08/05/2007
Maypole, the countryside hotels with restaurants chain chaired by former Blacks Leisure mover and shaker Simon Bentley and guided by experienced restaurant entrepreneur and chief executive Alastair McEwen, has served up encouraging 2006 calendar year numbers.
The PLUS graduate delivered a 17%-plus sales improvement to £3m, and a £10,000 pre-tax profit (adding back exceptional costs related to the AIM switch). After one-off costs, a £71,000 pre-tax profit surrendered to losses of £254,000.
Healthy top-line growth reflected a first full-year contribution from the Lifeboat Inn and sister hotel the Old Coach House following their acquisition for £5m in 2005. A significant improvement was also made at first acquisition the Wroxton House Hotel near Banbury, where sales burgeoned by 15% to £868,000. Gross margins nosed higher from 70.7% to 76.3%, buoyed by burgeoning room income and better buying power.
Since year-end, Maypole has increased its portfolio to four via the acquisition of the Wayford Bridge Hotel in Norfolk for £1.95m, a hotel with a three star rating from the English Tourist Board.
Bentley and the board will continue to drive operating performance improvements and he welcomes the incoming smoking ban, arguing the removal of smoking from Maypole’s premises can only enhance the customer experience – bearing in mind Maypole’s focus is on quality food and all the hotels have outside space for smokers in any case.
‘What we are looking to do is improve the performance of the hotels’, said Bentley, ‘in terms of rate of occupancy and the average take per head.’ With trading healthy, reservation and occupancy levels rising, and management lining up more deals for investor delectation, Maypole looks well placed to deliver shareholder value. Less explosive in terms of growth than many counters on AIM, the shares nevertheless look a sensible investment with respected management hands on the tiller. Speculative buy.
| Market cap: | £1.83m |
| PE Forecast: | n/a |
| Share price: | 1.25p |
| AIM | £0.89m |
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