SINGAPORE (Nov 3): Rowsley, the company controlled by Peter Lim Eng Hock, recorded a 3Q net loss of $9.8 million which included a $7.9 million fair value loss.
The fair value change arose from the remeasurement of the company’s purchase consideration payable in the earn-out shares related to the acquisitions it had made.
During 3Q, Rowsley completed the acquisition of AC Consortium, a leading industrial building design firm in Singapore, and Ariva Hospitality, a fast growing serviced apartment and hotel management company. These strategic acquisitions are part of the company’s strategy to reinforce its real estate business.
Revenue for 3Q came in 6% higher at $26.2 million from a year ago mainly due to higher contributions from Squire Mech and consolidation of results from AC Consortium.
Rowsley says it is seeing stronger overseas revenue from our offices in Dubai, Vietnam and China. Its home market of Singapore continues to be soft but the group are working hard to go after new projects while managing costs.
“We are also focused on repositioning our design and engineering business in view of our recently announced leadership changes,” says Tan Wee Tuck, Executive Director and Chief Executive Officer, Rowsley.
On July 18, Rowsley announced its plan to expand into the healthcare sector with the signing of a non-legally binding term sheet to purchase the healthcare assets of Lim. The healthcare assets include a 100% stake in Thomson Medical and a 70.36% stake in TMC Life Sciences Berhad.
Rowsley says it is in the process of preparing and negotiating the terms of the definitive agreement and will make appropriate update announcements in due course.
Shares in Rowsley closed at 14 cents on Friday.
