AMARA Holdings on Wednesday (Feb 28) announced a net profit of S$6.5 million for the second half of 2023, up 1.6 per cent from the year-ago period.

The results translate to earnings per share of 1.12 Singapore cents for the half year, up from 1.1 cents a year ago. 

Revenue for the period rose 13.5 per cent to S$65.1 million, versus S$57.3 million in the corresponding half a year ago.

For the full year, the group’s revenue rose 22.7 per cent to S$114.9 million, from S$93.7 million in FY22, while net profit grew 11.3 per cent to S$7.2 million, from S$6.5 million before.

The group said the climb in income was driven by higher revenue from its hotel investment and management segment, as well as sales of its development properties.

However, the cost of properties sold or consumables used rose as well, to S$24.5 million in FY23, from S$21.2 million a year ago, on higher sales and progressive recognition of development costs in the property investment and development segment.

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Meanwhile, staff costs hiked 36 per cent to S$24.7 million, from S$18.2 million in FY22. The group attributed this to an increase in headcount in its hotel investment and management segment.  

Finance costs for FY23 inflated by 45 per cent to S$17.3 million, from S$11.9 million in FY22, on higher interest rates on its bank borrowings.

With that, the board proposed a final cash dividend of 0.5 Singapore cent per share, on a par with the dividend declared in the year-ago period.

The company said it expects to see strong recovery for its hotel segment in 2024, with both international visitor arrivals and tourism receipts set to rise further in the year, with the Singapore Tourism Board forecasting 15 million to 16 million visitor arrivals.

As for its residential properties segment, the company said demand for private residential properties in Singapore is expected to grow at a slower pace in view of the elevated interest rates.

Shares of Amara Holdings closed flat at S$0.605 on Wednesday prior to the results announcement.