Turnover for the Group grew to £50.6 million, an increase of 21% over the previous year. Apex Temple Court generated £10.0m of turnover in its first full year of trading, quickly establishing a loyal customer base and recognition as a highly-rated 4-star hotel.
Turnover for the remainder of the portfolio proved challenging during the early part of the year as occupancy levels struggled to gain momentum, adversely impacted by unique events such as the Queen’s Jubilee and the London Olympics. The second half of the year, however, was more buoyant with all hotels experiencing an upturn in trading with increased demand for hotel rooms and Conference and Events.
Profit for the year to 30 April 2013 of £7.0 million (before exceptional items) was £1.4 million higher than the equivalent period last year.
Towards the end of the financial year, the Apex Waterloo and Apex City of London hotels entered into ground rent lease transactions. Post year end two further hotels, the Apex European and Apex City Quay, entered into similar long term lease arrangement. Cash generated from these financing transactions totalling £35 million has been used to repay bank borrowings.
Under the terms of these lease agreements, the Group retains the uninterrupted rights to operate these properties for the next 150 years, with the option to repurchase each of the properties at the end of the lease term for £1.
In October 2014, a new bank facility was arranged with RBS to consolidate existing loans. The facility comprises senior term debt (£69 million) with a further revolving credit facility of £10 million. The securing of this financing will allow the Group to undertake planned capital investment in the existing portfolio.
Kevin Havelock, Regional Director, RBS CIB, Scotland, said: “The management team at Apex has delivered an excellent performance for the year, with a clear focus on the future growth and on-going success of the business. We are delighted to be the banking partner of choice to one of Edinburgh's most successful family businesses and look forward to working with Angela and the team on helping the firm realise its future aspirations.”
“Despite the unpredictable nature of the business during the early part of the year from events such as the Jubilee and the London Olympics, the Group has once again demonstrated solid growth in turnover and in profitability” , says Angela Vickers, Managing Director. "We are continuing to experience strong growth in occupancy and increased demand for the Apex brand. The completion of the ground rent lease transactions, together with the debt refinancing, have strengthened our financial position, and we remain focused upon a programme of ongoing investment in the current portfolio, together with the pursuit of additional growth opportunities”.