SINGAPORE (Feb 21): SUTL Enterprise, the developer and operator of marinas, announced that its 4Q18 earnings have dropped by 17% to $3.64 million, compared to $4.40 million in 4Q17.

This brings FY18 earnings to $5.80 million, 14% lower than $6.75 million in FY17.

The group’s total income was 1% higher at $11.44 million from $11.35 million last year, mainly attributable to a 3% y-o-y increase in sales of goods and services to $5.18 million and a 41% increase in other income to $0.98 million.

The increase in other income was mainly due to an insurance claim and higher bad debt recovery from non-trade receivable.

However, this was partially offset by a 6% y-o-y drop in membership related fees and management fees to $5.29 million.

Total expenses for the quarter saw an 11% increase to $7.22 million from $6.49 million a year ago, mainly because of increased spending in relation to the hosting of the Singapore Yacht Show 2018 at the ONE°15 Marina Sentosa Cove, manpower expenses in preparation for the upcoming membership sales drive for the ONE°15 Marina Puteri Harbour, Malaysia and higher professional fees and business development costs in relation to new marina projects.

As at Dec 31, 2018, the group’s cash and cash equivalents stood at $45.4 million.

SUTL has declared a final cash dividend of 2 cents per share.

Arthur Tay, executive director and CEO of SUTL says, “We expect to break ground for ONE°15 Marina Puteri Harbour, Malaysia, very soon. We are currently establishing a sales gallery near the site and plan to start membership sales shortly. At the same time, we are actively pursuing marina management contracts around the world so as to fulfil our vision to plant our ONE°15 brand globally. We expect to secure more marinas in FY19 either via management contracts or through joint ventures, acquisitions and strategic alliances.”

As at 3.45pm shares in SUTL are trading at 62 cents.