Heeton Holdings (5DP) H1 2024 earnings summary

Executive summary

• HY2024 revenue rose 20.9% YoY to S$37.11m, while the net loss narrowed to S$5.52m from S$5.64m.

• Higher UK hotel occupancy and investment-property rental income drove growth; higher interest costs and operating expenses continued to weigh on results.

Financial highlights

• Revenue increased to S$37.11m from S$30.70m; operating profit rose to S$9.24m from S$5.10m.

• Loss before tax was S$4.79m versus S$5.22m; net loss was S$5.52m versus S$5.64m.

• Finance expenses increased 12.7% YoY to S$14.06m, mainly due to higher interest rates on bank borrowings.

• Personnel expenses rose to S$11.48m and depreciation to S$2.92m, reflecting higher hotel occupancy, manpower costs and a newly acquired hotel.

Outlook and guidance

• Cautiously optimistic for H2 2024; plans include prudent cost management, targeted marketing and improved operating efficiencies.

• Elevated interest rates and higher hospitality operating expenses are expected to keep FY2024 hospitality performance muted.

• Strategy includes expanding hospitality, pursuing property tenders through consortia, and exploring industrial, build-to-rent and accommodation opportunities.