News blog

Snoozebox Holdings

  • BY: Andrew Hore |
  • POSTED: 03/05/2013 |

Uncertainty over revenue recognition meant that portable modular hotel rooms supplier Snoozebox reported lower than expected revenues for its first full year as a company.

The majority of the security personnel for the Olympics were accommodated in Snoozebox rooms. The shortfall in revenues was due to fees due on completion of the restoration of the Olympic site and the lack of expected commisssion on the sale of purpose built cabins. Some of the revenues will come through in 2013.

There has been a management shake up with founder Robert Breare stepping down as chief executive and concentrating on business development. Lorcan O’Murchu replaces Chris Upton as finance diretor and Gary Thompson becomes chief operating officer.

In 2012, the revenues were £3.78m and the loss was £4.43m, including start-up expenses and costs of the flotation in May 2012. The one-off costs include £450,000 of initial mobilisation expenses.

Snoozebox supplied rooms to seven annual events last year, including the Formula 1 British Grand Prix and the Isle of Man TT. All of these events will have more rooms in 2013 and there is already 95% occupancy for the 160 rooms for the Isle of Man TT - double the number of rooms in 2012. This includes Silverstone events where there is a permanent 80 room site this year on top of the portable units. Snoozebox has also signed up another five annual events, including Le Mans.

There are also longer-term contracts with Thorpe Park and Stoneleigh Park conference centre.

Next year there are opportunities for the Commonwealth Games in Glasgow and the Ryder Cup at Gleneagles.

The focus of expansion continues to be Europe. Snoozebox decided not to supply 240 rooms for the US Grand Prix in Texas because of worries about complying with regulations.

So far, 578 rooms have been manufactured thanks to the cash raised last year. Management believes that cabins that have been developed to sleep eight could provide a second product.

Panmure Gordon still forecasts a 2013 profit of £2.9m.

At 33p a share, Snoozebox is valued at £22m. If Snoozebox can meet its forecast then it will be trading on 10 times prospective earnings.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFApril2013_43.pdf

© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Browse by issue
All issues
Popular tags
All tags

betbrokers, financial, gold, health, leisure, media, mobile, resources, services, technology

AIM Micro feeds

Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds