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CDL's Millennium & Copthorne posts 86% plunge in Q4 profit before tax

MILLENNIUM & Copthorne Hotels on Friday reported a 86.3 per cent drop in profit before tax to £11 million (S$22.1 million) in 2015. Earnings per share fell to 1.4 pence, from 13.7 pence a year ago.

Revenue improved a marginal 1.3 per cent to £232 million, although revenue per available room (RevPAR) fell 3.7 per cent to £73.64.

The board recommended a final dividend of 4.34 pence per share, rounding up to a total dividend of 6.42 pence per share for the full year. A year ago, it had paid out 13.59 pence.

M&C is the London-listed subsidiary of Singapore property developer City Developments Limited (CDL). Both CDL and M&C are members of the Hong Leong group of companies.

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Commenting on its results, M&C said: "Hospitality markets in 2015 reflected the impact of economic and political uncertainty in many parts of the world, including a number of destinations served by our hotels.

"In addition, the global hotel landscape is changing significantly, with consolidation of some of the largest companies in the sector. These are significant forces of change in the hospitality industry, and the group is focused on making the correct strategic choices in order to grow earnings and optimise returns on assets in a rapidly changing and competitive environment."