Stamford Land Corporate Ltd

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Condensed Interim Financial Statements For The Six Months Ended 30 September 2023

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Condensed Interim Consolidated Income Statement For the six months ended 30 September 2023

Financials

Condensed Interim Consolidated Statement of Comprehensive Income For the six months ended 30 September 2023

Financials

Condensed Interim Balance Sheets As at 30 September 2023

Financials

Review Of Performance

Condensed interim consolidated income statements

Financials

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.