Continued
outperformance by IHG’s brands delivers 33% operating profit growth
Financial summary1
|
2011
|
2010
|
% Change YoY
|
Actual
|
CER2
|
CER2 & excluding LDs3
|
Revenue
|
$467m
|
$421m
|
11%
|
8%
|
7%
|
Operating profit
|
$153m
|
$115m
|
33%
|
31%
|
26%
|
Total adjusted EPS
|
36.2¢
|
27.1¢
|
34%
|
|
|
Total basic EPS4
|
61.4¢
|
35.8¢
|
72%
|
|
|
Net debt
|
$644m
|
$801m
|
|
|
|
Richard Solomons, Chief Executive of InterContinental
Hotels Group PLC, said:
|
“In the third quarter we delivered a strong set of
results, with global revenue per available room (RevPAR) up 6.4%,
including 2.8% rate growth. This was led by 10.8% RevPAR growth in
Greater China and 8.0% in the US where we continued to outperform the
industry driven by sustained results from the Holiday Inn relaunch. We are now rolling out a multi-year programme
to reposition and drive stronger performance from our Crowne Plaza
brand.
“We are focused on supporting our owners by driving
demand to their hotels through the most profitable channels. Our innovations in this area
continue to lead the industry and we recently introduced our Best Price
Guarantee, designed to drive more guests to book through our direct
websites.
“We have established firm foundations for high quality
growth which we will deliver through driving market share, growing
margins and investing behind the growth of our brands and our people. The economic environment continues to be
uncertain, but we remain confident in our
future due to our resilient business model, robust balance sheet and
powerful brand portfolio, combined with low medium term supply growth
in many markets.”
|
Driving Market Share
|
•
|
Third quarter global RevPAR growth of 6.4%, 7.0%
excluding Egypt, Bahrain and Japan.
|
|
-
|
Americas 7.6% (US 8.0%); EMEA 3.6%; Asia Pacific 5.7%.
|
|
-
|
Global rate growth of 2.8%, demonstrating progressive
improvement from 2.4% growth in the second quarter.
|
•
|
System size 666,476 rooms (4,520 hotels); pipeline
183,368 rooms (1,152 hotels).
|
|
-
|
12,945 rooms (75 hotels) added and 3,143 rooms (17
hotels) removed, with signings of 18,728 rooms (102 hotels). Openings and signings includes 4,796 rooms (25
hotels) managed on US army bases.
|
|
-
|
Holiday Inn brand family signings of 9,653 rooms is up
16% on Q3 2010, taking the global brand pipeline to over 105,000 rooms,
demonstrating the continued wider benefits of the relaunch.
|
|
Growing Margins
|
•
|
Continued cost control
|
|
-
|
Regional and central costs of $72m down $3m on Q3 2010 at
constant currency (down $2m as reported).
|
|
-
|
2011 full year regional and central costs expected to be
on target at c.$260m at constant currency (c.$265m at current exchange
rates).
|
|
|
|
|
Current trading update
|
•
|
October global RevPAR up 4.7%, including rate up 3.2%.
|
|
-
|
Americas 6.2% (US 6.4%); EMEA 0.3%; Asia Pacific 5.3%.
|
•
|
Operating profit impact of $2m in the quarter ($9m year
to date) from events in Middle East, Japan and New Zealand with full
year estimated impact still expected to be around $15m.
|
|
1All
figures are before exceptional items unless otherwise noted. See
appendix 4 and 5 for analysis of financial headlines
|
2CER
=constant exchange rates
|
³excluding
$6m of significant liquidated damages receipts in 2011
|
4After
exceptional items
|
|
|
|
|
|
Regional Highlights
|
Americas – Strong brands drive industry outperformance
|
RevPAR increased 7.6%, including rate growth of 3.2%. US
RevPAR was up 8.0%, including rate growth of 3.4%. On a total basis
including the benefit of new hotels, US RevPAR grew 9.5%, outperforming
the industry up 7.9%.
Revenue increased 3% to $222m and operating profit
increased 20% to $126m. After adjusting
for owned hotel disposals and excluding the impact of a $4m benefit
year on year from the conclusion of a specific guarantee negotiation
relating to one hotel, revenue was up 5% and operating profit up 16%.
This was driven by 9.7% owned hotel RevPAR growth and a 7% increase in
franchise royalty fees.
We signed 11,200 rooms (73 hotels) in the quarter and
opened 8,003 rooms (54 hotels) into the system, both of which include
4,796 rooms (25 hotels) managed on US army bases. Two additional
Holiday Inn Club Vacations hotels (694 rooms) were signed up, which
will take the total number of properties operating under the timeshare
alliance brand to eight (3,586 rooms). Openings
include two Holiday Inn hotels in Colombia, marking a strong entry for
the brand into that country.
|
EMEA – Successfully growing our brands in new markets
|
RevPAR increased 3.6%, including rate growth of 2.8%. RevPAR grew 4.5% excluding Egypt (10 hotels)
and Bahrain (2 hotels) where the political unrest continued to result
in significant declines. RevPAR grew in other Middle East markets,
including 10.9% in Saudi Arabia and 9.7% in the United Arab Emirates.
Revenue increased 22% (17% at CER) to $128m and operating
profit was in line with the prior year at $35m (down 3% at CER). After
adjusting for properties that are structured for legal reasons as
operating leases but with the same characteristics as management
contracts, revenue increased 9% and
operating profit was flat. This was
driven by strong growth in the owned business where RevPAR was up 10.0%
and a $2m increase in franchise royalties as a result of 3.8% RevPAR
growth and a 4% increase in year on year room count. Managed profits
were adversely impacted by $1.5m as a result of the unrest in the
Middle East.
We signed 1,601 rooms (11 hotels) in the quarter,
including the first Hotel Indigo for Russia, in St Petersburg. 1,072 rooms (10 hotels) were opened into
the system, including the InterContinental Porto, the first for the
brand in Portugal.
|
Asia Pacific – RevPAR and rooms growth drives a 20%
profit increase
|
RevPAR increased 5.7%, including rate growth of 2.0%.
Excluding Japan (32 hotels) where the earthquake and resultant events
negatively impacted growth, RevPAR grew 8.6%. Greater
China continues to be our strongest market with RevPAR up 10.8%,
including rate growth of 4.9%.
Revenue increased 19% (12% at CER) to $88m and operating
profit increased 55% (45% at CER) to $31m. After
adjusting for a $6m liquidated damages receipt, revenue increased 11%
(4% at CER) and operating profit increased 25% (15% at CER). This was driven by strong RevPAR growth and an
8% increase in year on year room count, led by Greater China, up 14%. Excluding the $6m liquidated damages receipt,
managed operating profit grew 20% (10% at CER). The natural disasters
in Japan and New Zealand had a $0.5m negative impact in the quarter.
We signed 5,927 rooms (18 hotels) in the quarter
including a 1,224 room Holiday Inn in Macau, and the fourth hotel
development for the Holiday Inn Express brand in Thailand, located
along Patong Beach in Phuket. 3,870 rooms
(11 hotels) were opened into the system, including a second Holiday Inn
resort in Phuket. IHG now has 11 hotels
open in Thailand with a further 10 in the development pipeline.
|
Interest, tax, exceptional items, dividend and net debt
|
The interest charge for the period was $15m (Q3 2010:
$16m). The tax charge has been calculated
using an estimated annual tax rate of 26% (Q3 2010: 26%). A $17m net exceptional tax credit relates to a
reduction in the estimated tax impact of a prior year corporate
restructuring, partially offset by current year items.
Exceptional operating credits comprise (i) $28m relating
to the closure of the UK defined benefit pension scheme with effect
from 1 July 2013 and (ii) $28m gain on sale of a hotel and related
investment in Australia.
Net debt was $644m (including the $208m finance lease on
the InterContinental Boston), down $157m on Q3 2010 and down $99m on
the position at year end.
The Group refinanced its bank debt after the quarter end,
putting in place a 5 year $1.07 billion facility providing certainty of
funding until November 2016.
|
Appendix 1: RevPAR movement summary
|
|
October
2011
|
Q3
2011
|
|
RevPAR
|
Rate
|
Occ.
|
RevPAR
|
Rate
|
Occ.
|
Group
|
4.7%
|
3.2%
|
1.0%pts
|
6.4%
|
2.8%
|
2.4%pts
|
Americas
|
6.2%
|
3.4%
|
1.8%pts
|
7.6%
|
3.2%
|
2.8%pts
|
EMEA
|
0.3%
|
2.6%
|
(1.6)%pts
|
3.6%
|
2.8%
|
0.6%pts
|
Asia
Pacific
|
5.3%
|
4.7%
|
0.4%pts
|
5.7%
|
2.0%
|
2.5%pts
|
Appendix 2: Third quarter 2011 system & pipeline
summary (rooms)
|
|
System
|
Pipeline
|
Openings
|
Removals
|
Net
|
Total
|
YoY%
|
Signings
|
Total
|
Group
|
12,945
|
(3,143)
|
9,802
|
666,476
|
1%
|
18,728
|
183,368
|
Americas
|
8,003
|
(2,298)
|
5,705
|
451,112
|
-
|
11,200
|
84,788
|
EMEA
|
1,072
|
(639)
|
433
|
122,560
|
2%
|
1,601
|
31,403
|
Asia
Pacific
|
3,870
|
(206)
|
3,664
|
92,804
|
8%
|
5,927
|
67,177
|
Appendix 3: Year to date 2011 system & pipeline
summary (rooms)
|
|
System
|
Pipeline
|
Openings
|
Removals
|
Net
|
Total
|
YoY%
|
Signings
|
Total
|
Group
|
37,464
|
(18,149)
|
19,315
|
666,476
|
1%
|
39,867
|
183,368
|
Americas
|
24,523
|
(12,786)
|
11,737
|
451,112
|
-
|
22,814
|
84,788
|
EMEA
|
4,533
|
(2,825)
|
1,708
|
122,560
|
2%
|
6,148
|
31,403
|
Asia
Pacific
|
8,408
|
(2,538)
|
5,870
|
92,804
|
8%
|
10,905
|
67,177
|
Appendix 4: Third quarter financial headlines
|
Three
months to 30 September 2011
Operating
Profit $m
|
Total
|
Americas
|
EMEA
|
Asia
Pacific
|
Central
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
Franchised
|
145
|
131
|
123
|
113
|
19
|
17
|
3
|
1
|
-
|
-
|
Managed
|
51
|
35
|
10
|
2
|
11
|
13
|
30
|
20
|
-
|
-
|
Owned
& leased
|
29
|
23
|
7
|
4
|
16
|
13
|
6
|
6
|
-
|
-
|
Regional
costs
|
(33)
|
(29)
|
(14)
|
(14)
|
(11)
|
(8)
|
(8)
|
(7)
|
-
|
-
|
Operating
profit pre central costs
|
192
|
160
|
126
|
105
|
35
|
35
|
31
|
20
|
-
|
-
|
Central
costs
|
(39)
|
(45)
|
-
|
-
|
-
|
-
|
-
|
-
|
(39)
|
(45)
|
Group
Operating profit
|
153
|
115
|
126
|
105
|
35
|
35
|
31
|
20
|
(39)
|
(45)
|
Appendix 5: Year to date financial headlines
|
Nine
months to 30 September 2011
Operating
Profit $m
|
Total
|
Americas
|
EMEA
|
Asia
Pacific
|
Central
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
Franchised
|
393
|
350
|
332
|
301
|
54
|
45
|
7
|
4
|
-
|
-
|
Managed
|
154
|
110
|
43
|
15
|
42
|
45
|
69
|
50
|
-
|
-
|
Owned
& leased
|
76
|
56
|
13
|
8
|
39
|
28
|
24
|
20
|
-
|
-
|
Regional
costs
|
(89)
|
(84)
|
(37)
|
(40)
|
(29)
|
(25)
|
(23)
|
(19)
|
-
|
-
|
Operating
profit pre central costs
|
534
|
432
|
351
|
284
|
106
|
93
|
77
|
55
|
-
|
-
|
Central
costs
|
(112)
|
(98)
|
-
|
-
|
-
|
-
|
-
|
-
|
(112)
|
(98)
|
Group
Operating profit
|
422
|
334
|
351
|
284
|
106
|
93
|
77
|
55
|
(112)
|
(98)
|
Appendix 6: Constant exchange rate (CER) operating profit
movement before exceptional items
|
|
Total***
|
Americas
|
EMEA
|
Asia
Pacific
|
Actual
currency*
|
CER**
|
Actual
currency*
|
CER**
|
Actual
currency*
|
CER**
|
Actual
currency*
|
CER**
|
Growth/
(decline)
|
33%
|
31%
|
20%
|
20%
|
-
|
(3)%
|
55%
|
45%
|
Exchange
rates:
|
|
GBP:USD
|
EUR:USD
|
*
US dollar actual currency
|
2011
|
0.62
|
0.71
|
**
Translated at constant 2010 exchange rates
|
2010
|
0.65
|
0.77
|
***
After central overheads
|
|
|
|
|
|
|
|
|
|
|
|
|
For further information, please contact:
|
Investor Relations (Heather Wood; Catherine Dolton):
|
+44 (0)1895 512176
|
|
Media Affairs (Fiona Gornall, Kari Kerr):
|
+44 (0)1895 512426
|
+44 (0) 7770 736 849
|
High resolution images to accompany this announcement are
available for the media to download free of charge from
www.vismedia.co.uk. This includes profile shots of the key executives.
|
UK conference call and Q&A:
A conference call with Richard Solomons (Chief Executive
Officer) and Tom Singer (Chief Financial Officer) will commence at
9:30am (London time) on Tuesday 8 November. There will be an
opportunity to ask questions.
|
International dial-in:
UK Toll Free:
|
+44 (0)20 7108 6370
0808 238 6029
|
Passcode:
|
HOTEL
|
US conference call and Q&A:
There will also be a conference call, primarily for US
investors and analysts, at 10.00am (Eastern Standard Time) on 8th
November with Richard Solomons (Chief Executive Officer) and Tom Singer
(Chief Financial Officer). There will be an opportunity to ask questions.
|
International dial-in:
|
+44 (0)20 7108 6370
|
Standard US dial-in:
|
+1 517 345 9004
|
US Toll Free:
|
866 692 5726
|
Conference ID:
|
HOTEL
|
A recording of the conference calls will also be
available for 7 days. To access this
please dial the relevant number below
|
UK Replay
International dial-in: +44 (0)20 7108 6271
|
US Replay
International Dial in : +44 (0) 20 7108 6272
|
UK Toll Free: 0808 376 9017
Passcode : 5161
|
US Toll Free: 866 850 9261
Passcode: 5163
|
Website:
The full release and supplementary data will be available
on our website from 7.00 am (London time) on 8 November. The web
address is www.ihg.com/Q311. To watch a video of Richard Solomons reviewing our results visit
our YouTube channel at www.youtube.com/ihgplc.
|
IHG (InterContinental Hotels Group) [LON:IHG, NYSE:IHG
(ADRs)] is a global organisation operating seven hotel brands including
InterContinental® Hotels & Resorts, Hotel Indigo®, Crowne
Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts,
Holiday Inn Express®, Staybridge Suites® and Candlewood
Suites®. IHG also manages Priority
Club® Rewards, the world’s first and largest hotel loyalty
programme with over 61 million members worldwide.
IHG is the world’s largest hotel group by number of rooms
and franchises, leases, manages or owns over 4,500 hotels and more than
666,000 guest rooms in 100 countries and territories, and has more than
1,100 hotels in its development pipeline.
IHG is committed to gender balance throughout its
business. We aspire to continue retaining a minimum of 25% female
representation on the Board.
InterContinental Hotels Group PLC is the Group’s holding
company and is incorporated in Great Britain and registered in England
and Wales.
Visit www.ihg.com for hotel information and reservations and www.priorityclub.com for more on Priority Club Rewards. For our latest news,
visit www.ihg.com/media, www.twitter.com/ihgplc or www.youtube.com/ihgplc.
|
Cautionary note regarding forward-looking statements:
This announcement contains certain forward-looking
statements as defined under US law (Section 21E of the Securities
Exchange Act of 1934). These
forward-looking statements can be identified by the fact that they do
not relate to historical or current facts. Forward-looking
statements often use words such as ‘anticipate’, ‘target’, ‘expect’,
‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’ or other words of
similar meaning. By their nature,
forward-looking statements are inherently predictive, speculative and
involve risk and uncertainty. There are a
number of factors that could cause actual results and developments to
differ materially from those expressed in or implied by, such
forward-looking statements. Factors that
could affect the business and the financial results are described in
‘Risk Factors’ in the InterContinental Hotels Group PLC Annual Report
on Form 20-F filed with the United States Securities and Exchange
Commission.
|
|
|
|
|
InterContinental
Hotels Group
PLC
GROUP
INCOME STATEMENT
For the three months ended 30 September 2011
|
3
months ended 30 September 2011
|
3
months ended 30 September 2010
|
|
Before
exceptional
items
|
Exceptional
items
(note
7)
|
Total
|
Before
exceptional
items
|
Exceptional
items
(note
7)
|
Total
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
Continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (note 3)
|
467
|
-
|
467
|
421
|
-
|
421
|
Cost of sales
|
(197)
|
-
|
(197)
|
(186)
|
-
|
(186)
|
Administrative expenses
|
(93)
|
28
|
(65)
|
(94)
|
-
|
(94)
|
Other operating income and expenses
|
1
|
28
|
29
|
1
|
27
|
28
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
|
178
|
56
|
234
|
142
|
27
|
169
|
|
|
|
|
|
|
|
Depreciation and amortisation
|
(25)
|
-
|
(25)
|
(27)
|
-
|
(27)
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
|
|
|
|
|
|
|
Operating profit (note 3)
|
153
|
56
|
209
|
115
|
27
|
142
|
Financial income
|
1
|
-
|
1
|
1
|
-
|
1
|
Financial expenses
|
(16)
|
-
|
(16)
|
(17)
|
-
|
(17)
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
|
|
|
|
|
|
|
Profit before tax (note 3)
|
138
|
56
|
194
|
99
|
27
|
126
|
|
|
|
|
|
|
|
Tax (note 8)
|
(33)
|
17
|
(16)
|
(21)
|
(2)
|
(23)
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
Profit for the period from
continuing operations attributable to equity holders of the parent
|
105
|
73
|
178
|
78
|
25
|
103
|
|
====
|
====
|
====
|
====
|
====
|
====
|
|
|
|
|
|
|
|
Earnings per ordinary share
(note 9)
|
|
|
|
|
|
|
Continuing and total operations:
|
|
|
|
|
|
|
|
Basic
|
|
|
61.4¢
|
|
|
35.8¢
|
|
Diluted
|
|
|
60.5¢
|
|
|
34.8¢
|
|
Adjusted
|
36.2¢
|
|
|
27.1¢
|
|
|
|
Adjusted diluted
|
35.7¢
|
|
|
26.4¢
|
|
|
|
====
|
|
====
|
====
|
|
====
|
InterContinental
Hotels Group
PLC
GROUP
INCOME STATEMENT
For the nine months ended 30 September 2011
|
9
months ended 30 September 2011
|
9
months ended 30 September 2010
|
|
Before
exceptional
items
|
Exceptional
items
(note
7)
|
Total
|
Before
exceptional
items
|
Exceptional
items
(note
7)
|
Total
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
Continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (note 3)
|
1,317
|
-
|
1,317
|
1,193
|
-
|
1,193
|
Cost of sales
|
(566)
|
-
|
(566)
|
(546)
|
-
|
(546)
|
Administrative expenses
|
(262)
|
(31)
|
(293)
|
(236)
|
(3)
|
(239)
|
Other operating income and expenses
|
9
|
46
|
55
|
5
|
35
|
40
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
|
498
|
15
|
513
|
416
|
32
|
448
|
|
|
|
|
|
|
|
Depreciation and amortisation
|
(76)
|
-
|
(76)
|
(82)
|
-
|
(82)
|
Impairment
|
-
|
9
|
9
|
-
|
(1)
|
(1)
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
|
|
|
|
|
|
|
Operating profit (note 3)
|
422
|
24
|
446
|
334
|
31
|
365
|
Financial income
|
2
|
-
|
2
|
2
|
-
|
2
|
Financial expenses
|
(49)
|
-
|
(49)
|
(49)
|
-
|
(49)
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
|
|
|
|
|
|
|
Profit before tax (note 3)
|
375
|
24
|
399
|
287
|
31
|
318
|
|
|
|
|
|
|
|
Tax (note 8)
|
(99)
|
34
|
(65)
|
(74)
|
(2)
|
(76)
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
Profit for the period from
continuing operations
|
276
|
58
|
334
|
213
|
29
|
242
|
|
|
|
|
|
|
|
Profit for the period from discontinued operations
|
-
|
-
|
-
|
-
|
2
|
2
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
Profit for the period
attributable to equity holders of the parent
|
276
|
58
|
334
|
213
|
31
|
244
|
|
====
|
====
|
====
|
====
|
====
|
====
|
|
|
|
|
|
|
|
Earnings per ordinary share
(note 9)
|
|
|
|
|
|
|
Continuing operations:
|
|
|
|
|
|
|
|
Basic
|
|
|
115.6¢
|
|
|
84.0¢
|
|
Diluted
|
|
|
113.6¢
|
|
|
81.8¢
|
|
Adjusted
|
95.5¢
|
|
|
74.0¢
|
|
|
|
Adjusted diluted
|
93.9¢
|
|
|
72.0¢
|
|
|
Total operations:
|
|
|
|
|
|
|
|
Basic
|
|
|
115.6¢
|
|
|
84.7¢
|
|
Diluted
|
|
|
113.6¢
|
|
|
82.4¢
|
|
Adjusted
|
95.5¢
|
|
|
74.0¢
|
|
|
|
Adjusted diluted
|
93.9¢
|
|
|
72.0¢
|
|
|
|
====
|
|
====
|
====
|
|
====
|
InterContinental
Hotels Group
PLC
GROUP STATEMENT OF COMPREHENSIVE INCOME
For the three and nine months ended 30 September 2011
|
2011
3
months
ended
30
September
$m
|
2010
3
months ended
30
September
$m
|
2011
9
months ended
30
September
$m
|
2010
9
months ended
30 September
$m
|
|
|
|
|
|
Profit for the period
|
178
|
103
|
334
|
244
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
Available-for-sale financial assets:
|
|
|
|
|
|
(Losses)/gains on valuation
|
(17)
|
9
|
(5)
|
28
|
|
Losses reclassified to income on impairment
|
-
|
-
|
3
|
1
|
Cash flow hedges:
|
|
|
|
|
|
Losses arising during the period
|
-
|
(1)
|
-
|
(3)
|
|
Reclassified to financial expenses
|
1
|
2
|
4
|
5
|
Defined benefit pension plans:
|
|
|
|
|
|
Actuarial losses, net of related tax credit: 2011 3
months $12m, 9 months $11m (2010 3 months $1m, 9 months $8m)
|
(3)
|
(10)
|
(1)
|
(28)
|
|
Change in asset restriction on plans in surplus and
liability in respect of funding commitments, net of related tax credit:
2011 3 months $12m, 9 months $10m (2010 3 months $13m, 9 months $13m)
|
(1)
|
(40)
|
(4)
|
(39)
|
Exchange differences on retranslation of foreign
operations, net of related tax: 2011 3 months $1m credit, 9 months $1m
charge (2010 3 months $2m charge, 9 months $1m credit)
|
(32)
|
40
|
(18)
|
(5)
|
Tax related to pension contributions
|
3
|
6
|
6
|
7
|
|
____
|
____
|
____
|
____
|
Other comprehensive (loss)/
income for the period
|
(49)
|
6
|
(15)
|
(34)
|
|
____
|
____
|
____
|
____
|
Total comprehensive income for
the period
|
129
|
109
|
319
|
210
|
|
====
|
====
|
====
|
====
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
Equity holders of the parent
|
129
|
108
|
318
|
209
|
|
Non-controlling interest
|
-
|
1
|
1
|
1
|
|
_____
|
_____
|
_____
|
_____
|
|
129
|
109
|
319
|
210
|
|
=====
|
=====
|
=====
|
=====
|
InterContinental
Hotels Group
PLC
GROUP STATEMENT OF CHANGES IN EQUITY
For the nine months ended 30 September 2011
|
9
months ended 30 September 2011
|
|
Equity
share capital
|
Other
reserves*
|
Retained
earnings
|
Non-controlling
interest
|
Total
equity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
At beginning of the period
|
155
|
(2,659)
|
2,788
|
7
|
291
|
|
|
|
|
|
|
Total comprehensive income for the period
|
-
|
(17)
|
335
|
1
|
319
|
Issue of ordinary shares
|
7
|
-
|
-
|
-
|
7
|
Movement in shares in employee share trusts
|
-
|
26
|
(80)
|
-
|
(54)
|
Equity-settled share-based cost
|
-
|
-
|
23
|
-
|
23
|
Tax related to share schemes
|
-
|
-
|
3
|
-
|
3
|
Equity dividends paid
|
-
|
-
|
(102)
|
-
|
(102)
|
|
____
|
____
|
____
|
____
|
____
|
At end of the period
|
162
|
(2,650)
|
2,967
|
8
|
487
|
|
====
|
====
|
====
|
====
|
====
|
|
9
months ended 30 September 2010
|
|
Equity
share capital
|
Other
reserves*
|
Retained
earnings
|
Non-controlling
interest
|
Total
equity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
At beginning of the period
|
142
|
(2,649)
|
2,656
|
7
|
156
|
|
|
|
|
|
|
Total comprehensive income for the period
|
-
|
25
|
184
|
1
|
210
|
Issue of ordinary shares
|
13
|
-
|
-
|
-
|
13
|
Movement in shares in employee share trusts
|
-
|
(2)
|
(26)
|
-
|
(28)
|
Equity-settled share-based cost
|
-
|
-
|
26
|
-
|
26
|
Tax related to share schemes
|
-
|
-
|
17
|
-
|
17
|
Equity dividends paid
|
-
|
-
|
(84)
|
-
|
(84)
|
Exchange and other adjustments
|
(2)
|
2
|
-
|
-
|
-
|
|
____
|
____
|
____
|
____
|
____
|
At end of the period
|
153
|
(2,624)
|
2,773
|
8
|
310
|
|
====
|
====
|
====
|
====
|
====
|
*
|
Other reserves comprise the capital redemption reserve,
shares held by employee share trusts, other reserves, unrealised gains
and losses reserve and currency translation reserve.
|
InterContinental
Hotels Group
PLC
GROUP STATEMENT OF FINANCIAL POSITION
30 September 2011
|
2011
30
September
|
2010
30
September
|
2010
31
December
|
|
$m
|
$m
|
$m
|
ASSETS
|
|
|
|
Property, plant and equipment
|
1,363
|
1,708
|
1,690
|
Goodwill
|
88
|
88
|
92
|
Intangible assets
|
300
|
268
|
266
|
Investment in associates and joint ventures
|
74
|
44
|
43
|
Retirement benefit assets
|
28
|
4
|
5
|
Other financial assets
|
145
|
148
|
135
|
Deferred tax receivable
|
111
|
143
|
79
|
|
_____
|
_____
|
_____
|
Total non-current assets
|
2,109
|
2,403
|
2,310
|
|
_____
|
_____
|
_____
|
Inventories
|
4
|
4
|
4
|
Trade and other receivables
|
449
|
415
|
371
|
Current tax receivable
|
31
|
16
|
13
|
Cash and cash equivalents
|
99
|
51
|
78
|
|
_____
|
_____
|
_____
|
Total current assets
|
583
|
486
|
466
|
Non-current assets classified as held for sale
|
225
|
-
|
-
|
|
______
|
______
|
______
|
Total assets (note 3)
|
2,917
|
2,889
|
2,776
|
|
=====
|
=====
|
=====
|
LIABILITIES
|
|
|
|
Loans and other borrowings
|
(16)
|
(29)
|
(18)
|
Derivative financial instruments
|
(1)
|
(6)
|
(6)
|
Trade and other payables
|
(693)
|
(740)
|
(722)
|
Provisions
|
(23)
|
(24)
|
(8)
|
Current tax payable
|
(122)
|
(238)
|
(167)
|
|
_____
|
_____
|
_____
|
Total current liabilities
|
(855)
|
(1,037)
|
(921)
|
|
_____
|
_____
|
_____
|
Loans and other borrowings
|
(701)
|
(806)
|
(776)
|
Derivative financial instruments
|
(42)
|
(30)
|
(38)
|
Retirement benefit obligations
|
(181)
|
(197)
|
(200)
|
Trade and other payables
|
(500)
|
(435)
|
(464)
|
Provisions
|
(2)
|
-
|
(2)
|
Deferred tax payable
|
(88)
|
(74)
|
(84)
|
|
_____
|
_____
|
_____
|
Total non-current liabilities
|
(1,514)
|
(1,542)
|
(1,564)
|
Liabilities classified as held for sale
|
(61)
|
-
|
-
|
|
_____
|
_____
|
_____
|
Total liabilities
|
2,430
|
(2,579)
|
(2,485)
|
|
=====
|
=====
|
=====
|
Net assets
|
487
|
310
|
291
|
|
=====
|
=====
|
=====
|
EQUITY
|
|
|
|
Equity share capital
|
162
|
153
|
155
|
Capital redemption reserve
|
10
|
10
|
10
|
Shares held by employee share trusts
|
(9)
|
(5)
|
(35)
|
Other reserves
|
(2,894)
|
(2,898)
|
(2,894)
|
Unrealised gains and losses reserve
|
51
|
60
|
49
|
Currency translation reserve
|
192
|
209
|
211
|
Retained earnings
|
2,967
|
2,773
|
2,788
|
|
______
|
______
|
______
|
IHG shareholders’ equity
|
479
|
302
|
284
|
Non-controlling interest
|
8
|
8
|
7
|
|
______
|
______
|
______
|
Total equity
|
487
|
310
|
291
|
|
=====
|
=====
|
=====
|
InterContinental
Hotels Group
PLC
GROUP STATEMENT OF CASH FLOWS
For the nine months ended 30 September 2011
|
2011
9
months ended
30
September
|
2010
9
months ended
30
September
|
|
$m
|
$m
|
|
|
|
Profit for the period
|
334
|
244
|
Adjustments for:
|
|
|
|
Net financial expenses
|
47
|
47
|
|
Income tax charge
|
65
|
76
|
|
Depreciation and amortisation
|
76
|
82
|
|
Exceptional operating items
|
(24)
|
(31)
|
|
Equity-settled share-based cost, net of payments
|
20
|
19
|
|
Other non-cash movements
|
-
|
(2)
|
|
_____
|
_____
|
Operating cash flow before movements in working capital
|
518
|
435
|
Net change in loyalty programme liability and System
Funds surplus
|
100
|
60
|
Other changes in net working capital
|
(159)
|
(12)
|
Utilisation of provisions
|
(7)
|
(41)
|
Retirement benefit contributions, net of cost
|
(41)
|
(25)
|
Cash flows relating to exceptional operating items
|
(31)
|
(14)
|
|
_____
|
_____
|
Cash flow from operations
|
380
|
403
|
Interest paid
|
(25)
|
(27)
|
Interest received
|
1
|
2
|
Tax paid on operating activities
|
(66)
|
(52)
|
|
_____
|
_____
|
Net cash from operating
activities
|
290
|
326
|
|
_____
|
_____
|
Cash flow from investing
activities
|
|
|
Purchase of property, plant and equipment
|
(35)
|
(45)
|
Purchase of intangible assets
|
(27)
|
(20)
|
Investment in other financial assets
|
(50)
|
(4)
|
Investment in associates and joint ventures
|
(38)
|
-
|
Disposal of assets, net of costs and cash disposed of
|
142
|
108
|
Proceeds from associates and other financial assets
|
6
|
27
|
Tax (paid)/received on disposals
|
(1)
|
2
|
|
_____
|
_____
|
Net cash from investing
activities
|
(3)
|
68
|
|
_____
|
_____
|
Cash flow from financing
activities
|
|
|
Proceeds from the issue of share capital
|
7
|
13
|
Purchase of own shares by employee share trusts
|
(57)
|
(23)
|
Dividends paid to shareholders
|
(102)
|
(84)
|
Decrease in borrowings
|
(112)
|
(289)
|
|
_____
|
_____
|
Net cash from financing
activities
|
(264)
|
(383)
|
|
_____
|
_____
|
Net movement in cash and cash
equivalents in the period
|
23
|
11
|
Cash and cash equivalents at beginning of the period
|
78
|
40
|
Exchange rate effects
|
(2)
|
(10)
|
|
_____
|
_____
|
Cash and cash equivalents at end
of the period
|
99
|
41
|
|
=====
|
=====
|
Comprising
|
|
|
|
Cash and cash equivalents
|
99
|
51
|
|
Overdrafts included within current loans and other
borrowings
|
-
|
(10)
|
|
_____
|
_____
|
|
99
|
41
|
|
=====
|
=====
|
InterContinental
Hotels Group plc
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1.
|
Basis of preparation
|
|
These condensed interim financial statements have been
prepared in accordance with the Disclosure and Transparency Rules of
the United Kingdom’s
Financial Services Authority and IAS 34 ‘Interim Financial Reporting’.
They have been prepared on a consistent basis using the accounting
policies set out in the InterContinental Hotels Group PLC (the Group or
IHG) Annual Report and Financial Statements for the year ended 31
December 2010.
These condensed interim financial statements are
unaudited and do not constitute statutory accounts of the Group within
the meaning of Section 435 of the Companies Act 2006. The auditors have
carried out a review of the financial information in accordance with
the guidance contained in ISRE 2410 (UK
and Ireland)
‘Review of Interim Financial Information Performed by the Independent
Auditor of the Entity’ issued by the Auditing Practices Board.
The financial information for the year ended 31 December
2010 has been extracted from the Group’s published financial statements
for that year which contain an unqualified audit report and which have
been filed with the Registrar of Companies.
|
2.
|
Exchange
rates
|
|
The results of operations have been translated into US
dollars at the average rates of exchange for the period. In the case of
sterling, the translation rate for the nine months ended 30 September
is $1= £0.62 (2011 3 months, $1 = £0.62; 2010 9 months, $1
= £0.65; 2010 3 months, $1=£0.65). In the case of the euro,
the translation rate for the nine months ended 30 September is $1 =
€0.71 (2011 3 months, $1 = €0.71; 2010 9 months, $1 = €0.76; 2010 3
months, $1 = €0.77).
Assets and liabilities have been translated into US
dollars at the rates of exchange on the last day of the period. In the
case of sterling, the translation rate is $1=£0.64 (2010 31
December $1 = £0.64; 2010 30 September $1 = £0.63). In the
case of the euro, the translation rate is $1 = €0.74 (2010 31 December
$1 = €0.75; 2010 30 September $1 = €0.73).
|
3.
|
Segmental information
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
3
months ended
30
September
|
3
months ended
30
September
|
9
months ended
30
September
|
9
months ended
30
September
|
|
|
$m
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
|
Americas (note
4)
|
222
|
215
|
638
|
608
|
|
EMEA (note 5)
|
128
|
105
|
352
|
297
|
|
Asia Pacific (note 6)
|
88
|
74
|
244
|
211
|
|
Central
|
29
|
27
|
83
|
77
|
|
|
____
|
____
|
____
|
____
|
|
Total revenue
|
467
|
421
|
1,317
|
1,193
|
|
|
====
|
====
|
====
|
====
|
|
|
|
|
|
|
|
All results relate to continuing operations.
|
|
Profit
|
2011
3
months ended
30
September
$m
|
2010
3
months ended
30
September
$m
|
2011
9
months ended
30
September
$m
|
2010
9
months ended
30
September
$m
|
|
|
|
|
|
|
|
Americas (note
4)
|
126
|
105
|
351
|
284
|
|
EMEA (note 5)
|
35
|
35
|
106
|
93
|
|
Asia Pacific (note 6)
|
31
|
20
|
77
|
55
|
|
Central
|
(39)
|
(45)
|
(112)
|
(98)
|
|
|
____
|
____
|
____
|
____
|
|
Reportable segments’ operating
profit
|
153
|
115
|
422
|
334
|
|
Exceptional operating items (note 7)
|
56
|
27
|
24
|
31
|
|
|
____
|
____
|
____
|
____
|
|
Operating profit
|
209
|
142
|
446
|
365
|
|
|
|
|
|
|
|
Financial income
|
1
|
1
|
2
|
2
|
|
Financial expenses
|
(16)
|
(17)
|
(49)
|
(49)
|
|
|
____
|
____
|
____
|
____
|
|
Profit before tax
|
194
|
126
|
399
|
318
|
|
|
====
|
====
|
====
|
====
|
|
|
|
|
|
|
|
All results relate to continuing operations.
|
|
Assets
|
2011
30
September
$m
|
2010
30
September
$m
|
2010
31
December
$m
|
|
|
|
|
|
|
Americas
|
950
|
950
|
891
|
|
EMEA
|
899
|
879
|
856
|
|
Asia Pacific
|
619
|
664
|
665
|
|
Central
|
208
|
186
|
194
|
|
|
____
|
____
|
____
|
|
Segment assets
|
2,676
|
2,679
|
2,606
|
|
|
|
|
|
|
Unallocated assets:
|
|
|
|
|
Deferred tax receivable
|
111
|
143
|
79
|
|
Current tax receivable
|
31
|
16
|
13
|
|
Cash and cash equivalents
|
99
|
51
|
78
|
|
|
____
|
____
|
____
|
|
Total assets
|
2,917
|
2,889
|
2,776
|
|
|
====
|
====
|
====
|
4.
|
Americas
|
|
|
|
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
3
months ended
30
September
|
3
months ended
30
September
|
9
months ended
30
September
|
9
months ended
30
September
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
Franchised
|
141
|
132
|
385
|
353
|
|
|
Managed
|
31
|
29
|
101
|
88
|
|
|
Owned and leased
|
50
|
54
|
152
|
167
|
|
|
____
|
____
|
____
|
____
|
|
Total
|
222
|
215
|
638
|
608
|
|
|
====
|
====
|
====
|
====
|
|
Operating profit
|
|
|
|
|
|
|
Franchised
|
123
|
113
|
332
|
301
|
|
|
Managed
|
10
|
2
|
43
|
15
|
|
|
Owned and leased
|
7
|
4
|
13
|
8
|
|
|
Regional overheads
|
(14)
|
(14)
|
(37)
|
(40)
|
|
|
____
|
____
|
____
|
____
|
|
Total
|
126
|
105
|
351
|
284
|
|
|
====
|
====
|
====
|
====
|
|
|
|
|
|
|
|
All results relate to continuing operations.
|
5.
|
EMEA
|
|
|
|
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
3
months ended
30
September
|
3
months ended
30
September
|
9
months ended
30
September
|
9
months ended
30
September
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
Franchised
|
24
|
22
|
69
|
59
|
|
|
Managed
|
45
|
31
|
114
|
92
|
|
|
Owned and leased
|
59
|
52
|
169
|
146
|
|
|
____
|
____
|
____
|
____
|
|
Total
|
128
|
105
|
352
|
297
|
|
|
====
|
====
|
====
|
====
|
|
Operating profit
|
|
|
|
|
|
|
Franchised
|
19
|
17
|
54
|
45
|
|
|
Managed
|
11
|
13
|
42
|
45
|
|
|
Owned and leased
|
16
|
13
|
39
|
28
|
|
|
Regional overheads
|
(11)
|
(8)
|
(29)
|
(25)
|
|
|
____
|
____
|
____
|
____
|
|
Total
|
35
|
35
|
106
|
93
|
|
|
====
|
====
|
====
|
====
|
|
|
|
|
|
|
|
All results relate to continuing operations.
|
6.
|
Asia Pacific
|
|
|
|
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
3
months ended
30
September
|
3
months ended
30
September
|
9
months ended
30
September
|
9
months ended
30
September
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
Franchised
|
4
|
3
|
10
|
9
|
|
|
Managed
|
52
|
42
|
131
|
110
|
|
|
Owned and leased
|
32
|
29
|
103
|
92
|
|
|
____
|
____
|
____
|
____
|
|
Total
|
88
|
74
|
244
|
211
|
|
|
====
|
====
|
====
|
====
|
|
Operating profit
|
|
|
|
|
|
|
Franchised
|
3
|
1
|
7
|
4
|
|
|
Managed
|
30
|
20
|
69
|
50
|
|
|
Owned and leased
|
6
|
6
|
24
|
20
|
|
|
Regional overheads
|
(8)
|
(7)
|
(23)
|
(19)
|
|
|
____
|
____
|
____
|
____
|
|
Total
|
31
|
20
|
77
|
55
|
|
|
====
|
====
|
====
|
====
|
|
|
|
|
|
|
|
All results relate to continuing operations.
|
7.
|
Exceptional items
|
|
|
2011
3
months
ended
30
September
$m
|
2010
3
months
ended
30
September
$m
|
2011
9
months
ended
30
September
$m
|
2010
9
months
ended
30
September
$m
|
|
Continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
Exceptional operating items
|
|
|
|
|
|
|
Administrative expenses:
|
|
|
|
|
|
|
Holiday Inn brand relaunch (a)
|
-
|
-
|
-
|
(3)
|
|
|
Litigation provision (b)
|
-
|
-
|
(22)
|
-
|
|
|
Resolution of commercial dispute (c)
|
-
|
-
|
(37)
|
-
|
|
|
Pension curtailment (d)
|
28
|
-
|
28
|
-
|
|
|
|
____
|
____
|
____
|
____
|
|
|
|
28
|
-
|
(31)
|
(3)
|
|
|
Other operating income and expenses:
|
|
|
|
|
|
|
Gain on sale of other financial assets (e)
|
-
|
-
|
-
|
8
|
|
|
VAT refund (f)
|
-
|
-
|
9
|
-
|
|
|
Gain on disposal of hotels (g)
|
28
|
27
|
37
|
27
|
|
|
|
____
|
____
|
____
|
____
|
|
|
|
28
|
27
|
46
|
35
|
|
|
|
|
|
|
|
|
|
Impairment:
|
|
|
|
|
|
|
Other financial assets (h)
|
-
|
-
|
(3)
|
(1)
|
|
|
Reversal of previously recorded impairment (i)
|
-
|
-
|
12
|
-
|
|
|
|
____
|
____
|
____
|
____
|
|
|
|
-
|
-
|
9
|
(1)
|
|
|
|
____
|
____
|
____
|
____
|
|
|
56
|
27
|
24
|
31
|
|
|
====
|
====
|
====
|
====
|
|
Tax
|
|
|
|
|
|
Tax on exceptional operating items
|
(8)
|
(11)
|
3
|
(11)
|
|
Exceptional tax credit (j)
|
25
|
9
|
31
|
9
|
|
|
|
____
|
____
|
____
|
____
|
|
|
|
17
|
(2)
|
34
|
(2)
|
|
|
====
|
====
|
====
|
====
|
|
Discontinued operations:
|
|
|
|
|
|
Gain on disposal of assets:
|
|
|
|
|
|
Tax credit (k)
|
-
|
-
|
-
|
2
|
|
|
____
|
____
|
____
|
____
|
|
|
-
|
-
|
-
|
2
|
|
|
====
|
====
|
====
|
====
|
|
|
|
|
|
|
|
|
7.
|
Exceptional items (continued)
|
|
These items are treated as exceptional by reason of their
size or nature.
|
|
a)
|
Related to costs incurred in support of the worldwide
relaunch of the Holiday Inn brand family that was announced on 24
October 2007 and substantially completed in 2010.
|
|
b)
|
Estimate of the amount potentially payable in respect of
a prior year claim following an unfavourable court judgement in the Americas
on 23 February 2011. Any final amount will
not be known until the court process is complete.
|
|
c)
|
Relates to the settlement of a prior period commercial
dispute in the EMEA region.
|
|
d)
|
Relates to the closure of the UK
defined benefit pension scheme to future accrual with effect from 1
July 2013.
|
|
e)
|
Related to the gain on sale of an investment in the EMEA
region.
|
|
f)
|
Arises in the UK and relates to periods
prior to 1996.
|
|
g)
|
Relates to the sale of three hotels in North America
($9m) and the sale of a hotel and related investment in Australia
($28m).
|
|
h)
|
Relates to available-for-sale equity investments subject
to prolonged declines in their fair value below cost.
|
|
i)
|
Mainly relates to the partial reversal of a prior year
impairment charge recorded in respect of a North American hotel that
was sold in June 2011.
|
|
j)
|
Relates to an internal reorganisation completed in 2010
and, in 2011, to the revision of the estimated tax impacts including
the recognition of additional deferred tax assets.
|
|
k)
|
Related to tax refunded in respect of a prior year hotel
sale.
|
8.
|
Tax
|
|
The tax charge for the nine months ended 30 September on
the combined profit from continuing and discontinued operations,
excluding the impact of exceptional items (note 7), has been calculated
using an estimated effective annual tax rate of 26% (2010 26%) analysed
as follows.
|
|
|
2011
|
2011
|
2011
|
2010
|
2010
|
2010
|
|
3 months ended 30 September
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
|
Before exceptional items
|
|
|
|
|
|
|
|
Continuing operations
|
138
|
(33)
|
24%
|
99
|
(21)
|
21%
|
|
|
|
|
|
|
|
|
|
Exceptional items
|
|
|
|
|
|
|
|
Continuing operations
|
56
|
17
|
|
27
|
(2)
|
|
|
|
____
|
____
|
|
____
|
____
|
|
|
|
194
|
(16)
|
|
126
|
(23)
|
|
|
|
====
|
====
|
|
====
|
====
|
|
|
Analysed as:
|
|
|
|
|
|
|
|
|
UK tax
|
|
(7)
|
|
|
27
|
|
|
|
Foreign tax
|
|
(9)
|
|
|
(50)
|
|
|
|
|
____
|
|
|
____
|
|
|
|
|
(16)
|
|
|
(23)
|
|
|
|
|
====
|
|
|
====
|
|
|
|
2011
|
2011
|
2011
|
2010
|
2010
|
2010
|
|
9 months ended 30 September
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
|
Before exceptional items
|
|
|
|
|
|
|
|
Continuing operations
|
375
|
(99)
|
26%
|
287
|
(74)
|
26%
|
|
|
|
|
|
|
|
|
|
Exceptional items
|
|
|
|
|
|
|
|
Continuing operations
|
24
|
34
|
|
31
|
(2)
|
|
|
Discontinued operations
|
-
|
-
|
|
-
|
2
|
|
|
|
____
|
____
|
|
____
|
____
|
|
|
|
399
|
(65)
|
|
318
|
(74)
|
|
|
|
====
|
====
|
|
====
|
====
|
|
|
Analysed as:
|
|
|
|
|
|
|
|
|
UK tax
|
|
(17)
|
|
|
22
|
|
|
|
Foreign tax
|
|
(48)
|
|
|
(96)
|
|
|
|
|
____
|
|
|
____
|
|
|
|
|
(65)
|
|
|
(74)
|
|
|
|
|
====
|
|
|
====
|
|
|
By also excluding the effect of prior year items, the
equivalent effective tax rate for the nine months ended 30 September
would be approximately 36% (2010 33%). Prior
year items have been treated as relating wholly to continuing
operations.
|
9.
|
Earnings per ordinary share
|
|
Basic earnings per ordinary share is calculated by
dividing the profit for the period available for IHG equity holders by
the weighted average number of ordinary shares, excluding investment in
own shares, in issue during the period.
Diluted earnings per ordinary share is calculated by
adjusting basic earnings per ordinary share to reflect the notional
exercise of the weighted average number of dilutive ordinary share
options outstanding during the period.
Adjusted earnings per ordinary share is disclosed in
order to show performance undistorted by exceptional items, to give a
more meaningful comparison of the Group’s performance.
|
|
3 months ended 30 September
|
2011
|
2011
|
2010
|
2010
|
|
|
Continuing
operations
|
Total
|
Continuing
operations
|
Total
|
|
Basic earnings per ordinary share
|
|
|
|
|
|
Profit available for equity holders ($m)
|
178
|
178
|
103
|
103
|
|
Basic weighted average number of ordinary shares
(millions)
|
290
|
290
|
288
|
288
|
|
Basic earnings per ordinary share (cents)
|
61.4
|
61.4
|
35.8
|
35.8
|
|
|
====
|
====
|
====
|
====
|
|
Diluted earnings per ordinary
share
|
|
|
|
|
|
Profit available for equity holders ($m)
|
178
|
178
|
103
|
103
|
|
Diluted weighted average number of ordinary shares
(millions)
|
294
|
294
|
296
|
296
|
|
Diluted earnings per ordinary share
(cents)
|
60.5
|
60.5
|
34.8
|
34.8
|
|
|
====
|
====
|
====
|
====
|
|
Adjusted earnings per ordinary
share
|
|
|
|
|
|
Profit available for equity holders ($m)
|
178
|
178
|
103
|
103
|
|
Adjusting items (note 7):
|
|
|
|
|
|
|
Exceptional operating items ($m)
|
(56)
|
(56)
|
(27)
|
(27)
|
|
|
Tax on exceptional operating items ($m)
|
8
|
8
|
11
|
11
|
|
|
Exceptional tax credit ($m)
|
(25)
|
(25)
|
(9)
|
(9)
|
|
|
____
|
____
|
____
|
____
|
|
Adjusted earnings ($m)
|
105
|
105
|
78
|
78
|
|
Basic weighted average number of ordinary shares
(millions)
|
290
|
290
|
288
|
288
|
|
Adjusted earnings per ordinary share
(cents)
|
36.2
|
36.2
|
27.1
|
27.1
|
|
|
====
|
====
|
====
|
====
|
|
Diluted weighted average number of ordinary shares
(millions)
|
294
|
294
|
296
|
296
|
|
Adjusted diluted earnings per ordinary share
(cents)
|
35.7
|
35.7
|
26.4
|
26.4
|
|
|
====
|
====
|
====
|
====
|
9.
|
Earnings per ordinary share
(continued)
|
|
9 months ended 30 September
|
2011
|
2011
|
2010
|
2010
|
|
|
Continuing
operations
|
Total
|
Continuing
operations
|
Total
|
|
Basic earnings per ordinary share
|
|
|
|
|
|
Profit available for equity holders ($m)
|
334
|
334
|
242
|
244
|
|
Basic weighted average number of ordinary shares
(millions)
|
289
|
289
|
288
|
288
|
|
Basic earnings per ordinary share (cents)
|
115.6
|
115.6
|
84.0
|
84.7
|
|
|
====
|
====
|
====
|
====
|
|
Diluted earnings per ordinary
share
|
|
|
|
|
|
Profit available for equity holders ($m)
|
334
|
334
|
242
|
244
|
|
Diluted weighted average number of ordinary shares
(millions)
|
294
|
294
|
296
|
296
|
|
Diluted earnings per ordinary share
(cents)
|
113.6
|
113.6
|
81.8
|
82.4
|
|
|
====
|
====
|
====
|
====
|
|
Adjusted earnings per ordinary
share
|
|
|
|
|
|
Profit available for equity holders ($m)
|
334
|
334
|
242
|
244
|
|
Adjusting items (note 7):
|
|
|
|
|
|
|
Exceptional operating items ($m)
|
(24)
|
(24)
|
(31)
|
(31)
|
|
|
Tax on exceptional operating items ($m)
|
(3)
|
(3)
|
11
|
11
|
|
|
Exceptional tax credit ($m)
|
(31)
|
(31)
|
(9)
|
(9)
|
|
|
Gain on disposal of discontinued operations, net of tax
($m)
|
-
|
-
|
-
|
(2)
|
|
|
____
|
____
|
____
|
____
|
|
Adjusted earnings ($m)
|
276
|
276
|
213
|
213
|
|
Basic weighted average number of ordinary shares
(millions)
|
289
|
289
|
288
|
288
|
|
Adjusted earnings per ordinary share
(cents)
|
95.5
|
95.5
|
74.0
|
74.0
|
|
|
====
|
====
|
====
|
====
|
|
Diluted weighted average number of ordinary shares
(millions)
|
294
|
294
|
296
|
296
|
|
Adjusted diluted earnings per ordinary share
(cents)
|
93.9
|
93.9
|
72.0
|
72.0
|
|
|
====
|
====
|
====
|
====
|
|
Earnings per ordinary share from
discontinued operations
|
|
|
2011
3
months ended
30
September
cents
per share
|
2010
3
months ended
30
September
cents
per share
|
2011
9
months ended
30
September
cents
per share
|
2010
9
months ended
30
September
cents
per share
|
|
Basic
|
-
|
-
|
-
|
0.7
|
|
Diluted
|
-
|
-
|
-
|
0.6
|
|
|
====
|
====
|
====
|
====
|
|
The diluted weighted average number of ordinary shares is
calculated as:
|
|
|
2011
3
months ended
30
September
millions
|
2010
3
months ended
30
September
millions
|
2011
9
months ended
30
September
millions
|
2010
9
months ended
30
September
millions
|
|
Basic weighted average number of ordinary shares
|
290
|
288
|
289
|
288
|
|
Dilutive potential ordinary shares – employee share
options
|
4
|
8
|
5
|
8
|
|
|
____
|
____
|
____
|
____
|
|
|
294
|
296
|
294
|
296
|
|
|
====
|
====
|
====
|
====
|
10.
|
Dividends
|
|
|
2011
9
months
ended
30
September
cents
per share
|
2010
9
months
ended
30
September
cents
per share
|
2011
9
months
ended
30
September
$m
|
2010
9
months
ended
30
September
$m
|
|
Paid during the period:
|
|
|
|
|
|
Final (declared for previous year)
|
35.2
|
29.2
|
102
|
84
|
|
|
====
|
====
|
====
|
====
|
|
Proposed for the period:
|
|
|
|
|
|
Interim
|
16.0
|
12.8
|
46
|
37
|
|
|
====
|
====
|
====
|
====
|
11.
|
Net debt
|
|
|
2011
30
September
|
2010
30
September
|
2010
31
December*
|
|
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
Cash and cash equivalents
|
99
|
51
|
78
|
|
Loans and other borrowings – current
|
(16)
|
(29)
|
(18)
|
|
Loans and other borrowings – non-current
|
(701)
|
(806)
|
(776)
|
|
Derivatives hedging debt values*
|
(26)
|
(17)
|
(27)
|
|
|
____
|
____
|
____
|
|
Net debt
|
(644)
|
(801)
|
(743)
|
|
|
====
|
====
|
====
|
|
Finance lease liability included above
|
(208)
|
(206)
|
(206)
|
|
|
====
|
====
|
====
|
|
*
|
Net debt includes the exchange element of the fair value
of currency swaps that fix the value of the Group’s £250m 6%
bonds at $415m. An equal and opposite
exchange adjustment on the retranslation of the £250m 6% bonds is
included in non-current loans and other borrowings.
|
12.
|
Movement in net debt
|
|
|
2011
9
months ended
30
September
|
2010
9 months ended
30
September
|
2010
12
months ended
31
December
|
|
|
$m
|
$m
|
$m
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
23
|
11
|
51
|
|
Add back cash flows in respect of other components of net
debt:
|
|
|
|
|
Decrease in other borrowings
|
112
|
289
|
292
|
|
|
____
|
____
|
____
|
|
Decrease in net debt arising from cash flows
|
135
|
300
|
343
|
|
|
|
|
|
|
Non-cash movements:
|
|
|
|
|
Finance lease liability
|
(2)
|
(2)
|
(2)
|
|
Exchange and other adjustments
|
(34)
|
(7)
|
8
|
|
|
____
|
____
|
____
|
|
Decrease in net debt
|
99
|
291
|
349
|
|
|
|
|
|
|
Net debt at beginning of the period
|
(743)
|
(1,092)
|
(1,092)
|
|
|
____
|
____
|
____
|
|
Net debt at end of the period
|
(644)
|
(801)
|
(743)
|
|
|
====
|
====
|
====
|
13.
|
Commitments and contingencies
|
|
At 30 September 2011, the amount contracted for but not
provided for in the financial statements for expenditure on property,
plant and equipment and intangible assets was $22m (2010 31 December
$14m, 30 September $10m). The Group has
also committed to invest $60m in two joint ventures of which $34m had
been spent at 30 September 2011.
At 30 September 2011, the Group had contingent
liabilities of $5m (2010 31 December $8m, 30 September $10m).
In limited cases, the Group may provide performance
guarantees to third-party owners to secure management contracts. The maximum unprovided exposure under such
guarantees is $49m (2010 31 December $90m, 30 September $95m).
From time to time, the Group is subject to legal
proceedings the ultimate outcome of each being always subject to many
uncertainties inherent in litigation. The
Group has also given warranties in respect of the disposal of certain
of its former subsidiaries. It is the view
of the Directors that, other than to the extent that liabilities have
been provided for in these financial statements, such legal proceedings
and warranties are not expected to result in material financial loss to
the Group.
|
14.
|
Subsequent events
|
|
On 7 November 2011, the Group completed the refinancing
of its main bank facility with a new five year $1.07bn syndicated
facility.
|
|
INDEPENDENT REVIEW REPORT TO InterContinental Hotels Group pLC
|
|
Introduction
We have been engaged by the
Company to review the condensed set of financial statements in the
interim financial report for the three and nine months ended 30
September 2011 which comprises the Group income statement, Group
statement of comprehensive income, Group statement of changes in
equity, Group statement of financial position, Group statement of cash
flows and the related notes 1 to 14. We
have read the other information contained in the interim financial
report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of
financial statements.
This report is made solely to
the Company in accordance with guidance contained in International
Standard on Review Engagements (UK and Ireland) 2410, ‘Review of
Interim Financial Information Performed by the Independent Auditor of
the Entity’ issued by the Auditing Practices Board. To the fullest
extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company, for our work, for this report, or for
the conclusions we have formed.
Directors' Responsibilities
The interim financial report is
the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing
the interim financial report in accordance with the Disclosure and
Transparency Rules of the United Kingdom’s Financial
Services Authority.
As disclosed in note 1, the
annual financial statements of the Group are prepared in accordance
with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this interim
financial report has been prepared in accordance with International
Accounting Standard 34, ‘Interim Financial Reporting’, as adopted by
the European Union.
Our Responsibility
Our responsibility is to express
to the Company a conclusion on the condensed set of financial
statements in the interim financial report based on our review.
Scope of Review
We conducted our review in
accordance with International Standard on Review Engagements (UK and Ireland)
2410, ‘Review of Interim Financial Information Performed by the
Independent Auditor of the Entity’ issued by the Auditing Practices
Board for use in the United
Kingdom. A
review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures.
A review is substantially less in scope than an
audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently
does not enable us to obtain assurance that we would become aware of
all significant matters that might be identified in an audit. Accordingly we do not express an audit opinion.
Conclusion
Based on our review, nothing has
come to our attention that causes us to believe that the condensed set
of financial statements in the interim financial report for the three
and nine months ended 30 September 2011 is not prepared, in all
material respects, in accordance with International Accounting Standard
34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom’s Financial
Services Authority.
Ernst & Young LLP
London
7 November 2011
|
|