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Heeton Holdings Limited has reported a significant increase of 221% in earnings for the second half of the financial year ended December 31, 2024, with profits reaching $3.85 million. Despite this positive performance, the group remains unprofitable for the full financial year of 2024.During this period, the group generated earnings per share of 0.79 cents for the second half, while for the full year, earnings per share were at a negative 0.28 cents.Driven by the growth in the rental income of its investment properties, hotel operations, and management fees, Heeton’s revenue for the second half of FY2024 increased by 10.5% year-on-year, reaching $41.1 million. For the full financial year, the group’s revenue also grew by 15.2% year-on-year to $78.2 million. The increase in revenue was mainly due to higher occupancies in the United Kingdom and a rise in rental rates for the group’s investment properties.In 2024, the group divested some of its subsidiaries, including its stake of 70% in Gloucester Corinium Avenue Hotel Limited and Ensco 1154 Limited, resulting in a net gain of $3.78 million. Heeton’s property, plant, and equipment, which mainly consist of hotel properties, also increased by $16.92 million due to the acquisition of a hotel in Edinburgh, United Kingdom. However, this was offset by depreciation charges and the disposal of hotels in Japan and the United Kingdom, as well as the appreciation of Pound Sterling and reversal of impairment changes.With regards to cash flow, the group experienced a decrease in cash and cash equivalents of $32.70 million. This was attributed to significant cash inflows and outflows, such as the proceeds from the disposal of property, plant and equipment and subsidiaries, as well as net repayment of loans from associated and joint venture companies, addition to property, plant and equipment, and restricted cash pledge for bank facility.Heeton acknowledges the current uncertainties in the Singapore economic outlook and an uncertain geopolitical landscape under Trump’s administration. As such, the group will remain prudent in its strategic expansion approach.In the midst of a challenging hospitality market, with high operating and labour costs, elevated interest rates, and an uncertain macroeconomic environment, Heeton will continue to leverage its strength as a bespoke boutique brand that offers exceptional and experiential stays for guests. The group also plans to participate in land tenders, especially for government housing schemes, as part of a consortium. Furthermore, its two retail malls are expected to generate steady and recurring income for its property investment business.A final dividend of 0.5 cents per share has been declared for the current financial year. Heeton’s shares closed lower at 27 cents on Feb 20.