Heeton Holdings FY2025: Revenue +3.9% to S$81.2M, Net Loss S$10.1M on Non-Cash Charges, Dawa Bhutan Opens, Two SG Hotel Stakes Acquired

Heeton Holdings Limited (SGX: 5IG) released its FY2025 Annual Report covering the year ended 31 December 2025. Revenue grew 3.9% to S$81.2M, but the Group recorded a net loss after tax of S$10.1M driven by non-cash charges, reversing the S$0.7M profit in FY2024.

Group revenue rose to S$81.2M (FY2024: S$78.2M; +3.9%), driven by the full-year contribution of Heeton Concept Aparthotel Queen Street Edinburgh, acquired in December 2024 and fully operational from early 2025, partly offset by the disposal of ibis Hotel Gloucester and Smile Hotel Asakusa Tokyo in 2HFY2024.

Net loss after tax: S$(10.1M) (FY2024: profit S$0.7M). Loss attributable to owners: S$(9.3M) (FY2024: S$(1.4M)). Non-cash charges include: FV loss on derivatives S$2.4M, impairment on UK hotels S$0.9M, impairment on financial assets S$4.9M, FV loss on investment security S$0.4M. EPS: (1.90)¢ (FY2024: (0.28)¢). Loss before tax: S$(7.2M) (FY2024: profit S$3.8M).

Segmental performance — Hospitality: Revenue S$67.6M (83.5% of total; FY2024: S$64.7M), UK hotel revenue S$67.1M (FY2024: S$64.0M), segment PBT S$6.9M (FY2024: S$8.4M). Property Investment: Revenue S$12.8M (FY2024: S$12.6M), segment PBT S$9.1M (FY2024: S$9.7M; lower FV gain on investment properties S$1.4M vs S$3.5M). Share of associates/JVs: S$3.8M (FY2024: S$2.2M).

Total assets: S$1,001.6M (FY2024: S$985.3M). PP&E hotels: S$423.0M (FY2024: S$418.8M). Investment properties: S$228.6M (FY2024: S$226.8M). Total equity: S$411.0M (FY2024: S$421.9M). Cash: S$47.0M (FY2024: S$29.9M). Outstanding bonds: S$53.8M at 7.0% p.a. due November 2026 — now classified as current liability, with a going concern note in the accounts supported by bondholder commitment undertaking.

Dawa at Hilltop by Heeton — Bhutan's largest hotel (87 rooms, 74% stake, freehold) OPENED August 2025 in Paro Valley. Dorsett Changi City Singapore expanded from 313 to 419 rooms. Queen Street Edinburgh aparthotel (82 units, 85% stake) fully launched after Dec 2024 acquisition. Founder Toh Khai Cheng passed away in December 2025 after over four decades as a director.

POST-PERIOD ACQUISITIONS (JAN 2026)

Link Hotel Singapore: 274-room hotel at 50 Tiong Bahru Road, 41-year leasehold, 20% stake acquired via consortium. Heeton's second Singapore hotel investment alongside Dorsett Changi City. Upper Thomson Road Parcel A: 3.25% JV stake in 596-unit integrated residential+commercial development (GFA 53,729sqm, leasehold), targeted completion 2030. These two acquisitions, plus participation in the Narra Residences launch (5% JV, 540 units, Dairy Farm Walk, Jan 2026), expand the SG development pipeline.

HUMAN CAPITAL (FIRST FULL DISCLOSURE)

Executive Chairman Toh Giap Eng: S$1,204,000 FY2025 (FY2024: S$1,039,000; +15.9%). CEO Hoh Chin Yiep: S$782,000 FY2025 (FY2024: S$670,000; +16.7%). Both received salary-heavy packages (76–79% fixed component). Four KMP executives (excl. directors) total remuneration: S$1,529,000 (FY2024: S$1,711,000; -10.6%). CIO Edwin Liu moved from the S$500K–S$750K band (FY2024) to S$250K–S$500K (FY2025), consistent with UK hotel disposal activity reducing variable pay.

The S$53.8M bond at 7% p.a. matures November 2026. As at 31 Dec 2025, it is classified as a current liability and the Group is in net current liabilities of S$(4.3M), compared to net current assets of S$53.7M in FY2024. The accounts include a going concern note, supported by a bondholder commitment undertaking. Finance expenses fell to S$26.6M (FY2024: S$29.5M) on lower bank borrowing rates, but bond refinancing remains the key near-term balance sheet event.

Heeton's FY2025 operating trajectory is positive — revenue up 3.9%, UK hotels growing, associates/JVs improving, and cash rising 57% to S$47M — but non-cash impairments and FV losses dominate the headline P&L. The Group is building its Singapore hospitality and development pipeline (three new SG stakes in Jan 2026) and opened its flagship Bhutan hotel. Bond refinancing by Nov 2026 is the critical near-term execution item.