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Second Quarter Results Financial Statement And Related Announcement

Financials Archive

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UNAUDITED RESULTS FOR THE SECOND QUARTER AND HALF-YEAR ENDED 30 JUNE 2018

 
Group
Second Quarter Ended 30 June
Half-Year Ended 30 June
2018
2017
+ / (-)
2018
2017
+ / (-)
S$'000
S$'000
%
S$'000
S$'000
%
Revenue
13,945
14,127
(1.3)
30,634
30,293
1.1
Cost of sales
(6,866)
(7,015)
(2.1)
(14,727)
(13,903)
5.9
Gross profit
7,079
7,112
(0.5)
15,907
16,390
(2.9)
Other income
70
457
(84.7)
663
843
(21.4)
Distribution costs
(344)
(305)
12.8
(693)
(595)
16.5
Administrative expenses
(3,910)
(2,562)
52.6
(7,189)
(5,954)
20.7
Other expenses
(703)
(1,313)
(46.5)
(1,513)
(2,251)
(32.8)
Finance costs
(1,148)
(1,118)
2.7
(2,287)
(2,194)
4.2
Profit before income tax
1,044
2,271
(54.0)
4,888
6,239
(21.7)
Income tax expense
(464)
(987)
(53.0)
(1,779)
(1,770)
0.5
Profit for the period attributable to
owners of the Company
580
1,284
(54.8)
3,109
4,469
(30.4)

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
for the second quarter and half-year ended 30 June

 
Group
Second Quarter Ended 30 June
Half-Year Ended 30 June
2018
2017
+ / (-)
2018
2017
+ / (-)
S$'000
S$'000
%
S$'000
S$'000
%
Profit for the period
580
1,284
(54.8)
3,109
4,469
(30.4)
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Available-for-sale investments:
Fair value (loss) gain recognised in fair value reserve
(519)
260
n.m.
(735)
914
n.m.
Transfer from fair value reserve to profit or loss upon disposal of available-for-sale investments
-
181
(100.0)
-
318
(100.0)
Transfer from fair value reserve to other comprehensive income upon disposal of available-for-sale investments
402
-
100.0
618
-
100.0
Re-measurement of defined benefit obligation
-
-
 
18
-
100.0
Exchange differences on translation of foreign operations
(2,725)
2,343
n.m.
81
1,053
(92.3)
Total
(2,842)
2,784
n.m.
(18)
2,285
n.m.
Total comprehensive (loss) income for the period attributable to owners of the Company
(2,262)
4,068
n.m.
3,091
6,754
(54.2)

Balance Sheets

 
The Group
30 June 18
31 Dec 17
(Restated)
S$'000
S$'000
ASSETS
Current assets
Cash and bank balances
17,106
18,328
Held-for-trading investments
6,979
7,706
Available-for-sale investments
9,871
9,053
Trade receivables
2,378
3,542
Other receivables, deposits and
prepaid expenses
1,804
1,449
Inventories
887
861
Income tax recoverable
82
11
Total current assets
39,107
40,950
Non-current assets
Subsidiaries
-
-
Available-for-sale investments
4,095
4,268
Other assets
632
830
Goodwill
1,874
1,875
Property, plant and equipment
605,232
605,718
Investment properties
90,293
91,222
Total non-current assets
702,126
703,913
Total assets
741,233
744,863
LIABILITIES AND EQUITY
Current liabilities
Bank loans
10,145
16,929
Trade payables
2,408
3,274
Other payables
5,717
5,964
Income tax payable
2,160
2,564
Total current liabilities
20,430
28,731
Non-current liabilities
Long-term bank loans
142,144
135,842
Retirement benefit obligations
784
773
Deferred tax liabilities
20,229
19,450
Other payables
421
1,733
Total non-current liabilities
163,578
157,798
Capital and reserves
Share capital
100,438
100,438
Asset revaluation reserve
364,577
364,577
Employee benefit reserve
198
180
Fair value reserve
2,469
3,707
Translation reserve
171
90
Retained earnings
89,372
89,342
Total equity
557,225
558,334
Total liabilities and equity
741,223
744,863

Review Of Group Performance

Second quarter 2018 vs Second quarter 2017

The Group's revenue for the second quarter decreased by 1.3% from S$14.127 million in 2017 to S$13.945 million in 2018 mainly due to lower rental income in some of the Group's investment properties.

The Group made a profit after income tax of S$0.580 million in second quarter 2018 as compared to S$1.284 million in second quarter 2017. The decrease was mainly due to higher operating expenses offset by lower income tax expense.

Half-year ended 30 June 2018 vs Half-year ended 30 June 2017

The Group's revenue for half-year ended 30 June 2018 increased by 1.1% from S$30.293 million in 2017 to S$30.634 million in 2018 mainly due to higher revenue in some of the Group's hotels.

The Group made a profit after income tax of S$3.109 million for half-year ended 30 June 2018 as compared to S$4.469 million for half-year ended 30 June 2017. The decrease was mainly due to higher operating expenses.

In the opinion of the Directors, no transaction has arisen between 30 June 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 in Singapore, Malaysia and Thailand remain highly competitive. 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.