STAMFORD Land : H07 0% reported on Friday (May 24) an 88.9 per cent decline in net profit for its second half, in the absence of disposal gains in the year-ago period.
Net profit for the six months ended Mar 31 fell to S$20.6 million from S$184.5 million in the same period a year ago. On a per-share basis, earnings fell to S$0.0138 from S$0.1235 over the same period.
A final dividend of S$0.005 per share was proposed, similar to the final dividend a year earlier. However, there was no special dividend of S$0.01 per share, unlike the previous financial year.
The company’s lower net profit was mainly due to the absence of disposal gains. It recorded a S$218.6 million gain on property plant and equipment in H2 FY23, but had no such gains in the current period.
Revenue for the six months grew 2.8 per cent to S$83.8 million. For the full year, revenue was up 3.4 per cent to S$157 million.
Revenue from hotel owning and management rose 1.3 per cent to S$124.4 million for the full year.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The higher revenue for the full year was largely due to the resumption of operations of the Stamford Plaza Brisbane in November 2022, the group said. It added that improved room and occupancy rates in most of the hotels also contributed to the higher revenue.
However, the group was affected by higher staff costs, energy costs and other direct costs, as well as depreciation of the Australian Dollar against the Singapore Dollar.
Operating profit from hotel owning and management fell 30.3 per cent in 2024 to S$15.5 million. Stamford Land said the profit was also affected by the absence of contribution from Stamford Plaza Auckland, which was divested in the prior year.
In terms of outlook, Stamford Land said hotels continue to face competition, coupled with rising operating and manpower costs.
“The group will continue to explore acquisition opportunities. However, timing of acquisitions is crucial. In the meantime, surplus cash is placed only in reputable banks to earn interest income,” it said.
Shares of Stamford Land rose 1.3 per cent to close at S$0.39 on Friday, before the announcement.
