FY2020 net loss ahead for GL

The group saw potential impairment losses from their hotel assets and development property.

Investment firm GL has announced that they are expecting to report a net loss for FY2020, an SGX filing stated.

The losses are primarily due to the COVID-19 pandemic that has resulted in widespread international travel restrictions and severely disrupted the Group’s UK hospitality business led by its wholly-owned subsidiary, GLH Hotels Limited.

GL also said that there are potential impairment losses attributable to the group’s hotel assets and development property. They are also impacted by lower income from the group’s Bass Strait oil and gas royalty interest compared to the previous corresponding period, driven by significantly weaker crude oil prices that reflected an unprecedented situation of an oversupply exacerbated by the impact of COVID-19 on global demand.

“Notwithstanding the above, the group’s financial position remains robust and it has adequate liquidity to see it through this challenging period, with total cash and undrawn credit facilities standing at circa $323.65m (US$235m) as of 30 June,” GL added.

The group is slated to release its FY2020 results on or before 26 August 2020. Shareholders and potential investors are advised to exercise caution when dealing in the shares of the company.