Sunborn London Oyj: Financial statements 2018
Sunborn London Oyj
STOCK EXCHANGE RELEASE
30 April 2019
This is a summary of the financial statements 2018. The complete report is attached to this release and is also available at www.sunborn.com/press/
Key Figures
| EUR thousand | 1 Jan - 31 Dec 2018 | 1 Jan - 31 Dec 2017 | ||||
| Rental income | 2 913 | 2 941 | ||||
| Operating profit | 1 324 | 1 253 | ||||
| Investment property (yacht hotel) | 39 412 | 40 917 | ||||
| Total Equity | 30 254 | 31 431 | ||||
| Borrowings | 30 297 | 30 722 | ||||
| | ||||||
CEO Pekka Niemi
“The performance of the Yacht hotel and the underlying lease income from the operating partner ISS is as per our expectation. The Sunborn London Yacht hotel is well positioned in the market enjoying excellent ratings and has continued its top position among a competitive set of other selected London 4 star properties located in the E14 and E16 areas. The London hotel market in general is doing well and in our view the travel industry is benefitting from a weaker GBP which is making travel to the United Kingdom more lucrative for both business and leisure clients from outside of UK and within UK. We expect the current favorable trading condition to exist for the foreseeable future.“
Financial summary 1 January - 31 December 2018
Rental Income for the reporting period was 2.91 M€ (2.94 M€). Rental income in EUR was slightly affected by weakening of GBP versus EUR, which is in line with our expected FX fluctuations considering Brexit negotiations are taking place. With comparable exchange rates rental income remained the same.
Operating costs are in line with previous year. Operating costs 2017 include some the one-time costs related to the listing.
Fair value of the yacht hotel as at 31 December 2018 was approximates 41 M€. The volatility in the fair value is mainly due to fluctuation of the GBP/EUR exchange rate.
Notable events during the reporting period
At December Sunborn London Oyj established a dormant subsidiary for administrative purposes thus became the parent company of the group.
During the reporting period, exchange rates continued to be volatile. According to Sunborn’s financial risk strategy, the management of the company closely monitors the development of the GBP/EUR exchange rate and aims to protect the Company against unfavorable developments at the group level.
Business environment
No significant changes in business environment.
Sunborn London Oyj continued to be a SPV with no other purpose than owning the Sunborn London Yacht hotel. The vessel is leased out to ISS Facility Services Ltd through an internal bareboat agreement between Sunborn London Oyj and Sunborn International (UK) Ltd.
Sunborn International (UK) Ltd, a sister company to Sunborn London Oyj, has entered a 15-years fixed triple net management service contract in 2014 for operations of the Sunborn London Yacht hotel with ISS Facility Services Ltd, a 100% owned subsidiary of ISS A/S listed in Denmark.
Customer satisfaction continues to be excellent reflected in the current score of 8.7/10 on Booking.com, 8.6/10 on Hotels.com, 4.5/5 on Expedia and #173 out of 1,083 hotels in London on TripAdvisor.
Estimate future development
The company estimates that its financial performance and debt service capacity will remain stable.
Notable events after the end of the reporting period
Nothing to report.
Short-term risks and uncertainties
The Company´s financial risks related to business are market risk (including interest rate risk and foreign currency risk), credit risk, liquidity risk and refinancing risk.
The Company is exposed to foreign currency risk through rental receivables and future cash flows arising from the lease contract of the Yacht hotel that is denominated in GBP. The management of the company closely monitors the development of the GBP/EUR exchange rate and aims to protect the Company against unfavorable developments.
The management review financial risks on regular basis to manage financial risk position and decide on necessary actions ensure the performance.
Corporate Governance
Sunborn London Oyj's ownership, corporate structure, operational activities and related party transactions are described in notes to the financial statements.
Proposal for profit distribution
The Board of Directors proposes to the Annual General Meeting that the funds are carried forward to retained earnings.
Sunborn London Oyj
Board of Directors
For additional information, please contact:
Sunborn Group Executive Director Hans Niemi, hans.niemi@sunborn.com
Sunborn Group CFO Niina Stade, niina.stade@sunborn.com
DISTRIBUTION:
Nasdaq Helsinki Ltd
www.sunborn.com/press/
Sunborn Group in brief
Sunborn is over 40 year old, privately owned company based in Finland, with decades of experience in the hospitality sector. Our focus is on the development of luxury spa and yacht hotels, restaurants and other high-quality property.
Sunborn is present at the moment in Finland, Denmark, United Kingdom and Gibraltar. Operations vary from spa resorts and residential communities to hotels and yacht hotels, restaurants, and catering operations in the best locations.
www.sunborn.com
Disclaimer
The information contained in this release shall not constitute an offer to sell or the solicitation of an offer to buy securities of Sunborn London Oyj in any jurisdiction
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