Aspial Corporation (A30) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 18.5% YoY to S$600.0m; pre-tax loss widened to S$18.5m from S$3.5m, largely due to real estate losses.

• 2H revenue increased 24.6% YoY to S$316.8m; pre-tax loss narrowed to S$5.0m from S$13.5m in 1H, and adjusted for FX loss and one-off costs, 2H recorded a S$0.6m profit.

Financial highlights

• FY2023 loss after tax was S$17.1m versus S$11.7m; basic EPS after perpetual-security distributions was -1.08 cents versus -0.68 cents.

• Net asset value increased to S$417.7m from S$312.3m; total equity rose to S$503.1m from S$396.4m.

• Net cash from operating activities was S$36.5m, up from S$22.3m; cash and bank balances were S$53.8m at year-end.

Outlook and guidance

• Barring unforeseen circumstances, improved financial performance is expected in FY2024; anticipated policy-rate cuts in 2H 2024 could lower financing costs across core businesses.

• Real estate performance, excluding FX and revaluation gains or losses, is expected to improve through premium apartment sales, hotel revenue growth, lower holding costs and lower interest expenses.

• Australia 108 contracted sales in early 2024 are expected to add to FY2024 net sales proceeds; Malaysia hotel capacity is expected to reach 278 Citadines Connect keys by end-2024.