SINGAPORE (May 8): GK Goh’s 1Q18 earnings have fallen to a negligible $21,000 as compared to $7.8 million a year ago, after booking a currency translation loss of $8.1 million over the quarter.
The overall decline in profitability also stemmed partly from weaker performance from one of its aged care businesses as well as reduced investment income attributed to an “exceptionally volatile first quarter”, says the group in its filing on Tuesday.
Specifically, Opal reported a fall in 1Q EBITDA despite some revenue growth, while the group’s share of profits from the business fell by approximately 50% to $2.7 million compared to $5.6 million a year ago – while 1Q investment income fell to $0.5 million from $8.4 million previously.
Revenue for the quarter nonetheless grew 15% to $19 million from $16.5 million a year ago, mainly on revenue contributions from the group’s key asset, Boardroom Limited.
The group also booked $6.3 million of fair value gains from its long-term investments, nearly half of its gains of $11.2 million a year ago.
This was however negated by depreciation of the AUD against the SGD, which resulted in a foreign currency translation loss of $8.1 million compared to a $4.8 million gain the previous year, as about $200 million of the group’s assets, primarily Opal and Habitat Assets, are in Australia.
GK Goh says the strong performance from Boardroom this quarter demonstrates the positive effects of its corporate overhaul over the past few years.
In Singapore, the group notes that work is progressing well for its nursing home at Venus Drive, Allium Care Suites as recruitment has been stepped up ahead of its expected Jan 2019 opening.
Shares in GK Goh closed 1 cent higher at $1.12 on Tuesday.
