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GL Limited Q1 profit down 65% at US$11m on weaker UK hotel revenues
PROPERTY group GL Limited, the former GuocoLeisure, said net profit for its first quarter ended Sept 30 was US$11 million, down 65 per cent from US$31.4 million a year ago.
Revenue was down 15 per cent to US$97.8 million from US$115.1 million a year ago. Lower revenue was mainly due to its hotel and gaming segments, and was also due to a weaker sterling. GL operates hotels in London, owns a private gaming club, and also receives oil and gas royalties. Its oil and gas segment recorded higher revenue for the quarter.
There were other operating expenses of US$8.5 million in the quarter, mainly due to the provision for a legal claim against a UK subsidiary which provided a guarantee for a hotel property previously leased and operated by another subsidiary.
Looking ahead, GL said that while the weak British pound could boost travel to the UK, there will be a negative translation effect for its financial statements.
"The group will continue with its hotel refurbishment programme and expects to launch three refurbished hotels in the next year, and maintains a cautious outlook," it said.
GL last traded at S$0.79, down a cent, before results were out.