SINGAPORE (Feb 26): SUTL Enterprise today reported a 2% rise in earnings to $2 million from $1.97 million a year ago on lower expenses.
Revenue fell 6% in 4Q to $7.5 million from $8.1 million a year ago, driven by lower sales of goods and services as well as a 42% decline in other income due to the absence of write-back of payables in 4Q16.
These were however offset in part by increased revenue contribution from the membership-related fees and management fees segment, which grew 15% to $1.9 million from $1.6 million previously on the back of more memberships sold, and an increase in management fee income.
Meanwhile, total expenses fell 7% to $5.6 million from $6 million a year ago, driven largely by a reduction in expenses for advertising, publications and events; repair, lower utilities fees due to reduction of electricity rates and the absence of a penalty in FY16 for early termination; and lower property tax due to a revision of property tax assessment by IRAS, among others.
As at end-2017, the group’s net assets attributable to its shareholders was $56.7 million as compared to $54.2 million at end-2016, and includes cash and cash equivalents of $45.1 million compared to $54.2 million the year before.
The latest set of quarterly results brings SUTL’s earnings for FY17 to $4.1 million, up 8% from $3.9 million in FY16.
This has resulted in a 6% increase in earnings per share (EPS) to 4.73 cents for the full year, from 4.46 cents in FY16.
The board has proposed a final cash dividend of 2 cents.
In a mid-day filing, SUTL attributes its increase in earnings for the period under review to its ongoing efforts to optimise operational efficiency, as total expenses for the full year fell 4% to $22.7 million compared to a year ago.
According to executive director and CEO Arthur Tay, the group is currently in close talks with partners on several potential projects, which it hopes to announce in due course, while it seeks opportunities within the region and further afield.
See: SUTL acquires 60% stake in Makham Bay Marina to develop ONE°15 marina club in Phuket
Nonetheless, SUTL says it remains cautiously optimistic about its future growth as it continues to underscore the belief that the rising affluence of the region in which it operates has provided support for a favourable environment for the development of integrated marinas, which in turn will benefit the group’s pipeline of projects.
As at 1.20pm, shares in SUTL are trading 0.7% higher at 71 cents.
