- Queensland hotel and investment property company Eumundi Group (EBG) has been significantly impacted by the mandatory closures due to COVID-19
- The company’s hotels have been closed since March 23, which was directed by the Federal and Queensland State Governments
- Unaudited management accounts have indicated that the EBITDA for April to June will be $283,000, which is down from the prior corresponding period of $859,000
- No meaningful revenue has been made on the group’s hotel on-premise activities, which include bar, bistro and gaming, during the closure period
- However, the company’s retail liquor operations continued throughout the COVID-19 restrictions
- Eumundi said that until the Queensland restrictions are the same as the other states, profit from its hotel operations will remain under pressure
- Company shares are in the grey on market close and are trading for 79 cents each
Queensland hotel and investment property company Eumundi Group (EBG) has been significantly impacted by the mandatory closures due to COVID-19.
The company’s hotels have been closed since March 23, which was directed by the Federal and Queensland State Governments.
Unaudited management accounts have indicated that Eumundi’s earnings from operations before interest, tax, depreciation and amortisation (EBITDA) is approximately $283,000 for April to June, which is down from the prior corresponding period of $859,000.
No meaningful revenue has been made on the group’s hotel on-premise activities, which include bar, bistro and gaming, during the closure period. However, the company’s retail liquor operations continued throughout the COVID-19 restrictions.
Closures for the hotels are expected to last until at least September. During that time, to make sure the company’s assets are at revenue potential post-COVID, the Board has taken the opportunity to bring forward capital works.
These works included Aspley Shopping Centre amenity improvements and the Aspley Central Tavern improvements, extensions and expansions.
Eumundi has taken immediate steps to reduce all non-essential expenditure following the hotel operations. Such as JobKeeper, boosting cash flow for employers, the Queensland Government’s payroll tax refund and a partial refund of land tax for the group’s investment properties.
Earlier this week, the Queensland Government announced a further easing into Stage 3, which will apply to Queensland businesses from midday July 3.
However, patrol limits remain in place at this time and will restrict the capacity of both the company’s taverns to approximately 50 per cent of normal levels.
“Until the Queensland Government eases restrictions such that they are in line with most other states, the profitability of the group’s hotel operations will remain under pressure,” the company explained.
On market close, Eumundi remains steady and is trading for 79 cents each.