Question

1 Using appropriate ratios make a financial analysis of the performance of CONSTANCE HOTELS SERVICES LTD AND ITS SUBSIDIARIES ,in regards to profitability, liquidity, gearing , and investment ratios ?

2Analyse and discuss the performance of CONSTANCE HOTELS SERVICES LTD AND ITS SUBSIDIARIES taking into account the ratios calculated in (1) and comment provided by group. Answer should be in a report format ?

3Due to recent pandemic of COVID 19 the industry in which CONSTANCE HOTELS SERVICES LIMITED AND ITS SUBSIDIARIES operates, is experiencing a slow down by 80%. The board of directors are analyzing the possibility of taking a loan amounting MUR 800000000 for renovation of its hotel. What will be the impact of an additional loan on the performance of the group.

CONSTANCE HOTELS. RESORTS & GOLF Abridged interim unaudited financial statements for True by Nature the period ended September 30, 2019 CONSTANCE HOTELS SERVICES LIMITED AND ITS SUBSIDIARIES STATEMENT OF PROFIT OR LOSS COMMENTS THE GROUP - (MUR'O00) Sep 2019 Sep 2018 Doc 2018 1 Consolidation and Accounting Standards Unaucited months and quarter ended 2.503,935 2.629 740 596,618 637 429 30 September 2019 are unaudited The 917.038 standards used in the preparation of these soothes audited financial Depreciation and amortisation 400,780 506.048 122 76 (139,264) Operating profittoss) (239 5501 202,35 124 669) Finance costs 41 155 16. which is effective 01 January 2019 is still being finalized and is not Share of results of associates 247,092 (58,341) (72.037) reflected in this interim report 13.969 (Lossy/profit before taxation and pro-opening expenses 65,760 170,126 181 644) 2 General Comments For the nine months of 2019, with the exception of Mauritius, tourist (Loss )/profit before taxation (10,739 (20.784) 10,739 (14 245) (180,865) (77.543) (257,461) arrivals in our main destinations saw positive growth compared to last (8.072 (9. 163) (3,023) 202.428 (28 548) (Loss)/profit for the period/your Maldives amvals grew by 15 8% to 1,251.690 followed by Seychelles Amibutable to (290,454) tius had a slight decreases 0 1% to 973,642 The amval growth in the Maldives sitein astrong Owners of the parent (183,195) 97 824 (289,48 Non-controlling interests 4,25 (1,003] 825 position but Mauntius is suffering from the air access contraints resulting (188 837 in declining market share compared to other destinations. (LossYearnings per share (MUR) (1.76) 86 7061 (290,48 (1 861 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Our owned properties in Mauntilus and Maldives recorded a slowdown in 9 Months ended Year ended THE GROUP . (MUR'OOO) Sep 2019 Dec 2018 formal launching of C Mauntius Hotel due to delays encountered in the (Loss )/profit for the period your 168,937 (86.706) 1902 8921 Other comprehensive income for the porod year Total comprehensive income for the period year 50,752 42.931 19,735 138,185) (43,775) Attributable to 463.481 and mole's achieved an occupancy rate of 64 5% compare 66 2% in 2018. with a 1% improvement in RevPar and Trevpar s of the parent (145,054) 55.636 Non-controlling interests 271,982) 253,329) 448 465 15.016 143,775 (271,7491 (253 230) poyo revenue was MUR 2.504 million (2018 MUR 2.630 million) and EBITDA of MUR 401 million (2018 MUR 509 million) resulting in an STATEMENT OF FINANCIAL POSITION EBITDA margin of 16% (2018 19%). THE GROUP . [MUR'OOO) Sop 2015 Finance costs increased by 3 % to reach MUR 247 million The share of results from sassesment of the enhanced operating performance of Non-Current Assets our properties in the Seychelles and Madagascar. Property. plant and equipment 123,794 1,153,576 8,127,107 1,129.660 accounting for taxation of MUR 8 million (2018 MUR 9 million) 1,683,722 1.193.163 1,131.970 1.616.60 Fixed assets at amoraised cos 53,906 1 10.755 83,408 94 475 Current Asset 1255 533 10.501.236 82.185 RevPAR/TRevPAR/Occupancy Total Assets 17,000 Equity and Liabilities ,948,079 5.643.859 6.093, 133 15.000 773 31,130 42.175 70 0 Total Bouity Non-Current Liabilities .979.209 13000 64 5 060,541 4 030,366 3.380.648 58.184 11 000 60,183 50.062 9.503 Retirement benefit obligations 303 432 9.000 Current Liabilities 2.071,308 1.961.670 2 638 915 6.236 615 6 312,327 7,000 40 0 12.353.939 11 922 650 12 450 790 5,000 55.57 Sep 16 Sep 17 Sep 18 Sep 19 Net Asset Value per share (MUR) REVPAR STATEMENT OF CASH FLOW THE GROUP - (MURDO0) Sep 2919 Sep 2018 9 Dec 201 FRITOA/EBITDA margin for period ended 30th September Net cash generated from operating activities 178,978 236.602 315.230 MUR'N EBITDA/EBITDA Margin Net cash used in investing activities Net cash used in financing activees (34 304) (186.089) crease in cash and cash equivalents (45,479) (71.879) Cash and cash equivalents all beginning of the penod year Cash and cash equivalents at end of the period year (489.489) 404 6531 (476.731) 433 990) STATEMENT OF CHANGES IN EQUITY 19 Attributable to owners of the paran THE GROUP - (MUR'000) Stared capital Owners' ericrest 401 Balance at January 1, 2019 3,265,313 673,425 093,133 45,330 6,138,463 ep 15 Sap 18 Sep 19 48,141 1145.0 (138,185 Balance at September 30, 2019 3.314 454 450,230 5.948.079 (21,0821 (21 060) 2.153.395 Outlook Balance at January 1. 2018 2,153.395 1017,162 $28.938 42.185 .699.4 The markets are becoming very competitive and the five-star segment 11,861 (43 775) remains challenging Balance al September 30. 2018 (34 4201 2.153 395 3 059 350 431.114 5.643 859 42.175 (34 420) competitors and losing market share to compe continue to be adversely affected Balance at January 1, 2018 2.153,395 3,017,162 $28,938 5.699.495 adversely affected. Despite growing demand in the Profit for the year 213.50 249.15 other hand, Seychelles is expected to remain a positive market. Balance at December 31, 2018 (54 827) 673.425 year group performance is expected to be lower than 2018. GEOGRAPHICAL INFORMATION By order of the Board THE GROUP - [MUR'D00) 9 months to Sep 2019 9 months to Sep 2018 La Gaiele Services Lid 1,206,968 439 347 1.190.359 Operating profit jloss) 141 829 (16 953) 2.629.740 122.676 12 November 2019 BRN: CO6004335 MAURITIUS SEYCHELLES MALDIVES MADAGASCAR constancehotels.com