Snoozebox : trading update.

Snoozebox Holdings plc

SNOOZEBOX TRADING UPDATE

Snoozebox Holdings plc (Snoozebox, AIM:ZZZ), the leading provider of portable hotel accommodation and services today announces that, in the first six months to 30 June 2014,  the Company has made demonstrable progress in the development of its event programme and in creating a platform for growth and profitability.

The Company is  pleased to report a successful events programme in the first half of the year.  The highlights of which are as follows:

·      A turnaround in operating performance that has resulted in a positive contribution to central overheads from the events division (Eventz) of c. £0.1m utilising the existing hotel room stock.  This compares to an equivalent loss of £1.5m in the same period in 2013 *

·      A reduction in administrative expenses/central overhead of c. £1.7m, to £2.4m from £4.1m in the first half of 2013

·      An improvement in pre-exceptional EBITDA expected, with losses reducing to £1.6m in the first six months of the year from £4.2m in the same period last year *

·      The Company has achieved consistently high occupancy levels with most events sold-out, at room rates ranging from £160 to £330 per night

·      The Company is experiencing a high level of demand for 2015 events compared to the rate of sale at this time last year

·      The strategy of deploying the first generation of Snoozebox hotel rooms on a long-term basis is on track.  Approximately 40% of existing hotel room stock is now committed to long-term deployments including the Eden Project

·      The Next Generation Portable Hotel production is on track and will be launched in the autumn.

Commenting on the first half performance, Lorcán Ó Murchú, Chief Executive, said,

"I am pleased to report a turnaround in the operating performance of the events business from the heavy losses reported in the first half of last year.  The results of the first events in the current season demonstrate increasing demand for high quality hotel rooms and that a positive contribution can be generated by the existing hotel room stock, from both short and long-term deployments. 

I believe the progress made in the underlying operating model, combined with the launch of the Next Generation Portable Hotel in the autumn of this year, provides the platform on which to transform the performance of the business in 2015 and to scale it in 2016."

As previously reported, in the first half of the year the Company limited the number of events it attended in order to overhaul the operating model and refine service delivery.  This strategy has resulted in high occupancy rates, several sold-out events, room rates ranging from £160 to £330 per night and some events delivering a contribution of over 20%, before central overheads.  Revenue of £0.7m is expected for the first half of 2014 compared to an events division revenue of £0.9m for the same period in 2013. *

Revenues will be higher in the second half of the year and key events include the British Grand Prix, the Silverstone Classic, Glasgow for the Commonwealth Games, Edinburgh for the Fringe Festival,  the Moto GP and the Ryder Cup at Gleneagles. These events are either sold out or experiencing high levels of demand.   Room sales for certain 2015 events are already live and the booking rate is materially ahead of last year at the same time.

With regard to the long-term deployment of the current generation of Snoozebox hotel rooms, there is a strong pipeline of opportunities and the Company remains confident that the existing hotel room stock will be placed on a "semi-permanent" basis by the end of 2014.  Planning permission for a 60 bedroom Snoozebox hotel at the Eden Project, in Cornwall, has been secured. The hotel will be deployed for an initial period of two years and is scheduled to open in October 2014.  At present, the Company has committed approximately 40% of the existing hotel room stock on a long-term basis.

During the first half of this year, the Company has substantially concluded development and commenced production of its Next Generation Portable Hotel, which will be launched in the autumn.  The new hotel rooms are more flexible and efficient than the original stock, reduce deployment costs substantially and increase the size, scope and viability of the Company's addressable events market.  This will enable the business to move forward and capitalise on the rising levels of demand that are being experienced for high quality portable hotel accommodation at sporting, music and other events.

The Company will publish its interim results on 30 September 2014.

Notes

* In order to compare the performance of the first six months of 2014 on a like for like basis with the same period last year, the impact of the deployment at the G8 Summit has been excluded from the comparative figures. This deployment did not utilise Snoozebox hotel rooms.

28 July 2014

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