Heeton Holdings Reverses Black 2Hfy2024 221 Y O Y Increase Earnings Still Loss Making Fy2024
Heeton Holdings has announced a remarkable 221% year-on-year increase in earnings for the second half of the financial year 2024, ending on December 31, 2024, with a total of $3.85 million. However, the group remains loss-making for the full year of FY2024.
In the second half of FY2024, the earnings per share stood at 0.79 cents per ordinary share. For the full year, the earnings per share were at a negative 0.28 cents per share.
The company’s revenue for the second half of FY2024 showed a growth of 10.5% year-on-year to reach $41.1 million. Similarly, for the full year, the revenue grew by 15.2% year-on-year to reach $78.2 million.
According to the company, its turnover for the second half of FY2024 included rental income from investment properties, hotel operation income, and management fees. The turnover for the full year of FY2024 increased by 15.2% year-on-year due to higher occupancies in the United Kingdom and an increase in rental rates for the group’s investment properties.
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During the year 2024, the company disposed of some of its subsidiaries, primarily its 70% interest in Gloucester Corinium Avenue Hotel Limited and Ensco 1154 Limited, resulting in a net gain of $3.78 million. The group’s property, plant, and equipment, which amounted to $418.83 million, mainly consisted of hotel properties. There was an increase of $16.92 million in FY2024 due to the acquisition of a hotel in Edinburgh, United Kingdom. The effect of the appreciation of Pound Sterling and reversal of impairment changes offset by the disposal of hotels in Japan and the United Kingdom and depreciation charges were recognized.
In terms of cash flow, the company saw a decrease in cash and cash equivalents of $32.70 million due to significant cash inflows and outflows. This includes proceeds from the disposal of property, plant, and equipment of $26.43 million and proceeds from disposals of subsidiaries of $11.37 million.
On the outflow side, the company had a net repayment of loans from associated and joint venture companies of $24.45 million, additions to property, plant, and equipment of $40.36 million, and restricted cash pledge for a bank facility of $22.98 million.
The company states that amidst Singapore’s uncertain economic outlook and an uncertain geopolitical landscape under the Trump administration, it will continue to maintain a prudent and steady strategic expansion.
Despite the challenges faced by the hospitality industry, such as high operating and labor costs, elevated interest rates, and an uncertain macroeconomic environment, Heeton will continue to focus on providing high-quality, experiential stays for its guests through its bespoke boutique brand.
Heeton will also continue to participate in land tenders in the local residential market, including government housing schemes, often as part of a consortium. Additionally, the company’s two retail malls are expected to generate steady and recurring income for its property investment business.
The company has declared a final dividend of 0.5 cents per share for the current financial period.
On February 20, shares in Heeton closed at 27 cents, 0.5 cents lower or 1.818% down.