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IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial Statements
For The First Quarter Ended 31 March, 2015
IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial Statements
IKEJA HOTEL PLC
Contents Page
The Company 1
Statement of Financial Position 2
Satement of Comprehensive Income 3
Statement of Changes in Equity 4
Statement of Cash Flows 5
Notes to the Financial Statements 6
Forecast 12
Operating Summary 13
IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial Statements
The COMPANY
The Company
Accounting Policies
Statement of Compliance
Ikeja Hotel Plc., formerly Properties Development Limited, was incorporated on 18 November, 1972. It owns
the Sheraton Lagos Hotel, a core investor in Hans Gremlin Nigeria Limited and a shareholder in the Tourist
Company of Nigeria Plc. (Owners of Federal Palace Hotel & Casino, Lagos).
The registered office of the company is located at 84 Opebi Road, Ikeja, Lagos, is managed and operated by
Starwood Eame License and Services Company BVBA
The same accounting policies and methods of computation are followed in the interim financial statements for
the quarter ended 31 March, 2015 as were followed in the most recent financial statements.
The financial statements have been prepared in accordance with Interim Financial Reporting (IAS 34) under
the International Financial Reporting Standards.
IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial Statements
Statement of Financial Position
As at 31 March, 2015
Notes 31.3.15 31.12.14
=N='000 =N='000
Non-Current Assets
Property, plant and equipment 1 4,470,515 4,473,433
Capital Work-in-Progress 2 826,452 657,669
Intangible Asset 3 11,879 13,641
Investment in Subsidiaries 27 4,440,919 4,440,919
Investments accounted for using Equity Method 28 798,722 798,722
Loans and Receivables 13 2,975,835 2,773,405
Due from Related Party 14 550,569 571,807
Total Non-Current Assets 14,074,891 13,729,596
Current Assets
Inventories 12 267,777 266,760
Trade and Other Receivables 10 580,015 2,323,739
Other Assets 11 2,637,364 738,777
Cash and Cash Equivalents 15 928,081 1,219,360
Total Current Assets 4,413,237 4,548,636
Total Assets 18,488,128 18,278,233
Equity
Share Capital 24 1,039,398 1,039,398
Share Premium 25 1,381,072 1,381,072
Retained Earnings 26 4,474,654 4,616,430
Total Equity & Reserves 6,895,125 7,036,900
Non-Current Liabilities
Other Liabilities 19 6,147,646 5,969,361
Employee Benefits 23 1,688,463 1,694,643
Deferred Tax 21 265,702 185,552
Total Non-Current Liabilities 8,101,811 7,849,556
Current Liabilities
Trade and Other Payables 18 718,329 1,395,037
Deferred Income 17 2,135,324 1,270,844
Dividend Payable 20 16,691 16,691
Bank Overdraft 16 43,603 61,959
Current Tax Payable 21 577,246 647,246
Total Current Liabilities 3,491,192 3,391,777
Total Liabilities 11,593,003 11,241,333
Total Equity and Liabilities 18,488,128 18,278,233
These financial statements were signed on behalf of the board of directors by:
Mr. Theo Eniola Netufo Mr. Olayiwola J. Osituwo
Chief Operating Officer Compliance Officer
FRC/2013/ICAN/00000004775 FRC/2013/ICAN/00000004776
2
IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial StatementsStatement of Comprehensive Income For The Period Ended 31 March 2015
Note 31.3.15 31.3.14
=N='000 =N='000Turnover 4 1,190,645.66 1,522,793.55 Cost of Sales 5 (967,386.98) (611,955.19)
Gross Operating Profit 223,258.68 910,838.36
Other Income 6 90,257.47 24,071.77
Sales and Distribution Expenses 8 (60,818.97) (71,251.89)
Administrative Expenses 7 (231,857.46) (608,032.66)
Result from Operating Activities 20,839.71 255,625.57
Finance income 9 - -
Finance costs (162,615.00) (4,182.93)
Net finance costs (162,615.00) (4,182.93)
Profit before Taxation (141,775.29) 251,442.64
Current Tax Expense 21 - (80,461.65)
Profit/(Loss) for the period (141,775.29) 170,981.00
Other Comprehensive Income for the Period - -
Total/(Loss) Comprehensive Income for the Period (141,775.29) 170,981.00
Basic earnings per share ( kobo) (6.82) 8.22
Diluted earnings per share (kobo) (6.82) 8.22
3
IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial Statements
Statement of Changes in Equity
For the Period Ended 31 March 2015
Issued Share Retained
Capital Premium Earnings Total=N='000 =N='000 =N='000 =N='000
Balance as at 31 December 2014 1,039,398 1,381,072 4,443,020 6,863,490
Changes in Equity for 2015
Profit/(Loss) for the period - - (141,775) (141,775)
-
Total Comprehensive Income for the period - - (141,775) (141,775)
Balance as at 31 March, 2015 1,039,398 1,381,072 4,301,245 6,721,715
Balance as at 31 December 2013 1,039,398 1,381,072 4,272,039 6,692,509
Changes in Equity for 2014
Profit/(Loss) for the period - - 170,981 170,981 -
Total Comprehensive Income for the period - - 170,981 170,981
Balance as at 31 March, 2014 1,039,398 1,381,072 4,443,020 6,863,490
4
IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial Statements
Condensed Statement of Cash Flows
For the Period Ended 31 March, 2015
Notes 31.3.15 31.3.14
=N='000 =N='000Profit/(Loss) After Tax (141,775.29) 170,981.00
Adjustment for:
Depreciation of PPE 1 124,950.91 44,286.62
Amortisation of Intangible Asset 3 1,762.14 277.35
Finance Costs 9 162,615.00 4,182.93
Income Tax Expense 21 - 80,461.65
147,552.77 300,189.54
Changes in:
Inventories 12 (1,017.06) (32,859.68)
Trade and Other Receivables 10 1,743,724.05 (1,526,079.26)
Other Assets 11 (1,824,616.63) 376,178.70
Due from Related Party 14 21,237.35 (7,233.68)
Employee Benefits - (7,365.00)
Loans & Receivables 13 (202,429.80) -
Deferred Income 17 864,480.33 -
Trade and Other Payables 18 (676,708.63) (174,941.38)
Other Liabilities 19 178,284.59 42,100.27
Cash generated from Operating Activities 250,506.96 (1,030,010.49)
Income tax paid (70,000.00) -
Net Cash from Operating Activities 180,506.96 (1,030,010.49)
Cash Flows from Investing Activities
Purchase of PPE 1 (122,032.39) (23,002.49)
Additions to Capital Work in Progress 2 (168,782.86) (111,341.87)
Net Cash Flows used in Investing Activities (290,815.25) (134,344.37)
Cash Flows from Financing Activities
Finance Costs 9 (162,615) (4,183)
Net Cash Flows used in Financing Activities (162,615) (4,183)
Net Increase in Cash and Cash Equivalent (272,923) (1,168,538)
Cash and Cash Equivalents at the beginning of the Period 1,157,401 2,660,538
Cash and Cash Equivalent at the end of the Period 884,478 1,492,000
5
IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial Statements
Schedule of Property, Plant and Equipment
For the Period Ended 31 March, 2015
1 Land Buildings
Hotel
Equipment
Office
Equipment
Computer
Equipment
Motor
Vehicle Total
N'000 N'000 N'000 N'000 N'000 N'000 N'000
At 1st January 2015 3,084,350 741,367 1,848,821 71,380 153,589 238,357 6,137,865
Addition - 4,482 110,126 - 7,424 - 122,032 Retirement - - - - - - -
At 31 March, 2015 3,084,350 745,849 1,958,948 71,380 161,013 238,357 6,259,898
Depreciation and impairment
At 1st January 2015 - 403,584 853,796 50,024 128,638 228,391 1,664,432
Retirement - - - - - - - Depreciation charge for the period - 9,323 97,947 1,785 13,404 2,492 124,951
At 31 March, 2015 - 412,907 951,743 51,809 142,042 230,882 1,789,383
Carrying Amount
At 31 March, 2015 3,084,350 332,943 1,007,204 19,571 18,971 7,475 4,470,515
At 1 January, 2015 3,084,350 337,783 995,025 21,356 24,952 9,966 4,473,433
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IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial Statements
NOTES TO THE ACCOUNTS
31.3.15 31.12.14
2 Capital Work-in-Progress =N='000 =N='000
At 1 January 657,669 884,423
Additions in the period 168,783 (226,754) At 31 March, 2015 826,452 657,669
This represents on going renovation works on the Company’s property
3 Intangible Asset
3.1 Computer Software 31.3.15 31.12.14
Cost/Valuation =N='000 =N='000
At 1 January 17,621 11,094
Additions in the period - 6,527 At 31 March, 2015 17,621 17,621
3.2 Amortization
At 1 January 3,980 2,218
Charge for the period 1,762 1,762 At 31 March, 2015 5,742 3,980
3.3 Carrying Value 11,879 13,641
31.3.15 31.3.14
4 Revenue =N='000 =N='000
Rooms 830,829 1,037,090
Food & Beverage 292,394 417,601
Minor Operating Departments 67,423 68,103 Total 1,190,646 1,522,794
31.3.15 31.3.14
5 Cost of Sales =N='000 =N='000
Rooms 166,507 183,639
Food & Beverage 228,006 276,213
Minor Operating Departments 446,160 21,884
Power, heat & light - 85,933
Depreciation of PPE 126,713 44,287 Total 967,387 611,955
31.3.15 31.3.14
6 Other Income =N='000 =N='000
Gain on Disposal of Available for Sale Asset 87,411 150
Sundry Receipts 280 29
Sales of Scrap 2,566 23,892 Total 90,257 24,072
31.3.15 31.3.14
=N='000 =N='0007 Administrative Expenses 231,857 608,033
31.3.15 31.3.14
=N='000 =N='0008 Sales & Marketing Expenses 60,819 71,252
7
IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial Statements
31.3.15 31.3.14
9 Finance Income and Finance Cost =N='000 =N='000
Interest Income - Interest Expense 162,615 4,183 Net Finance Cost 162,615 4,183
Interest income represents interest earned on bank deposits while interest expense represents charges paid and/or payable on loans.
31.3.15 31.12.14
=N='000 =N='000
10 Trade and Other Receivables 527,841 2,290,964
Allowances for Impairment Losses (35,177) (35,177)
Net Trade Receivables 492,664 2,255,787
Other Receivables 87,351 67,952 580,015 2,323,739
There is no material difference between the fair value of receivables and their carrying amount.
31.3.15 31.12.14
11 Other Assets =N='000 =N='000
Prepayments (Note 11.1) 205,409 52,133
Withholding tax receivables 682,705 682,705
Advances to Suppliers 1,741,206 -
Sheraton Brand Hotels 6,870 -
Advances to Employees 1,173 3,939 Total 2,637,364 738,777
11.1 Analysis of Prepayments
P/P Hotel License 6,498
P/PM PC's Software 15,241 2,243
Prepaid Rent 9,660 9,232
Prepaid Maintenance 6,814 -
Prepaid Dues and Subscription 2,161 15,593
Prepaid Insurance 58,837 14,847
Prepaid Expenses - General 112,696 3,720 Total 205,409 52,133
31.3.15 31.12.14
12 Inventories =N='000 =N='000
Food & Beverage 46,166 40,732
Maintenance Supplies 86,572 104,703
Operating Supplies 97,121 97,199 General Stores 37,918 24,126
Total 267,777 266,760
31.3.15 31.12.14
13 Loans and Receivables US Dollar =N='000
At 1 January 11,439 2,773,405 1,957,340 Interest Capita;ised 572 - 816,065
Adjustment - 202,430 - 12,011 2,975,835 2,773,405
Loans and receivable relate to receivable from The Tourist Company of Nigeria Plc. The loans
are denominated in US dollars with no fixed term of repayment.
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IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial Statements
31.3.15 31.12.14
14 Due from Related Party =N='000 =N='000
Nimbles Logistics Limited - 20
Hans-Gremlin (Nigera) Ltd. 483,708 483,708
Federal Palace/Sun 66,861 79,621
BC Hubs Limited - 8,458 Total 550,569 571,807
The carrying amount of loans and receivables and due from related party are considered to be
in line with their fair value at the reporting date.
31.3.15 31.12.14
15 Cash & Cash Equivalents =N='000 =N='000
Cash in Hand 76,117 300,967
Cash at Bank 852,266 918,393
928,383 1,219,360
Time Deposits (302) - As per Statement of Financial position 928,081 1,219,360
31.3.15 31.12.14=N='000 =N='000
16 Bank Overdraft 43,603 61,959
31.3.15 31.12.14
=N='000 =N='00017 Deferred Income 2,135,324 1,270,844
Deferred Income relates to interest income receivable from the loan to
The Tourist Company of Nigeria Plc
31.3.15 31.12.14
18 Trade and Other Payables =N='000 =N='000Trade Payables 65,726 90,996
Accrued Expenses 539,715 1,163,540
Due to Starwood Eame License and Service Company 3,645.33 -
VAT Payables 13,212 13,613
Advance Deposit 211 630
Service Charge Distribution 30,653 32,659
Other Credit Balances 65,166 93,600 Total 718,329 1,395,037
19 Other Liabilities 31.3.15 31.12.14
19.1 Due to Related Parties =N='000 =N='000Capital Hotel Plc 1,284,802 1,275,818
IHL Services limited 570,614 509,213
Alurum Investment Ltd/Omamo Trust Limited 2,029,613 1,970,498
Minabo Limited 1,185,778 1,151,241
G. M. Ibru 1,076,839 1,062,591
At 31st March, 2015 6,147,646 5,969,361
31.3.15 31.12.14
9
IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial Statements
20 Dividend =N='000 =N='000
At 1, January 16,691 16,691 At 31st March, 2015 16,691 16,691
21 Taxation 31.3.15 31.12.14
21.1 Current Tax Payable =N='000 =N='000
As at January 647,246 897,763 Payment during the period (70,000) (250,517)
At 31 March, 2014 577,246 647,246
The charge for taxation has been computed in accordance with the provisions of the companies
income tax Act CAP C21,LFN 2004 and the Education Tax, CAP E4, LFN 2004 as amended.
21.2 Deferred Taxation
At January 185,552 185,552
Write back/Charge in the period 80,150 - At 31st March, 2015 265,702 185,552
Employee Benefits
23 Defined Contribution 31.3.15 31.12.14
Defined Benefits =N='000 =N='000
At 1, January 1,694,643 1,363,382
Current Service Cost - 350,725 Payment in the period (6,180) (19,465)
Total 1,688,463 1,694,643
24 Share Capital
31.3.15 31.12.14
24.1 Authorised =N='000 =N='0004,000,000,000 Ordinary shares of 50 kobo each 2,000,000 2,000,000
31.3.15 31.12.14
24.2 Issued and fully paid =N='000 =N='000
At 1 January 1,039,398 1,039,398 At 31st March, 2015 1,039,398 1,039,398
Number: 2,078,796,396 ordinary shares of 50 kobo each
31.3.15 31.12.14
25 Share Premium Reserve =N='000 =N='000
At 1 Januaary 1,381,072 1,381,072 At 31st March, 2015 1,381,072 1,381,072
31.3.15 31.12.14
26 Retained Earnings =N='000 =N='000
At 1 January 4,616,430 4,976,556
Transfer from profit & loss account (141,775) -
Actuarial (Gain)/Loss for the period - (360,126) At 31st March, 2015 4,474,654 4,616,430
31.3.15 31.12.14
27 Investment in Subsidiary =N='000 =N='000Hans Gremin Nigeria Limited 4,440,919 4,440,919
10
IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial Statements
31.3.15 31.12.14
28 Investment Accounted for the Equity Method =N='000 =N='000
At 1 January 798,722 798,722 At 31st March, 2015 798,722 798,722
Investment in Joint Venture relates to 273,529,085 units of stock in The Tourist Co. of Nig. Plc
11
IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial Statements
Statement of Comprehensive Income Forecast
For The Period Ended 30 June, 2015
30.6.15
=N='000
Turnover 2,588,750
Cost of Sales (1,162,715)
Gross Operating Profit 1,426,035
Operating Expenses (1,277,665)
Result from Operating Activities 148,370
Net finance costs (376,470)
Profit/(Loss) before Taxation (228,100)
Current Tax Expense -
Profit for the period (228,100)
12
IKEJA HOTEL PLC (RC 10845)
Unaudited Interim Financial Statements
UNAUDITED RESULT FOR THREE MONTHS
ENDED 31 MARCH, 2015
03/31/2015 03/31/2014 %
=N='000 =N='000 Change
TURNOVER 1,190,646 1,522,794 (21.81)
OPERATING PROFIT 20,840 255,626 (91.85)
FINANCE CHARGES (162,615) (4,183) (3,787.59)
PROFIT/(LOSS) BEFORE TAX (141,775) 251,443 (156.38)
TAXATION - (80,462) -
PROFIT/(LOSS) AFTER TAX (141,775) 170,981 (182.92)
13