Tax benefit doubles former Brierley company's profit
Former Brierley Investments diversified investment company now known as GuocoLeisure says net profit for the three months ended March 31 more than doubled to $US19.4m.
BUSINESSDESK: GuocoLeisure, the diversified investment company previously named Brierley Investments, said net profit for the three months ended March 31 more than doubled to $US19.4 million, boosted by a tax benefit relating to the restructuring of two British hotels.
Before tax, profit for the three months fell to $US3.3m from $US13.5m, reflecting higher operating costs such as personnel expenses and higher raw materials and consumables costs in its hotels.
The Singapore-listed company's lower pre-tax profit was despite revenue rising 2.6%, reflecting an 8% rise in hotel revenue.
GuocoLeisure said personnel expenses rose mainly because it expanded its sales and marketing teams for its British hotel operations.
The company's income from its Bass Strait oil and gas royalty in Australia rose 8.8% to $US11.1m, reflecting higher average oil and gas prices.
Other operating income fell to $US2.3m from $US14.2m in the year earlier quarter, reflecting a cash distribution from the group's investments in the year-earlier quarter.
Net profit for the nine months ended March 31 rose 23.6% to $US56m, again reflecting the tax benefit.
GuocoLeisure said its net assets at March 31 were 2.6% higher than at June 30 last year at $US1.13 billion, mainly reflecting increased earnings.
Cashflow for the nine months ended March 31 fell to $US16.1m from $US24.2m, mainly because of spending on hotel refurbishment and payment of a higher dividend.
The company said the continuing Eurozone crisis and the double-dip recession in Britain have adversely impacted its hospitality business.
“Trends for the rest of the year are mixed, though the business is expected to benefit from the run up to the Summer Olympics in London.”
GuocoLeisure's shares last traded on NZX at 57 cents, down from their most recent high at 63 cents in February but well above October's 49 cent low.
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Tax benefit doubles former Brierley company's profit
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