Hotel operator and property developer Bonvests Holdings B28 B28 has reported earnings of $7.2 million for the FY2023 ended Dec 31, 2023, 65.4% lower than its earnings of $20.7 million for FY2022.
Earnings per share for FY2023 stood at 1.785 cents, lower than the 5.161 cents for FY2023.
For the full-year period, revenue increased slightly by 3.7% y-o-y to $216.8 million, mainly due to higher revenue from the group’s hotel division.
Meanwhile, finance costs increased 73.0% y-o-y to $19.198 million in FY2023 as a result of higher interest rates and additional borrowings to fund investments during the period.
Cash and cash equivalents stood at $29.7 million as at Dec 31, 2023.
The group has declared a final dividend of 0.8 cents for FY2023.
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In its outlook, the group notes that its rental division continues to face challenges due to higher operating costs, while market conditions for its hotel division are also expected to remain challenging.
“Despite the recovery in the hotel industry, the increase in the supply of hotels has also resulted in more challenging and competitive market conditions and higher operating costs.
The construction of its Medina hotel in Tunisia is ongoing, and barring any unforeseen circumstances is scheduled for operational completion by mid-2026.
Shares in Bonvests closed unchanged at 96.5 cents on Feb 29.
