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Condensed Interim Financial Statements For The Six Months And Financial Year Ended 31 March 2024

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Condensed Interim Consolidated Income Statements For the six months and financial year ended 31 March 2024

Condensed Interim Consolidated Statements of Comprehensive Income For the six months and financial year ended 31 March 2024

Condensed Interim Balance Sheets As at 31 March 2024

Review Of Performance

Condensed interim consolidated income statements

For the twelve months ended 31 March 2024, the Group would have generated a profit before tax of S$56.1 million if the fair value loss on the investment property mainly in London, 8 Finsbury Circus of S$81.5 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 twelve months ended 31 March 2024 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.
• Operating profit was impacted by the absence of contribution from Stamford Plaza Auckland which was divested in prior year.

Property development

• During the twelve months ended 31 March 2024, 10 units in Macquarie Park Village were settled, compared to 5 units during the twelve months ended 31 March 2023.

Property investment

• The higher revenue and operating profit for the twelve months ended 31 March 2024 was mainly due to appreciation of the Sterling Pound against the Singapore Dollar.

Others

• The lower operating profit for the twelve months ended 31 March 2024 was mainly due to the non-recurring profit sharing incentives of S$17.9 million in the previous financial year.

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 5.75% in March 2024 from 4.53% 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 increase in cash and bank balances of S$41.1 million in the twelve months ended 31 March 2024, mainly due to:

• cash inflows from operating activities,
• higher interest income earned, and
• refund of over paid tax from Australian Taxation office.

Commentary

• The hotels continue to face competition, coupled with rising operating and manpower costs, and a tight labour market, an endemic situation that is experienced globally.
• The commercial tenancy situation for the Group’s property in London remains stable. Fortunately, we have repaid all loans and are not exposed to interest rate risk. While the valuation of the property is dependent on the interest rate environment, this is non-cash in nature.
• The Group will continue to explore acquisition opportunities. However, timing of acquisitions is crucial. In the meantime, surplus cash is placed only in reputable banks to earn interest income. We balance the desire for higher income versus the management of credit risk, hence, we do not necessarily chase after the highest interest rates.
• The Group has commenced certain development and restoration works to the heritage building in Stamford Plaza Brisbane, as required by the State Government of Queensland.