6-K 1 ihg200711066k.htm 3RD QUARTER RESULTS

 

SECURITIES AND EXCHANGE COMMISSION

Washington DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 AND 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

For 06 November 2007

InterContinental Hotels Group PLC
(Registrant's name)

67 Alma Road, Windsor, Berkshire, SL4 3HD, England
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F           Form 40-F

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes           No

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable

EXHIBIT INDEX

Exhibit Number   Exhibit Description

99.1		  
3rd Quarter Results dated 06 November 2007
 
 

 

99.1  

 

 

 

6 November 2007

InterContinental Hotels Group PLC

Third Quarter Results to 30 September 2007

 

Headlines

o

Continuing revenue up 14% from £197m to £224m, up 20% at constant exchange rates.

o

Continuing operating profit up 22% from £54m to £66m, up 31% at constant exchange rates.

o

Total gross revenue* from all hotels in IHG’s system up 13% at constant exchange rates to $4.6bn.

o

Global constant currency RevPAR growth of 6.1%; strongest growth in Asia Pacific, up 8.6%, driven by rate increases.

o

Franchised operating profit up 8% to £68m, up 16% at constant exchange rates.

o

Managed operating profit up 5% to £21m, up 15% at constant exchange rates.

o

Adjusted continuing earnings per share (“EPS”) up 15% to 13.5p. Adjusted total EPS of 14.1p. Basic total EPS of 21.2p.

o

Room count up by 7,395 rooms to 571,071 (3,863 hotels). Signings of 29,379 rooms (225 hotels), 18% higher than last year.

o

Development pipeline of 201,776 rooms (1,533 hotels), equivalent to 35% of IHG’s existing hotel room count.

* Total gross revenue is total room revenue from franchised hotels and total hotel revenue from managed, owned and leased hotels. It is not revenue attributable to IHG as it is derived mainly from hotels owned by third parties. The metric is highlighted as an indicator of the scale and reach of IHG's brands. All figures and movements unless otherwise noted are at actual exchange rates and before exceptional items. See appendix 3 for analysis of financial headlines. Constant exchange rate comparatives shown in appendix 4.


 

Commenting on the results and trading, Andrew Cosslett, Chief Executive of InterContinental Hotels Group PLC said:

“IHG has had a good third quarter, with strong performances across all our brands and the continuation of a record signings pace, which is seeing us sign two new hotels a day and keeping us on track to beat our net room additions target. Last month’s announcement of the global relaunch of Holiday Inn has been well received by our hotel owners and we look forward to opening our first rebranded hotel in spring next year. Our outlook for the rest of the year remains positive.”


 

Increase in development pipeline

o

29,379 rooms were signed; 22,769 in the Americas, 2,097 in EMEA and 4,513 in Asia Pacific.

o

201,776 rooms are now in the pipeline, up 43,785 (+28%) since the start of the year, at 1,533 hotels.

o

IHG’s development activity in Asia Pacific continues to be successful. In Greater China 12 hotels, 3,653 rooms, were signed in the quarter comprising five Crowne Plazas, five Holiday Inns and two Holiday Inn Expresses.

o

Five new hotels were signed into the InterContinental pipeline, which now stands at a record 53 hotels.

o

The pipeline of Crowne Plaza hotels grew by 3,144 rooms (11 hotels) in the quarter, with 5,837 rooms (18 hotels) signed.

o

The pipeline of Holiday Inn and Holiday Inn Express hotels grew by 6,573 rooms (62 hotels) in the quarter. Candlewood Suites and Staybridge Suites added 3,219 rooms (32 hotels) to their pipeline and Hotel Indigo added 1,238 rooms (11 hotels)

Strong growth in net room count

IHG maintains its focus on enhancing the quality of its portfolio, in conjunction with growth. In the quarter:

o

14,035 rooms (87 hotels) opened; 8,791 (71) in the Americas, 2,549 (12) in EMEA and 2,695 (4) in Asia Pacific.

o

6,640 rooms exited; 5,563 in the Americas and 1,209 in EMEA. There were no removals in Asia Pacific.

o

The room count at the end of the period increased by 7,395 rooms to 571,071. Since the June 2005 starting position, 33,396 net rooms have been added towards the target of 50,000-60,000 additions by the end of 2008.


 

Americas: solid performance

Revenue performance

RevPAR increased 5.6% with rate generating all of the increase. InterContinental and Crowne Plaza outperformed their market segments. Holiday Inn and Holiday Inn Express grew rate faster than their segments and delivered RevPAR premiums to their segments of 15% and 13% respectively.

Operating profit performance

Operating profit from continuing operations increased 11% to $120m. Continuing owned and leased hotel operating profit of $9m includes a $2m profit from the InterContinental Boston where trading continues to improve post its November 2006 opening. The underlying improvement was primarily driven by growth in RevPAR and operating margin at the InterContinental New York. Managed hotels performed well with RevPAR up 7% in the quarter, however profit was down from $13m to $9m after increased revenue investment to support growth in contract signings, the impact of fewer hotels under management following the restructure of the FelCor contract last year, and the non-recurrence of income from a minority interest now sold and business interruption insurance. Franchised hotels profit increased 12% to $119m reflecting RevPAR growth of 5% and net room count growth of 4%.


 

EMEA: strong performance in the Middle East

Revenue performance

RevPAR increased 6.7%, driven by 6.0% rate growth. The Middle East continued to perform strongly, growing RevPAR by 18.0%. Continental Europe delivered a RevPAR increase of 6.4%, comprising a 10.5% increase in France but also a 3.1% fall in Germany, where RevPAR was boosted this time last year by the football world cup. Year to date in the UK, Holiday Inn and Express by Holiday Inn both outperformed their market segment recording RevPAR growth of 6.6%.

Operating profit performance

Operating profit from continuing operations increased 82% from £11m to £20m. Continuing owned and leased hotel operating profit increased from £0m to £7m, £5m of which was from the InterContinental London Park Lane following the completion of its refurbishment. InterContinental Le Grand Paris delivered a 7.5% RevPAR increase and a £1m profit increase. Managed hotels profit increased 22% from £9m to £11m reflecting a full period contribution from assets disposed in September 2006 and strong fee growth in the UK and Middle East managed portfolios. Franchised hotels profit increased from £6m to £8m reflecting RevPAR growth of 4.9% and net room count growth of 6%.


 

Asia Pacific: further growth across all brands

Revenue performance

RevPAR increased 8.6%, mainly driven by rate. All brands performed strongly, InterContinental RevPAR increased 12.0%, Crowne Plaza 4.5%, Holiday Inn 8.6% and Express 12.2%. Greater China RevPAR increased 5.1% driven by rate increases, year to date RevPAR growth of 5.9% is significantly ahead of the market as strong demand for IHG brands continues.

Operating profit performance

Operating profit from continuing operations increased from $8m to $14m. Owned and leased hotel operating profit increased by $2m to $6m due to RevPAR and operating margin growth at the InterContinental Hong Kong. Managed hotels profit increased 44% to $13m, driven by the increasing number of hotels under IHG management.


 

Overheads and Tax

In the third quarter aggregated regional overheads increased £2m to £17m. Regional overheads in the Americas increased $2m to $17m and in EMEA by £2m to £6m due to the non-recurrence of a rate rebate received in the same period last year. Overheads in Asia Pacific were flat. Central overheads increased £2m to £21m. As previously disclosed, IHG expects that in 2007 central overheads will increase in line with inflation.

Based on the position at the end of the quarter, the tax charge on profit from continuing and discontinued operations, excluding the impact of exceptional items, has been calculated using an estimated effective annual tax rate of 22% (Q3 2006: 24%). IHG’s tax rate may be more volatile in the immediate future due to changes in tax legislation, tax case law developments and possible settlements of prior year issues but in the longer term is expected, as previously indicated, to show an upward trend.

After the period end, IHG announced its intention to make a non-recurring revenue investment of up to £30m to accelerate implementation of the global relaunch of Holiday Inn and Holiday Inn Express brands. This cost is anticipated to be taken as an exceptional item. IHG expects to generate a strong return on this investment through RevPAR increases across the Holiday Inn brand family following completion of the relaunch.


 

Disposals and returns of funds

IHG’s net debt at the period end was £811m, including the $200m (£98m) finance lease on the InterContinental Boston. During the quarter IHG’s 74.11% interest in the InterContinental Montreal was sold for £17m, and 15% investment in the InterContinental Miami was sold for £5m. The profit on disposal of these properties is included in exceptional items.

2.4m shares were repurchased under IHG’s buyback programme during the third quarter, at a cost of £23m, leaving £127m of the current buyback programme to be completed.


Appendix 1: Asset disposal programme detail
 

 

Number of hotels

Proceeds

Net book value

Disposed since April 2003

179

£3.0bn

£2.9bn

Remaining hotels

20

 

£0.9bn


For a full list please visit www.ihg.com/Investors

 

Appendix 2: Return of funds programme as at 30 September 2007

 

Timing

Total return

Returned

Still to be returned

£501m special dividend

Paid December 2004

£501m

£501m

Nil

First share buyback - £250m

Completed in 2004

£250m

£250m

Nil

£996m capital return

Paid 8 July 2005

£996m

£996m

Nil

Second share buyback – £250m

Completed in 2006

£250m

£250m

Nil

£497m special dividend

Paid 22 June 2006

£497m

£497m

Nil

Third share buyback - £250m

Completed in 2007

£250m

£250m

Nil

£709m special dividend

Paid 15 June 2007

£709m

£709m

Nil

Fourth share buyback - £150m

Underway

£150m

£23m

£127m

Total

 

£3.60bn

£3.47bn

£0.13bn


 

Appendix 3: Financial headlines

Three months to 30 Sep £m

Total

Americas

EMEA

Asia Pacific

Central

 

2007

2006

2007

2006

2007

2006

2007

2006

2007

2006

Franchised operating profit

68

63

59

57

8

6

1

0

-

-

Managed operating profit

21

20

4

7

11

9

6

4

-

-

Continuing owned and leased operating profit

15

5

5

3

7

-

3

2

-

-

Regional overheads

(17)

(15)

(8)

(8)

(6)

(4)

(3)

(3)

-

-

Continuing operating profit pre central overheads

87

73

60

59

20

11

7

3

-

-

Central overheads

(21)

(19)

-

-

-

-

-

-

(21)

(19)

Continuing operating profit

66

54

60

59

20

11

7

3

(21)

(19)

Discontinued owned and leased operating profit

2

8

1

1

1

7

-

-

-

-

Total operating profit

68

62

61

60

21

18

7

3

(21)

(19)


 

Appendix 4: Constant currency continuing operating profits before exceptional items

 

 

Americas

EMEA

Asia Pacific

Total***

 

Actual currency*

Constant currency**

Actual currency*

Constant currency**

Actual currency*

Constant

currency**

Actual currency*

Constant currency**

Growth

2%

10%

82%

82%

133%

166%

22%

31%


 

Exchange rates

USD:GBP

EUR:GBP

Q3 2007

2.03

1.47

Q3 2006

1.87

1.47


* Sterling actual currency.

** Translated at constant 2006 exchange rates.

*** After Central Overheads.

 

For further information, please contact:

Investor Relations (Paul Edgecliffe-Johnson; Heather Wood):

+44 (0) 1753 410 176

Media Affairs (Leslie McGibbon; Claire Williams):

+44 (0) 1753 410 425

 

+44 (0) 7808 094 471


 

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 Q&A Conference Call

A conference call with Andrew Cosslett (Chief Executive) and Richard Solomons (Finance Director) will commence at 9.30 am (London time) on 6 November. There will be an opportunity to ask questions.

International dial-in

+44 (0)1452 586513

UK Free Call

0800 694 1503

Conference ID:

20966629


A recording of the conference call will also be available for 7 days. To access this please dial the relevant number below and use the access number 20966629#

International dial-in

+44 (0)1452 550000

UK Free Call

0800 953 1533


 

US Q&A conference call

There will also be a conference call, primarily for US investors and analysts, at 10.00am (Eastern Standard Time) on 6 November with Andrew Cosslett (Chief Executive) and Richard Solomons (Finance Director). There will be an opportunity to ask questions.

International dial-in

+44 (0)1452 586513

US Toll Free

1866 223 0615

Conference ID:

20969532


A recording of the conference call will also be available for 7 days. To access this please dial the relevant number below and use the access number 20969532#

International dial-in

+44 (0)1452 550000

US Toll Free

1866 247 4222


 

 

Website

The full release and supplementary data will be available on our website from 7.00 am (London time) on Tuesday 6 November. The web address is www.ihg.com/Q3

 

Notes to Editors:

InterContinental Hotels Group PLC (IHG) of the United Kingdom [LON:IHG, NYSE:IHG (ADRs)] is one of the world's largest hotel groups by number of rooms. IHG owns, manages, leases or franchises, through various subsidiaries, over 3,800 hotels and more than 571,000 guest rooms in nearly 100 countries and territories around the world. IHG owns a portfolio of well recognised and respected hotel brands including InterContinental® Hotels & Resorts, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express® , Staybridge Suites® , Candlewood Suites® and Hotel Indigo® , and also manages the world's largest hotel loyalty programme, Priority Club® Rewards with over 33 million members worldwide.

The company pioneered the travel industry’s first collaborative response to environmental issues as founder of the International Hotels and Environment Initiative (IHEI). The IHEI formed the foundations of the Tourism Partnership launched by the International Business Leaders Forum in 2004, of which IHG is still a member today. The environment and local communities remain at the heart of IHG’s global corporate responsibility focus.

IHG offers information and online reservations for all its hotel brands at www.ihg.com and information for the Priority Club Rewards programme at www.priorityclub.com . For the latest news from IHG, visit our online Press Office at www.ihg.com/media

 

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 2007
 

 

3 months ended 30 September 2007

3 months ended 30 September 2006

 

Before

exceptional

items

Exceptional

items

(note 8)

 

 

Total

Before

exceptional

items

Exceptional

items

(note 8)

 

 

Total

 

£m

£m

£m

£m

£m

£m

Continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue (note 3)

224

-

224

197

-

197

Cost of sales

(96)

-

(96)

(86)

-

(86)

Administrative expenses

(48)

-

(48)

(44)

-

(44)

 

_____

____

____

____

____

____

 

80

-

80

67

-

67

Depreciation and amortisation

(14)

-

(14)

(13)

-

(13)

Other operating income and expenses (note 8)


-


6


6


-


-


-

 

_____

____

____

____

____

____

 

 

 

 

 

 

 

Operating profit (note 4)

66

6

72

54

-

54

Financial income

2

-

2

5

-

5

Financial expenses

(18)

-

(18)

(9)

-

(9)

 

_____

____

____

____

____

____

Profit before tax

50

6

56

50

-

50

 

 

 

 

 

 

 

Tax (note 9)

(10)

9

(1)

(8)

-

(8)

 

_____

____

____

____

____

____

 

 

 

 

 

 

 

Profit for the period from continuing operations

 

40

 

15

 

55

 

42

 

-

 

42

 

 

 

 

 

 

 

Profit for the period from discontinued operations
(note 10)


 
2


 
6


 
8


 
5


 
115


 
120

 

_____

____

____

____

____

____

Profit for the period

42

21

63

47

115

162

 

====

====

====

====

====

====

Attributable to:

 

 

 

 

 

 

 

Equity holders of the parent


42


21


63


47


115


162

 

Minority equity interest

-

-

-

-

-

-

 

_____

____

____

____

____

____

Profit for the period

42

21

63

47

115

162

 

====

====

====

====

====

====

Earnings per ordinary share (note 11)

 

 

 

 

 

 

Continuing operations:

 

 

 

 

 

 

 

Basic

 

 

18.5p

 

 

11.7p

 

Adjusted

13.5p

 

 

11.7p

 

 

 

Diluted

 

 

18.2p

 

 

11.3p

Total operations:

 

 

 

 

 

 

 

Basic

 

 

21.2p

 

 

45.1p

 

Adjusted

14.1p

 

 

13.1p

 

 

 

Diluted

 

 

20.8p

 

 

43.7p

 

 

 

 

 

 

 


 

InterContinental Hotels Group PLC

GROUP INCOME STATEMENT

For the nine months ended 30 September 2007
 

 

9 months ended 30 September 2007

9 months ended 30 September 2006

 

Before

exceptional

items

Exceptional

items

(note 8)

 

 

Total

Before

exceptional

items

Exceptional

items

(note 8)

 

 

Total

 

£m

£m

£m

£m

£m

£m

Continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue (note 3)

646

-

646

574

-

574

Cost of sales

(292)

-

(292)

(249)

-

(249)

Administrative expenses

(134)

-

(134)

(125)

-

(125)

 

_____

____

____

____

____

____

 

220

-

220

200

-

200

Depreciation and amortisation

(43)

-

(43)

(40)

-

(40)

Other operating income and expenses (note 8)


-


32


32


-


25


25

 

_____

____

____

____

____

____

 

 

 

 

 

 

 

Operating profit (note 4)

177

32

209

160

25

185

Financial income

8

-

8

22

-

22

Financial expenses

(36)

-

(36)

(27)

-

(27)

 

_____

____

____

____

____

____

 

 

 

 

 

 

 

Profit before tax

149

32

181

155

25

180

 

 

 

 

 

 

 

Tax (note 9)

(32)

11

(21)

(32)

89

57

 

_____

____

____

____

____

____

Profit for the period from continuing operations

 

117

 

43

 

160

 

123

 

114

 

237

 

 

 

 

 

 

 

Profit for the period from discontinued operations
(note 10)


 
5


 
9


 
14


 
18


 
124


 
142

 

_____

____

____

____

____

____

Profit for the period

122

52

174

141

238

379

 

====

====

====

====

====

====

Attributable to:

 

 

 

 

 

 

 

Equity holders of the parent


122


52


174


141


238


379

 

Minority equity interest

-

-

-

-

-

-

 

_____

____

____

____

____

____

Profit for the period

122

52

174

141

238

379

 

====

====

====

====

====

====

Earnings per ordinary share (note 11)

 

 

 

 

 

 

Continuing operations:

 

 

 

 

 

 

 

Basic

 

 

48.6p

 

 

59.2p

 

Adjusted

35.6p

 

 

30.7p

 

 

 

Diluted

 

 

47.8p

 

 

57.5p

Total operations:

 

 

 

 

 

 

 

Basic

 

 

52.9p

 

 

94.7p

 

Adjusted

37.1p

 

 

35.2p

 

 

 

Diluted

 

 

51.9p

 

 

92.0p

 

 

 

 

 

 

 

Dividends per ordinary share:

 

 

 

 

 

 

 

Final paid in the period

 

 

13.3p

 

 

10.7p

 

Special interim paid in the period

 

 


200.0p

 

 


118.0p

 

Interim paid in October

 

 

5.7p

 

 

5.1p


InterContinental Hotels Group PLC

GROUP STATEMENT of recognised income and expense

For the nine months ended 30 September 2007
 
 

 

2007

9 months

ended 30 September

£m

2006

9 months

ended 30 September

£m

 

 

 

Income and expense recognised directly in equity

 

 

Gains on valuation of available-for-sale assets

7

1

Losses on cash flow hedges

(1)

-

Exchange differences on retranslation of foreign operations

6

(27)

Actuarial (losses)/gains on defined benefit pension plans

(15)

6

 

____

____

 

(3)

(20)

 

____

____

Transfers to the income statement

 

 

On disposal of foreign operations

-

3

On disposal of available-for-sale assets

(9)

(14)

 

____

____

 

(9)

(11)

 

____

____

Tax

 

 

Tax on items above taken directly to or transferred from equity

4

4

Tax related to share schemes recognised directly in equity

(5)

5

 

____

____

 

(1)

9

 

____

____

Net expense recognised directly in equity

(13)

(22)

 

 

 

Profit for the period

174

379

 

____

____

Total recognised income and expense for the period

161

357

 

====

====

Attributable to:

 

 

 

Equity holders of the parent

161

357

 

Minority equity interest

-

-

 

____

____

 

161

357

 

====

====



 

InterContinental Hotels Group PLC

GROUP CASH FLOW STATEMENT

For the nine months ended 30 September 2007
 
 

 

2007

9 months

ended 30 September

£m

2006

9 months

ended 30 September

£m

 

 

 

Profit for the period

174

379

Adjustments for:

 

 

 

Net financial expenses

28

5

 

Income tax charge/(credit)

23

(46)

 

Gain on disposal of assets, net of tax

(9)

(124)

 

Other operating income and expenses

(32)

(25)

 

Depreciation and amortisation

44

47

 

Equity settled share-based cost, net of payments

12

9

 

____

____

Operating cash flow before movements in working capital

240

245

Increase in trade and other receivables

(12)

(21)

Increase/(decrease) in trade and other payables

4

(6)

Retirement benefit contributions, net of charge

(32)

-

 

____

____

Cash flow from operations

200

218

Interest paid

(26)

(25)

Interest received

9

22

Tax paid

(36)

(35)

 

____

____

Net cash from operating activities

147

180

 

____

____

Cash flow from investing activities

 

 

Purchases of property, plant and equipment

(46)

(60)

Purchases of intangible assets

(12)

(11)

Purchases of associates and other financial assets

(15)

(4)

Disposal of assets, net of costs and cash disposed of

37

630

Proceeds from associates and other financial assets

49

118

 

____

____

Net cash from investing activities

13

673

 

____

____

Cash flow from financing activities

 

 

Proceeds from the issue of share capital

15

13

Purchase of own shares

(52)

(240)

Purchase of own shares by employee share trusts

(59)

(39)

Proceeds on release of own shares by employee share trusts

10

12

Dividends paid to shareholders

(756)

(543)

Dividends paid to minority interests

-

(1)

Increase/(decrease) in borrowings

577

(67)

 

____

____

Net cash from financing activities

(265)

(865)

 

____

____

Net movement in cash and cash equivalents in the period

(105)

(12)

Cash and cash equivalents at beginning of the period

179

324

Exchange rate effects

3

(3)

 

____

____

Cash and cash equivalents at end of the period

77

309

 

====

====



 

InterContinental Hotels Group PLC

GROUP BALANCE SHEET

As at 30 September 2007

 

 

2007

30 September

£m

2006

30 September

£m

2006

31 December

£m

ASSETS

 

 

 

Property, plant and equipment

944

1,011

997

Goodwill

109

109

109

Intangible assets

161

143

154

Investment in associates

32

32

32

Other financial assets

97

107

96

 

____

____

____

Total non-current assets

1,343

1,402

1,388

 

____

____

____

Inventories

3

3

3

Trade and other receivables

230

212

237

Current tax receivable

18

16

23

Cash and cash equivalents

77

309

179

Other financial assets

8

1

13

 

____

____

____

Total current assets

336

541

455

 

 

 

 

Non-current assets classified as held for sale

64

52

50

 

____

____

____

Total assets

1,743

1,995

1,893

 

====

====

====

LIABILITIES

 

 

 

Loans and other borrowings

(8)

(5)

(10)

Trade and other payables

(386)

(400)

(402)

Current tax payable

(230)

(214)

(231)

 

____

____

____

Total current liabilities

(624)

(619)

(643)

 

____

____

____

Loans and other borrowings

(880)

(420)

(303)

Retirement benefit obligations

(52)

(66)

(71)

Trade and other payables

(113)

(102)

(109)

Deferred tax payable

(60)

(129)

(79)

 

____

____

____

Total non-current liabilities

(1,105)

(717)

(562)

 

 

 

 

Liabilities classified as held for sale

(3)

(2)

(2)

 

____

____

____

Total liabilities

(1,732)

(1,338)

(1,207)

 

====

====

====

Net assets (note 14)

11

657

686

 

====

====

====

EQUITY

 

 

 

Equity share capital

80

59

66

Capital redemption reserve

5

4

4

Shares held by employee share trusts

(31)

(25)

(17)

Other reserves

(1,528)

(1,528)

(1,528)

Unrealised gains and losses reserve

24

14

27

Currency translation reserve

3

(2)

(3)

Retained earnings

1,455

2,129

2,129

 

____

____

____

IHG shareholders’ equity (note 15)

8

651

678

Minority equity interest

3

6

8

 

____

____

____

Total equity

11

657

686

 

====

====

====



 

InterContinental Hotels Group plc

Notes to the interim financial statements
 
 

1.

Basis of preparation
 

 

These interim financial statements have been prepared in accordance with International Accounting Standard 34 ‘Interim Financial Reporting’ using, on a consistent basis, the accounting policies set out in the 2006 InterContinental Hotels Group PLC (the Group or IHG) Annual Report and Financial Statements.
 
In the current year, the Group will adopt International Financial Reporting Standard 7 ‘Financial instruments: Disclosures’ (IFRS 7) for the first time. As IFRS 7 is a disclosure standard only, there is no impact from the adoption of this standard on these interim financial statements.
 
These interim financial statements are unaudited and do not constitute statutory accounts of the Group within the meaning of Section 240 of the Companies Act 1985. 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 2006 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.
 
Amounts that have previously been disclosed as special items have now been called exceptional items in accordance with market practice. There has been no change to the Group’s accounting policy for identifying these items.



 

2.

Exchange rates
 

 

The results of overseas operations have been translated into sterling at the weighted average rates of exchange for the period. In the case of the US dollar, the translation rate for the nine months ended 30 September 2007 is £1 = $1.99 (2007 3 months, £1=$2.03; 2006 9 months, £1=$1.82; 2006 3 months, £1=$1.87). In the case of the euro, the translation rate for the nine months ended 30 September 2007 is £1=€1.48 (2007 3 months, £1=€1.47; 2006 9 months, £1=€1.46; 2006 3 months, £1=€1.47).
 
Foreign currency denominated assets and liabilities have been translated into sterling at the rates of exchange on the last day of the period. In the case of the US dollar, the translation rate is £1=$2.03 (2006 31 December £1=$1.96; 30 September £1=$1.87). In the case of the euro, the translation rate is £1=€1.43 (2006 31 December £1=€1.49; 30 September £1=€1.48).
 



 

3.

Revenue
 

 

 

2007

3 months ended

30 September

£m

2006

3 months ended

30 September

£m

2007

9 months ended

30 September

£m

2006

9 months ended

30 September

£m

 

Continuing operations:

 

 

 

 

 

 

Americas (note 5)

116

108

340

318

 

 

EMEA (note 6)

63

51

173

140

 

 

Asia Pacific (note 7)

29

24

90

78

 

 

Central

16

14

43

38

 

 

____

____

____

____

 

 

224

197

646

574

 

 

 

 

 

 

 

Discontinued operations (note 10)

9

40

32

162

 

 

____

____

____

____

 

 

233

237

678

736

 

 

====

====

====

====



 

 

4.

Operating profit

 

 

2007

3 months ended

30 September

£m

2006

3 months ended

30 September

£m

2007

9 months ended

30 September

£m

2006

9 months ended

30 September

£m

 

Continuing operations:

 

 

 

 

 

 

Americas (note 5)

60

59

171

168

 

 

EMEA (note 6)

20

11

44

29

 

 

Asia Pacific (note 7)

7

3

21

19

 

 

Central

(21)

(19)

(59)

(56)

 

 

____

____

____

____

 

 

66

54

177

160

 

 

Other operating income and expenses (note 8)


6


-


32


25

 

 

____

____

____

____

 

 

72

54

209

185

 

Discontinued operations (note 10)

2

8

7

29

 

 

____

____

____

____

 

 

74

62

216

214

 

 

====

====

====

====



 

5.

Americas

 

 

2007

3 months ended

30 September

$m

2006

3 months ended

30 September

$m

2007

9 months ended

30 September

$m

2006

9 months ended

30 September

$m

 

Revenue

 

 

 

 

 

 

Owned & leased

63

45

185

138

 

 

Managed

37

34

117

107

 

 

Franchised

134

123

374

335

 

 

____

____

____

____

 

Continuing operations

234

202

676

580

 

Discontinued operations – Owned & leased


12


18


50


54

 

 

____

____

____

____

 

Total $m

246

220

726

634

 

 

====

====

====

====

 

Sterling equivalent £m

 

 

 

 

 

Continuing operations

116

108

340

318

 

Discontinued operations

6

10

25

30

 

 

____

____

____

____

 

 

122

118

365

348

 

 

====

====

====

====

 

Operating profit

 

 

 

 

 

 

Owned & leased

9

4

25

17

 

 

Managed

9

13

34

40

 

 

Franchised

119

106

328

291

 

 

Regional overheads

(17)

(15)

(47)

(43)

 

 

____

____

____

____

 

Continuing operations

120

108

340

305

 

Discontinued operations – Owned & leased


4


3


13


8

 

 

____

____

____

____

 

Total $m

124

111

353

313

 

 

====

====

====

====

 

Sterling equivalent £m

 

 

 

 

 

Continuing operations

60

59

171

168

 

Discontinued operations

1

1

6

4

 

 

____

____

____

____

 

 

61

60

177

172

 

 

====

====

====

====



 
 

6.

EMEA

 

 

2007

3 months ended

30 September

£m

2006

3 months ended

30 September

£m

2007

9 months ended

30 September

£m

2006

9 months ended

30 September

£m

 

Revenue

 

 

 

 

 

 

Owned & leased

32

22

86

66

 

 

Managed

20

18

58

48

 

 

Franchised

11

11

29

26

 

 

____

____

____

____

 

Continuing operations

63

51

173

140

 

Discontinued operations – Owned & leased


3


30


7


132

 

 

____

___

___

___

 

Total

66

81

180

272

 

 

====

====

====

====

 

Operating profit

 

 

 

 

 

 

Owned & leased

7

-

8

(1)

 

 

Managed

11

9

30

26

 

 

Franchised

8

6

22

18

 

 

Regional overheads

(6)

(4)

(16)

(14)

 

 

____

____

____

____

 

Continuing operations

20

11

44

29

 

Discontinued operations – Owned & leased


1


7


1


25

 

 

____

___

___

___

 

Total

21

18

45

54

 

 

====

====

====

====



 

7.

Asia Pacific

 

 

2007

3 months ended

30 September

$m

2006

3 months ended

30 September

$m

2007

9 months ended

30 September

$m

2006

9 months ended

30 September

$m

 

Revenue

 

 

 

 

 

 

Owned & leased

31

27

98

90

 

 

Managed

26

16

70

46

 

 

Franchised

3

2

11

6

 

 

____

___

___

___

 

Total $m

60

45

179

142

 

 

====

====

====

====

 

Sterling equivalent £m

29

24

90

78

 

 

====

====

====

====

 

Operating profit

 

 

 

 

 

 

Owned & leased

6

4

21

18

 

 

Managed

13

9

32

28

 

 

Franchised

1

1

5

4

 

 

Regional overheads

(6)

(6)

(17)

(15)

 

 

____

____

____

____

 

Total $m

14

8

41

35

 

 

====

====

====

====

 

Sterling equivalent £m

7

3

21

19

 

 

====

====

====

====

 

All results relate to continuing operations.


 

8.

Exceptional items

 

 

2007

3 months ended

30 September

£m

2006

3 months ended

30 September

£m

2007

9 months ended

30 September

£m

2006

9 months ended

30 September

£m

 

Other operating income and expenses*

 

 

 

 

 

Gain on sale of associate investments


-


-


11


-

 

Gain on sale of investment in FelCor Lodging Trust, Inc.


-


-


-


25

 

Gain on sale of other financial assets


2


-


17


-

 

Office reorganisations (a)

4

-

4

-

 

 

____

____

____

____

 

 

6

-

32

25

 

 

====

====

====

====

 

Taxation*

 

 

 

 

 

Tax on other operating income and expenses


(3)


-


(1)


(7)

 

Exceptional tax credit (b)

12

-

12

96

 

 

____

____

____

____

 

 

9

-

11

89

 

 

====

====

====

====

 

Gain on disposal of assets

 

 

 

 

 

Gain on disposal of assets

7

119

11

133

 

Tax charge

(1)

(4)

(2)

(9)

 

 

____

____

____

____

 

 

6

115

9

124

 

 

====

====

====

====


 

*

Relates to continuing operations.
 

a.

Profit on sale and leaseback of new head office less costs incurred to date. Costs will continue to be incurred until completion of the office move in 2008 and also in relation to the closure of the Aylesbury offices which was announced on 1 October 2007.
 

b.

The exceptional tax credit relates to the release of provisions which are exceptional by reason of their size or incidence relating to tax matters which have been settled or in respect of which the relevant statutory limitation period has expired, together with, in 2006, a credit in respect of previously unrecognised losses.


 

9.

Tax
 

 

The tax charge on the combined profit from continuing and discontinued operations, excluding the impact of exceptional items (note 8), has been calculated using an estimated effective annual tax rate of 22% (2006 24%).


 

 

By also excluding the effect of prior year items, the equivalent effective tax rate would be approximately 35% (2006 31%). Prior year items, arising from settlement of tax liabilities and other changes in estimates, have been treated as relating wholly to continuing operations.



 

 

 

2007

2007

2007

2006

2006

2006

 

3 months ended 30 September

Profit

£m

Tax

£m

Tax

rate

Profit

£m

Tax

£m

Tax

rate

 

Before exceptional items

 

 

 

 

 

 

 

Continuing operations

50

(10)

 

50

(8)

 

 

Discontinued operations

2

-

 

8

(3)

 

 

 

____

____

 

____

____

 

 

 

52

(10)

19%

58

(11)

20%

 

Exceptional items

 

 

 

 

 

 

 

Continuing operations

6

9

 

-

-

 

 

Discontinued operations

7

(1)

 

119

(4)

 

 

 

____

____

 

____

____

 

 

 

65

(2)

 

177

(15)

 

 

 

====

====

 

====

====

 

 

Analysed as:

 

 

 

 

 

 

 

 

UK tax

 

6

 

 

2

 

 

 

Foreign tax

 

(8)

 

 

(17)

 

 

 

 

____

 

 

_____

 

 

 

 

(2)

 

 

(15)

 

 

 

 

====

 

 

====

 



 

 

 

2007

2007

2007

2006

2006

2006

 

9 months ended 30 September

Profit

£m

Tax

£m

Tax

rate

Profit

£m

Tax

£m

Tax

rate

 

Before exceptional items

 

 

 

 

 

 

 

Continuing operations

149

(32)

 

155

(32)

 

 

Discontinued operations

7

(2)

 

29

(11)

 

 

 

____

____

 

____

____

 

 

 

156

(34)

22%

184

(43)

24%

 

Exceptional items

 

 

 

 

 

 

 

Continuing operations

32

11

 

25

89

 

 

Discontinued operations

11

(2)

 

133

(9)

 

 

 

____

____

 

____

____

 

 

 

199

(25)

 

342

37

 

 

 

====

====

 

====

====

 

 

Analysed as:

 

 

 

 

 

 

 

 

UK tax

 

(5)

 

 

7

 

 

 

Foreign tax

 

(20)

 

 

30

 

 

 

 

____

 

 

_____

 

 

 

 

(25)

 

 

37

 

 

 

 

====

 

 

====

 



 

 

10.

Discontinued operations

 

 

Discontinued operations are those relating to hotels sold or those classified as held for sale as part of the asset disposal programme that commenced in 2003. These disposals underpin IHG’s strategy of growing its managed and franchised business whilst reducing asset ownership.
 
The results of discontinued operations which have been included in the consolidated income statement are as follows:

 

 

2007

3 months

ended

30 September

£m

2006

3 months

ended

30 September

£m

2007

9 months

ended

30 September

£m

2006

9 months

ended

30 September

£m

 

 

 

 

 

 

 

Revenue

9

40

32

162

 

Cost of sales

(7)

(31)

(24)

(126)

 

 

____

____

____

____

 

 

2

9

8

36

 

Depreciation and amortisation

-

(1)

(1)

(7)

 

 

____

____

____

____

 

Operating profit

2

8

7

29

 

Tax

-

(3)

(2)

(11)

 

 

____

____

____

____

 

Profit after tax

2

5

5

18

 

 

 

 

 

 

 

Gain on disposal of assets, net of tax (note 8)


6


115


9


124

 

 

____

____

____

____

 

Profit for the period from discontinued operations

 

8

 

120

 

14

 

142

 

 

====

====

====

====



 

 

 

2007

3 months

ended

30 September

£m

2006

3 months

ended

30 September

£m

2007

9 months

ended

30 September

£m

2006

9 months

ended

30 September

£m

 

Cash flows attributable to discontinued operations

 

 

 

 

 

Operating profit before interest, depreciation and amortisation


2


9


8


36

 

Investing activities

-

(1)

-

(8)

 

Financing activities

-

-

-

(25)

 

 

____

____

____

____

 

 

2

8

8

3

 

 

====

====

====

====



 

 

The effect of discontinued operations on segment results is shown in notes 5, 6 and 7.



 

 

11.

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.
 
On 1 June 2007, shareholders approved a share capital consolidation on the basis of 47 new ordinary shares for every 56 existing ordinary shares, together with a special dividend of 200 pence per existing ordinary share. The overall effect of the transaction was that of a share repurchase at fair value, therefore no adjustment has been made to comparative data.
 
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

2007

Continuing

operations

2007

 

Total

2006

Continuing

operations

2006

 

Total

 

 

 

 

 

 

 

Basic earnings per share

 

 

 

 

 

Profit available for equity holders (£m)

55

63

42

162

 

Basic weighted average number of ordinary shares (millions)


297


297


359


359

 

Basic earnings per share (pence)

18.5

21.2

11.7

45.1

 

 

====

====

====

====

 

 

 

 

 

 

 

Diluted earnings per share

 

 

 

 

 

Profit available for equity holders (£m)

55

63

42

162

 

Diluted weighted average number of ordinary shares (millions)


303


303


371


371

 

Diluted earnings per share (pence)

18.2

20.8

11.3

43.7

 

 

====

====

====

====

 

 

 

 

 

 

 

Adjusted earnings per share

 

 

 

 

 

Profit available for equity holders (£m)

55

63

42

162

 

Less adjusting items (note 8):

 

 

 

 

 

 

Other operating income and
expenses (£m)


(6)


(6)


-


-

 

 

Tax (£m)

(9)

(9)

-

-

 

 

Gain on disposal of assets (£m)

-

(6)

-

(115)

 

 

____

____

____

____

 

Adjusted earnings (£m)

40

42

42

47

 

Basic weighted average number of ordinary shares (millions)


297


297


359


359

 

Adjusted earnings per share (pence)

13.5

14.1

11.7

13.1

 

 

====

====

====

====



 

 

11.

Earnings per ordinary share (continued)

 



 

 

 

 

9 months ended 30 September

2007

Continuing

operations

2007

 

Total

2006

Continuing

operations

2006

 

Total

 

 

 

 

 

 

 

Basic earnings per share

 

 

 

 

 

Profit available for equity holders (£m)

160

174

237

379

 

Basic weighted average number of ordinary shares (millions)


329


329


400


400

 

Basic earnings per share (pence)

48.6

52.9

59.2

94.7

 

 

====

====

====

====

 

 

 

 

 

 

 

Diluted earnings per share

 

 

 

 

 

Profit available for equity holders (£m)

160

174

237

379

 

Diluted weighted average number of ordinary shares (millions)


335


335


412


412

 

Diluted earnings per share (pence)

47.8

51.9

57.5

92.0

 

 

====

====

====

====

 

 

 

 

 

 

 

Adjusted earnings per share

 

 

 

 

 

Profit available for equity holders (£m)

160

174

237

379

 

Less adjusting items (note 8):

 

 

 

 

 

 

Other operating income and
expenses (£m)


(32)


(32)


(25)


(25)

 

 

Tax (£m)

(11)

(11)

(89)

(89)

 

 

Gain on disposal of assets (£m)

-

(9)

-

(124)

 

 

____

____

____

____

 

Adjusted earnings (£m)

117

122

123

141

 

Basic weighted average number of ordinary shares (millions)


329


329


400


400

 

Adjusted earnings per share (pence)

35.6

37.1

30.7

35.2

 

 

====

====

====

====



 
 

 

The diluted weighted average number of ordinary shares is calculated as:
 

 

 

2007

3 months

ended

30 September

millions

2006

3 months

ended

30 September

millions

2007

9 months

ended

30 September

millions

2006

9 months

ended

30 September

millions

 

 

 

 

 

 

 

Basic weighted average number of ordinary shares


297


359


329


400

 

Dilutive potential ordinary shares – employee share options


6


12


6


12

 

 

____

____

____

____

 

 

303

371

335

412

 

 

====

====

====

====
             



 

 

12.

Net debt

 

 

2007

30 September

£m

2006

30 September

£m

2006

31 December

£m

 

 

 

 

 

 

Cash and cash equivalents

77

309

179

 

Loans and other borrowings – current

(8)

(5)

(10)

 

Loans and other borrowings – non-current

(880)

(420)

(303)

 

 

____

____

____

 

Net debt

(811)

(116)

(134)

 

 

====

====

====

 

Finance lease liability included above

(98)

(99)

(97)

 

 

====

====

====



 

13.

Movement in net debt

 

 

2007

9 months ended

30 September

£m

2006

9 months ended

30 September

£m

2006

12 months

ended

31 December

£m

 

 

 

 

 

 

Net decrease in cash and cash equivalents

(105)

(12)

(152)

 

Add back cash flows in respect of other components of net debt:

 

 

 

 

 

(Increase)/decrease in borrowings

(577)

67

172

 

 

____

____

____

 

(Increase)/decrease in net debt arising from cash flows

(682)

55

20

 

 

 

 

 

 

Non-cash movements:

 

 

 

 

 

Finance lease liability

(6)

(102)

(103)

 

 

Exchange and other adjustments

11

19

37

 

 

____

____

____

 

Increase in net debt

(677)

(28)

(46)

 

Net debt at beginning of the period

(134)

(88)

(88)

 

 

____

____

____

 

Net debt at end of the period

(811)

(116)

(134)

 

 

====

====

====



 

14.

Net assets

 

 

2007

30 September

£m

2006

30 September

£m

2006

31 December

£m

 

 

 

 

 

 

Americas

385

365

390

 

EMEA

359

377

359

 

Asia Pacific

277

283

285

 

Central

73

75

73

 

 

____

____

____

 

 

1,094

1,100

1,107

 

 

 

 

 

 

Net debt

(811)

(116)

(134)

 

Unallocated assets and liabilities

(272)

(327)

(287)

 

 

____

____

____

 

 

11

657

686

 

 

====

====

====



 

 

15.

Movement in IHG shareholders’ equity

 


 

 

 

2007

9 months ended

30 September

£m

2006

9 months

ended

30 September

£m

2006

12 months

ended

31 December

£m

 

 

 

 

 

 

At beginning of the period

678

1,084

1,084

 

 

 

 

 

 

Total recognised income and expense for the period

161

357

409

 

Equity dividends paid

(756)

(543)

(561)

 

Issue of ordinary shares

15

13

20

 

Purchase of own shares

(53)

(242)

(260)

 

Movement in shares in employee share trusts

(49)

(27)

(32)

 

Equity settled share-based cost, net of payments

12

9

18

 

 

____

____

____

 

At end of the period

8

651

678

 

 

====

====

====



 

16.

Capital commitments and contingencies

 

 

At 30 September 2007, the amount contracted for but not provided for in the financial statements for expenditure on property, plant and equipment was £16m (2006 31 December £24m; 30 September £47m).
 
At 30 September 2007, the Group had contingent liabilities of £5m (2006 31 December £11m; 30 September £15m), mainly comprising guarantees given in the ordinary course of business.
 
In limited cases, the Group may provide performance guarantees to third-party owners to secure management contracts. The maximum exposure under such guarantees is £117m (2006 31 December £142m; 30 September £147m). It is the view of the Directors that, other than to the extent that liabilities have been provided for in these financial statements, such guarantees are not expected to result in financial loss to the Group.
 
The Group has 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 warranties are not expected to result in financial loss to the Group.



 

17.

Other commitments

 

 

In March and June 2007, the Company made the first two payments of £10m under the agreement to make special pension contributions of £40m to the UK pension plan. A further payment of £10m will be paid in both 2008 and 2009.
 
On 24 October 2007, the Group announced a worldwide relaunch of its Holiday Inn brand family. In support of this relaunch, IHG will make a non recurring revenue investment of up to £30m which it is anticipated will be charged to the income statement as an exceptional item.



 


 

 

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 2007 which comprises the Group income statement, Group statement of recognised income and expense, Group cash flow statement, Group balance sheet and the related notes 1 to 17. 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 ISRE 2410 (UK and Ireland) '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.

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 2007 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

5 November 2007

 



 

 

END

 

                          SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

    InterContinental Hotels Group PLC
    (Registrant)
     
  By: /s/ C. Cox
  Name: C. COX
  Title: COMPANY SECRETARIAL OFFICER
     
  Date: 06 November 2007