Starworld Inc., a Hospitality industry GROUP

Financial Statements

Balance Sheets	In million CHF
	End of year
	Year 1	Year 2	Year 3
Cash	60	85	112
Accounts Receivable	232	278	362
Inventory	97	116	151
Prepaid Expenses	35	20	55
Total of Current Assets	424	499	680
Property & Equipment	2104	2469	2639
Total of Assets	2528	2968	3319
Bank Payable	126	179	383
Accounts Payable	116	139	181
Accruals	36	45	55
Total Current Liabilities	278	363	619
LT Debts	1050	1100	1050
Common Stock	900	1100	1100
Retained Earnings	300	405	550
Total Owners' Equity	1200	1505	1650
Total Liabilities & Equity	2528	2968	3319

Income Statements	In million CHF
	Year 1	Year 2	Year 3
Sales	2784	3341	4343
Cost of sales	696	835	1086
Salaries & Wages	750	850	1050
Depreciation	300	350	400
Other Expenses	560	630	765
Total Expenses	2306	2665	3301
EBIT	478	676	1042
Interest Expense	100	110	110
Profit Before Taxes (PBT)	378	566	932
Income Taxes (30 %)	113	170	280
Profit After Taxes (PAT)	265	396	652

 

	Year 1	Year 2	Year 3
Number of hotels	150	175	180
Number of rooms	37.500	43.750	45.000
Occupancy rate	65 %	68 %	70 %

Other usefull Informations for financial analysis

Balance sheet at book value

Starworld Group	End of Year
	Year 1	Year 2	Year 3
Fixed Asset	2104	2469	2639
Working Capital	146	136	61
Total of Asset	2250	2605	2700
Long Term Debt	1 050	1 100	1 050
Equity	1200	1505	1650
Total of financing	2250	2605	2700

Balance sheet at market value

Starworld Group	End of Year
	Year 1	Year 2	Year 3
Long Term Debt	1 050	1 100	1 050
Equity	1 602	2 024	2 244
Market value of the group	2 652	3 124	3 294

 

End of year 3
Return on the market 1990-2009 (Swiss Market Index)				11.05%
Risk free rate (Bond rate of Federal State - 10 years - December 2009)				1.97%
Bêta of share				0,90
Interest rate of the company				10.48 %
Tax rate				30 %
Identification
Stock market				Zürich
Symbol				CH0000120404
Since				19th july, 1994
Shareholding
Swiss institutional investors				35 %
International institutional investors				15 %
Board of Directors & Management Board				18 %
Individuals				32 %
Share price
	High	Low		Last
Year 1	92.5	85.5		89.0
Year 2	96.0	88.0		92.0
Year 3	105.0	99.0		102.0
	Number of shares	Market capitalisation as of 12/31
Year 1	18 million	1602 million CHF
Year 2	22 million	2024 million CHF
Year 3	22 million	2244 million CHF
	PER as of 12/31	Dividend Yield as of 12/31
Year 1	6.05
Year 2	5.11	14.38 %
Year 3	3.44	22.59 %
	EPS	Div. per share	EVA (million CHF)	EVA %
Year 1	14.72		84.7	3.19 %
Year 2	18.00	13.23	176.2	5.64 %
Year 3	29.64	23.05	424.8	12.90 %

 

 

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© Bernard Jaquier, Professor in Economics & Finance, Ecole Hôtelière de Lusanne, 2010