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Principal activities and business review |  |
Principal activities and business review
MWB is a hotel operator through its Malmaison and Hotel du Vin brands and a service office provider through its MWB Business Exchange Plc brand. The Group’s stated aim is to mature these businesses for sale, as described more fully in the section on Corporate Strategy below.
The shares of the Group’s subsidiary, MWB Business Exchange Plc are traded on AIM. The Group’s interest in MWB Business Exchange is 71.8% and the market value of this interest at 31 December 2009 was £35m.
MWB Business Exchange Plc is a flexible office provider, delivering high quality 3 to 5 star serviced office solutions which represent an alternative to conventional office space. These serviced office centres offer the advantages of convenience, flexibility and immediate availability for SMEs, corporates and other clients. Business Exchange is one of the largest serviced office operators in the UK and now has 73 business centres providing over 19,800 workstations. This continued growth in activity ensures it is well placed to drive increased value for Shareholders in cash and cash equivalents, from its core operations and from the capital value of its business.
These business centres provide a range of flexible products and services that meet the requirements of clients of all sizes. The locations are provisioned with advanced IT and telecoms infrastructure with high standards of office design, fixtures and comprehensive meeting and conference room facilities. The impact of the strategy followed by MWB Business Exchange of concentrating on key business markets and locations is a major factor in the continued success of its products and services.
At 31 December 2009, Malmaison and Hotel du Vin had 27 operating hotels and a further one under development. This business benefits from a solid underpinning from freehold properties throughout the UK and also from the value of its earnings stream.
A detailed review of the activities and development of the Group during the year ended 31 December 2009 is set out in the "Chairman's Statement and Operating Review" also contained within the Company's Annual Financial Statements.
The shares of the Group’s subsidiary, MWB Business Exchange Plc are traded on AIM. The Group’s interest in MWB Business Exchange is 71.8% and the market value of this interest at 31 December 2009 was £35m.
MWB Business Exchange Plc is a flexible office provider, delivering high quality 3 to 5 star serviced office solutions which represent an alternative to conventional office space. These serviced office centres offer the advantages of convenience, flexibility and immediate availability for SMEs, corporates and other clients. Business Exchange is one of the largest serviced office operators in the UK and now has 73 business centres providing over 19,800 workstations. This continued growth in activity ensures it is well placed to drive increased value for Shareholders in cash and cash equivalents, from its core operations and from the capital value of its business.
These business centres provide a range of flexible products and services that meet the requirements of clients of all sizes. The locations are provisioned with advanced IT and telecoms infrastructure with high standards of office design, fixtures and comprehensive meeting and conference room facilities. The impact of the strategy followed by MWB Business Exchange of concentrating on key business markets and locations is a major factor in the continued success of its products and services.
At 31 December 2009, Malmaison and Hotel du Vin had 27 operating hotels and a further one under development. This business benefits from a solid underpinning from freehold properties throughout the UK and also from the value of its earnings stream.
A detailed review of the activities and development of the Group during the year ended 31 December 2009 is set out in the "Chairman's Statement and Operating Review" also contained within the Company's Annual Financial Statements.
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Corporate strategy | |
Corporate strategy
The overall strategy of the Board is to follow the Cash Distribution Programme. This Programme involves the realisation of the Group's assets and the distribution of net proceeds to Shareholders.
Shareholders approved implementation of the Cash Distribution Programme at an extraordinary general meeting held in May 2002 and it now extends out to 31 December 2016. During the remaining life of the programme it is the Board’s strategy to maintain and enhance the value of the Group’s businesses. Upon the businesses reaching maturity and subject to favourable market conditions, which may be at any point in time before 31 December 2016, the strategy is to realize their value through sales and, after repayment of debt, to return realized cash or cash equivalents to Shareholders.
Distributions to Shareholders may take the form of tender offers to Shareholders, buy-backs of Ordinary Shares in the market, cash distributions, demergers, distribution of assets and similar value distribution programmes.
Since May 2002, the Company has purchased approximately 68 million Ordinary Shares under this programme, representing approximately 50% of the issued share capital at the date of its implementation, returning approximately £80 million in cash to Shareholders.
Shareholders approved implementation of the Cash Distribution Programme at an extraordinary general meeting held in May 2002 and it now extends out to 31 December 2016. During the remaining life of the programme it is the Board’s strategy to maintain and enhance the value of the Group’s businesses. Upon the businesses reaching maturity and subject to favourable market conditions, which may be at any point in time before 31 December 2016, the strategy is to realize their value through sales and, after repayment of debt, to return realized cash or cash equivalents to Shareholders.
Distributions to Shareholders may take the form of tender offers to Shareholders, buy-backs of Ordinary Shares in the market, cash distributions, demergers, distribution of assets and similar value distribution programmes.
Since May 2002, the Company has purchased approximately 68 million Ordinary Shares under this programme, representing approximately 50% of the issued share capital at the date of its implementation, returning approximately £80 million in cash to Shareholders.