Profits knocked at Millennium & Copthorne
Hotels group Millennium & Copthorne has blamed Brexit and global trade tensions for contributing to a hefty fall in third-quarter profit.
The company saw pre-tax profit tumble 38.2% to £34 million in the three months to September 30.
Revenue also dipped 3.8% to £253 million in the period. Revenue per available room – a key industry measure – fell 2.8% to £87.23.
Chairman Kwek Leng Beng said: “The hospitality sector is facing challenging trading conditions, including significant supply growth, technological ‘disruption’, industry consolidation and rising minimum wage requirements and labour costs in key jurisdictions.
“These challenges, which are impacting the availability of talent and reducing margins, are exacerbated by geopolitical headwinds, such as the uncertainty surrounding Brexit and global trade tensions.”
Millennium said it would address these issues through product innovation, tighter cost control and by “flattening” the management structure to enhance competitiveness.
The results comes at a sensitive time for Millennium, which recently ditched its chief executive after only three months in the job.
The company announced in September that Jennifer Fox and the board had “mutually agreed” that she would step down.
Tan Kian Seng, group chief of staff and former interim group chief executive officer prior to Ms Fox’s appointment, has since returned to the position of interim boss.