The group says that increased operating expenses, driven by inflationary pressures on rents and wages, combined with a fair value adjustment on investment properties, led to a 14% decline in profit after tax to $136.1 million.
The group’s consolidated net assets stood at $926.7 million, and cash and bank balances at $178.7 million as at end March.
For the reporting period ended March, bank borrowings reduced to $54.8 million.
The board of Hour Glass Group has recommended a final dividend of 4 cents per share for FY2025.
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“The past year has tested the resilience of both the luxury and specialty watch retail sector. The consolidation of the global luxury market has intensified competition for the consumer’s share of wallet while inflationary pressures have elevated the cost of operations across our network of boutiques,” says Michael Tay, group managing director of The Hour GlassGroup.
The Hour Glass Group says that it is positioned to maintain profitability in the next financial year.
Shares in The Hour Glass Group closed flat at $1.61 on May 23.
