SINGAPORE (Nov 13): Metro Holdings posted a net loss of $13.6 million in the 2Q ended September, compared to earnings of $16.4 million a year ago.
This was mainly due a loss of $17.0 million from the group’s share of results of joint ventures in 2Q18, compared to a gain of $3.9 million a year ago. The losses were largely due to the one-off expense arising on the expiry of conditional remission of Additional Buyer’s Stamp Duty (ABSD) for The Crest in Singapore, as well as a reversal of $9.5 million write down of amount due from the JV.
Revenue rose 6.8% to $30.2 million in 2Q18, from $28.3 million a year ago, on the back of higher sales recorded from its retail division.
The group incurred a loss of $1.9 million from its share of results of associates in 2Q18, compared to a gain of $8.5 million a year ago. This was mainly due to a $4.4 million share of a loss from Top Spring in 2Q18, against a $5.9 million share of a gain a year ago.
In addition, general expenses jumped 52.3% to $8.4 million, from $5.5 million a year ago. This was mainly due to a higher loss on dilution of an interest in an associate of $2.3 million.
As at end September, cash and cash equivalents stood at $219.0 million.
At an EGM held today, shareholders approved a sale and purchase agreement by Top Spring to dispose eight property projects for an aggregate value of approximately HK$14.9 billion ($2.6 billion).
Top Spring estimates that, upon successful completion, it will record an unaudited net gain before taxation of approximately HK$7.4 billion from the disposal.
“We are constantly reviewing our portfolio to build our presence and investment in the region and to broaden our revenue stream. With a strong balance sheet, we continue to remain resilient in this challenging market and are also well-positioned to strengthen our portfolio of quality assets to optimise shareholder returns,” says Metro chairman Winston Choo.
Meanwhile, the group says its retail division continues to face a difficult trading environment.
Shares of Metro closed 2.5 cents lower at $1.22 on Monday.
