Heeton Holdings (5DP) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 7.8% to $67.9m, but a $2.0m loss before tax replaced FY2022 profit before tax of $6.7m, mainly as higher interest and operating costs weighed on results.

• Cash and cash equivalents were $62.3m at year-end, up 4.2% YoY; the hospitality recovery supported revenue, while the outlook remained exposed to cost and macroeconomic pressures.

Financial highlights

• Revenue was $67.857m vs $62.926m in FY2022; loss before tax was $1.952m vs profit of $6.663m.

• Net loss was $6.577m vs net profit of $4.403m; loss attributable to owners was $3.180m, with EPS of -0.65 cents vs 0.44 cents.

• Finance expenses rose to $27.392m from $18.709m; income tax expense was $4.625m vs $2.260m.

• Net cash used in operating activities was $8.830m vs $5.489m generated in FY2022; year-end cash and cash equivalents increased to $62.323m from $59.791m.

Outlook and guidance

• 2024 priorities include selective acquisitions, expansion into new markets, real estate asset acquisitions and disposals, digitalisation and ESG initiatives.

• Cost actions include improving operating efficiency, automation, disciplined spending and reducing borrowings; hotel marketing and operating efficiency remain priorities.

• Hotel portfolio growth plans include progressing the five-star hilltop hotel in Paro, Bhutan, and pursuing strategic acquisitions.