QMH poised for share relisting

by Andrew Sangster

Queens Moat Houses (QMH) is on the verge of a comeback after shareholders voted overwhelmingly in favour of the proposed restructuring.

Provided the High Court gives the company the green light on 17 May, the shares will be relisted by the Stock Exchange on the following day.

Andrew Coppel, QMH's chief executive, said: "The shareholders' vote speaks for itself. I am looking forward to spending 100% of my time on the business."

The Extraordinary General Meeting of shareholders last Friday voted by more than 99% in favour of the special resolution, which gives the banks 60% of the shares in exchange for writing off debt.

Shareholders were told by QMH chairman Stanley Metcalfe that the company faced collapse if they failed to vote in favour of the deal.

Ordinary shareholders are to receive 24% of the new shares and preferenceshareholders will have the remaining 16%.

Even though the restructuring looks like going to plan, QMH still has problems. It will be left with an enormous debt burden which can be serviced only by dramatic improvements in operating profits.

But Mr Coppel believes his team is capable of winning this battle as well. The latest initiative is a press advertising campaign launched at the end of April - the company's first national advertising project.

The campaign, which will run throughout May and June, uses a series of six differentads to attract business travellers to the rebranded Moat House chain of 43 hotels. It will be backed up by direct marketing.

The 36 properties in QMH's secondary County Hotels division will feature in their own programme in early summer.