PROPERTY development and investment group Sing Holdings reported on Thursday (Feb 17) a 24.7 per cent decline in net profit for its second half, despite higher revenue.

 

Net profit for the six months ended Dec 31, 2021 fell to S$6.7 million from S$8.9 million in the prior-year period. On a per-share basis, earnings fell to S$0.0167 from S$0.0221.

 

The decline in net profit came even as revenue rose 5.4 per cent during the period to hit S$66.5 million.

 

Revenue for the period comprised mainly recognition of sales proceeds from a private condominium development and sales of completed industrial units, the company said. It added that revenue from the development property was recognised progressively over time, based on construction progress. The development project was substantially sold prior to 2021.

 

Cost of sales during H2 2021 was 15.8 per cent higher than a year earlier, resulting in gross profit falling 20.2 per cent to S$14.7 million.

 

The board has proposed a final dividend of S$0.01 per share, unchanged from the previous year.

 

For the full year, Sing Holdings reported net profit of S$9.8 million, down 40.6 per cent from the previous year. This came as revenue for the year fell 29.7 per cent to S$121.7 million.

 

Other income for the full year was also down 44.9 per cent to S$1.1 million. Sing Holdings said this was due to lower interest income and lower rental income from completed properties in FY21, as well as receipt of government grants in the preceding year.

 

For its development properties, Sing Holdings said it commenced construction in Q3 FY21 on an executive condominium development project in Yishun, which is wholly-owned by the group. The project is expected to be launched for sale by April this year.

 

It also noted that an investment property - a hospitality asset in Melbourne - had previously been " severely affected by the pandemic" .

 

Things have been improving since the easing of Covid-19 curbs in Melbourne. The group said it is " cautiously optimistic that the relaxation of the border rules will be a boost for the hotel, as more leisure and corporate guests return" .

 

The group noted that higher vaccination rates worldwide and people learning to live with Covid-19 could lead to a general uplift in business confidence. But it added that it is " mindful that the situation remains fluid and will continue to explore property development opportunities in Singapore with due care and vigilance" .