SINGAPORE (Sept 7): Property developer Aspen Holdings swung back into the black in 2Q17 with earnings of RM13.4 million ($4.3 million) compared to a loss of RM751,000 in 2Q16.
This follows a more than threefold increase in the group’s 2Q17 revenue to RM69.99 million from RM20.21 million the same period last year, mainly lifted by advance progress of its on-going projects, Tri Pinnacle and Vervéa.
Tri Pinnacle is the group’s first affordable homes development. It received good response since its launch, with 82.3% of units sold as at June 30. Vervéa, the first phase of the group’s flagship development, Aspen Vision City, recorded 83.5% of units sold as at June 30.
Operating expenses for 2Q17 stood at RM11.1 million, mainly due to higher administrative expenses. This was however offset by lower selling and distribution expenses.
Due to an increase in manpower costs and office facilities to facilitate the group’s expansion initiatives, administrative expenses for this quarter ended June increased more than doubled to RM8.86 million compared to RM3.66 million last year.
Selling and distribution expenses were 52% lower in 2Q17 at RM2.27 million compared to RM4.73 million the previous year as the group had rolled out more sales and marketing initiatives in 2Q16 relating to the launch of its Vertu Resort and Beacon Executive Suites projects.
As at June 30, the group’s cash and cash equivalents stood at RM94.18 million.
On the outlook, Aspen says it will continue to seek opportunities to acquire new land banks and carry out new developments, expand regionally with its strategic partners, focus on mass market residential and mixed developments, as well as leverage on existing developments to expand into new business segments which generate streams of annuity income.
Dato’ M. Murly, president and group CEO, says, “The Group will continue to strive towards fulfilling our commitment of delivering quality residential and mixed-developments at affordable prices, to enrich lives and enhance lifestyles.”
No dividend has been declared for the quarter. However, come FY18, the group will adopt a dividend policy of annual dividend payouts of not less than 20% of its annual consolidated profit after tax and non-controlling interest.
Shares in Aspen last traded at 22.5 cents on Thursday.
