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Condensed Interim Financial Statements For The Six Months Ended 30 September 2023
Financials Archive
Condensed Interim Consolidated Income Statement
For the six months ended 30 September 2023
Condensed Interim Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2023
Condensed Interim Balance Sheets
As at 30 September 2023
Review Of Performance
Condensed interim consolidated income statements
For the six months ended 30 September 2023, the Group would have generated a profit
before tax of S$31.0 million if the fair value loss on the investment property in London, 8
Finsbury Circus of S$71.2 million was excluded. The fair value loss on investment property
is a non-cash item and does not have an impact on the operating cash flows of the Group.
Hotel owning and management
- Revenue was higher despite the divestment of Stamford Plaza Auckland on 6 December
2022. The higher revenue for the six months ended 30 September 2023 was largely due
to the resumption of operations in November 2022 of the Stamford Plaza Brisbane. The
hotel was closed due to flood between March 2022 to October 2022. The improved room
and occupancy rates in most of the hotels also contributed to the higher revenue.
- The higher revenue was impacted by increases in staff costs, consumables used, energy
costs, commission and reservation expenses and other direct costs, as well as
depreciation of the Australian Dollar against the Singapore Dollar.
Property development
- During the six months ended 30 September 2023, 3 units in Macquarie Park Village were
settled, compared to 2 units during the six months ended 30 September 2022.
Property investment
- The higher revenue and operating profit for the six months ended 30 September 2023
was mainly due to appreciation of the Sterling Pound against the Singapore Dollar.
Others
- The higher operating profit for the six months ended 30 September 2023 was mainly due
to the Executive Chairman voluntarily waiving S$6.5 million of profit sharing incentives
that was contractually due to him, partially offset by increase in administrative costs and
professional fees.
Condensed interim consolidated balance sheets
The fair value loss of the Group’s investment property in London was a result of an increase
in capitalisation rate to 5.5% in September 2023 from 4.5% in March 2023. Fair value of an
investment property varies inversely with the capitalisation rate.
Condensed interim consolidated statements of cash flows
The Group recorded a decrease in cash and bank balances of S$15.3 million in the six
months ended 30 September 2023, after considering cash inflows from operating activities
and interest income received, mainly due to:
- payment of dividends,
- payment of lease liability; and
- purchase of plant and equipment.
Commentary
- The hotels continue to face competition, coupled with rising operating and manpower
costs, and a tight labour market.
- The commercial tenancy situation for the Group’s property in London remains stable.
However, the valuation of the property is dependent on the interest rate environment.
- The Group will continue to explore acquisition opportunities. However, timing of
acquisitions is crucial. In the meantime, surplus cash is placed in reputable banks to
earn interest income.