Wednesday May 7, 03:28 PM
Sector movers: Asset revaluation hits Hawtin
LONDON (ShareCast) - Welsh property development and investment group Hawtin (LSE: HTI.L - news) fell into the red in 2007, with losses
made worse by revaluation deficits. The group recorded a pre-tax loss of £5.54m in 2007, compared with a profit of £0.4m in 2006. Revaluation deficits accounted for £4m of the 2007 loss, as the new accounting standards obliged the company to value investment properties at fair value. The group said it expects the long-term return from the revalued assets will see the deficits ultimately reversed but the mark-down in the valuation of some of them did result in Loan to Value covenants being breached; the group rectified this by renegotiating its funding arrangements with its bankers. Cash in the bank at the end of 2007 stood at £4.4m, boosted by the deferred consideration of £3.7m from the sale of Hawtin Park. In 2008 the company has paid the deferred consideration of £1m relating to the acquisition of Crown Investments Limited, which it said will reduces its interest costs in 2008. Hotel giant InterContinental Hotels Group (Virt-X: IHG2.VX - news) posted a decline in first quarter pre-tax profit but says it is well positioned for continued growth. Pre-tax profit fell to £42m in the three months ended 31 March from £56m the year before. Revenue for the period rose to £226m from £196m. Pre-tax profit before exceptionals increased to £47m from £40m while operating profit rose 22%. Intercontinental's RevPAR growth for the quarter was 3.5%, despite the impact of the timing of Easter. "Even in a less certain economic environment our broad market coverage, record pipeline, strong brands and resilient fee based business model position us well for continued growth, said chief executive Andrew Cosslett. Total gross revenue from all hotels in the group's system was £2.2bn, up 10% at constant currency. Top performing sectors so far today
Automobiles & Parts 5,049.70 +3.56%
General Retailers 1,637.40 +2.85%
Travel & Leisure 4,900.50 +2.77%
Construction & Materials 4,936.60 +2.74%
Software & Computer Services (CSVI.PK - news) 463.80 +2.02% Bottom performing sectors so far today
Health Care Equipment & Services 3,408.00 -0.59%
Life Insurance (LINS.PK - news) 5,192.50 -0.49%
Food & Drug Retailers 4,934.20 -0.48%
Real Estate 3,388.40 -0.46%
Food Producers & Processors 4,532.10 -0.45%
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