M&C posts 5% rise in Q2 net profit to £21m

MILLENNIUM & Copthorne Hotels (M&C) saw its net profit rise 5 per cent year-on-year to £21 million (S$35 million) for the second quarter ended June 30.

Revenue dipped 1.2 per cent to £257 million, while earnings per share worked out to 6.4 pence, up from 6.2 pence a year ago. 

Revenue per available room for the quarter under review improved to £85.55. This was up 4.3 per cent in reported currency and 1.1 per cent in constant currency terms.

For the six-month period, net profit shrank 21.4 per cent year-on-year to £22 million while total revenue dipped 1 per cent to £472 million.

"Refurbishment at the Mayfair hotel and Orchard Hotel Singapore negatively impacted the group's performance during H1 2019," said M&C. "The Mayfair hotel has been closed since July 2018 and is expected to reopen in September 2019. The Orchard Hotel Singapore has been closed on a phased basis since Q4 2018 and refurbishment work completed in July 2019. The total impact was a reduction in revenue and profit by £7 million and £6 million respectively."

On June 7, City Developments Limited launched a second takeover bid for M&C, its London-listed subsidiary, with a higher cash offer of 685 pence per share, up from the previous 620 pence bid in December 2017 that was subsequently blocked by M&C's minority shareholders.

No interim dividend was declared for the period under review as the terms of the offer stipulated that any dividends or distributions declared or made on or after June 7 would result in the offer price being reduced proportionately.