Queensgate Hotels and Leisure Limited on Tuesday advised that the company's loss per share and headline loss per share for the six months ended 28 February 2010 is expected to be between 18.14 and 22.18 cents per share and 2.06 and 2.52 cents per share respectively '

This is compared to a earnings and headline earnings per share of 0.78 cents per share for the prior corresponding six month period ended 28 February 2009.

"The variance is mainly due the poor trading and economic environment in which Queensgate has operated over the last 12 months.

In addition, the variance also relates to the recent cancellation of certain major leases some of which were held with Queensgate Holdings Limited, an associate and major shareholder in Queensgate, which cancellation has had a direct major
impact on Queensgate," the company said.

It said the cancellation of such leases has resulted in a decision by the directors to impair goodwill and unwind the prepaid operating lease asset through the statement of comprehensive income.

"As announced on 26 February 2010, the board of Queensgate has appointed a Steering Committee, together with Mr Colin Human as the Executive Chairman and Mr Deon van Rooyen as a Strategic Director (acting as Financial Director), to address the current matters affecting Queensgate, the company added.

Source: I-Net Bridge