Stakis sees profits double

PRE-tax profits at Stakis more than doubled to ú20.2m - up from ú9.4m - in the year to 2 October 1994, chairman Sir Lewis Robertson revealed this week. Turnover advanced from ú139m to ú145.9m.

The group's hotels division, which thanks to a swathe of acquisitions now stands at 38 properties, improved turnover from ú86m to ú94.2m, with operating profits jumping from ú20.54m to ú24.64m.

In the 13 weeks since the company's year-end, results continued to improve, Sir Lewis said, with occupancy showing a marked uplift (see table).

Sir Lewis said that although the market had begun to recover, Stakis's improvement was due "more to management's and the whole team's own efforts than to a more benevolent trading climate", paying particular tribute to chief executive David Michels.

Sir Lewis, who is shortly to step down as chairman, said that the group would continue to acquire individual hotels and casinos over the coming year, and did not rule out the possibility of a larger acquisition.

Some observers have expressed alarm at the speed with which Stakis - which three years ago was on the verge of collapse - has expanded since then. However, Sir Lewis was emphatic the directors would "not ever allow the acquisition programme to outrun Stakis's financing capabilities or arrangements".

The share price, which had dipped to 24p shortly after his appointment in March 1991, now stands at 85p and its market capitalisation has risen from ú63m to ú406m.

TABLE: 13 weeks to 1 January

19951994

Average no. rooms4,3913,795

Room nights available400,000345,000

Occupancy %69.9%64.4%

Room nights sold279,000222,000

Average room rateú43.01ú42.54

Yield per available roomú30.06ú27.37