Motorway services company Moto Hospitality has reported a 1.1% fall in turnover to £840.03m the full year 2013, caused by a fall in fuel sales.
Non-fuel turnover increased by 5.9%. Operating profit was up by 16% to £44.5m. However, “interest payable and similar charges” of more than £122m resulted in an PBITDA loss of £78.6m – nearly £20m more than the previous year.
The company’s annual report states: “External debt financing is held with group companies and has been lent via intercompany loan agreements to Moto Hospitality with no fixed date of repayment.
”Interest is payable on the intercompany debt at higher rates than those payable on the external debt financing in order to distribute the trading profit of Moto Hospitality to the holding companies to ensure service of the external debt and to facilitate dividend payments to shareholders at the parent company level.”
