AGM Statement
23 September 2003 - 9:00AM
UK Regulatory
RNS Number:0380Q
Honeycombe Leisure PLC
23 September 2003
23 September 2003
HONEYCOMBE LEISURE PLC
AGM STATEMENT
At Honeycombe Leisure PLC's ("Honeycombe" or "the Company") AGM being held at
11.00am today, Chairman Sandy Anderson will make the following statement:
"I am delighted to report a solid start to the year, with continued
opportunities presenting themselves for growing our core estate and the Nectar
portfolio as our sector continues to develop and restructure.
I am pleased to report that like-for-like sales over the first 20 weeks of the
current year are slightly ahead of last year, which included the summer weeks
around the World Cup Competition. Underlying sales growth is over 3.0 per cent.,
which represents a creditable performance in a very competitive environment.
Honeycombe's management contract with Nectar Taverns Plc, which was set up last
year to acquire and run managed houses, is gathering momentum in terms of
increased income, with the number of sites and rising returns above targeted
levels.
Currently, Nectar has 7 units trading, a further 6 purchased and under
redevelopment and a further 3 where terms have been agreed. With a 50 per cent
investment of its #11m facility already completed, Nectar is on course to reach
full investment by the end of this current financial year. We look forward to
the benefit of this growing income stream in the current and future years and
firmly believe that the continued shake-out in the industry will validate our
strategic decision to develop this arm of our business.
We have also negotiated improved terms with our principal food suppliers and we
are exploring opportunities to enhance our beer buying terms. Formal agreement
on improved banking terms with the Bank of Scotland is expected imminently and
this will reduce our total interest costs.
With our good progress at Nectar, Honeycombe will look to further benefit from
its regional knowledge and management expertise in running mid-market unbranded
sites, to negotiate more management deals and to continue to achieve returns on
capital employed that are in excess of our peers".
Enquiries to:
Honeycombe Leisure PLC
James Baer/Bryan Wardman, Tel: 01772 723 764
Joint Chief Executives
Holborn
Tarquin Edwards/Chris Steele Tel: 020 7929 5599
This information is provided by RNS
The company news service from the London Stock Exchange
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