FAR East Hotels and Entertainment reported an attributable profit of $3.87 million for the year ended March 31, a healthy turnaround from the previous year's loss of $15.28 million. The group's earnings were boosted by an exceptional item totalling $23.49 million which resulted from the disposal of the group's stake in the Dallas Grand Hotel, other investments and property interests. Turnover rose 153.6 per cent to $372.61 million over the previous financial year. Earnings per share were 0.8 cent, a turnaround from a loss of 3.2 cents. A final dividend of one cent was recommended. During the year, the group's theatre division suffered losses as a result of the general decline in the local movie industry, causing the overall operating result of the group to fall below expectations, according to executive director Michael Tsang Kin-fai. The directors took steps to streamline the theatre operation by terminating the tenancy of two of its cinemas in Kowloon Bay in May this year. The group's share of losses in its overseas associated companies reduced significantly with the disposal of its remaining 50 per cent interest in Hamsher International, the holding company of the Dallas Grand Hotel and the improved operating performance of the Old Sydney theme park in Australia. A renovation and refurbishment programme for the Warwick Hotel on Cheung Chau aims to upgrade the standard of the rooms and the related facilities to revitalise the image of the resort hotel and enlarge the hotel's customer base. In December last year, the company and two of its wholly owned subsidiaries entered into an agreement with the Cheung Kong group to develop a property of 360,000 square feet in Lai Chi Kok. It is currently intended that the project will be developed into a residential and commercial complex for sale. Under the terms of the joint venture, Cheung Kong has been appointed to act as the project manager and the sales agent in the development of the property. An application has been submitted to the Government for the approval of the development of the project as well as to negotiate on the terms and conditions of land exchange or modification of the property including premium and plot ratio. The board of directors, chaired by Deacon Chiu, has been advised that progress of the project is smooth and on schedule.