SuperBowl Holdings (SGX: S48), currently a subsidiary of property developer Hiap Hoe Limited (SGX: 5JK) and the largest provider of indoor sports and recreation facilities in South-East Asia, reported its full year earnings yesterday.
Performance for the Year
SuperBowl had been able to grow its revenue in 2013 by 6.6% to S$ 18.23 million mainly due to the Oct 2012 opening of a new Bowling Centre in SAFRA Toa Payoh in Singapore. The bowling segment ended the year with revenue of S$7.54 million, which is up from S$6.61 million in 2012.
Meanwhile, the company’s property rental segment grew at a slower pace of 3.5% to S$8.86 million, largely on the back of positive rental reversion – the adjustment of rents to suit prevailing market conditions – from its portfolio of properties.
Despite the growth in its top-line, SuperBowl actually reported a 24% decline in profits to S$9.8 million. And, that’s partly due to rising staff costs and ‘other’ operating expenses that came from the opening of the new bowling centre. In addition, the company’s joint-venture property project, The Beverly, brought in much smaller contributions of S$3.76 million (down 56% from 2012) as most of the profit from the project had already been recognized in 2012. The confluence of these factors eventually led to SuperBowl’s shrinking bottom-line.
On a more positive note, SuperBowl was able to pare down its debt fully in 2013 and ended the year with a net cash position of S$33.78 million, compared with only S$2.76 million in 2012.
Going forward, the company expects labour costs to continue to be a challenge. However, it remains optimistic on its property and rental business in Singapore.
Hiap Hoe currently owns around four-fifths of SuperBowl after the former slowly increased its stakes in the latter these past few weeks. In October 2013, Hiap Hoe tried to take the company private at S$ 0.75 per share (the current price of SuperBowl’s shares ), a process that’s on-going now.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.