Marylebone Warwick Balfour has reported a pretax loss of ã63m for the year ending June 2003, as announced yesterday. Meanwhile, the companyââ¬â¢s net asset value dropped 10% to 93p per share. MWBââ¬â¢s three main divisions ââ¬" serviced offices, hotels and department stores ââ¬" all lost money. However, losses had narrowed since 2002, when the company reported a ã109.5m deficit.
MWB said that the results reflected the losses incurred by the now closed European arm of the serviced office division, Business Exchange, alongside the costs of terminating its leases.
Business Exchange incurred ã47.3m of exceptional property write-downs and provisions, resulting from the cost of restructuring the business culminating in the closure of its European arm in July. The division made a total pretax loss of ã58.4m.
The department store group, Liberty, which is owned by MWB, reported a pretax loss of ã4.8m. Liberty was valued at ã54.5m, down ã2.5m on last year. MWB attributed the loss to a decline in consumer spending and tourist numbers.
MWBââ¬â¢s hotel group, Malmaison, reported a ã10.5m pretax loss as a result of the group buying out Radissonââ¬â¢s management contract and 50% interest in the brand. However, the value of the chain increased by 40% to ã91.8m.
Brian Myerson, MSB Chairman, commented: ââ¬ÅDuring the year, with all the prevailing political and economic uncertainties, we have been able to restructure the groupââ¬â¢s operations and finances, enabling it to look forward with some degree of optimism from a solid asset base.ââ¬Â