SINGAPORE (THE BUSINESS TIMES) - Sluggish demand for long-term memberships and an unfavourable macro environment have put an end to SUTL Enterprise's plans for ONE°15 Puteri Harbour Malaysia.

In an update on Thursday (Feb 24), the mainboard-listed marina developer said it was proposing to terminate its membership scheme for the private yacht club it was building at Puteri Harbour in Johor, Malaysia, under a 60:40 joint venture incorporated with UEM Land Berhad in early 2016.

Citing challenges that arose amid the protracted Covid-19 pandemic, including significant delays in construction and construction costs, SUTL said the club's management had previously considered mapping out a post-pandemic plan for the upcoming private marina and clubhouse.

These plans were, however, made "untenable" due to the unfavourable macro environment, it said.

SUTL said existing members of the Puteri Harbour club will be offered compensation through a payment refund plus interest, as well as a limited pass to the nearby ONE°15 Estuari Sports Centre.

It is currently seeking club members' approval for the membership scheme termination, which is not expected to have a material effect on the net tangible assets and earnings per share of SUTL for the financial year ending Dec 31, 2022.

The group also intends to sell the assets of ONE°15 Puteri Harbour Malaysia after the membership programme is terminated.

Separately, SUTL on Thursday announced a 32 per cent rise in net profit to $2.4 million for the second half ended Dec 31 last year.

This came on the back of higher revenue, which grew 10 per cent year on year to $16.7 million from $15.1 million in the year-ago period.

The group mainly derives its revenue from operating its flagship marina club at Sentosa, as well as providing consultancy to and managing third-party owned marinas located in China and Indonesia under the ONE°15 brand.

Its full-year profit stood at $4.9 million, up 55 per cent from $3.2 million a year ago on the back of an 18 per cent surge in revenue to $31.9 million.

Top-line growth for the full year was attributed to higher sales of goods and services, along with a marginal improvement in membership-related fees and management fees.

Earnings per share (EPS) for the second-half stood at 2.74 cents compared with 2.07 cents a year ago, bringing the group's EPS for the full year to 5.74 cents as opposed to 3.69 cents the previous year.

Shares of the group were trading unchanged at 48 cents as at 1.30 pm on Thursday after the announcements were made.