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Half Year Results Financial Statement And Related Announcement

Financials Archive
Financial Statement (546 KB)

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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
Room revenue

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 performance
for 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:

The decrease was offset by:

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:

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.