Heeton Holdings saw their earnings for the second half of the financial year 2024 ended on December 31, 2024 increase by 221% compared to the same period last year, to reach $3.85 million. However, for the full fiscal year, the group is still facing a loss.
In terms of earnings per share, the 2HFY2024 showed a gain of 0.79 cents per ordinary share. However, for the entirety of FY2024, earnings per share were negative at a value of 0.28 cents per share.
Heeton’s revenue for 2HFY2024 grew by 10.5% compared to the previous year, bringing in a total of $41.1 million. For the entire year of FY2024, revenue grew even further by 15.2% year-on-year to reach $78.2 million.
According to the group, their turnover for 2HFY2024 was mainly generated from rental income from investment properties, hotel operations, and management fees. This trend continued for the entire year, with turnover increasing by 15.2% due to higher occupancies in the United Kingdom and a rise in rental rates for the group’s investment properties.
Investing in a Singapore condo has become an increasingly sought-after option for both local and foreign investors. This is mainly due to the country’s strong economy, stable political climate, and excellent standard of living. The real estate market in Singapore is rich with opportunities, and condos are particularly appealing for their convenient location, amenities, and potential for profitable returns. If you’re considering investing in a Singapore condo, read on to discover the advantages, important factors to keep in mind, and essential steps to take. Don’t miss out on the chance to invest in a Singapore Condo.
During FY2024, the group sold off certain subsidiaries, including its 70% interest in Gloucester Corinium Avenue Hotel Limited and Ensco 1154 Limited. This resulted in a net gain of $3.78 million. Property, plant, and equipment, which includes mainly hotel properties, also saw an increase of $16.92 million in FY2024 due to the acquisition of a hotel in Edinburgh, United Kingdom. This was offset by the disposal of hotels in Japan and the United Kingdom, as well as depreciation charges.
In terms of cash flow, the group saw a decrease of $32.70 million in cash and cash equivalents due to major cash inflows and outflows. These included proceeds from the disposal of property, plant, and equipment of $26.43 million, as well as proceeds from the disposal of subsidiaries of $11.37 million. On the other hand, there were also cash outflows such as a net repayment of loans from associated and joint venture companies amounting to $24.45 million, additions to property, plant and equipment of $40.36 million, and a restricted cash pledge for a bank facility of $22.98 million.
Given the greater uncertainty in Singapore’s economic outlook as well as the uncertain geopolitical landscape under the Trump administration, the group plans to maintain a prudent and steady strategic expansion.
As the hospitality industry continues to face challenges such as high operating and labor costs, elevated interest rates, and an unpredictable macroeconomic environment, Heeton will focus on providing bespoke boutique brands that offer high-quality, experiential stays for its guests.
Heeton will also continue to participate in land tenders in the local residential market, often as part of a consortium. Despite this, Heeton’s two retail malls are expected to generate steady and recurring income for its property investment business.
The group has declared a final dividend of 0.5 cents per share for the current financial period. Shares in Heeton closed 0.5 cents lower, down 1.818%, at 27 cents on February 20.