Elegant Hotels Group could be hit by tax changes

Elegant Hotels Group’s post-tax profit could be affected by tax changes in Barbados.

The company highlighted it in a trading statement released on Monda, saying that trading since its interim results in June has remained solid and pre-tax results for the year to 30 September are in line with expectations.

However, it noted that the Government of Barbados announced changes to company tax, which “may result in a modest increase in the effective tax rate”.

But the company said it believed post-tax earnings will remain “broadly in line with expectations”.

The company also noted it “actively considering” some potential acquisitions in Barbados and the surrounding Caribbean islands.

Elegant Hotels chief executive Sunil Chatrani said there has been a significant amount of activity in the business over the summer months.

“It is a great reflection on the considerable efforts of the whole team that the business continues to perform in line with its targets.

“As we move in to the key winter months ahead, we continue to focus on building the profitability of our core existing business while looking closely and selectively at acquisition opportunities in Barbados and the surrounding Caribbean islands."