We wish to take this opportunity to express our deep gratitude to Mr Lew Syn Pau who has relinquished his role as the Non-executive Chairman and Independent Director for the past 21 years. He has done a stellar job ensuring that the Group was placed on a solid footing before passing on the baton. He has been succeeded by Mr Richard Eu Yee Ming with effect from 31 December 2021.
No doubt, 2021 had continued to see the devastating impact of the COVID-19 pandemic, despite the implementation of vaccination programmes. Subsequent waves of infections had swept across many countries, forcing the re-establishment of restrictions. The emergence of the more infectious Omicron variant only made things worse.
As a result, many businesses and industries continued to be impacted as economic activities stayed low. Tourism, in particular, did not experience a meaningful recovery, despite the inception of vaccinated travel lanes between certain countries. The marina industry was no different.
Nevertheless, SUTL Enterprise persevered and stepped up its efforts to promote staycations. The Group leveraged its unique set of offerings, comprising F&B, accommodation and yacht chartering services, which provided an avenue for both its marina club members and the public to meet pent up demand for leisure and relaxation.
During the year, we conducted a review of our network and of the markets where we had interests and concluded that it would be prudent to terminate the membership programme for ONE°15 Marina Puteri Harbour, Malaysia, and redeploy our resources elsewhere within our operations. We came to the difficult decision as membership sales for the marina and revenue from the Estuari Sports Club had been adversely affected by the COVID-19 restriction measures. We are in the process of terminating the ONE°15 Marina Puteri Harbour’s membership programme.
For the financial year ended 31 December 2021, we achieved net attributable profit of S$4.9 million, up 53% year-on-year (“y-o-y”) from S$3.2 million the year before. This came on the back of S$31.9 million in total revenue, up 18% y-o-y.
The strong growth in top line was driven by higher sales of goods and services owing to an increase in F&B, yacht chartering, room and marina income. Total revenue was also enhanced by marginal improvements in membership related fees and management fees due. However, this was offset by lower other income, mainly because of a reduction of government grants and nonrecurrence of an insurance claim in FY2021.
A final cash dividend of 2.0 Singapore cents per ordinary share has been proposed in FY2021, unchanged from FY2020. Including a special interim dividend of 10.0 Singapore cents per ordinary share paid in October 2021, the total dividend of 12.0 Singapore cents represents 210% of net attributable profit for FY2021. Altogether, the generous payout is reflective of the Board and management’s confidence in steering the Group through these uncertain times.
Confident of long-term prospects
Moving forward, the outlook remains uncertain as the COVID-19 pandemic is not expected to fade away immediately. Moreover, geopolitical tensions and high crude oil prices may indirectly impact the Group in the short to medium term.
Nevertheless, the Group is confident of the long-term outlook of the marina industry. We are excited by a growing preference for leisure, sports activities and luxurious lifestyle experiences by individuals across the globe. The global luxury yacht market is expected to hit US$11.8 billion by 2027, representing a compounded annual growth rate of 10.9% during 2022-2027, according to a reporti by Research and Markets which also stated that Asian ownership of superyachts has been rising gradually and now stands at 6.7% of the operating fleet with China joining the ranks of top new-build buyers. This is expected to have positive impact on marina infrastructure development in the region, which bodes well for our Group as a developer and operator of integrated marinas.
To take advantage of the recovery and prospects ahead, the Group has taken some strategic positions. We expect to complete the first phase of the new ONE°15 Marina Nirup Island, Indonesia by June 2022. The new marina, which is managed by ONE°15, will have capacity for 70 berths, a clubhouse with amenities, an onsite Customs Immigration and Quarantine facility equipped with ferry services, and a Sea Sports Centre.
The marina is part of a project to convert the privately-owned Nirup Island, which is only eight nautical miles from Singapore, into a new yachting destination with integrated facilities and lifestyle activities. Expected to be fully completed by the end of 2023, the island will have luxury hotels and water villas operated by international chain Accor. It will feature a seafood centre and other attractions such as marine sports and spa facilities and retail shops.
In addition to our flagship ONE°15 Marina Sentosa Cove, Singapore and the upcoming ONE°15 Marina Nirup Island, Indonesia, we have three other marinas in our portfolio that are under various stages of completion. They are the Indonesia Navy Club managed by ONE°15, ONE°15 Marina Taihu Lake, China, and ONE°15 Marina Logan Cove, Zhongshan, China.
In closing, we would like to extend our warmest appreciation to our business partners and other stakeholders. Their confidence and trust in the Group are encouraging and an inspiration to us amid the challenging operating environment.
We are also grateful to the management and staff of the Group for their commitment and dedication in enabling the Group to deliver a stellar set of FY2021 results. In addition, we would like to convey our gratitude to our fellow Directors for their guidance and insight to steer us ahead. Finally, from the bottom of our hearts, we are immensely thankful to our shareholders for their unwavering support and belief in the Group.
Richard Eu Yee Ming Non-Executive Chairman and Independent Director
Arthur Tay Executive Director and Chief Executive Officer