City Lodge warns that its profit will halve | Fin24
 
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City Lodge warns that its profit will halve

Feb 04 2020 11:48

City Lodge, which owns the Courtyard, City Lodge, Town Lodge and Road Lodge brands, has warned that its profit has halved for the six months to end-December.

Its normalised headline earnings will fall by between 49% and 54% to between R83.3 million to R75.1 million.

The group blamed “weaker trading conditions” as well as the impact of adopting the IFRS 16 accounting standard -  the International Financial Reporting Standard for the accounting of its leases. 

Excluding the effects of implementing IFRS 16, its headline earnings would have between 27% and 32% lower.

City Lodge’s share price fell almost 5% on Tuesday morning following the profit warning.

It is now trading at around R68 – after reaching R164 less than two years ago.

The company plans to release its result on or about 20 February 2020.

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