Heeton Holdings has released their financial report for the 2HFY2024 ended Dec 31, 2024, reporting a 221% year-on-year increase in earnings to $3.85 million. However, the group remains in the red for the full year FY2024.
In the 2HFY2024, the earnings per share stood at 0.79 cents per ordinary share. Meanwhile, for the FY2024, the earnings per share were at a negative 0.28 cents.
The group’s revenue for the 2HFY2024 also saw a positive growth of 10.5% year-on-year, reaching $41.1 million. For the FY2024, the revenue grew by 15.2% to $78.2 million.
Heeton attributes its turnover growth to various sources such as rental income from investment properties, hotel operations, and management fees. The increase in revenue for the full year was primarily due to higher occupancy rates in the United Kingdom and an increase in rental rates for the group’s investment properties.
During the reporting period, the group also disposed of some of its subsidiaries, including its 70% stake in Gloucester Corinium Avenue Hotel Limited and Ensco 1154 Limited, resulting in a net gain of $3.78 million.
An essential factor to take into account when considering investing in a condo in Singapore is the government’s property cooling measures. In order to ensure a steady real estate market and prevent speculative buying, the Singaporean government has implemented various measures throughout the years. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may impact the initial profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a safer environment for investors.
The depreciation of Pound Sterling and reversal of impairment changes were offset by the disposal of hotels in Japan and the United Kingdom, resulting in an increase of $16.92 million in property and equipment to $418.83 million. This was driven by the acquisition of a hotel in Edinburgh, United Kingdom.
In terms of cash flow, the group saw a decrease of $32.70 million in cash and cash equivalents, mainly due to significant cash inflows and outflows. This includes proceeds from the disposal of property and equipment, as well as subsidiaries.
On the other hand, cash outflows included net loan repayments from associated and joint venture companies, additions to property and equipment, and restricted cash pledged for bank facilities.
Given the uncertain economic outlook brought about by the current geopolitical climate, Heeton intends to maintain a prudent and steady strategic expansion.
The hospitality industry continues to face challenges such as high operating and labor costs, elevated interest rates, and an unpredictable macroeconomic environment. In light of this, Heeton aims to strengthen its brand as a bespoke boutique offering top-notch, experiential accommodations for its guests.
Heeton is also actively participating in land tenders for residential developments, often as part of a consortium. Along with this, the group’s two retail malls are expected to continue generating steady and recurring income for its property investment business.
In line with this, the group has declared a final dividend of 0.5 cents per share for the current financial period.
On Feb 20, shares in Heeton closed at 27 cents, 1.818% down from its previous closing price of 27.5 cents.