Property developer Heeton Holdings has reported a significant increase in earnings for the second half of its financial year ending December 31, 2024. The company recorded a 221% year-on-year rise, with earnings reaching $3.85 million.
However, despite this positive growth, Heeton Holdings remains in a loss-making position for the full financial year of 2024. In the second half of the year, the company’s earnings per share were 0.79 cents per ordinary share, while for the entire year it was a negative 0.28 cents per share.
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The increase in earnings for the second half of the year can be attributed to a 10.5% year-on-year growth in revenue to $41.1 million. For the full year, revenue grew by 15.2% to $78.2 million.
According to Heeton Holdings, the increase in revenue was mainly due to rental income from its investment properties, hotel operations, and management fees. The company also saw higher occupancies in the United Kingdom and an increase in rental rates for its investment properties.
In addition, Heeton Holdings also disposed of some of its subsidiaries during the year, resulting in a net gain of $3.78 million. The company’s property, plant, and equipment, which mainly consists of hotel properties, also saw an increase of $16.92 million due to the acquisition of a hotel in Edinburgh, UK. This was partially offset by the disposal of hotels in Japan and the UK, and depreciation charges.
The company’s cash flow for the year saw a decrease of $32.70 million, mainly due to major cash inflows and outflows. This includes proceeds from the disposal of property, plant, and equipment, as well as proceeds from the disposal of subsidiaries.
Despite the uncertain economic outlook for Singapore and an uncertain political environment under the Trump administration, Heeton Holdings remains committed to a prudent and steady strategic expansion.
In the face of challenges in the hospitality industry such as high operating and labor costs, elevated interest rates, and an unpredictable macroeconomic environment, Heeton Holdings will focus on providing high-quality, experiential stays for its guests.
The company also plans to continue participating in land tenders in the local residential market, often as part of a consortium. In addition, its two retail malls are expected to generate steady and recurring income for its property investment business.
Heeton Holdings has declared a final dividend of 0.5 cents per share for the current financial period.
As of February 20, the company’s shares were trading at 27 cents, down 0.5 cents or 1.818%.