By Andrew Starke
A number of listed pub group owners and operators have recently reported their 2010 financial results with most struggling but hoping for better market conditions next year.
National Leisure and Gaming
NLG has released a preliminary financial report revealing a before-tax loss of $3.82 million, following a loss of $7.23 million for the 2009 financial year. This year’s loss included a $25 million writedown on the goodwill, and plant and equipment, paid on the purchase of three venues. The result was also affected by the restructure of a senior debt facility with National Australia Bank. Late last month (August) NLG concluded a deal with NAB that saw $40 million of its debt written off. NLG had been in negotiations with Bank of New Zealand Australia, a business division of NAB, in a bid by the pub group to restructure its existing finance facilities.
ING Real Estate Entertainment Fund
ING Real Estate Entertainment Fund (IEF) recently announced its full year results for the year ended 30 June 2010. Key items for the year include: a statutory loss of $52.7 million, down from $54.1 million for the previous year; net operating income down by 24 percent to $9.5 million due to impact of assets sales, increased debt margins and operating conditions; and $39 million in asset sales with net proceeds used to repay debt.
“This has again been a challenging year for the Fund however our asset sale achievements, and the injection of new capital, have assisted in reducing Fund debt and providing stability to the balance sheet,” said IEF CEO, Daniel Hargraves said.
Compass Hotel Group
Compass reported a net loss of $18.3 million for the 2010 financial year, compared to a loss of $99.2 million last year. The pub group is the largest freehold hotel and tavern business owner and operator in Western Australia with 12 venues in metropolitan Perth and in Mandurah. Revenue was down 16 percent from last year to $63.1 million. The group expects market conditions to remain difficult at least until the end of 2010, after which it predicts a slow and steady uplift in the economy. Compass has been in recent discussions with its financier about covenants its debt facility with the lender happy to provide covenant waivers for the moment.
The ALE Property Group and Redcape Property Fund have also released results which have previously been reported by TheShout.