Financials
Half Year Results Financial Statement And Related Announcement
Financials Archive
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Interim Financial Statements for the six months period ended 30 June 2024
CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION
The Group |
|||
30 Jun 24 |
31 Dec 23 (Restated)* |
1 Jan 23 (Restated)* |
|
S$'000 |
S$'000 |
S$'000 |
|
| ASSETS | |||
| Current assets | |||
| Cash and bank balances | 15,224 |
22,658 |
47,023 |
| Financial assets at fair value through profit or loss | 7,067 |
5,294 |
3,834 |
| Financial assets at fair value through other comprehensive income |
5,802 |
5,239 |
6,190 |
| Trade receivables | 1,778 |
2,444 |
1,826 |
| Other receivables, deposits and prepaid expenses | 1,959 |
1,940 |
1,758 |
| Inventories | 928 |
974 |
716 |
| Income tax recoverable | 69 |
53 |
83 |
| Total current assets | 32,827 |
38,602 |
61,430 |
| Non-current assets | |||
| Subsidiaries | - |
- |
- |
| Financial assets at fair value through other comprehensive income |
19,135 |
18,804 |
18,581 |
| Other assets | 2,275 |
900 |
127 |
| Property, plant and equipment | 670,372 |
672,412 |
644,157 |
| Investment properties | 132,667 |
133,362 |
136,210 |
| Total non-current assets | 824,449 |
825,478 |
799,075 |
| Total assets | 857,276 |
864,080 |
860,505 |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Bank loans | 5,635 |
8,759 |
21,375 |
| Trade payables | 5,212 |
4,310 |
4,074 |
| Other payables | 4,095 |
6,033 |
4,723 |
| Income tax payable | 2,595 |
2,563 |
1,195 |
| Total current liabilities | 17,537 |
21,665 |
31,367 |
| Non-current liabilities | |||
| Other payables | 28 |
36 |
35 |
| Retirement benefit obligations | 312 |
259 |
359 |
| Long-term bank loans | 150,872 |
149,971 |
152,930 |
| Deferred tax liabilities | 10,583 |
10,657 |
10,362 |
| Total non-current liabilities | 161,795 |
160,923 |
163,686 |
| Capital and reserves | |||
| Share capital | 190,836 |
190,836 |
190,836 |
| Asset revaluation reserve | 395,489 |
395,489 |
372,300 |
| Employee benefit reserve | 66 |
66 |
15 |
| Fair value reserve | 17,876 |
16,995 |
16,217 |
| Foreign currency translation reserve | (28,949) |
(24,146) |
(14,115) |
| Retained earnings | 102,626 |
102,252 |
100,199 |
| Total equity | 677,944 |
681,492 |
665,452 |
| Total liabilities and equity | 857,276 |
864,080 |
860,505 |
* Certain comparative figures have been restated. Please refer to Note 22 (Pages 21 to 23) for further details.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the six months period ended 30 June
The Group |
|||
First Half-Year Ended 30 June |
|||
2024 |
2023 (Restated)* |
+ / (-) |
|
S$'000 |
S$'000 |
% |
|
| Revenue | 32,543 |
27,541 |
18.2 |
| Cost of sales | (15,300) |
(13,695) |
11.7 |
| Gross profit | 17,243 |
13,846 |
24.5 |
| Other income | 1,974 |
2,253 |
(12.4) |
| Distribution and marketing expense | (621) |
(550) |
12.9 |
| Administrative expenses | (9,926) |
(7,818) |
27.0 |
| Other expenses | (10) |
(60) |
(83.3) |
| Finance costs | (3,835) |
(4,230) |
(9.3) |
| Profit before income tax | 4,825 |
3,441 |
40.2 |
| Income tax expense | (1,364) |
(1,136) |
20.1 |
| Profit for the period, attributable to owners of the Company |
3,461 |
2,305 |
50.2 |
| Earnings per ordinary share (cents): | |||
| Basic | 2.86 |
1.91 |
49.7 |
| Diluted | 2.86 |
1.91 |
49.7 |
* Certain comparative figures have been restated. Please refer to Note 22 (Pages 21 to 23) for further details.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
For the six months period ended 30 June
The Group |
||||||
First Half-Year Ended 30 June |
||||||
2024 |
2023 (Restated)* |
+ / (-) |
||||
S$'000 |
S$'000 |
% |
||||
| Profit for the period | 3,461 |
2,305 |
50.2 |
|||
| Other comprehensive income: | ||||||
| Items that will not be reclassified subsequently to profit or loss | ||||||
| Net fair value gain on investments in equity instruments designated as at fair value through other comprehensive income |
818 |
556 |
47.1 |
|||
| Re-measurement of defined benefit obligation | - |
43 |
100.0 |
|||
| Total | 818 |
599 |
36.6 |
|||
| Items that may be reclassified subsequently to profit or loss | ||||||
| Exchange differences on translation of foreign operations | (4,803) |
(10,869) |
(55.8) |
|||
| Other comprehensive loss for the period | (3,985) |
(10,270) |
(61.2) |
|||
| Total comprehensive loss for the period, attributable to owners of the Company |
(524) |
(7,965) |
(93.4) |
|||
* Certain comparative figures have been restated. Please refer to Note 22 (Pages 21 to 23) for further details.
Review Of Group Performance
Condensed Interim Statement of Profit or Loss
REVENUE
Revenue comprises the following:
The Group |
|||
First Half-Year Ended 30 June |
|||
2024 |
2023 |
+ / (-) |
|
S$'000 |
S$'000 |
% |
|
| Room revenue | 22,541 |
19,370 |
16.4 |
| Food and beverage revenue | 3,640 |
2,738 |
32.9 |
| Spa revenue | 289 |
287 |
0.7 |
| Rental income from: | |||
| Investment properties | 3,727 |
3,294 |
13.1 |
| Within premises | 1,362 |
1,239 |
9.9 |
| Car park revenue | 210 |
162 |
29.6 |
| Interest income from outside parties | 31 |
23 |
34.8 |
| Dividend income from: | |||
| Quoted equity investments (gross) | 180 |
196 |
(8.2) |
| Others | 563 |
232 |
>100 |
| Total | 32,543 |
27,541 |
18.2 |
Group room revenue increased by 16.4% for 1H 2024 compared to 1H 2023, 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 32.9% for 1H 2024 compared to 1H 2023 was mainly due to higher breakfast sales driven by increased occupancy rates.
Rental income from investment properties
Rental income from investment properties increased by 13.1% for 1H 2024 compared to 1H 2023, mainly due to higher contributions from investment properties in the New Zealand and Malaysia subsidiaries.
Rental income from within premises
The increase in rental income from within premises by 9.9% for 1H 2024 compared to 1H 2023 was mainly due to higher rental income resulting from improved occupancy rates.
Cost of Sales
The increase in cost of sales by 11.7% for 1H 2024 compared to 1H 2023 was mainly due to higher operation costs in the Group's hotels.
Other income
The decrease in other income by 12.4% for 1H 2024 compared to 1H 2023 was mainly due to lower fair value gain on financial assets at fair value through profit or loss and lower interest income from fixed deposits.
Distribution and marketing expense
The increase in distribution costs by 12.9% for 1H 2024 compared to 1H 2023 was mainly due to higher sales and marketing expenses incurred through travel agents and online reservation portals in the Group's hotels.
Administrative expenses
The increase in administrative expenses by 27.0% for 1H 2024 compared to 1H 2023 was mainly due to higher overhead expenses, including utilities and payroll costs, in the Group's hotels.
Finance costs
The decrease in finance costs by 9.3% for 1H 2024 compared to 1H 2023 was mainly due to repayment of bank loans during the financial period and FY2023.
Income tax expense
The 20.1% increase in income tax expense for 1H 2024 compared to 1H 2023 was primarily due to higher taxable income in the Group's hotels.
Net profit (loss) of segment performancefor the six months period ended 30 June
The Group |
|||
Net profit (loss) |
|||
2024 |
2023 |
+ / (-) |
|
S$'000 |
S$'000 |
% |
|
| Hotel operations | 7,280 |
6,370 |
14.3 |
| Property investments | 1,077 |
984 |
9.5 |
| Financial investments | 303 |
317 |
(4.4) |
| Segments total | 8,660 |
7,671 |
12.9 |
| Finance costs | (3,835) |
(4,230) |
(9.3) |
| Profit before income tax | 4,825 |
3,441 |
40.2 |
| Income tax expense | (1,364) |
(1,136) |
20.1 |
| Profit after income tax | 3,461 |
2,305 |
50.2 |
The performance for the hotel operations segment increased by S$0.910 million, rising from net profit of S$6.370 million in 1H 2023 to S$7.280 million in 1H 2024. This improvement was primarily driven by better performances at the Singapore and Thailand hotels.
The net profit for the property investment segment increased by $0.093 million to reach S$1.077 million in 1H 2024. This improvement was primarily driven by better performances from the Group's investment properties.
The net profit for the financial investment segment decreased by $0.014 million to S$0.303 million in 1H 2024. This decline was mainly due to a lower fair value gain on financial assets.
Condensed Interim Statement of Financial Position
Total assets (Group) as at 30 June 2024 decreased by $6.804 million from $864.080 million to $857.276 million.
The decrease was mainly due to:
- Decrease in cash and bank balances of $7.434 million, primarily attributable to cash used for dividend payments and repayment of bank borrowings; and
- Decrease in property, plant and equipment and investment properties of $2.735 million was mainly due to translation losses resulting from weakening of MYR, THB and NZD against SGD.
The decrease was offset by:
- The increase in financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income of $2.667 million was mainly due to fair value gain resulting from strengthened stock market conditions.
Total liabilities (Group) as at 30 June 2024 decreased by $3.256 million from $182.588 million to $179.332 million.
The decrease was mainly due to:
- Decrease in bank loans of $2.223 million was due to net principal loan repayment during the financial period.
- Decrease in other payables of $1.946 million was due to repayment during the financial period.
Condensed Interim Statement of Cash Flows
Net cash from operating activities was derived from the operating activities of the hotel, investment properties and fund management.
Net cash used in investing activities was primarily due to renovation works for Hotel Royal Signature.
Net cash used in financing activities was mainly due to dividend payments and net principal loan repayment.
Outlook
During the first half of 2023, the Group recorded a revenue of $32.543 million, representing a 18.2% increase from the corresponding period in the previous year. Singapore, Malaysia and Thailand experienced an increase in tourist arrivals during the first half of 2024 compared to the corresponding period last year.
The Group is anticipating an increase in tourist arrivals based on the tourism boards' projections of the countries that our hotels operate. It is expected that visitor numbers will improve in Singapore, Malaysia, and Thailand. The optimistic forecast is influenced by enhanced global flight connections and the visa-free travel policies implemented by these countries, specifically targeting the Chinese market. The Group's revenue is expected to remain positive following the recent openings of Hotel Royal Signature.
Despite the positive outlook, we must remain vigilant against the potential consequences of ongoing geo-political tensions, global inflation, and high interest rates, as these factors could negatively impact the Group's performance, including its managed fund portfolio.
The Group's performance may be impacted by fluctuations in exchange rates between the New Zealand dollar, United States dollar, Malaysian ringgit, and Thai baht against the Singapore dollar.
