Endeavour Holdings Ltd profits grow by $1.6M

In its unaudited financial statement for the three-month period ending in July, Endeavour Holdings Ltd (EHL) reported $11 million in profits after tax.

This is a $1.6 million increase compared to the same period last year in which the company earned $9.4 million – excluding gain on acquisition.

Profit including gain on acquisition was $53.4 million last July.

Revenue from contracts with customers increased by $1.3 million to $22.2 million compared to $20.9 million for the comparative period last year.

This change, EHL said was because of continued reduction of rental discounts which dropped from $0.7 million to $0.1 million this year.

The offset was caused by the inclusion of three months' expenses for the subsidiary compared to one month in 2022.

Administrative fees also dropped by $0.6 million, falling from $1.5 million last July to $0.9 million in 2023 – the decrease is caused by the drop in legal fees.

Operating fees also decreased by $0.2 million to $0.1 million as a result of reduction in the provision of bad debt.

The company currently benefits from the zero per cent corporation tax rate, business levy and green fund levy due to amendments under the Finance Act 2020 granted to listed small to medium enterprises. Its subsidiary company, however, operates at a 30 per cent tax rate.

As for EHL's investment properties, it dropped by $5.2 million during this period because of a fair value write-down of $10.6 million at year-end.

Net building improvements at Price Plaza moved from $913 million last July to $908 million.

Trades and other receivables increased by $1 million from last July due to a reduction in trade receivables offset by an increase in prepaid expenses.

Trade and other payables, though, decreased by $0.2 million in July 2022.

The company's borrowing also decreased by $19 million, reflecting principal repayment of $14 million, repayment of a loan from a related party of $45 million and a new $40 million loan was obtained by a subsidiary.

Its interim dividends are $0.40 per common share and were declared on June 23 and paid in July.