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Snoozebox predicts profit for 2016

11 February 2015 by
Snoozebox predicts profit for 2016

Snoozebox Holdings is expecting to show a profit in 2016 having launched a new generation of rooms and opened two permanent sites.

The portable accommodation provider said in a trading update that it expected to post an EBITDA loss for 2015, despite a turnaround on trading performance in the business.

It said that revenues were expected to be £2.8m for 2014, with 24,000 room nights sold with average revenues per room of £117.

The opening of a 54-bedroom hotel at the Eden Project in Cornwall and the deployment of an 80-bedroom workforce hotel for Premier Oil are projected to cover the central costs of the business in 2015, Snoozebox said.

It added that this security would allow it to position for scale in 2016, including expansion into Europe.

"The decision to accelerate entry into Europe will result in a short-term impact on revenues, which it is anticipated will lead to a small EBITDA loss for the company in 2015. However, this approach positions the company for growth and profitability in 2016 and beyond," the statement read.

Snoozebox said it expected to deploy hotels at 50% more events in the UK than last year. It will provide accommodation at events including Cheltenham Festival, Isle of Man TT Races, British F1 Grand Prix and the Rugby World Cup.

With the additional resources afforded by the £15m debt facility it secured in 2014, the firm plans to release a small number of rooms to establish itself on the European events circuit, before scaling up its presence in 2016.

Snoozebox secures £15.6m finance package after reporting £1.6m loss >>

Snoozebox in temporary hotel deal with Premier Oil >>

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