SINGAPORE (Aug 27): Pacific Star Development, formerly known as LH Group, announced $8.4 million in earnings for the 18 month period ended June 2018 (18M17), up 12% from the 12 months ended June 2016 on higher revenue.
This comes after the successful restructuring of its business model to focus on real estate development following a $140 million reverse takeover (RTO).
The company last year announced a change of its financial year end to June 30 from Dec 31 previously.
Revenue for the 18M under revenue doubled to $121.4 million from $59.1 million in 12M16, as the group’s project in Puteri Cove Residences & Quayside in Puteri Harbour continued to contribute positively to group revenue and earnings.
In line with the higher revenue, cost of sales doubled to $63.1 million from $30.1 million in 12M16.
Other operating income grew 20% to $3.9 million from $3.3 million previously after registering higher reversal of warranty of its non-property division, as well as a gain on acquisition of subsidiaries (negative goodwill).
In all, expenses for 18M17 tripled to $21.1 million from $8.1 million in the previous comparative year on higher operating & administrative expenses, due to the higher number of staff hired, and higher staff costs in line with higher project development activity.
Marketing & distribution expenses, too, more than doubled to $6.5 million from $2.2 million in 12M16 on higher agent commission, agency fees and marketing and events.
Glen Chan, CEO and managing director of Pacific Star, says the group’s latest set of results has yet to capture the “impressive marketing sales numbers” of its The Posh Twelve project.
He nonetheless believes revenue contributions from Puteri Cove Project continue to illustrate the strengths and capabilities of Pacific Star’s teams.
“Aseans is our home ground and our business presence is diversified across various high-growth property segments. Hence, we look forward to continue this success and add new marquee property projects to our track record in Asean,” says Chan.
Shares in Pacific Star closed flat at 19 cents on Friday.
