IKEJA HOTEL PLC - Nigerian Stock Exchange...IKEJA HOTEL PLC (RC 10845) Unaudited Interim Financial...

IKEJA HOTEL PLC (RC 10845)

Unaudited Interim Financial Statements

For The First Quarter Ended 31 March, 2015



IKEJA HOTEL PLC

Contents Page

The Company 1

Statement of Financial Position 2

Satement of Comprehensive Income 3

Statement of Changes in Equity 4

Statement of Cash Flows 5

Notes to the Financial Statements 6

Forecast 12

Operating Summary 13



The COMPANY

The Company

Accounting Policies

Statement of Compliance

Ikeja Hotel Plc., formerly Properties Development Limited, was incorporated on 18 November, 1972. It owns

the Sheraton Lagos Hotel, a core investor in Hans Gremlin Nigeria Limited and a shareholder in the Tourist

Company of Nigeria Plc. (Owners of Federal Palace Hotel & Casino, Lagos).

The registered office of the company is located at 84 Opebi Road, Ikeja, Lagos, is managed and operated by

Starwood Eame License and Services Company BVBA

The same accounting policies and methods of computation are followed in the interim financial statements for

the quarter ended 31 March, 2015 as were followed in the most recent financial statements.

The financial statements have been prepared in accordance with Interim Financial Reporting (IAS 34) under

the International Financial Reporting Standards.



Statement of Financial Position

As at 31 March, 2015

Notes 31.3.15 31.12.14

=N='000 =N='000

Non-Current Assets

Property, plant and equipment 1 4,470,515 4,473,433

Capital Work-in-Progress 2 826,452 657,669

Intangible Asset 3 11,879 13,641

Investment in Subsidiaries 27 4,440,919 4,440,919

Investments accounted for using Equity Method 28 798,722 798,722

Loans and Receivables 13 2,975,835 2,773,405

Due from Related Party 14 550,569 571,807

Total Non-Current Assets 14,074,891 13,729,596

Current Assets

Inventories 12 267,777 266,760

Trade and Other Receivables 10 580,015 2,323,739

Other Assets 11 2,637,364 738,777

Cash and Cash Equivalents 15 928,081 1,219,360

Total Current Assets 4,413,237 4,548,636

Total Assets 18,488,128 18,278,233

Equity

Share Capital 24 1,039,398 1,039,398

Share Premium 25 1,381,072 1,381,072

Retained Earnings 26 4,474,654 4,616,430

Total Equity & Reserves 6,895,125 7,036,900

Non-Current Liabilities

Other Liabilities 19 6,147,646 5,969,361

Employee Benefits 23 1,688,463 1,694,643

Deferred Tax 21 265,702 185,552

Total Non-Current Liabilities 8,101,811 7,849,556

Current Liabilities

Trade and Other Payables 18 718,329 1,395,037

Deferred Income 17 2,135,324 1,270,844

Dividend Payable 20 16,691 16,691

Bank Overdraft 16 43,603 61,959

Current Tax Payable 21 577,246 647,246

Total Current Liabilities 3,491,192 3,391,777

Total Liabilities 11,593,003 11,241,333

Total Equity and Liabilities 18,488,128 18,278,233

These financial statements were signed on behalf of the board of directors by:

Mr. Theo Eniola Netufo Mr. Olayiwola J. Osituwo

Chief Operating Officer Compliance Officer

FRC/2013/ICAN/00000004775 FRC/2013/ICAN/00000004776

2


Unaudited Interim Financial StatementsStatement of Comprehensive Income For The Period Ended 31 March 2015

Note 31.3.15 31.3.14

=N='000 =N='000Turnover 4 1,190,645.66 1,522,793.55 Cost of Sales 5 (967,386.98) (611,955.19)

Gross Operating Profit 223,258.68 910,838.36

Other Income 6 90,257.47 24,071.77

Sales and Distribution Expenses 8 (60,818.97) (71,251.89)

Administrative Expenses 7 (231,857.46) (608,032.66)

Result from Operating Activities 20,839.71 255,625.57

Finance income 9 - -

Finance costs (162,615.00) (4,182.93)

Net finance costs (162,615.00) (4,182.93)

Profit before Taxation (141,775.29) 251,442.64

Current Tax Expense 21 - (80,461.65)

Profit/(Loss) for the period (141,775.29) 170,981.00

Other Comprehensive Income for the Period - -

Total/(Loss) Comprehensive Income for the Period (141,775.29) 170,981.00

Basic earnings per share ( kobo) (6.82) 8.22

Diluted earnings per share (kobo) (6.82) 8.22

3



Statement of Changes in Equity

For the Period Ended 31 March 2015

Issued Share Retained

Capital Premium Earnings Total=N='000 =N='000 =N='000 =N='000

Balance as at 31 December 2014 1,039,398 1,381,072 4,443,020 6,863,490

Changes in Equity for 2015

Profit/(Loss) for the period - - (141,775) (141,775)

-

Total Comprehensive Income for the period - - (141,775) (141,775)

Balance as at 31 March, 2015 1,039,398 1,381,072 4,301,245 6,721,715

Balance as at 31 December 2013 1,039,398 1,381,072 4,272,039 6,692,509

Changes in Equity for 2014

Profit/(Loss) for the period - - 170,981 170,981 -

Total Comprehensive Income for the period - - 170,981 170,981

Balance as at 31 March, 2014 1,039,398 1,381,072 4,443,020 6,863,490

4



Condensed Statement of Cash Flows

For the Period Ended 31 March, 2015

Notes 31.3.15 31.3.14

=N='000 =N='000Profit/(Loss) After Tax (141,775.29) 170,981.00

Adjustment for:

Depreciation of PPE 1 124,950.91 44,286.62

Amortisation of Intangible Asset 3 1,762.14 277.35

Finance Costs 9 162,615.00 4,182.93

Income Tax Expense 21 - 80,461.65

147,552.77 300,189.54

Changes in:

Inventories 12 (1,017.06) (32,859.68)

Trade and Other Receivables 10 1,743,724.05 (1,526,079.26)

Other Assets 11 (1,824,616.63) 376,178.70

Due from Related Party 14 21,237.35 (7,233.68)

Employee Benefits - (7,365.00)

Loans & Receivables 13 (202,429.80) -

Deferred Income 17 864,480.33 -

Trade and Other Payables 18 (676,708.63) (174,941.38)

Other Liabilities 19 178,284.59 42,100.27

Cash generated from Operating Activities 250,506.96 (1,030,010.49)

Income tax paid (70,000.00) -

Net Cash from Operating Activities 180,506.96 (1,030,010.49)

Cash Flows from Investing Activities

Purchase of PPE 1 (122,032.39) (23,002.49)

Additions to Capital Work in Progress 2 (168,782.86) (111,341.87)

Net Cash Flows used in Investing Activities (290,815.25) (134,344.37)

Cash Flows from Financing Activities

Finance Costs 9 (162,615) (4,183)

Net Cash Flows used in Financing Activities (162,615) (4,183)

Net Increase in Cash and Cash Equivalent (272,923) (1,168,538)

Cash and Cash Equivalents at the beginning of the Period 1,157,401 2,660,538

Cash and Cash Equivalent at the end of the Period 884,478 1,492,000

5



Schedule of Property, Plant and Equipment

For the Period Ended 31 March, 2015

1 Land Buildings

Hotel

Equipment

Office

Equipment

Computer

Equipment

Motor

Vehicle Total

N'000 N'000 N'000 N'000 N'000 N'000 N'000

At 1st January 2015 3,084,350 741,367 1,848,821 71,380 153,589 238,357 6,137,865

Addition - 4,482 110,126 - 7,424 - 122,032 Retirement - - - - - - -

At 31 March, 2015 3,084,350 745,849 1,958,948 71,380 161,013 238,357 6,259,898

Depreciation and impairment

At 1st January 2015 - 403,584 853,796 50,024 128,638 228,391 1,664,432

Retirement - - - - - - - Depreciation charge for the period - 9,323 97,947 1,785 13,404 2,492 124,951

At 31 March, 2015 - 412,907 951,743 51,809 142,042 230,882 1,789,383

Carrying Amount

At 31 March, 2015 3,084,350 332,943 1,007,204 19,571 18,971 7,475 4,470,515

At 1 January, 2015 3,084,350 337,783 995,025 21,356 24,952 9,966 4,473,433

6



NOTES TO THE ACCOUNTS

31.3.15 31.12.14

2 Capital Work-in-Progress =N='000 =N='000

At 1 January 657,669 884,423

Additions in the period 168,783 (226,754) At 31 March, 2015 826,452 657,669

This represents on going renovation works on the Company’s property

3 Intangible Asset

3.1 Computer Software 31.3.15 31.12.14

Cost/Valuation =N='000 =N='000

At 1 January 17,621 11,094

Additions in the period - 6,527 At 31 March, 2015 17,621 17,621

3.2 Amortization

At 1 January 3,980 2,218

Charge for the period 1,762 1,762 At 31 March, 2015 5,742 3,980

3.3 Carrying Value 11,879 13,641

31.3.15 31.3.14

4 Revenue =N='000 =N='000

Rooms 830,829 1,037,090

Food & Beverage 292,394 417,601

Minor Operating Departments 67,423 68,103 Total 1,190,646 1,522,794

31.3.15 31.3.14

5 Cost of Sales =N='000 =N='000

Rooms 166,507 183,639

Food & Beverage 228,006 276,213

Minor Operating Departments 446,160 21,884

Power, heat & light - 85,933

Depreciation of PPE 126,713 44,287 Total 967,387 611,955

31.3.15 31.3.14

6 Other Income =N='000 =N='000

Gain on Disposal of Available for Sale Asset 87,411 150

Sundry Receipts 280 29

Sales of Scrap 2,566 23,892 Total 90,257 24,072

31.3.15 31.3.14

=N='000 =N='0007 Administrative Expenses 231,857 608,033

31.3.15 31.3.14

=N='000 =N='0008 Sales & Marketing Expenses 60,819 71,252

7



31.3.15 31.3.14

9 Finance Income and Finance Cost =N='000 =N='000

Interest Income - Interest Expense 162,615 4,183 Net Finance Cost 162,615 4,183

Interest income represents interest earned on bank deposits while interest expense represents charges paid and/or payable on loans.

31.3.15 31.12.14

=N='000 =N='000

10 Trade and Other Receivables 527,841 2,290,964

Allowances for Impairment Losses (35,177) (35,177)

Net Trade Receivables 492,664 2,255,787

Other Receivables 87,351 67,952 580,015 2,323,739

There is no material difference between the fair value of receivables and their carrying amount.

31.3.15 31.12.14

11 Other Assets =N='000 =N='000

Prepayments (Note 11.1) 205,409 52,133

Withholding tax receivables 682,705 682,705

Advances to Suppliers 1,741,206 -

Sheraton Brand Hotels 6,870 -

Advances to Employees 1,173 3,939 Total 2,637,364 738,777

11.1 Analysis of Prepayments

P/P Hotel License 6,498

P/PM PC's Software 15,241 2,243

Prepaid Rent 9,660 9,232

Prepaid Maintenance 6,814 -

Prepaid Dues and Subscription 2,161 15,593

Prepaid Insurance 58,837 14,847

Prepaid Expenses - General 112,696 3,720 Total 205,409 52,133

31.3.15 31.12.14

12 Inventories =N='000 =N='000

Food & Beverage 46,166 40,732

Maintenance Supplies 86,572 104,703

Operating Supplies 97,121 97,199 General Stores 37,918 24,126

Total 267,777 266,760

31.3.15 31.12.14

13 Loans and Receivables US Dollar =N='000

At 1 January 11,439 2,773,405 1,957,340 Interest Capita;ised 572 - 816,065

Adjustment - 202,430 - 12,011 2,975,835 2,773,405

Loans and receivable relate to receivable from The Tourist Company of Nigeria Plc. The loans

are denominated in US dollars with no fixed term of repayment.

8



31.3.15 31.12.14

14 Due from Related Party =N='000 =N='000

Nimbles Logistics Limited - 20

Hans-Gremlin (Nigera) Ltd. 483,708 483,708

Federal Palace/Sun 66,861 79,621

BC Hubs Limited - 8,458 Total 550,569 571,807

The carrying amount of loans and receivables and due from related party are considered to be

in line with their fair value at the reporting date.

31.3.15 31.12.14

15 Cash & Cash Equivalents =N='000 =N='000

Cash in Hand 76,117 300,967

Cash at Bank 852,266 918,393

928,383 1,219,360

Time Deposits (302) - As per Statement of Financial position 928,081 1,219,360

31.3.15 31.12.14=N='000 =N='000

16 Bank Overdraft 43,603 61,959

31.3.15 31.12.14

=N='000 =N='00017 Deferred Income 2,135,324 1,270,844

Deferred Income relates to interest income receivable from the loan to

The Tourist Company of Nigeria Plc

31.3.15 31.12.14

18 Trade and Other Payables =N='000 =N='000Trade Payables 65,726 90,996

Accrued Expenses 539,715 1,163,540

Due to Starwood Eame License and Service Company 3,645.33 -

VAT Payables 13,212 13,613

Advance Deposit 211 630

Service Charge Distribution 30,653 32,659

Other Credit Balances 65,166 93,600 Total 718,329 1,395,037

19 Other Liabilities 31.3.15 31.12.14

19.1 Due to Related Parties =N='000 =N='000Capital Hotel Plc 1,284,802 1,275,818

IHL Services limited 570,614 509,213

Alurum Investment Ltd/Omamo Trust Limited 2,029,613 1,970,498

Minabo Limited 1,185,778 1,151,241

G. M. Ibru 1,076,839 1,062,591

At 31st March, 2015 6,147,646 5,969,361

31.3.15 31.12.14

9



20 Dividend =N='000 =N='000

At 1, January 16,691 16,691 At 31st March, 2015 16,691 16,691

21 Taxation 31.3.15 31.12.14

21.1 Current Tax Payable =N='000 =N='000

As at January 647,246 897,763 Payment during the period (70,000) (250,517)

At 31 March, 2014 577,246 647,246

The charge for taxation has been computed in accordance with the provisions of the companies

income tax Act CAP C21,LFN 2004 and the Education Tax, CAP E4, LFN 2004 as amended.

21.2 Deferred Taxation

At January 185,552 185,552

Write back/Charge in the period 80,150 - At 31st March, 2015 265,702 185,552

Employee Benefits

23 Defined Contribution 31.3.15 31.12.14

Defined Benefits =N='000 =N='000

At 1, January 1,694,643 1,363,382

Current Service Cost - 350,725 Payment in the period (6,180) (19,465)

Total 1,688,463 1,694,643

24 Share Capital

31.3.15 31.12.14

24.1 Authorised =N='000 =N='0004,000,000,000 Ordinary shares of 50 kobo each 2,000,000 2,000,000

31.3.15 31.12.14

24.2 Issued and fully paid =N='000 =N='000

At 1 January 1,039,398 1,039,398 At 31st March, 2015 1,039,398 1,039,398

Number: 2,078,796,396 ordinary shares of 50 kobo each

31.3.15 31.12.14

25 Share Premium Reserve =N='000 =N='000

At 1 Januaary 1,381,072 1,381,072 At 31st March, 2015 1,381,072 1,381,072

31.3.15 31.12.14

26 Retained Earnings =N='000 =N='000

At 1 January 4,616,430 4,976,556

Transfer from profit & loss account (141,775) -

Actuarial (Gain)/Loss for the period - (360,126) At 31st March, 2015 4,474,654 4,616,430

31.3.15 31.12.14

27 Investment in Subsidiary =N='000 =N='000Hans Gremin Nigeria Limited 4,440,919 4,440,919

10



31.3.15 31.12.14

28 Investment Accounted for the Equity Method =N='000 =N='000

At 1 January 798,722 798,722 At 31st March, 2015 798,722 798,722

Investment in Joint Venture relates to 273,529,085 units of stock in The Tourist Co. of Nig. Plc

11



Statement of Comprehensive Income Forecast

For The Period Ended 30 June, 2015

30.6.15

=N='000

Turnover 2,588,750

Cost of Sales (1,162,715)

Gross Operating Profit 1,426,035

Operating Expenses (1,277,665)

Result from Operating Activities 148,370

Net finance costs (376,470)

Profit/(Loss) before Taxation (228,100)

Current Tax Expense -

Profit for the period (228,100)

12



UNAUDITED RESULT FOR THREE MONTHS

ENDED 31 MARCH, 2015

03/31/2015 03/31/2014 %

=N='000 =N='000 Change

TURNOVER 1,190,646 1,522,794 (21.81)

OPERATING PROFIT 20,840 255,626 (91.85)

FINANCE CHARGES (162,615) (4,183) (3,787.59)

PROFIT/(LOSS) BEFORE TAX (141,775) 251,443 (156.38)

TAXATION - (80,462) -

PROFIT/(LOSS) AFTER TAX (141,775) 170,981 (182.92)

13

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