GuocoLeisure, formerly Brierley, lifts annual profit 61.2%

GuocoLeisure, formerly Brierley, lifts annual profit 61.2%

Aug. 30 (BusinessDesk) – GuocoLeisure Ltd., the diversified investment company previously named Brierley Investments, said annual net profit rose 61.2%, mainly due to better performances in both its hotel and gaming operations.

GuocoLeisure's net profit for the year ended June 30 rose to US$79.8 million (NZ$94.3 million) from US$49.5 million the previous year. Revenue rose 18.1% to US$391.1 million.

While GuocoLeisure is still listed on NZX, its primary listing is on the Singapore Stock Exchange.

Its report showed its hotels profit before financing costs rose to US$61.2 million from US$46.7 million, reflecting improved average room rates. The hotels, operating under the Guoman and Thistle brands, are predominantly in Britain but the group is expanding in Malaysia and China.

Gaming profit of US$10.6 million compared with a US$5 million loss the previous year which was due to higher gaming win margin, the company said. It owns the Clermont Club in London's Mayfair.

Its royalty income from the Bass Strait oil and gas production in Australia increased 15% to US$44.4 million from US$38.6 million, “principally due to higher royalties received as a result of higher average crude oil and gas prices” as well as the appreciation of the Australian dollar against the US dollar.

A 145.1% rise in other operating income to US$22.3 million was due mainly to a cash distribution from the group's investments, GuocoLeisure said.

On the outlook, the company said: “The situation in Europe as well as slowing growth trends in the US have reignited fears of a double dip recession in major Western economies and a potentially long period of economic recovery.

“While business performance has improved year-on-year, the group remains vigilant and mindful of macro-economic risks that may pose a challenge to its growth plans.”

The company will pay a first and final dividend of 2 Singapore cents per share (1.96 New Zealand cents), up from 1.5 cents the previous year.

GuocoLeisure's shares last traded on NZX at 53 cents on August 24. While above their recent 49 cent low, they have been trending lower since peaking at 84 cents in March.

(BusinessDesk)

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