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Dalata Plans Shares Issue

/ 9th September 2015 /
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Dalata Hotel Group booked an operating profit of €5.1m on turnover of €98m in the first half of 2015, according to interim results. Excluding acquisition costs of €13.5m booked in the period, the operating profit would have been €18.6m, or €16.1m after finance costs. The reported pre-tax profit is €2.7m, and €590,000 after tax.

DHG, led by CEO Pat McCann (pictured), ended the period with total liabilities of €326m and total assets of €671m, including a €24m gain in upward revaluation of its hotels portfolio. Net debt at end-June stood at €260m.The company has raised €345m from investors and has announced that it will tap the market for a further €160m for expansion purposes.

House broker Davy enthused: “Dalata has a strong growth platform in place, with tangible evidence of delivery and an extremely promising outlook. The group’s underlying EBITDA for the six months to end-June rose very sharply from €2.4m to €23.6m.

“Dalata’s outlook comments are upbeat and it expects the strong underlying market trends to continue. In addition, the integration of the acquired hotels is ahead of schedule.”

The share placing is being priced at 375c per share, a 6% discount to the closing price on September 8.

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The Dalata share started the year at the €3 level and was bid up to the €4 level in July, where it currently stands. Market cap is €565m, a 60% premium to the balance sheet net worth.

Davy’s Flor O’Donoghue said: “Looking to 2016, Dalata will enjoy a full year’s contribution from all existing acquired assets. It will also benefit from what should remain very favourable trading conditions, revenue enhancement measures and the expansion of the Moran Chiswick.

“In total, we believe EBITDA approaching €70m in 2016 is now plausible, even allowing for the lapse of the Ballsbridge hotels lease.”

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