ICP – which is involved in hotel management and franchising, hotel funds management and shipping investment and charter – sank deeper into the red with a net loss of S$925,000 recorded in the fiscal second half ended Jun 30, from S$500,000 a year ago.

This has caused the group’s losses for the full year to widen to S$1.2 million in FY2022, from S$920,000 in the year ago period. 

In a bourse filing on Friday (Aug 26), the company attributed the year’s losses to a 26 per cent increase in administrative expenses to S$3.8 million, from S$3 million a year ago.

The rise in expenses was due to allowance for doubtful debts, including write-offs, of S$300,000 and higher payroll costs recorded in the fiscal year, it pointed out.

Other losses comprise mainly of impairment on other receivables, fair value loss arising from financial assets mandatorily measured, and foreign exchange loss of monetary items, it added. 

With the loss-making position, the company did not declare or recommend a dividend.

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ICP’s H2 results translate to loss per share of 0.03 Singapore cents, against loss per share of 0.02 Singapore cents.

Revenue for the half year was up 24.1 per cent to S$2.6 million, bringing full- year revenue up 17.2 per cent to S$5.1 million.

ICP said revenue growth came as the group earned more in hotel management fees after hotels achieved higher occupancy with the reopening of international border and easing of the Covid-19 entry requirements.

The company added that it secured a management contract and a consultancy agreement for hotels in Japan in the later part of the financial year, resulting in higher revenue from the hospitality segment. 

Revenue from the vessel chartering segment in FY2022 increased by S$100,000 due to an increase in chartering rate.

For the rest of the year, ICP said, the group will continue to make progress on its growth objectives across Asia. This includes the opening of its first Travelodge hotel in Japan in the third quarter, called Travelodge Osaka Honmachi, and Travelodge Chang Mai in Thailand in the last quarter.

Travelodge is a hotel brand name for which the group acquired the registered trademark rights in 2015 for the Asia-Pacific region, excluding Australia and New Zealand.

On the pipeline next year is the launch of Travelodge Kyoto Kawaramachi in the first quarter. ICP has signed a management contract in relation to it.

Shares of ICP closed up 11.1 per cent or S$0.001 at S$0.01 on Friday before the results’ release.