jueves, 5 de diciembre de 2013
Income redistribution
In 2012, Meliá Hotels International created wealth of more than 1,200 million Euros. Customer revenue totalled 1,227 million Euros. These collections allowed it to pay 329 million Euros to its employees; more than 124 million Euros to the government, 679 million Euros to its suppliers and approximately 8 million to its shareholders.
The differences between the economic value generated and the economic value distributed, that is, the economic value retained, was 29 million Euros compared with 23 million in 2011.
During this period the Company invested more than €40 M on extension, improvement and accessibility work in its hotels, as well as the acquisition of new establishments, brand value and technology. A total of €23.5 M were invested to renew infrastructures both in the hotels and the surrounding areas.
Meliá Hotels International has taken out loans with the ICO – a state-owned bank attached to the Spanish Government’s Ministry of the Economy and Finance – for a total of €15.2 M in the form of liquid assets, compared with 4 million Euros in 2011. It has also received a €2.2 M loan from the Bank of Brazil in the form of liquid assets.
Finally, the Company has also received subsidies from various institutions and tax benefits to a value of approximately 1.1 million Euros.
jueves, 5 de diciembre de 2013
More information
Capital management policy
In terms of liquidity, the Group has an amount of €468.3 million in cash and short-term deposits, which means it can meet its payment commitments for the coming years.
The financial position is also underpinned by the solid support given by the relation banks and Company’s assets base. at present, only 19.8% of the debt total is secured by the Group’s assets, which allows a significant margin for obtaining financing
Capital increases
Several capital increases and reductions were completed in subsidiaries during the year. The shareholder structures were not affected because the operations were carried out by offsetting receivables or subscribing in proportion to existing shareholdings.
Shares and grants
Treasury shares are presented as a decrease in the Group’s equity. They are carried at cost without any value adjustments.
Government grants are recognised at their fair value when there is reasonable assurance that the grant will be received. When the grant relates to an expense item, it is recognised as income over the period necessary to match it. Where the grant relates to an asset, the fair value is recognised as deferred income and is released to income over the expected useful life of the relevant asset.
Capital grants basically relate to grants used to finance property, plant and equipment purchases. In 2012, the total amount recorded in the income statement for this item is €112 thousand.
Earnings per share
Basic earnings per share are calculated by dividing net profit for the year attributable to ordinary equity holders by the average number of ordinary shares in circulation during the year.
Interest rate risks
The floating interest rate debt is basically referenced to the euribor, UsD Libor and GBP Libor rates.
Concerning the credit risks, in some cases the Group aims to reduce it with financial instruments, such as credit transfers (securitizations) and non-recourse factoring operations.
jueves, 5 de diciembre de 2013
Some accounting principles, measurements and policies
Accounting principles as “Going concern basis” or “Accrual basis”
The balance sheet at 31 December 2012 shows an excess of current liabilities over total current assets. The directors considers that this is not an indication of the Group’s lack of financial capacity to settle its liabilities in the short term, since the Group has available credit lines not utilised and new sources of financing, as well as the renewal of existing financing.
Income and expenses are recognised on an accruals basis irrespective of when actual payment or collection occurs.
The remaining principles are also accomplished.
“Accounting measurements and estimations”
Regarding the impairment loss on goodwill, the Group tests goodwill for impairment annually. Recoverable amounts of cash generating units are determined on the basis of value in use calculations.
Another issue we must talk about is the income tax provision. Due to the fact that the Group operates in many countries, there are many transactions and calculations for which the final calculation of the tax is uncertain. So, the Group recognises the liabilities for possible tax claims based on estimates if additional taxes will be necessary. If the final tax results differ from the amounts that were initially recognised, these differences will have an effect on income tax and the provisions for deferred tax in the year in which the calculation is made.
To measure the fair value of investment property, the Group has chosen to based on appraisals made by independent experts using discounting valuation techniques of the cash flows from these assets.
“Accounting policies”
Intangible assets
Concerning goodwill, it represents the difference between the acquisition price of the subsidiaries consolidated by the full consolidation method and the Group´s interest in the market value of the subsidiaries identifiable assets and liabilities.
Goodwill is not amortised. Instead, it is tested annually for impairment. Impairment losses are recognised if the recoverable value determined is less than the initially appointed. This will not reverse in future years.
Other intangible assets, investments made in trademarks are not amortised as their useful life is considered to be indefinite. The remaining items such as industrial
property, software or leaseholds are amortised on a straight-line basis over five-year period, agreements or whatever defined.
Tangible assets
Property, plant and equipment are stated at cost, plus the financial expenses directly attributable to the acquisition, construction and renovations, incurred until the asset is in conditions to be brought into use, less accumulated depreciation and any impairment losses. Repairs which do not represent an extension of the useful life, and maintenance expenses, are charged directly to profit and loss. Costs which extend or improve the asset’s useful life are capitalised as an increase in their value. Depreciation calculated on the straight-line method over the estimated useful lives.
jueves, 5 de diciembre de 2013
Financial assets / liabilities & Provisions / Contingencies
Financial assets
Classified as loans and receivables and available-for-sale financial assets (with no control neither meaningful influence). In both cases, they are initially recognised at fair value, whenever an active market exists, plus the transaction costs which are directly allocable. The Group has no financial assets carried at fair value through profit or loss or held-to-maturity investments.
Loans and receivables: are recorded under the accounts “trade and other receivables” and all the collection rights included in “other non-current financial assets” and “other current financial assets”. Such assets are carried at amortised cost using the effective interest rate method. Gains and losses are recognised in income
Financial assets at fair value through profit or loss are held-for-trading financial assets acquired with the intention of selling them, mainly in the short term.
Concerning assets available for sale, the main movements in 2012 were disposals due to the sales of 2 portfolios.
Financial liabilities
Initially recognised at fair value, they are adjusted for directly attributable transaction costs. All the Group’s non-derivative financial liabilities are included within the classification of financial liabilities carried at amortised cost.
Debt issues are initially recognised at the fair value of the payment received. They are measured at amortised cost applying the effective interest method. They asses the features of the share in order to determine whether it is a financial liability or an equity instrument.
Provisions
Provisions are recognised when the Group:
• Has a present obligation (legal or implicit) as a result of a past event.
• It is probable that an outflow of funds including economic benefits will be required to settle the obligation.
• A reliable estimate can be made of the amount of the obligation.
Provisions are carried at the present value of the best possible estimate of the amount needed to settle the liability or transfer it to a third party; adjustments arising from the restatement of provisions as financial expenses are recorded as they arise. When the provision will be applied or reversed in one year or less and the financial effect is not significant, it is not discounted.
The balance sheet shows an amount of €38.2 million in non-current liabilities in respect of provisions for liabilities and charges. This account includes the Group’s commitments with staff, provisions for taxes from prior years which have been appealed against or are pending to court resolution, as well as the provisions recorded to cover the various liabilities and contingencies arising from operations
In addition, contingent liabilities are possible obligations arising from past events, the materialisation of which is conditional on the occurrence of future events that are not entirely under the Group’s control, and present obligations resulting from past events in respect of which there is not likely to be an outflow of funds to settle the obligations or which cannot be reliably measured. These liabilities are not recognised in the accounts but they are analysed in the notes.
Contingent assets and liabilities
The Group has commitments with third parties in respect of assets and liabilities not recognised on the balance sheet due to the limited probability that they will entail an outflow of funds in the future or because the commitments must not be recognised pursuant to prevailing legislation.
jueves, 14 de noviembre de 2013
Strategic Alliances
This blog is not only informing about economic and lucrative goals, we want you to know that we are also worried about some social topics so one of our main purposes is cooperating with non-lucrative foundations in order to improve the quality life of our clients.
UNICEF
Our commitment to children is nothing new. In 2006, MHI became the first Spanish company to sign the Code of Conduct for the Protection of Children against Sexual Exploitation (ECPAT), also mobilising another 14 tourism companies to sign up to this Code.
The company has worked with UNICEF since 2003, actively involving itself in different projects and demonstrating its commitment, effort and determination to protect the most vulnerable of all groups: children.
As a leading company, it is our duty and responsibility to protect children in the field we operate, i.e. the tourist industry.
Since 2009, the social positioning of MHI has focused on child protection due to its strong affinity for the family company concept and the legacy of future generations.
To foster this positioning, at the end of 2010 the company entered into a collaborative partnership with UNICEF. The main goals of this partnership are to disseminate UNICEF's message on children and the battle to protect them against sexual exploitation, and to provide financial assistance in its main priority area, child protection.
Additionally, MHI has joined the Hoteles Amigos initiative, which is promoted by UNICEF Spain in the tourist sector to boost the initiatives of hotel companies which are committed to children.
FUNDACIÓN ONCE - INSERTA
In 2011, MHI signed an agreement with ONCE Foundation.
Under this agreement, MHI seeks to run joint initiatives and programmes aimed at promoting increased integration into employment, social inclusion and better living conditions for people with disabilities.
In addition to a firm commitment to the integration of disabled people into employment, other areas of cooperation established by the agreement include the promotion of training for disabled people, the launch of initiatives to improve universal accessibility, information and awareness campaigns and, in general, projects which contribute to improving the integration of disabled people into employment and society.
As a result, MHI joined ONCE Foundation's Inserta Programme, which has led to our incorporation in the Inserta Responsable forum, a participation and innovation platform for corporate social responsibility and disability, and for social inclusion.
SERES FOUNDATION
Meliá Hotels International's commitment to creating value through Corporate Social Responsibility has caused it to become a Patron of the SERES Foundation, an entity which fosters companies’ commitment to improving society, building responsibility into the company strategy through relevant initiatives.
SPANISH FEDERATION OF FRIENDS OF MUSEUMS (FEAM)
In 2011 as part of its commitment to development, to revitalise and to promote local and cultural heritage, MHI renewed the partnership agreement which it originally signed in 2010 with the Spanish Federation of Friends of Museums (FEAM). We are actively involved in promoting cultural understanding and the cultural offer, through the urban brand hotels, Tryp by Wyndham in Madrid.
UNICEF
Our commitment to children is nothing new. In 2006, MHI became the first Spanish company to sign the Code of Conduct for the Protection of Children against Sexual Exploitation (ECPAT), also mobilising another 14 tourism companies to sign up to this Code.
The company has worked with UNICEF since 2003, actively involving itself in different projects and demonstrating its commitment, effort and determination to protect the most vulnerable of all groups: children.
As a leading company, it is our duty and responsibility to protect children in the field we operate, i.e. the tourist industry.
Since 2009, the social positioning of MHI has focused on child protection due to its strong affinity for the family company concept and the legacy of future generations.
To foster this positioning, at the end of 2010 the company entered into a collaborative partnership with UNICEF. The main goals of this partnership are to disseminate UNICEF's message on children and the battle to protect them against sexual exploitation, and to provide financial assistance in its main priority area, child protection.
Additionally, MHI has joined the Hoteles Amigos initiative, which is promoted by UNICEF Spain in the tourist sector to boost the initiatives of hotel companies which are committed to children.
FUNDACIÓN ONCE - INSERTA
In 2011, MHI signed an agreement with ONCE Foundation.
Under this agreement, MHI seeks to run joint initiatives and programmes aimed at promoting increased integration into employment, social inclusion and better living conditions for people with disabilities.
In addition to a firm commitment to the integration of disabled people into employment, other areas of cooperation established by the agreement include the promotion of training for disabled people, the launch of initiatives to improve universal accessibility, information and awareness campaigns and, in general, projects which contribute to improving the integration of disabled people into employment and society.
As a result, MHI joined ONCE Foundation's Inserta Programme, which has led to our incorporation in the Inserta Responsable forum, a participation and innovation platform for corporate social responsibility and disability, and for social inclusion.
SERES FOUNDATION
Meliá Hotels International's commitment to creating value through Corporate Social Responsibility has caused it to become a Patron of the SERES Foundation, an entity which fosters companies’ commitment to improving society, building responsibility into the company strategy through relevant initiatives.
SPANISH FEDERATION OF FRIENDS OF MUSEUMS (FEAM)
In 2011 as part of its commitment to development, to revitalise and to promote local and cultural heritage, MHI renewed the partnership agreement which it originally signed in 2010 with the Spanish Federation of Friends of Museums (FEAM). We are actively involved in promoting cultural understanding and the cultural offer, through the urban brand hotels, Tryp by Wyndham in Madrid.
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