Peel reported turnover up 5.5% to £7,192,103 (2008 £6,819,298), while profit before interest is down 11.9% to £483,355 the profit after tax up 119.9% to £1,146,714 (2008 £521,430), which includes 3 months turnover from it's new hotel.
Peel acquired the 95 bedroom Norfolk Royale in Bournemouth (A.A.four star) for £8,250,000 on 1 June 2009, funded by debt. This sharply increased the net debt to £14.5 million, funded by loans of £12.7 million and at call finance of £1.8 million.
Chairman Robert Peel said: "Clearly the interim trading results have been impacted by the economy, however our trading has improved over the past few months although it is difficult to determine if this is a gain in market share arising from the continued upgrading of our Hotels or a stabilising market place. We are optimistic that our sales will actually grow on a like for like basis by the year end but it remains to be seen if we can achieve revpar growth which will be key to the ultimate year end result."
The board have decided not to pay an interim dividend (2008: 2.0 pence) as a result of disappointing trading at the Bull Hotel in Peterborough and the Cosmopolitan Hotel in Leeds.
Peel now owns a total of 732 rooms and in addition to those hotels already mentioned owns Bradford's Midland Hotel, Carlisle's Crown & Mitre, Dunfermline's King Malcolm, Newcastle Upon Tyne's Caledonian, Nottingham's Strathdon Hotel and Wallingford's George Hotel.