Page 4 - ar2012

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Dear Shareholders,
On behalf of your Board of Directors, I am pleased to present the Group’s
annual report for the financial year ended 31 December 2012.
Operations and Financial Review
Group’s Revenue
The Group’s revenue consisted mainly of room, food and beverage sales and
rental income.
Revenue for the Group in 2012 increased by 7.7% to S$52.541 million
(2011: S$48.807 million) due to higher contribution from our properties in
Singapore, New Zealand and Thailand.
Increase in Singapore’s Revenue
The increase was due to the upward adjustment of room rates and additional contribution from the Royal Residences
which commenced operations in April 2012.
Increase in New Zealand’s Revenue
The increase in New Zealand revenue was due to higher rental income from its investment properties and 1.3%
appreciation in the average exchange rate of the New Zealand dollar against the Singapore dollar.
Increase in Thailand’s Revenue
The increase in Thailand revenue was due to contribution for almost a whole year, before closing for major
renovations and upgrading in the fourth quarter of 2012. This increase was offset by the 2.9% depreciation in the
average exchange rate of the Thai baht against the Singapore dollar.
Decrease in Malaysia’s Revenue
The decrease in Malaysia’s revenue was due to lower food and beverage sales and the 1.5% depreciation in the
average exchange rate of the Malaysian ringgit against the Singapore dollar offset by higher room revenue and
higher rental income from investment properties.
Group’s Profit
The Group’s profit after income tax for 2012 also increased by 133.4% from S$5.890 million in 2011 to S$13.745
million in 2012 mainly due to the following:
(a) Improved performance from the Singapore’s hotels and increased contribution from Royal Residences
which commenced operations in April 2012.
(b) Higher rental income from investment properties in New Zealand and Malaysia.
(c) Reversal of past years’ impairment loss on the investment property in New Zealand of S$2.891 million as
opposed to impairment loss of S$2.460 million in 2011.
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