MANTRA KEEPS TO ITS WORD WITH LATEST RESULT
Written on the 29 August 2014 by Nick Nichols
MANTRA Group (ASX: MTR) etched out a small loss on its bottom line in the 2014 financial year, but it was much better than forecast in its prospectus in June.
The $300,000 loss compares with an expected $2.2 million loss, and was the result of a $17.1 million increase in net finance costs.
Beyond this, Mantra Group has delivered a solid underlying profit result – it’s first as a listed company - with EBITDA (earnings before interest, tax depreciation and amortisation) landing at $62.4 million, just above the $64 million forecast.
Group revenue rose 5.7 per cent to $457.7 million as the accommodation provider increased earnings in each of its business divisions.
Growth was buoyed by the addition of five new hotels in the second half of the financial year, including two in Brisbane, one each in Melbourne and Wollongong and its first Peppers resort in Bali.
The company has added another two hotels since listing in June, including the first Peppers capital city hotel in Canberra.
Author: Nick Nichols