Superbowl Holdings profit up 73.2% to $12.8m

Solid FY12 performance for property investment group.

In a release, Superbowl Holdings reported a 73.2% rise in full year net profit attributable to shareholders to $12.8 million for the financial year ended 31 December 2012 (“FY12”), from $7.4 million a year ago (“FY11”). Full-year revenue, at $17.1 million, was relatively unchanged from that of FY11. 

For the fourth-quarter ended 31 December 2012 (“4Q12”), the Group reported a net profit attributable to shareholders of $3.2 million on revenue of $4.5 million, as compared to a net profit attributable to shareholders of $2.4 million on revenue of $4.4 million in the previous corresponding period (“4Q11”). 

Earnings per share reported for the full year was 3.95 cents, rising 73.2% from 2.28 cents a year ago, while that for 4Q12 was 0.98 cents, registering a 30.7% increase from 0.75 cents in 4Q11.

For FY12, the Group recorded improved revenue contribution from its bowling business following the opening of a new bowling centre at SAFRA Toa Payoh in November 2012. The increase was nevertheless eroded by declines in revenue contribution from its Funworld amusement centre and SuperCue billiard businesses. Revenue from the property rental business was relatively stable, contributing about 50%, or $8.6 million, to total revenue. 

The Group recognised a share of profit amounting to $8.1 million, mainly from its 91%-sold joint venture residential project, the Beverly, which has received its TOP in October 2012. A second joint-venture residential project, Treasure on Balmoral, has also received its TOP. 

Overall, the Group generated a positive cash flow of $1.97 million and $5.24 million from its operations in 4Q12 and FY2012 respectively, and emerged from FY2012 in a stronger position, with total shareholder equity standing at $140.6 million, a 4.9% increase from $134.0 million reported a year ago. Net asset value per share was also higher, at 34.8 cents, compared to 31.1 cents in FY11.

In view of Group’s positive performance, the Board of Directors has proposed a first and final tax-exempt dividend of 0.5 cent per ordinary share. This is double the 0.25 cent per ordinary share paid out for FY11, and translates to a payout ratio of 12.7%.

Leveraging Singapore’s position as a destination of choice for both leisure and business, SuperBowl has made its debut in the hospitality industry with the opening of one of its two hotels in a hotel-cum-commercial complex in which it holds a 50% stake. The hotel, Days Hotel Singapore at Zhongshan Park, opened for business on 31 December 2012. The Group is now gearing up to open its second hotel, Ramada Singapore at Zhongshan Park, as well as the rest of the development comprising an office and retail complex, by the middle of the year.

Along with this, it is also monitoring the market for an opportune time to officially launch its joint-venture residential development, Treasure on Balmoral. Together, these operations along with the Group’s recreational and property rental business (which currently enjoys a 97% occupancy rate), should bode well for SuperBowl and enable it to sustain a profitable performance going forward.