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Heeton Holdings reported a significant increase in earnings for the second half of FY2024, ended Dec 31, 2024. The group recorded a 221% year-on-year growth, with earnings reaching $3.85 million. However, for the full financial year, the group is still making losses.
In the second half of FY2024, earnings per share amounted to 0.79 cents per ordinary share, while for the whole year, it was a negative 0.28 cents per share. This increase in earnings can be attributed to Heeton’s revenue growth of 10.5% year-on-year to $41.1 million in the second half of FY2024. For the full year, the revenue was $78.2 million, with a year-on-year increase of 15.2%.
The group’s revenue for the second half of FY2024 was mainly derived from rental income from investment properties, hotel operation income, and management fees. The overall revenue for the year ended Dec 31, 2024, saw a 15.2% year-on-year growth due to higher occupancies in the United Kingdom and an increase in rental rates for the group’s investment properties.
During the year 2024, Heeton disposed of some of its subsidiaries, primarily its 70% interest in Gloucester Corinium Avenue Hotel Limited and Ensco 1154 Limited, which resulted in a net gain of $3.78 million. The group’s property, plant, and equipment, which amounted to $418.83 million, primarily included hotel properties. There was an increase of $16.92 million in FY2024, mainly due to the acquisition of a hotel in Edinburgh, United Kingdom. However, the effect of the appreciation of Pound Sterling and reversal of impairment changes was offset by the disposal of hotels in Japan and the United Kingdom, and depreciation charges that were recognized.
In terms of cash flow, the group experienced a decrease in cash and cash equivalents of $32.70 million due to some significant cash inflows and outflows. This includes proceeds from the disposal of property, plant, and equipment of $26.43 million and proceeds from disposals of subsidiaries of $11.37 million. The cash outflows consisted of a net repayment of loans from associated and joint venture companies of $24.45 million, additions to property, plant, and equipment of $40.36 million, and restricted cash pledge for bank facilities of $22.98 million.
In view of the uncertain economic outlook for Singapore and the geopolitical changes brought about by the Trump administration, Heeton will continue to expand strategically and cautiously. As the hospitality industry faces challenges such as high operating and labor costs, increased interest rates, and an uncertain macroeconomic environment, the group remains committed to providing high-quality, experiential stays for its guests through its bespoke boutique brand.
Heeton also plans to participate in land tenders in the local residential market, such as government housing schemes, often as part of a consortium. At the same time, the group’s two retail malls are expected to continue generating recurring income for its property investment business.
For the current financial period, the group is declaring a final dividend of 0.5 cents per share. On Feb 20, shares in Heeton closed 0.5 cents or 1.818% lower at 27 cents.