Even as we wrap up the financial year ended 31 December 2016 ("FY2016") with the release of this annual report, I am excited at what lies ahead for the Group.
Our Chairman has clearly laid out the prospects and plans that we have made for our Group. However the nature of the business is such that it will take us some time to scale up our business and operations hence we ask shareholders to be patient as we do this slowly but surely.
In June 2015, we had announced our plans to transform our business and you could say we got right down to it because all our efforts in FY2016 starting from the divestment of our legacy IT peripherals business in January 2016, were all directed at growing our new marina-related business.
In the following month of February 2016, we signed a conditional agreement with UEM Sunrise Berhad to jointly incorporate, finance and operate a joint venture company ("JV Company") for the purpose of developing the existing marina in Puteri Harbour, Iskandar Malaysia. The project comprises three marinas that will bear the ONE°15 brand and will include a 148-berth public marina, a 278-berth private marina and a superyacht marina for 14 vessels.
We are still working towards fulfilling all the conditions precedent for this Joint Venture. The construction of the marinas at Puteri Harbour is expected to commence in the second half of 2017 and to complete by the third quarter of 2019. The JV Company, which SUTL Enterprise owns a 60% stake in, will also be involved in developing and operating the proprietary yacht club, a sports centre and other complementary businesses.
In September 2016, we expanded to more destinations with the signing of management and consultancy contracts in Jakarta, Indonesia and Zhuhai, China. We believe the berths at both marinas will be highly sought after because of their ideal locations.
The marina in China is on Guishan Island and in close proximity to Hong Kong, Macau, Guangzhou, Shenzhen and Zhuhai. The project comprises a 116-berth marina with clubhouse, a 176-room hotel with spa and gymnasium and a 153-room boutique hotel. Construction has started and is expected to complete in the second half of 2018.
The 320-berth marina located in Jakarta, Indonesia facing the Java Sea, will have a clubhouse with hotel accommodation, lifestyle retail, spas and fitness centre. Construction has started and will finish by the second half of 2018.
To further strengthen our brand positioning, we appointed Singapore's first Olympic gold medallist, Joseph Schooling, as the ambassador for the ONE˚15 brand. His perseverance to become the world's fastest swimmer is in line with our own vision to become the world's best marina brand and we felt it was the perfect fit.
The Group concluded FY2016 on a high note with a more than two-fold increase in net attributable profit to owners to S$3.9 million. This was on the back of revenue which increased 2% to S$28.2 million.
We attribute the strong performance as compared to the preceding 12 months in 2015 ("FY2015") when net attributable profit to owners was S$1.6 million and revenue was S$27.7 million, mainly to the transformation of the Group's business and our focus on operational efficiency and careful cost management.
As at 31 December 2016, SUTL Enterprise's financial position remained strong with zero borrowings and cash and cash equivalents of S$41.3 million. This puts us in a good position to strengthen our business through potential marina-related investments should suitable opportunities come along.
We have a two-prong strategy to grow our network of ONE°15 branded marinas. We are looking for opportunities to provide consultancy to marinas that are being developed, with the end goal of putting our ONE°15 brand on them and then operating the marinas under management contracts upon completion. In the hope of facilitating more rapid expansion, we are at the same time looking to acquire established marinas that we can transform and rebrand.
As they say, the world is our oyster and we are looking for pearls but while it is our desire to grow quickly, we will exercise prudence and due diligence before making any investments.
Our performance last year was a strong affirmation of the change in strategic direction and we want to thank shareholders who had faith in us. As the first such business to be listed on SGX, we are grateful for the support you have shown the Group and our Board is very pleased to propose our very first dividend payout as SUTL Enterprise. At 2.0 Singapore cents per share, this represents 44.9% of our net attributable profit in FY2016.
In closing, I want to thank the Board of Directors for your wise guidance during the year and our suppliers and business partners for the strong relationship we share. Most of all, I want to thank all our staff at SUTL Enterprise for your hard work in making FY2016 such a good year for the Group.
Executive Director and Chief Executive Officer