SINGAPORE (May 8): Roxy-Pacific Holdings saw its earnings slide 31% lower to $5.3 million for the 1Q19 ended March, from $7.7 million a year ago, despite a 91% surge in revenue during the quarter.
Earnings per share (EPS) fell to 0.41 cents in 1Q19, from 0.59 cents in 1Q18.
The earnings decline was mainly due to the absence of fair value gain on 117 Clarence Street, which contributed to higher share of results of associates a year ago.
Roxy-Pacific registered a loss of $94,000 in share of results of associates for 1Q19, due to share of loss as a result of showflat expenses incurred for Wilshire Residences and NEU At Novena.
In contrast, the group had registered a gain of $6.1 million in share of results of associates for 1Q18.
1Q19 revenue grew 91% to $88.5 million, from $46.4 million a year ago.
The increase was mainly due to higher contribution from the Property Development segment, partially offset by lower revenue from Hotel Ownership and Property Investment segments.
Revenue from the Property Development segment, which made up 84% of the group’s turnover during the quarter, increased 133% to $74.2 million in 1Q19, from $31.8 million a year ago.
This was largely due to revenue recognition from The Hensley upon settlement in 1Q19 and progressive revenue recognition from The Navian.
Gross profit rose 47% to $21.6 million in 1Q19, from $14.7 million a year ago, as gross profit margin slid 8 percentage points to 24% in 1Q19.
As at end March, cash and cash equivalents stood at $203.4 million.
Moving forward, the group says it will place priority on the sale and delivery of the units in its current land bank, with plans to launch its remaining four land bank sites in the next few quarters depending on market conditions.
It adds that it has adopted a prudent approach on the replenishment of land bank sites, with a focus on strategically-located and attractive development sites.
Shares in Roxy-Pacific closed flat at 40.5 cents on Wednesday.
