1. Heeton Holdings has announced a significant increase of 221% in earnings for the second half of the financial year FY2024, which ended on Dec 31, 2024, with a profit of $3.85 million. However, for the full year FY2024, the group still recorded a loss.
2. In the second half of the financial year, the earnings per share for Heeton Holdings was 0.79 cents per ordinary share. For the full year, the earnings per share were a negative 0.28 cents per share.
3. The company reported a growth of 10.5% year-on-year in revenue for the second half of the financial year, reaching $41.1 million. For the full year, the revenue increased by 15.2% year-on-year, amounting to $78.2 million.
4. According to the group, the increase in revenue for the second half of the financial year was mainly due to rental income from investment properties, hotel operation income, and management fees. This trend continued for the full year with higher occupancies in the United Kingdom and an increase in rental rates for the group’s investment properties.
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5. In 2024, Heeton Holdings disposed of some of its subsidiaries, including its 70% interest in Gloucester Corinium Avenue Hotel Limited and Ensco 1154 Limited. This resulted in a net gain of $3.78 million.
6. The company’s property, plant, and equipment, which mainly comprise hotel properties, increased by $16.92 million in the full year FY2024. This was mainly due to the acquisition of a hotel in Edinburgh, United Kingdom. However, the appreciation of the Pound Sterling and reversal of impairment changes were offset by the disposal of hotels in Japan and the United Kingdom, as well as depreciation charges.
7. In terms of cash flow, the company experienced a decrease in cash and cash equivalents of $32.70 million, mainly due to 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.
8. On the other hand, cash outflows for the period included 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.
9. Given the current uncertainties in the global and local economic environment, Heeton Holdings will maintain a cautious and gradual approach to its strategic expansion.
10. As the hospitality industry continues to face challenges such as high operating costs, labour costs, and interest rates, the company will focus on providing high-quality, experiential stays for its guests as a bespoke boutique brand.
11. Heeton Holdings is also actively participating in land tenders in the local residential market, including government housing schemes. Additionally, its two retail malls are expected to continue generating stable and recurring income for its property investment business.
12. The company has declared a final dividend of 0.5 cents per share for the current financial period.
13. On Feb 20, shares in Heeton Holdings closed at 27 cents, down 1.818% from the previous day’s close.