Heeton Holdings has announced a significant increase in earnings for the second half of its financial year 2024 (2HFY2024), with a 221% year-on-year (y-o-y) jump to $3.85 million. This follows a loss-making full year for the group ending on December 31, 2024.
In 2HFY2024, the company’s earnings per share (EPS) reached 0.79 cents per ordinary share, while for the entire FY2024, it recorded a negative EPS of 0.28 cents per share.
Heeton’s revenue for 2HFY2024 increased by 10.5% y-o-y to $41.1 million, while for the entire FY2024, it grew by 15.2% to $78.2 million.
The group attributes this revenue growth to a combination of rental income from its investment properties, hotel operations, and management fees. The increase in revenue for the full year can be attributed to higher occupancy rates in the United Kingdom and an increase in rental rates for the group’s investment properties.
During the year, the group also disposed of some of its subsidiaries, resulting in a net gain of $3.78 million. The disposal mainly included its 70% interest in Gloucester Corinium Avenue Hotel Limited and Ensco 1154 Limited.
The company’s property, plant, and equipment, which mainly comprises hotel properties, saw an increase of $16.92 million in FY2024 due to the acquisition of a hotel in Edinburgh, United Kingdom. This was partly offset by the effect of the appreciation of Pound Sterling, reversal of impairment changes, and disposal of hotels in Japan and the United Kingdom.
In terms of cash flow, the group reported a decrease in cash and cash equivalents of $32.70 million due to significant inflows and outflows. This included proceeds from the disposal of property, plant, and equipment of $26.43 million and proceeds from the disposal of subsidiaries of $11.37 million. On the outflow side, the group 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 bank facilities of $22.98 million.
Given the current economic landscape and geopolitical uncertainties under the Trump administration, the group plans to maintain a prudent and steady strategic expansion.
Heeton’s focus on being a boutique brand offering high-quality, experiential stays for guests will continue, as the hospitality industry faces challenges such as high operating and labor costs, elevated interest rates, and an uncertain macroeconomic environment.
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Although the group continues to participate in land tenders for local residential projects, it will also benefit from steady and recurring income from its two retail malls.
The company has declared a final dividend of 0.5 cents per share for the current financial period.
On 20th February, shares in Heeton closed at 27 cents, down by 0.5 cents or 1.818%.