Profit warning hits Snoozebox shares

PORTABLE hotel firm Snoozebox shocked investors as it postponed its annual results and warned of a “material shortfall” in profits.

Snoozebox ran a temporary hotel during last year's Fringe. Picture: Contributed

The company, which had been due to release figures for 2012 on Tuesday, said the shortfall was related to the requirements of international financial reporting standards. Shares closed down 16.5 per cent at 57p.

It said last year’s revenues would be “not less than £3.78 million”, below what had previously been expected. The profit figure would reflect the shortfall.

The firm added: “Some or all of the shortfall may reverse and therefore be recognised in the current year. The company has a strong pipeline of event related and other deployments for the current year as a result of which the directors remain confident of the company’s prospects.”

The group is working with its auditors to finalise the 2012 accounts and expects to publish them by the end of the week.

Aim-quoted Snoozebox, headed by Malmaison co-founder and former Ted Baker chairman Robert Breare and fronted by former F1 star David Coulthard, last week won a £3.8m contract to supply accommodation for 1,350 staff at the G8 summit in Northern Ireland.

The group also has permission to operate on an Edinburgh gap site for another three years, after running a temporary hotel during last year’s Fringe.