditing Practices Board for use in the United Kingdom. A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK and
Ireland) and consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in an audit.
Accordingly we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the interim financial
report for the three and six months ended 30 June 2009 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom’s Financial Services Authority.
Ernst & Young LLP 10 August 2009 |
|
|
InterContinental Hotels Group PLC
|
|
|
(Registrant)
|
|
|
|
|
By:
|
/s/ C. Cox
|
|
Name:
|
C. COX
|
|
Title:
|
COMPANY SECRETARIAL OFFICER
|
|
|
|
|
Date:
|
11 August 2009
|
|
|
|