Results round-up: Millennium & Copthorne, Segro, Essentra

International accommodation operator Millennium & Copthorne posted its final results for the 2016 calendar year on Friday, with group revenue per available room (RevPAR) increasing 6.6% to £76.71.

The FTSE 250 firm said that in constant currency, however, RevPAR fell by 2.3%, and in the fourth quarter of the year, RevPAR in constant currency fell marginally.

Total revenue in reported currency for 2016 grew by £79m or 9.3% to £926m.

In constant currency, revenue was flat, indicating that exchange translation contributed £79m to total reported revenue.

Millennium & Copthorne said the fall in the value of sterling against major currencies during the year following the 23 June 2016 EU referendum had a significant impact on the group's results.

Hotel revenue in constant currency declined by 2.3% to £814m, as a result of lower contributions from the group's hotels in New York and Singapore, while the company recognised £44m of net revaluation deficit and impairment losses, widening from the £43m recognised in 2015.

Of that £44m, £27m related to properties held by CDL Hospitality Trusts and the balance primarily to several group properties located in New York and Rest of Europe.

Reported profit before tax for the year decreased slightly by 0.9% to £108m, while in constant currency, pre-tax profit dropped by 12.9% or £16m.

“Our trading performance in 2016 declined with group RevPAR in constant currency falling in each quarter of the year,” said chairman Kwek Leng Beng.

Segro

Segro beat analysts' direst post-Brexit predictions with both its full-year earnings per share and net asset value coming in ahead of forecasts, thanks to the robustness of the industrial property markets.

Indeed, the property developer touted the resilience shown by occupier and investor demand for modern warehousing throughout the period, especially from retailers racing to adapt their supply chains to the rapid growth of internet retailing.

In adjusted terms earnings per share were higher by 7.1% to 19.7p (consensus: 19.6p) with like-for-like net rental income ahead by 4.0%.

On an IFRS basis EPS was 53.9p, down from 91.7p in 2015.

Commenting on the results, David Sleath, Chief Executive, said: "We have a high quality pipeline of developments under construction and more under discussion, reflecting the continuing strength of occupier demand for, and short supply of, well located, modern urban and big box warehouses."

Sleath stressed how the Slough-based company had delivered 422,000 sq km of new warehouse space during the year, of which 80% was now let.

The vacancy rate came in at 5.7%, with the company describing it as low.

Essentra

Essentra posted better-than-expected full-2016 fiscal year earnings while maintaining its dividend payout, but guided towards lower sales and profits in 2017.

During the reporting period, the supplier of plastic and fibre products made three profit warnings, driven by tough conditions in its Health & Personal Care Packaging unit and short-term issues at its Filtre Products arm.

Commenting on the results, Essentra chief Paul Forman said he believed in the fundamental strengths of all of Essentra´s businesses.

Based on his initial assessment, Forman, who took over at the helm of the company in January, added that the issues which affected the fiscal year 2016 results were mainly "self-inflicted" and "therefore capable of reversal".

Like-for-like revenues dropped 9% to 999m pounds on a constant foreign exchange rate basis.

Also at constant foreign exchange rates, total adjusted operating profits declined 29% to 132m pounds, with earnings per share coming in at 36.3p (consensus: 35.6p) and down by 31% versus the year-ago period.

To take note of, the Milton Keynes-based firm booked an impairment of 124m pounds in the carrying value of its Health&Personal Care Packaging unit.

Net debt inched higher from 374.0m pounds to 379.0m pounds, although management said cash conversion improved during in the backhalf of the year.

The disposal of Porous Technologies was on track to complete in the first quarter of 2017, which analysts said would help the company to maintain its payout.