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Third Quarter Results Financial Statement And Related Announcement

Financials Archive

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UNAUDITED RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED 30 SEPTEMBER 2018

CONSOLIDATED STATEMENT OF PROFIT OR LOSS
for the third quarter and nine months ended 30 September

 
Group
Third Quarter Ended 30 Sep
Nine Months Ended 30 Sep
2018
2017
+ / (-)
2018
2017
+ / (-)
S$'000
S$'000
%
S$'000
S$'000
%
Revenue
14,807
15,700
(5.7)
45,441
45,993
(1.2)
Cost of sales
(6,432)
(7,068)
(9.0)
(21,159)
(20,971)
0.9
Gross profit
8,375
8,632
(3.0)
24,282
25,022
(3.0)
Other income
68
459
(85.2)
731
1,302
(43.9)
Distribution costs
(939)
(598)
57.0
(1,632)
(1,193)
36.8
Administrative expenses
(3,598)
(3,925)
(8.3)
(10,787)
(11,647)
(7.4)
Other expenses
(172)
-
100.0
(1,685)
(483)
>100
Finance cost
(1,008)
(1,154)
(12.7)
(3,295)
(3,348)
(1.6)
Profit before income tax
2,726
3,414
(20.2)
7,614
9,653
(21.1)
Income tax expense
(1,132)
(526)
>100
(2,911)
(2,296)
26.8
Profit for the period attributable to
owners of the Company
1,594
2,888
(44.8)
4,703
7,357
(36.1)

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
for the third quarter and nine months ended 30 September

 
Group
Third Quarter Ended 30 Sep
Nine Months Ended 30 Sep
2018
2017
+ / (-)
2018
2017
+ / (-)
S$'000
S$'000
%
S$'000
S$'000
%
Profit for the period
1,594
2,888
(44.8)
4,703
7,357
(36.1)
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Available-for-sale investments:
Fair value gain (loss) recognised in fair value reserve
118
(175)
n.m.
(617)
739
n.m.
Transfer from fair value reserve to profit or loss upon disposal of available-for-sale investments
-
274
(100.0)
-
592
(100.0)
Transfer from fair value reserve to other comprehensive income upon disposal of available-for-sale investments
9
-
100.0
627
-
100.0
Re-measurement of defined benefit obligation
-
-
 
18
-
100.0
Exchange (loss) gain on translation of foreign operations
(1,090)
(974)
11.9
(1,009)
79
n.m.
Total
(963)
(875)
10.1
(981)
1,410
n.m.
Total comprehensive income for the period attributable to owners of the Company
631
2,013
(68.7)
3,722
8,767
(57.5)

n.m.: not meaningful

Balance Sheets

 
The Group
30 Sep 18
31 Dec 17
(Restated)
S$'000
S$'000
ASSETS
Current assets
Cash and bank balances
21,934
18,328
Held-for-trading investments
7,031
7,706
Available-for-sale investments
10,028
9,053
Trade receivables
2,628
3,542
Other receivables, deposits and
prepaid expenses
1,699
1,449
Inventories
907
861
Income tax recoverable
35
11
Total current assets
44,262
40,950
Non-current assets
Subsidiaries
-
-
Available-for-sale investments
4,058
4,268
Other assets
560
830
Goodwill
1,920
1,875
Property, plant and equipment
604,334
605,718
Investment properties
90,492
91,222
Total non-current assets
701,364
703,913
Total assets
745,626
744,863
LIABILITIES AND EQUITY
Current liabilities
Bank loans
5,958
16,929
Trade payables
2,719
3,274
Other payables
5,449
5,964
Income tax payable
1,723
2,564
Total current liabilities
15,849
28,731
Non-current liabilities
Long-term bank loans
99,907
135,842
Retirement benefit obligations
789
773
Deferred tax liabilities
20,589
19,450
Other payables
409
1,733
Total non-current liabilities
121,694
157,798
Capital and reserves
Share capital
150,665
100,438
Asset revaluation reserve
364,577
364,577
Employee benefit reserve
198
180
Fair value reserve
2,587
3,707
Translation reserve
(919)
90
Retained earnings
90,975
89,342
Total equity
608,083
558,334
Total liabilities and equity
745,626
744,863

Review Of Group Performance

Third quarter 2018 vs. Third quarter 2017

The Group's revenue for third quarter 2018 decreased by 5.7% to S$14.807 million from S$15.700 million in 2017. This was mainly due to lower rental income from investment properties and lower food and beverage revenue.

The Group's profit after income tax for third quarter 2018 decreased by 44.8% or S$1.294 million as compared to third quarter 2017 mainly due to lower revenue and higher income tax expense.

Nine months ended 2018 vs. Nine months ended 2017

The Group's revenue for nine months ended 30 September 2018 decreased by 1.2% to S$45.441 million from S$45.993 million in 2017. This was mainly due to lower rental income from investment properties and lower food and beverage revenue.

The Group's profit after income tax for nine months ended 30 September 2018 decreased by 36.1% to S$4.703 million from S$7.357 million in 2017. This was mainly due to lower revenue and higher income tax expense.

In the opinion of the Directors, no transaction has arisen between 30 September 2018 and the date of this report which would materially affect the results of the Group and the Company for the period just ended.

Outlook

The hospitality industry remains highly competitive in Singapore, Malaysia and Thailand. The Group is expecting more challenges ahead. The Group will continue to closely monitor its room occupancy and room rates, enhance customer experiences, upgrade hotel properties and explore more investment opportunities, in order to maximize shareholders' income and enlarge its market share.

The Group is actively upgrading its investment properties in New Zealand so as to maximize rental income.

The Group's managed fund portfolio will continue to be affected by uncertainties of the global trade wars and geopolitical tensions.

In addition to the above, the Group's profitability will continue to be influenced by fluctuations in exchange rates of currencies such as the New Zealand dollar, United States dollar, Malaysian ringgit and Thai baht against Singapore dollar.