This printed article is located at http://hotelroyal.listedcompany.com/financials.html

Half Year Results Financial Statement And Related Announcement

Financials Archive
Financial Statement (2662 KB)

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

Interim Financial Statements for the six months period ended 30 June 2025

CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION

 
The Group
30 Jun 25
31 Dec 24
S$'000
S$'000
ASSETS
Current assets
Cash and bank balances
17,452
19,559
Financial assets at fair value through profit or loss
5,851
6,493
Financial assets at fair value through other
comprehensive income
3,099
5,166
Trade receivables
2,316
2,308
Other receivables, deposits and prepaid expenses
2,950
1,920
Inventories
858
885
Income tax recoverable
102
69
Total current assets
32,628
36,400
Non-current assets
Subsidiaries
-
-
Financial assets at fair value through other
comprehensive income
19,341
19,424
Other assets
955
916
Property, plant and equipment
706,391
711,161
Investment properties
130,910
130,424
Total non-current assets
857,597
861,925
Total assets
890,225
898,325
LIABILITIES AND EQUITY
Current liabilities
Bank loans
4,415
5,234
Trade payables
2,768
5,018
Other payables
6,002
5,319
Income tax payable
2,246
2,189
Total current liabilities
15,431
17,760
Non-current liabilities
Other payables
39
37
Retirement benefit obligations
411
398
Long-term bank loans
154,728
157,461
Deferred tax liabilities
12,214
12,213
Total non-current liabilities
167,392
170,109
Capital and reserves
Share capital
190,836
190,836
Asset revaluation reserve
414,415
414,415
Employee benefit reserve
57
57
Fair value reserve
17,738
18,120
Foreign currency translation reserve
(21,521)
(19,152)
Retained earnings
105,877
106,180
Total equity
707,402
710,456
Total liabilities and equity
890,225
898,325

CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the six months period ended 30 June

 
The Group
First Half-Year Ended 30 June
2025
2024
+ / (-)
S$'000
S$'000
%
Revenue
35,328
32,543
8.6
Cost of sales
(16,598)
(15,300)
8.5
Gross profit
18,730
17,243
8.6
Other income
447
1,974
(77.4)
Distribution and marketing expense
(602)
(621)
(3.1)
Administrative expenses
(11,148)
(9,926)
12.3
Other expenses
(221)
(10)
>100
Finance costs
(3,246)
(3,835)
(15.4)
Profit before income tax
3,960
4,825
(17.9)
Income tax expense
(1,166)
(1,364)
(14.5)
Profit for the period, attributable
to owners of the Company
2,794
3,461
(19.3)
Earnings per ordinary share (cents):
Basic
2.31
2.86
(19.2)
Diluted
2.31
2.86
(19.2)

CONDENSED INTERIM CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
For the six months period ended 30 June

 
The Group
First Half-Year Ended 30 June
2025
2024
+ / (-)
S$'000
S$'000
%
Profit for the period
2,794
3,461
(19.3)
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
(213)
818
n.m.
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations
(2,369)
(4,803)
(50.7)
Other comprehensive loss for the period
(2,582)
(3,985)
(35.0)
Total comprehensive loss for the period, attributable to owners of
the Company
212
(524)
n.m.

n.m.: not meaningful

Review Of Group Performance

Condensed Interim Statement of Profit or Loss

REVENUE

Revenue comprises the following:

 
The Group
First Half-Year Ended 30 June
2025
2024
+ / (-)
S$'000
S$'000
%
Room revenue
25,105
22,541
11.4
Food and beverage revenue
4,409
3,640
21.1
Spa revenue
249
289
(13.9)
Rental income from:
Investment properties
3,430
3,727
(8.0)
Within premises
1,392
1,362
2.2
Car park revenue
203
210
(3.4)
Interest income from outside parties
83
31
>100
Dividend income from:
Quoted equity investments (gross)
205
180
13.9
Others
252
563
(55.3)
Total
35,328
32,543
8.6
Room revenue

Group room revenue increased by 11.4% for 1H 2025 compared to 1H 2024, mainly due to improved room occupancy and upward adjustment of room rates in some of the Group's hotel. The increase was further improved by additional room inventory contributed by a hotel in Malaysia.

Food and beverage revenue

The increase in food and beverage revenue by 21.1% for 1H 2025 compared to 1H 2024 was mainly due to higher breakfast sales driven by increased occupancy rates, as well as stronger restaurant revenue contributions from a hotel in Malaysia.

Rental income from investment properties

Rental income from investment properties decreased by 8.0% for 1H 2024 compared to 1H 2024, mainly due to absence of a one-off revenue recognition from a property in Malaysia.

Rental income from within premises

The increase in rental income from within premises by 2.2% for 1H 2025 compared to 1H 2024 was mainly due to higher rental income resulting from improved occupancy rates.

Cost of Sales

The increase in cost of sales by 8.5% for 1H 2025 compared to 1H 2024 was in line with the increase in revenue, reflecting higher operating costs incurred to support increased business activities across the Group's hotels.

Other income

The decrease in other income by 77.4% for 1H 2025 compared to 1H 2024 was mainly due to the absence of foreign exchange gains recognised during the current financial period.

Distribution and marketing expense

TThe decrease in distribution costs by 3.1% for 1H 2025 compared to 1H 2024 was mainly due to lower 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 12.3% for 1H 2025 compared to 1H 2024 was mainly due to higher overhead expenses, especially the payroll costs, in the Group's hotels, as well as the impact of a full six months of operations at a hotel in Malaysia.

Other expenses

The increase in other expenses for 1H 2025 compared to 1H 2024 was primarily due to foreign exchange losses of S$212k, mainly arising from revaluation of fund investments denominated in USD, following the depreciation of the USD against the SGD.

Finance costs

The decrease in finance costs by 15.4% for 1H 2025 compared to 1H 2024 was mainly due to lower interest rates in FY2025 as most of the Group's borrowings are repriced at short intervals.

Income tax expense

The 14.5% decrease in income tax expense for 1H 2025 compared to 1H 2024 was in line with lower profits during the period.

Profit after income tax

The Group recorded a decline in profit after tax for the first half of 2025, primarily attributable to foreign exchange loss as compared to a foreign exchange gain in the prior period. Excluding the impact of foreign exchange, adjusted profit after tax increased to S$3.006 million, compared to S$1.958 million in the corresponding period of 2024, reflecting a year-on-year improvement of S$1.048 million, driven by stronger underlying operational performance.

 
The Group
First Half-Year Ended 30 June
2025
2024
+ / (-)
S$'000
S$'000
%
Profit after income tax
2,794
3,461
(19.3)
Net foreign exchange adjustment loss (gain)
212
(1,503)
n.m.
Adjusted profit after income tax
3,006
1,958
53.5
Net profit (loss) of segment performance
for the six months period ended 30 June

 
The Group
 
Net profit (loss)
 
2025
2024
+ / (-)
 
S$'000
S$'000
%
Hotel operations
6,155
7,280
(15.5)
Property investments
905
1,077
(16.0)
Financial investments
146
303
(51.8)
Segments total
7,206
8,660
(16.8)
Finance costs
(3,246)
(3,835)
(15.4)
Profit before income tax
3,960
4,825
(17.9)
Income tax expense
(1,166)
(1,364)
(14.5)
Profit after income tax
2,794
3,461
(19.3)

The hotel operations segment recorded a decrease in net profit of S$1.125 million, from S$7.280 million in 1H 2024 to S$6.155 million in 1H 2025. This reduction was primarily attributable to the foreign exchange gains recorded in the first half of 2024.

The property investment segment recorded a decline in net profit of S$0.172 million, falling to S$0.905 million in the first half of 2025. This decrease was mainly attributable to the absence of one-off revenue recognition from the Malaysia investment properties.

The financial investment segment reported a decrease in net profit of S$0.157 million, declining to S$0.146 million in the first half of 2025 compared to the previous period. This decline was primarily driven by foreign exchange losses arising from investments denominated in USD.

Condensed Interim Statement of Financial Position

Total assets (Group) as at 30 June 2025 decreased by $8.100 million from $898.325 million to $890.225 million.

The decrease was mainly due to:

The decrease was offset by:

Total liabilities (Group) as at 30 June 2025 decreased by $5.046 million from $187.869 million to $182,823 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 Hotels in Singapore, Malaysia and Thailand.

Net cash used in financing activities was mainly due to dividend payments and net principal loan repayment.

Outlook

During the first half of 2025, the Group recorded a revenue of $35.328 million, representing an 8.6% increase from the corresponding period in the previous year. The increase in revenue was primarily driven by heightened travel demand and the additional room inventory in a hotel in Malaysia. While this supported topline performance, external tourism conditions across the region remained mixed - Singapore saw modest recovery in total international visitor arrivals by approximately 1.9%, Malaysia led early growth but cooled in second quarter, while Thailand under-performed, with total international visitor arrivals declining by approximately 6% year to date.

Looking ahead to the second half, the Group anticipates moderate growth. Cautious optimism stems from a soft economic backdrop, including slower GDP growth, fragile recovery in long-haul markets due to global inflation and currency fluctuations and dependence on intra-Asia traffic, which has shown signs of fatigue after post-COVID surges.

The Group will continue to monitor macroeconomic and regional tourism trends closely, while focusing on optimising operational efficiency, revenue diversification, and strategic marketing to mitigate external risks.