Financials

Full Year Results Financial Statement And Related Announcement

Financials Archive

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Unaudited Condensed Interim Financial Information For the Second Half and Financial Year Ended 31 December 2023

STATEMENTS OF FINANCIAL POSITION
For the financial year ended 31 December

 
The Group
31 Dec 23
31 Dec 22
S$'000
S$'000
ASSETS
Current assets
Cash and bank balances
22,658
47,023
Financial assets at fair value through profit or loss
5,294
3,834
Financial assets at fair value through other
comprehensive income
5,239
6,190
Trade receivables
2,516
1,925
Other receivables, deposits and prepaid expenses
1,940
1,758
Inventories
974
716
Income tax recoverable
53
83
Total current assets
38,674
61,529
Non-current assets
Subsidiaries
-
-
Financial assets at fair value through other
comprehensive income
18,804
18,581
Other assets
1,503
740
Property, plant and equipment
672,412
644,157
Investment properties
95,864
101,318
Total non-current assets
788,583
764,796
Total assets
827,257
826,325
LIABILITIES AND EQUITY
Current liabilities
Bank loans
8,759
21,375
Trade payables
4,310
4,074
Other payables
6,033
4,723
Income tax payable
2,563
1,195
Total current liabilities
21,665
31,367
Non-current liabilities
Other payables
36
35
Retirement benefit obligations
259
359
Long-term bank loans
149,971
152,930
Deferred tax liabilities
9,975
10,515
Total non-current liabilities
160,241
163,839
Capital and reserves
Share capital
190,836
190,836
Asset revaluation reserve
395,489
372,300
Employee benefit reserve
66
15
Fair value reserve
16,995
16,217
Translation reserve
(23,513)
(14,133)
Retained earnings
65,478
65,884
Total equity
645,351
631,119
Total liabilities and equity
827,257
826,325

CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the second half and financial year ended 31 December

 
The Group
6 months ended 31 December
12 months ended 31 December
2023
2022
+ / (-)
2023
2022
+ / (-)
S$'000
S$'000
%
S$'000
S$'000
%
Revenue
30,799
25,075
22.8
58,340
41,890
39.3
Cost of sales
(15,158)
(13,872)
9.3
(29,474)
(24,749)
19.1
Gross profit
15,641
11,203
39.6
28,866
17,141
68.4
Other income
2,774
3,376
(17.8)
5,224
3,765
38.8
Distribution costs
(634)
(584)
8.6
(1,184)
(939)
26.1
Administrative expenses
(8,993)
(5,942)
51.3
(16,811)
(11,262)
49.3
Other expenses
(2,989)
(3,137)
(4.7)
(3,049)
(5,842)
(47.8)
Finance expenses
(4,126)
(3,429)
20.3
(8,356)
(5,797)
44.1
Profit (Loss) before income tax
1,673
1,487
12.5
4,690
(2,934)
n.m.
Income tax expense
(1,074)
(1,067)
0.7
(2,135)
(505)
>100
Profit (Loss) for the financial period, attributable to the owners of the Company
599
420
42.6
2,555
(3,439)
n.m.

n.m.: not meaningful

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
For the second half and financial year ended 31 December

 
The Group
6 months ended 31 December
12 months ended 31 December
2023
2022
+ / (-)
2023
2022
+ / (-)
S$'000
S$'000
%
S$'000
S$'000
%
Profit (Loss) for the period
599
420
42.6
2,555
(3,439)
n.m.
Other comprehensive income (loss):
Items that will not be reclassified subsequently to profit or loss
Net fair value gain (loss) on investments in equity instruments designated as at fair value through other comprehensive income
285
(28)
n.m
841
(1,971)
n.m
Re-measurement of defined benefit obligation
8
(15)
n.m
51
(17)
n.m
Increase in valuation of freehold land - hotels
23,189
34,290
(32.4)
23,189
34,290
(32.4)
 
23,482
34,247
(31.4)
24,081
32,302
(25.5)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations
929
(5,549)
n.m.
(9,380)
(11,943)
(21.5)
Other comprehensive income (loss) for the period
24,411
28,698
(14.9)
14,701
20,359
(27.8)
Total comprehensive income for the period, attributable to owners of the Company
25,010
29,118
(14.1)
17,256
16,920
1.99

n.m.: not meaningful

Review Of Group Performance

Consolidated Statement of Profit or Loss

REVENUE

Revenue comprises the following:

 
The Group
Full Year Ended 31 December
2023
2022
+ / (-)
S$'000
S$'000
%
Hotel operations:
Room revenue
40,858
28,402
43.9
Food and beverage revenue
5,998
3,726
61.0
Spa revenue
542
360
50.6
Car park revenue
328
272
20.6
Rental income
2,523
2,071
21.8
Others
760
366
>100
Properties investments:
Rental income
6,713
6,289
6.7
Financial investment:
Interest income from investments
74
41
80.5
Dividend income from:
Quoted equity investments
366
260
40.8
Unquoted equity investments
178
103
72.8
Total
58,340
41,890
39.3
Room revenue

Group room revenue increased by 43.9% for FY 2023 as compared to FY 2022 was mainly due to improved room occupancy and upward adjustment of room rates in some of the Group's hotel.

Food and beverage revenue

The increase in food and beverage revenue by 61.0% for FY 2023 as compared to FY 2022 was mainly due to higher breakfast sales with higher occupancy rates.

Rental income from hotel operations

The increase in rental income from hotel operations by 21.8% for FY 2023 as compared to FY 2022 was mainly due to better occupancy and higher rental rates.

Rental income from properties investments

Rental income from properties investments increased by 6.7% for FY 2023 as compared to FY 2022 was mainly due to higher contributions from investment property in New Zealand and Malaysia subsidiary.

Cost of sales

The increase in cost of sales for FY 2023 as compared to FY 2022 was mainly due to higher operation costs in the Group's hotels.

Other income

The increase in other income for FY 2023 as compared to FY 2022 was mainly due to write back of impairment loss of Bangkok and Malaysia's properties in this financial year, higher interest from fixed deposits, foreign exchange gain and fair value gain on financial assets at fair value through profit or loss recorded in FY 2023.

Distribution costs

The increase in distribution costs for FY 2023 as compared to FY 2022 was mainly due to higher sales and marketing expenses from travel agents and online reservation portals in the Group's hotels.

Administrative expenses

The increase in administrative expenses for FY 2023 as compared to FY 2022 was mainly due to higher overhead expenses such as utilities and payroll costs in the Group's hotels.

Other expenses

Other expenses comprise mainly impairment loss of investment properties, foreign exchange loss, fair value loss on financial assets at fair value through profit or loss and miscellaneous other expenses.

The decrease in other expenses for FY 2023 as compared to FY 2022 was mainly due to absence of foreign exchange loss and fair value loss on financial assets at fair value through profit or loss in FY2023 as gain was recorded in other income as explained above and offset by higher impairment loss of New Zealand's properties in this financial year.

Finance costs

The increase in finance costs for FY 2023 as compared to FY 2022 was mainly due to increase in interest rate.

Income tax expense

The increase in income tax expense for FY 2023 as compared to FY 2022 was mainly due to higher taxable income in the Group's hotels.

Net profit (loss) of segment performance
for full year ended 31 December

 
Net (loss) profit
 
2023
2022
+ / (-)
+ / (-)
 
S$'000
S$'000
S$'000
%
Hotel operation
14,443
5,133
9,310
>100
Property investments
(2,143)
(2,154)
11
0.5
Financial Investments
746
(116)
862
n.m.
Segments total
13,046
2,863
10,183
>100
Finance cost
(8,356)
(5,797)
(2,559)
44.1
Profit (Loss) before income tax
4,690
(2,934)
7,624
n.m.
Income tax expense
(2,135)
(505)
(1,630)
>100
Profit (Loss) after income tax
2,555
(3,439)
5,994
n.m.

n.m.: not meaningful

The performance for the hotel operations segment increased by S$9.310 million from net profit of S$5.133 million in FY 2022 to net profit of S$14.443 million in FY 2023. This was mainly due to better performances in the Singapore and Thailand hotels.

Investment property segment continued to record a loss in 2023 as the New Zealand property recorded an impairment loss of S$2.962 (2022: S$1.998 million). This is mitigated by a positive operational performance from the Singapore and Malaysian investment properties.

The financial investment segment's performance increased by $0.862 million from net loss of S$0.116 million in FY 2022 to net profit of S$0.746 million in FY 2023. This was mainly due to higher fair value gain on financial assets.

Consolidated Statement of Financial Position

Total assets (Group) as at 31 December 2023 increased by $0.932 million from $826.325 million to $827.257 million.

The increase was mainly due to:

  • Property, plant and equipment increased by $28.255 million mainly due to increase in valuation of the Group's freehold land of $23.189 million, offset by depreciation charged during the financial year.

  • Increase in financial assets at fair value through profit or loss of $1.460 million mainly due to acquisition of financial assets at fair value assets through profit or loss and fair value gain resulted from strengthened stock market conditions.

The increase was offset by:

  • Decrease in cash and bank balances of $24.365 million mainly due to partial repayments of bank loans.

Total liabilities (Group) as at 31 December 2023 decreased by $13.300 million from $195.206 million to $181.906 million.

The decrease was mainly due to decrease in bank loans of $15.575 million due to net principal loan repayment during the financial period.

Consolidated Statement of Cash Flows

Net cash from operating activities was derived from the operating activities of the hotel, investment properties and investment in financial products. The increase in net cash from operating activities was mainly due to recovery of business.

Net cash used in investing activities was mainly due to renovation works for Hotel Royal Signature.

Net cash from financing activities was mainly due to dividend payment and net repayment of partial bank loans.

Outlook

The Group posted $58.3 million in revenue for the financial year ended December 2023, an increase of 39.3% compared to the corresponding period last year. This is due to the strong recovery of international visitor arrivals, from a low base this time last year when restrictions on inbound travel were still in place for Singapore, Malaysia and Thailand.

In line with the positive outlook projected by the tourism boards in Singapore, Malaysia and Thailand, room demand is expected to increase further as the travel industry continues to recover.

Even though the outlook of the hospitality industry looks positive, we need to remain vigilant in view of the on-going geo-political tensions and the global inflation which can adversely influence the Group's performance, including its managed fund portfolio.

Fluctuations in exchange rates of the New Zealand dollar, United States dollar, Malaysian ringgit and Thai baht against Singapore dollar will continue to affect the Group's performance.