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Singapore, August 13, 2009 - Mainboard-listed Amara Holdings Limited (“Amara” or the “Group”), a homegrown integrated lifestyle group, today announced the Group recorded a 79% increase in revenue to S$64.6 million in 1HFY2009 from S$36.1 million in the corresponding period last year (“1HFY2008”). The higher Group revenue was mainly due to higher sale of property development units. This was partially offset by lower revenue generated from its hotel segment, which is in line with the industry, due to a decrease in visitor arrivals and the consequent reduction in occupancy rate and revenue per available room during the period under review.
For 1HFY2009, profit before tax improved 9% to S$9.0 million, in line with the increase in revenue. This was despite a 75% decline in Other Income to S$1.1 million for 1HFY2009, from S$4.2 million in 1HFY2008 due to gain on disposal of joint venture entity in 1HFY2008.
The Group achieved a 10% drop in administrative expenses in 1HFY2009 to S$10.6 million due to costs rationalisation and the absence of expenses relating to the joint venture entity that was disposed in 2008. Lower hotel operating costs, lower bad and doubtful receivables as well as exchange loss and fair value loss of financial assets in 1HFY2009, resulted in a 30% drop in Other Expenses to S$8.0 million. Finance costs also declined 37% as a result of lower interest rate and reduced borrowings.
The Group’s borrowings as at June 30, 2009 reduced to S$169.9 million from S$196.4 million as at December 31, 2008. The lower borrowings were mainly due to the repayment of loans from cash flow generated from the property development segment in 1HFY2009. The Group maintained a healthy cash and bank balances of S$27.2 million as at June 30, 2009.
Said Mr Albert Teo, Chief Executive Officer of Amara: “We have seen an improvement in the mass market and mid-price residential segment, resulting in higher sales of property development units at The Linear. We have noted the positive sentiments in the residential property market and will continue to monitor the market closely for our upcoming prime property launch at Killiney Road.
“With a lower gearing coupled with a healthy cash position, we are confident of weathering the downturn and emerging stronger when the economy recovers.”
Outlook
The Singapore Tourism Board expects a 10% decline in visitor arrivals in 2009 as compared to 2008 and hence the hospitality industry remains challenging. On the other hand, the pick up in the mass market and mid-price residential segment during the second quarter has given rise to cautious optimism.
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