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De Vere Group remains tight-lipped over possible takeover bid

17 May 2006
De Vere Group remains tight-lipped over possible takeover bid

De Vere Group has announced "satisfactory" results for the first half of 2006 today, but remained tight-lipped on a third-party approach to buy the company.

Chairman David Richardson said: "The preliminary approach may or may not lead to an offer for the company. Discussions continue and a further announcement will be made as and when appropriate."

Turnover fell by 5.1% to £146.5m, while pre-tax profit dropped from £76.5m to £13.8m.

Despite the slump, Deutsche Bank analyst Ross Jobber said the figures were "solid" given the tough trading environment.

"In the current market and despite the potential distraction of bid speculation the company is still broadly on track to deliver its projected results for the full year," he said.

Turnover at De Vere hotels was up by 3.7% to £68.2m. Its Village Hotels brand turnover increased 3.4% to £40.3m.

De Vere said its target to open four to five new Village hotels from 2007/08 was achievable.

"The pipeline looks to be the strongest it's ever been," said Jobber.

Starwood lines up for De Vere >>

De Vere Group sells Jersey hotel >>

De Vere reveals new identity >>

By Tom Bill

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