Snoozebox revenues rise after 'turbulent' and 'challenging' year

16th Apr 2014 09:12

Provider of portable hotel accommodation and services, Snoozebox, said that despite a turbulent and challenging year of change, it had almost doubled its revenue for 2013. Turnover rose from £3.78m to £6.72m year-on-year, although an increase in logistics, deployment and equipment hire costs, as well as administrative expenses, resulted in a widening of pre-tax losses from £4.4m to £9.4m. During the 12-month period, the group experienced growth across each of its sector, with hotel room stock up 11% to 578 rooms. It sold around 32,000 room nights, which helped it to achieve a gross margin of 73%, up from 54% a year earlier. Chairman David Morrison, said: "Subsequent to the management changes at the end of the first quarter in 2013, the immediate focus was on delivering the accommodation and services at events, during the summer months, to which the company had committed, as well as making some necessary changes to the organisation of the business."He also said that a company review had resulted in the realisation that "the opportunities for the company include the provision of accommodation and related services not only at events but also for longer term deployments to address demand in other sectors". The group also recognised that, in order to open up a broader market, it is necessary to develop a new generation of units capable of more rapid and lower cost deployment. It said considerable progress has been made in the past few months on that front and that it anticipates being able to introduce new stock later this year, with a view to full deployment in 2015.Looking ahead, the group believes the opportunities within the market, in terms of size, demand and growth, are "compelling". "In addition to events, there is a broader opportunity in the market and the focus in the last six months has been on positioning the company for growth. 2014 will be a transitional year as the company services the demand for longer term deployments with the existing room stock and introduces the Next Generation Portable Hotel to service the events market," it said. Placing to raise £11mThe results were announced as the group unveiled plans to place 11m shares at 10p each to raise as much as £11m.The proceeds will be used to fund the construction of the next generation of hotel room stock and hospitality units. The group said it will aim to raise £10m via the firm placing of 100m shares, and a further £1m by the offer of another 10m shares. David Morrison, Chairman of Snoozebox, said: "We are delighted by the support we have for the roll-out of our next generation hotel accommodation which is more efficient and more portable."NR