SINGAPORE (May 10): Marina developer and operator SUTL Enterprise saw its earnings fall 30% to $0.6 million for the 1Q ended March, from $0.9 million a year ago, on the back of higher expenses.
1Q18 revenue grew 4% to $7.8 million, from $7.5 million a year ago. This was mainly due to higher sales of goods and services.
Total expenses outpaced the increase in revenue, rising 9% to $7.0 million in 1Q18, compared to $6.4 million a year ago.
Cost of sales jumped 54% to $1.1 million during the quarter, as a result of the increase in sales of goods.
As at end March, cash and cash equivalents stood at $45.7 million.
“Although there was an improvement in our topline, our income was impacted by expenses related to our expansion plans including higher headcount, business development activities and professional fees as a result of the projects in our pipeline,” says Arthur Tay, SUTL’s executive director and chief executive officer.
At the same time, the group says it is constantly exploring ways to sharpen its competitive edge in an age of disruption.
“SUTL Enterprise was one of the first marina developers in the region to adopt an integrated approach to marina infrastructure development. We continue to build on that entrepreneurial spirit with our entry into new regional markets as well as in the way we transform our traditional way of doing business in response to the digital age,” Tay says.
He adds that while some of these initiatives may have a significant gestation period, the group believes they are necessary for its long-term growth.
As at 1.30pm, shares of SUTL Enterprise are trading 5 cents higher, or up 6.9%, at 77.5 cents.
