SINGAPORE (Aug 23): GL Limited, formerly known as GuocoLeisure, saw its earnings fall 15% to US$50.3 million ($69.7 million) for the FY19 ended June, from US$59.0 million a year ago.

Gross profit dipped 5% to US$147.5 million during the year, despite the group recording slightly higher revenue of US$349.3 million in FY19.

FY19 revenue was 1% higher than a year ago, mainly due to higher revenue generated from the oil and gas segment, on the back of higher average crude oil and gas prices during the year.

Meanwhile, hotel revenue dipped marginally to US$317.0 million in FY19, despite improved hotel occupancy rate and revenue per available room (RevPAR) during the year.

This was the result of the weakening of the British pound against the US dollar, which fully offset the improved performance.

Cost of sales rose 6% to US$201.8 million in FY19, outpacing the increase in revenue.

The increase was mainly due to the absence of reversal of over accrued rental expense of Euston Hotel in FY18 as a result of the compulsory acquisition.

In addition, cost of sales was lifted by increased business and utilities rates, and web marketing cost for promoting group's direct web strategy.

Other operating income plunged to US$0.5 million in FY19, compared to US$28.7 million a year ago.

This was mainly due to the absence of a one-off compensation from the compulsory acquisition of a hotel property and the recovery of a legacy loan which has been written off previously in the previous financial year.

Meanwhile, other operating expenses surged to US$16.3 million, from US$0.1 million a year ago.

This was due to the impairment loss of hotel properties, loss on disposal of property and equipment, and write off of obsolete hotel furniture and equipment, as well as the provision for legal claims on an unfavourable arbitration award in Hawaii during the year.

Consequently, the group reported operating profit of US$52.5 million, halved from US$103.0 million a year ago.

As at end June, cash and cash equivalents stood at US$95.1 million.

The group has declared a first and final dividend of 2.2 cents for FY19, to be paid on Nov 26. This is the same amount as the dividend paid a year ago.

Looking ahead, the group says hotel occupancy levels in London remain healthy in spite of continued macro and geopolitical uncertainty in the UK.

However, it maintains a cautious outlook, and adds that increases in room inventory supply will continue to exert downward pressures on average room rates.

Shares in GL Limited closed flat at 75 cents on Friday before the results announcement.