Offering flexible configurations and room availability, Snoozebox is the ‘portable’ hotel system that can be ready to welcome guests within days of arriving at almost any event or location around the world. It has announced its annual results for the year ended 31 December 2014, with Lorcán Ó Murchú, Chief Executive, commenting:
“Snoozebox has made progress during 2014 and is reporting results for the year in line with expectations. We have secured additional funding and are investing in a new generation of hotel room stock.
“We have turned around the events programme and reduced overheads. We have made substantial progress in the underlying operating model and in particular with the semi-permanent hotel offering, establishing a platform for growth.
Outlook
“2015 will be a year in which the Company positions itself for scale from 2016. The primary focus will be the deployment of the remaining room stock on longer term, semi-permanent contracts and the roll-out of the first tranche of 150 rooms of the new event stock. We will see the expansion of the event programme in the UK and the acceleration of an entry into Europe, in addition to the delivery of additional workforce-related, semi-permanent deployments. There are risks associated with the management of the build programme of the new rooms. There is also execution risk associated with the roll out of the new rooms and with the expansion into Europe.
“In summary, I am pleased with the progress the Company has made during 2014. We have reduced overheads, turned around the events programme, secured additional funding and are investing in a new generation of hotel room stock. I believe that the substantial progress made in the underlying operating model provides a platform on which to build a successful and growing business, backed by strong and growing customer demand for our unique brand and innovative offering.”
2014 Financial Highlights
- Reduction in the loss on operating activities to £5.4m from £9.3m in the prior year
- Positive contribution to overheads of £0.5m, 17% of revenues of £2.8m. This compares to a negative contribution of £1.1m in the prior year on an adjusted revenue of £2.2m
- £20.7m net assets, with debt of £9.7m
- Cash at the year-end of £16.9m
2014 Key Milestones
- Business has generated a positive contribution to overheads for the first time
- 50% of the existing room stock committed profitably on a semi-permanent basis with an expanding pipeline
- Turnaround of the UK events programme
- £26m of additional funding secured
- Launched a new generation of Snoozebox rooms, capable of faster deployment and offering flexible and easily configurable accommodation options
- Strong pipeline of semi- permanent and event opportunities
- New models in development targeting temporary housing and medical sectors
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