The board of regional group Peel Hotels has decided to delist as a public company as it has no wish “to raise money on the market in the foreseeable future”.
In an announcement issued via the London Stock Exchange, the company said it was “in the best interests of the company and its shareholders” to return to private ownership.
Turnover for the company, which comprises nine hotels, for the year to 27 January 2019 dropped 3.2% to £15.6m, with earnings before interest, tax, depreciation and amortisation (EBITDA), excluding the exceptional expense of £1.16m due to the impairment of the values of two leasehold properties, slumped 24.6% to £1.4m. Pre-tax profit was £179,203 compared to a loss in 2018 of £734,986.
Robert Peel, chairman and founder of the group, said: “There has been a slow but sustained improvement in sales and hotel profitability since August 2018 up and until today’s date.
“In view of the high operational gearing of the business, small improvements in turnover translate to much higher percentages of hotel profitability and therefore if we can maintain this trend, we can expect our EBITDA and profits to move forward in the current year.
“The board have concluded that due to the costs of listing and the fact that there is no prospect of the company wishing to raise money on the market in the foreseeable future, that there seems little purpose in continuing to be listed and therefore propose cancellation of admission of ordinary shares to trading on AIM.”
The portfolio of Peel Hotels includes the Bull in Peterborough, the Midland in Bradford and the Cosmopolitan in Leeds.
In October 2018 the company announced that all nine of its hotels would be joining various brands within the Best Western consortium.