A YEAR OF STRONG RECOVERY
I write this year’s annual Chairman’s statement with a lot of pride in what our teams delivered and how we drove our recovery.
We have a very keen awareness of the ongoing external challenges that continue to face the business and wider sector. However, the strength of our teams and senior leadership remains the backbone of PPHE’s ability to bounce back after difficult periods.
Our team members have continued to work extremely hard to adapt to changing circumstances, helping to ensure the longer-term success of the business. I have great gratitude for everything that they continue to do.
As a result of this resilience, and the strength of the Group’s business model and customer proposition, PPHE has achieved significant recoveries across its key markets over the course of the last year, whenever and wherever restrictions were lifted. It was clear that there had been significant pent-up demand for both leisure and, increasingly, business related travel over the last two years, and our well-invested in hotels and appealing brands welcomed visitors back in their swathes as soon as it was possible and safe. I am very proud of our post pandemic recovery, which has continued unabated, and in spite of the onset of a number of new external challenges that have arisen over recent months.
MITIGATING NEW EXTERNAL CHALLENGES
Over the last year, a variety of new and emerging macro pressures – both economic and geo-political – have become dominant issues for business, including ours. These have had clear and significant impacts on the supply chain, inflation and the labour markets, among other areas.
The last few years have shown how resilient the business is to external pressures through swift adaptation. We remain confident in the fundamental resilience of our business model and strategy, and our leading proposition. PPHE’s ability to weather future challenges, including the possible onset of economic downturns and recessions which are predicted across some of our key markets in coming months and potentially years, is tried and tested.
ENSURING OUR FUTURE SUSTAINABILITY
Ensuring the long-term sustainability of the Group has also been a key focus. A number of initiatives have been deployed across our operations this year in order to help us minimise our impact on the environment and maximise our positive impact on our communities and people. Most notably, on the former, in joining the Zero Carbon Forum and Energy and Environment Alliance, we have taken crucial steps in the journey to reaching net zero.
The governance of the Group remains fundamental to its long-term success. We have continued to regularly engage with our investors and are focused on ensuring the Board’s alignment with the priorities of shareholders.
BOARD CHANGES
Kevin McAuliffe, Non-Executive Deputy Chairman of the Group, informed the Board in November of his intention to gradually retire from business life. Consequently, he will not stand for re-election at the next Annual General Meeting and will resign from the Board at the conclusion of the meeting.
I would like to express my gratitude to Kevin for his dedication and service. He has been an integral and valued Board member since the Company’s IPO in 2007.
Marcia Bakker was appointed as an independent Non-Executive Director on 6 December 2022. I am delighted to welcome Marcia to the Board. Her varied industry background in finance, recruitment and HR, in conjunction with her experience working with large and international corporations, will provide invaluable insights for the Board and support our overall long-term growth.
Marcia’s appointment further demonstrates our ongoing commitment to strengthening the corporate governance of the Company for the benefit of all stakeholders.
SHAREHOLDER RETURNS
The Board understands the importance of returning capital to shareholders. The positive trading momentum and strong financial performance allowed us to reinstate dividend distributions to our shareholders with an interim dividend of 3 pence paid in October and a final dividend of 12 pence recommended, which will bring the total dividend to 15p per share. Going forward the Group will reinstate its progressive dividend policy.
Furthermore, we commenced a share buy-back programme in June 2022, which is further evidence of our confidence in the Group’s performance to date and the strength of its future development pipeline. Further details about dividends and the share buy-back programme are set out in the Financial Review.
LOOKING AHEAD WITH CONFIDENCE
Despite the external challenges that are ongoing, our confidence in the future is stronger than ever. The Group’s development progress has been significant, and we have a strong pipeline of new properties and openings upcoming to further delight and excite visitors. This includes our expanded relationship with long-standing partner Radisson Hotel Group which will help bring further and new opportunities for enhanced value both to the business and, as a result, our shareholders.
While uncertainties undoubtedly remain, our world-class teams continue to adapt and perform at the top of their game, doing everything they can to drive the business forward and help to secure its future. The Group’s progress made this year and our strengthened foundations through 2022 are fundamental in supporting our future prospects, and we look forward to continuing to deliver for all stakeholders over the coming years.