Tax write-back lifts SuperBowl Q4 profit

SUPERBOWL Holdings fourth-quarter net profit more than doubled to $6.58 million from $3.18 million a year ago, boosted by a tax write-back.

The company reported $3.6 million in tax credit for the three-months ended Dec 31, 2013, against $313,000 in tax expenses a year ago. The tax credit was mainly due to the write back of $3.76 million in tax over-provision for prior years, SuperBowl said.

Profit before tax (PBT) was $2.97 million, down 14.8 per cent from the year-ago period, dragged by higher staff costs and a fair value loss.

Revenue for the period rose 6.3 per cent to $4.77 million.

Earnings per share for the quarter were 2.02 cents, up from 0.98 cent previously. A final dividend of half a cent per share, unchanged from a year ago, was proposed.

For FY2013, SuperBowl's net profit was down 23.7 per cent, from $12.85 million or 3.95 cents per share to $9.81 million or 3.01 cents per share. Revenue, however, gained 6.6 per cent to $18.23 million, mainly driven by its bowling business.

Factors causing net profit to fall include a 53.8 per cent drop in share of profit from joint ventures to $3.76 million, from $8.1 million a year ago. Higher staff cost, other operating expenses and a fair value loss, also ate away at the bottom line. These were partially offset by $3.03 million in tax credit for FY2013 against $1.4 million tax expenses a year earlier.

PBT for the full year was down 52.4 per cent at $6.78 million.

SuperBowl said that it was "bracing itself for cost pressures in its new labour-intensive hospitality business in view of tight labour market conditions."

"To mitigate this, the group will keep a vigilant rein on its costs in the management of its workflow and operations across its business segments, while keeping a lookout for new market or joint venture opportunities to take its business forward," it said.

SuperBowl shares closed unchanged at 75 cents yesterday, before the earnings were announced.