Bonvests profit surges to $56.2m on stronger revenue, revaluation gains

HOTEL and property group Bonvests Holdings' net profit attributable to equity-holders more than doubled to $56.23 million for the year ended Dec 31, from the preceding year's $24.6 million. This came on the back of stronger revenue and revaluation gains on its investment properties.

Revenue for last year rose 11.5 per cent to $183.97 million, as the increase in contributions from the hotel and industrial divisions partly offset lower contributions from the property-rental and investment division.

Revaluation gains from investment properties leapt more than four-fold to $35.75 million from $8.4 million.

This bolstered the group's "other income including interest income" to $39.4 million, which was more than three times 2012's $12.14 million.

Earnings per share for fiscal 2013 were 13.981 cents, up from 6.111 cents in 2012.

Bonvests said in its financial statement yesterday: "The property rental market in Singapore and Tunis is expected to remain stable in the near term."

It added that there was less predictability in its other business divisions.

The hotel division is operating in countries where market conditions are expected to remain challenging, while the industrial division will continue to face competitive market conditions, Bonvests said.

"The performance of the investment division will continue to be affected by volatility of the various stock markets."

The group has awarded the tender to construct its second Maldives hotel. It has also called a tender for the construction of its hotel in Bintan; the evaluation is now underway.

Bonvests has declared a first and final dividend of 1.5 cents in cash, higher than the 1.2 cents declared for fiscal 2012. The proposed dividend is expected to be paid on May 20.