Bass net profits fall

May 24, 2001
Web posted at: 0812 GMT

LONDON (CNN) -- UK leisure group Bass posted a 9 percent fall in first-half net profit as it turns into a major player in the international hotels business.

Bass said net profit fell to £199 million ($280 million) from £219 million in the first half of 2000. The company said first-half profit before tax and major exceptional items rose 4 percent to £337 million.

Bass, owner of hotel brands such as Holiday Inn and Inter-Continental, bought the Posthouse chain for £810 million ($1.2 billion) last month and is apparently looking for acquisitions in the U.S. after selling its brewing unit.

The company also sold 988 UK pubs in February but remains a big force in the pubs market with 2,074 pubs and restaurants, as well as its Britvic fruit juice and soda unit.

"Our preference at the present time is to take advantage of slowing global economic conditions to find investment opportunities and acquisitions, at the right price," said Chairman Ian Prosser.

Bass said it was optimistic about the performance in the months ahead of its European hotels, pubs and restaurants but expected the U.S. slowdown to affect its hotels business across the Atlantic.

After a strong first-quarter performance by its U.S. hotels trading under the  Crowne Plaza, Holiday Inn and Express brands, trade slowed down in the second quarter.

"Key business traveller markets such as New York, Chicago and San Francisco, where the division has large properties, are now experiencing some downturn in trade," said Bass.

Bass (BASS) shares fell 1.6 percent to 770 pence in London trading.

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