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GL Limited posts higher Q3 net profit
GL Limited turned in a profit of US$24 million for the third quarter ended March 31, up from US$4.4 million a year ago.
Revenue for the quarter under review rose 9 per cent year-on-year to US$74.3 million while earnings per share jumped to 1.9 US cents, rising from 0.3 cent previously.
The bottom line was partly bolstered by a US$25.9 million rise in other operating income, which was due to compensation from the compulsory acquisition of one hotel property and the recovery of a legacy loan which has been written off previously.
GL said that the London hotel market remains challenging, due to "a combination of a strong supply of new rooms and continued pressures on UK household spending and real income growth". However, it added that London still enjoys relatively high occupancy rates, and that events such as the Royal Wedding in May and the Farnborough Airshow in July could provide some uplift to performance. "Overall, however, the market is not expected to grow significantly and the group maintains a cautious outlook," it added.
In an update, it said that the refurbishment of The Cumberland Hotel is progressing in stages and the hotel is on track to be launched as Hard Rock Hotel London in the next financial year. The group's total rooms available for sale will continue to be affected during this refurbishment period.
Meanwhile, the Clermont Club has ceased operations. As such, the group's gaming segment has been discontinued and the group is proposing to dispose of its casino licence.