Heeton Holdings Reverses Black 2Hfy2024 221 Y O Y Increase Earnings Still Loss Making Fy2024
Heeton Holdings, a Singapore-based real estate company, has reported a significant increase in earnings for its second half of financial year 2024 that ended on December 31, 2024. The company recorded a 221% year-on-year increase in earnings, amounting to $3.85 million. However, for the full year of FY2024, Heeton still reported a loss. Earnings per share for the second half of FY2024 stood at 0.79 cents per ordinary share, while for the full year, it recorded a negative 0.28 cents per share.
The revenue for the second half of FY2024 grew by 10.5% year-on-year to $41.1 million, while for the full year, it grew by 15.2% y-o-y to $78.2 million. This increase in revenue was mainly due to the group’s rental income from investment properties, hotel operation income, and management fees.
Heeton attributed the growth in revenue to higher occupancies in the United Kingdom and an increase in rental rates for its investment properties. During the financial year 2024, the company also disposed of some of its subsidiaries, resulting in a net gain of $3.78 million.
Its property, plant, and equipment, which amounted to $418.83 million, mainly comprised of hotel properties. This segment saw an increase of $16.92 million in FY2024, primarily due to the acquisition of a hotel in Edinburgh, United Kingdom. The appreciation of Pound Sterling and reversal of impairment charges offset the disposal of hotels in Japan and the United Kingdom, and depreciation charges recognized.
In terms of cash flow, the company reported a decrease in cash and cash equivalents of $32.70 million. This was influenced by major cash inflows and outflows, including proceeds from the disposal of property, plant, and equipment of $26.43 million and proceeds from disposals of subsidiaries of $11.37 million.
On the other hand, the company had 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 facility of $22.98 million.
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Given the uncertain economic outlook of Singapore and an uncertain geopolitical environment due to Trump’s administration, Heeton aims to maintain a prudent and steady strategic expansion. The hospitality industry continues to face challenges such as high operating and labour costs, elevated interest rates, and an uncertain macroeconomic environment. However, Heeton plans to continue being a bespoke boutique brand, offering high-quality and experiential stays for its guests.
Heeton also plans to participate in land tenders in the local residential market, such as government housing schemes, often as part of a consortium. Its two retail malls are also expected to generate steady and recurring income for its property investment business.
The company is declaring a final dividend of 0.5 cents per share for the current financial period. On February 20, shares in Heeton closed at 27 cents, a decrease of 0.5 cents or 1.818%.