SINGAPORE (Feb 26): GK Goh, the investment holding company, reported a 67% fall in 4Q earnings to $7.9 million from $24.2 million a year ago.
Operating revenue for 4Q fell 10% lower at $32.1 million from $35.8 million a year ago mainly because of a reduction in gains from long-term investments.
But total cost and expenses rose 34% to $27.2 million as employees' compensation and related costs rose 64% to $21.9 million.
Thus, profit from operating activties fell 71% to $4.4 million.
Net profits were 64% lower at $8.5 million in the absence of last year’s one-off exceptional gains from Opal Aged Care Group.
Corporate services provider Boardroom grew its revenues by 6% to $20.1 million, and its net profits by 48% to $5.1 million, continuing the steady improvement seen over the past year.
Opal, the Australian aged care company, contributed $3.3 million to associate profits, lower than the $4.1 million of recurring profits in 4Q16.
Other associate companies in aggregate contributed $1.0 million to group profits.
Investment income amounted to $11.2 million, of which $9.2 million related to the completion of the Croesus Retail Trust sale.
For FY17, earnings came in 21% lower at $25.2 million while total revenue rose 6% to $98.5 million.
The directors have proposed a cash dividend of 3 cents per share for FY17, on top of the special dividend of 3 cents per share.
In its outlook, GK Goh's major operating businesses are expected to continue to perform satisfactorily in FY18. Allium Healthcare Holdings will report initial losses ahead of opening its first nursing home a year from now. Investment income, as always, remains unpredicted.
Shares in GK Goh closed 4 cents lower at $1.12 on Monday.
