Heeton Holdings has released its financial results for the second half of the fiscal year 2024, ending on December 31, 2024. The company’s earnings saw a significant increase of 221% compared to the same period last year, reaching $3.85 million. Despite this positive development, the group remains in a loss-making position for the entire fiscal year 2024.
In terms of earnings per share, the second half of the fiscal year saw a significant rise to 0.79 cents per ordinary share. However, for the full fiscal year 2024, earnings per share were a negative 0.28 cents per share.
The group’s revenue for the second half of the fiscal year also showed a notable improvement, growing by 10.5% year-on-year to reach $41.1 million. This was primarily driven by an increase in rental income from investment properties, hotel operation income, and management fees. For the entire fiscal year 2024, the group’s revenue went up by 15.2% year-on-year, reaching $78.2 million.
One of the main contributors to this growth was higher occupancies in the United Kingdom and an increase in rental rates for the group’s investment properties. Additionally, during the fiscal year 2024, Heeton Holdings disposed of some of its subsidiaries, resulting in a net gain of $3.78million.
The company’s property, plant, and equipment assets amounted to $418.83 million, mainly comprising hotel properties. There was an increase of $16.92 million in these assets during the fiscal year 2024, primarily due to the acquisition of a hotel in Edinburgh, United Kingdom. This was offset by the disposal of hotels in Japan and the United Kingdom, as well as reversal of impairment changes and depreciation charges.
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In terms of cash flow, the group experienced a decrease of $32.70 million in cash and cash equivalents due to significant inflows and outflows. This included proceeds from the disposal of property, plant, and equipment of $26.43 million and disposal of subsidiaries of $11.37 million. On the other hand, there were outflows such as 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.
Given the current economic uncertainty and geopolitical situation under Trump’s administration, Heeton Holdings intends to continue its prudent and steady strategic expansion. The group will also focus on maintaining its high-quality, experiential stays for guests amid challenges such as high operating and labour costs, elevated interest rates, and an uncertain macroeconomic environment in the hospitality industry.
Heeton Holdings will continue to participate in land tenders in the local residential market, often as part of a consortium. The company’s two retail malls are also expected to generate steady and recurring income for its property investment business.
The group has declared a final dividend of 0.5 cents per share for the current financial period. On February 20, shares in Heeton closed 1.818% lower at 27 cents.