Singapore, 22 February 2024 – Heeton Holdings Limited, a Singapore-listed company specializing in property development, investment, and hospitality, has announced its unaudited financial results for the full year ended 31 December 2023. The Group reported a net loss of S$6.58 million, a significant downturn from the S$4.40 million net profit recorded in FY2022, attributed to rising finance costs, impairment charges, and macroeconomic headwinds.
Financial Performance Highlights
Group revenue rose 7.8% year-on-year to S$67.86 million, driven by stronger hotel operations in the United Kingdom. However, operating profit fell marginally by 0.3% to S$17.54 million, weighed down by inflationary pressures and higher interest expenses. Finance costs surged 46.4% to S$27.39 million due to elevated interest rates and additional term loans.
Notable one-off items included a S$3.20 million fair value gain on investment securities and a S$4.50 million net gain from revaluing investment properties, offset by S$1.93 million in impairment losses on UK-based assets and a S$1.66 million impairment on an associated company. The Group’s hospitality segment faced persistent challenges, with operating expenses climbing amid global inflation.
The Board has proposed a final dividend of 0.375 cents per share (1-Tier tax exempt), unchanged from FY2022. Payment and books closure dates will be announced later.
Balance Sheet and Cash Flow
Total assets stood at S$975.72 million as of 31 December 2023, with property, plant, and equipment accounting for 41% (S$401.91 million). Investment properties grew to S$222.88 million, reflecting fair value adjustments. The Group strengthened its liquidity with S$62.32 million in cash and equivalents, up S$1.79 million year-on-year, supported by loan repayments from associates and new bank borrowings.
Debt levels remained elevated, with S$347.64 million in bank term loans and S$53.80 million in outstanding bonds. The Group’s net asset value per share dipped slightly to 87.17 cents (FY2022: 87.41 cents).
Strategic Outlook
Despite macroeconomic uncertainties, Heeton remains cautiously optimistic for 2024. The Group plans to focus on domestic property development projects in Singapore, leveraging its participation in government housing tenders. Its hospitality division will prioritize cost management and operational efficiencies, particularly in Japan and Thailand, where its boutique hotel brand, Heeton Concept Hotel, is gaining traction.
Chief Executive Officer Mr. Hoh Chin Yiep stated, “While FY2023 presented challenges, our diversified portfolio and prudent financial management provide resilience. We are actively exploring strategic opportunities to drive long-term growth, supported by steady rental income from our retail assets and recovery in travel demand.”
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Established in 1976 and listed on Singapore Stock Exchange in September 2003, Heeton Holdings Limited is a real estate company focused on property development, investment and management, and hospitality.
