ASX-listed Redcape has put forth a very positive result for the first quarter of FY21, citing quick adaptation to the changing landscape and stamping an upcoming distribution for security-holders.
Redcape Hotel Group (ASX:RDC) announced its FY20 financial results on 19 August, which included noting revenues during July 2020 throughout its newly-reopened fleet above that of July 2019.
This positive trading has reportedly continued, with the operating forecast EBITDA for the entire first quarter of FY21 now set to surpass the equivalent period in FY20 – up 23 per cent from $19.5 to $24.0 million.
RDC puts the success to long-term investment in data and digital customer capabilities it says allowed it to collaborate with customers throughout the temporary shutdown and hit the ground running.
“After reaching out to our customers after the shutdown, within 48 hours we were able to establish a panel of 1,500 customers that we consulted to help guide our operational decisions in the reopening of our venues, to ensure we continued to deliver the great hospitality experiences our customers value in what is a fast-changing operating environment,” said CEO Dan Brady in a video release.
Brady praised the “amazing job” done by staff through the challenging period, offering that it strengthened the Redcape culture.
Redcape Hotel Group Management Ltd, responsible entity of RDC, announced a distribution today of 1.83 cents per stapled security, for the quarter ending 30 September 2020.
While it acknowledges the continued tighter operating restrictions, the pending reduction in Government stimulus measures and general economic uncertainty, return of the distribution is said to reflect the Board’s confidence in the outlook for the business and readiness for the new environment.
“Reinstatement of distributions now allows us to resume our strategies that should result in growing earnings and increasing asset values,” said Brady.
After free-falling from $1.125 to $0.44 when pubs shut late March RDC shares had clawed back to $0.80 by 15 September, but saw a jump of 18.75 per cent in the past week, closing today at $0.95.