Far East Orchard's full-year profit down 94%

Nisha Ramchandani

Published Thu, Feb 25, 2021 · 10:26 PM

FAR East Orchard's net profit for the financial year ended Dec 31, 2020 plunged about 94 per cent year-on-year to S$1.54 million as the pandemic impacted its hospitality business.

Revenue was 28.1 per cent lower at S$112.21 million while earnings per share worked out to 0.35 Singapore cent, down from 5.95 cents a year ago.

The decrease in revenue from its hospitality business was partly offset by higher revenue from the student accommodation properties in the United Kingdom, arising from full-year contributions from five purpose built student accommodation properties that were acquired in 2019.

The board is recommending a dividend of three Singapore cents per share, down from six cents a year ago.

Far East Orchard expects the group's financial performance for FY21 to remain under pressure, since its hospitality business segment is the biggest contributor to recurring income. It highlighted that border closures remain largely in place to international travellers, with mass travel unlikely to take off in a big way this year.

The counter closed at S$1.07 on Thursday, up one Singapore cent or 0.94 per cent.