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SUTL Enterprise Q3 profit falls 35% to S$0.6m on higher costs for new marina club

MARINA developer SUTL Enterprise Limited's third-quarter net profit tumbled 35 per cent to S$612,000 from S$943,000 a year ago following higher costs for its upcoming ONE°15 Marina Puteri Harbour club in Malaysia.

The group incurred higher headcount amid ongoing construction for the marina club, while cost of activities in relation to the launch, such as advertising, publication and event expenses, also increased.

For the quarter ended Sept 30, earnings per share fell to 0.71 Singapore cent from 1.09 cents.

Revenue dropped 4 per cent to S$7.7 million from S$8 million, mainly due to lower membership-related fees andmanagement fees, and absence of an insurance claim from Q3 2018, said SUTL.

The lower revenue was offset in part by a 7 per cent increase in sales of goods and services to S$5.1 million compared to S$4.8 million in the third quarter of 2018.

No dividend was declared, same as the year-ago period.

SUTL said that as at Sept 30, it maintains a healthy financial position with cash and cash equivalents of S$45.5 million, up from S$45.4 million as at Dec 31, 2018.

Its executive director and chief executive officer, Arthur Tay, said: “SUTL Enterprise continues to make headway in its ongoing expansion plans.

"With the global leisure boat market forecasted to reach US$56.26 billion by 2026, we are optimistic about the longer-term potential of our business as we venture forward with our multi-pronged approach to regional growth."

SUTL shares were unchanged at S$0.535 as at 2pm.