Second Chance Properties has recorded $10.4 million in net profit for 2HFY2023 ended September, 8.89% higher y-o-y.
Revenue for 2HFY2023 increased marginally to $27.07 million, while gross profit for the period increased by 18.41% to $18.9 million.
For the full year, the company recorded net profit of $19.6 million, up 38.4% from the previous corresponding period. Revenue declined by 2.8% y-o-y to $41.9 million.
Adjusted ebitda increased by $1.27 million to $18.8 million in FY2023. Additionally, there was a realised profit of $5.42 million in FY2023 upon cash acquisition and disposal of few equity instruments held by the company.
Second Chance’s securities business witnessed significant increase in revenue, up 35.3% to $18.29 in FY2023. This was primarily attributed to a higher level of dividends received from quoted securities as the company expanded its investments in these securities.
Other segments, namely apparel, gold and properties saw a decline in revenue. Revenue generated from property rentals, for instance, decreased by 36% to $2.75 million in FY2023. This is a consequence of the rental income no longer being received from the sale of nine investment properties since FY2022 as well as lower rentals received on some lease renewals.
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After over 30 years of running its apparel business in Singapore, Second Chance had recently shut down its outlet due to a mandatory mall-wide renovation that forced all tenants to relocate. Its gold business will maintain its profitability and will continue to operate from premises owned by the company in City Plaza, the company said in a filing.
Its declining rental income is expected to further decrease due to the sale of several investment properties since the previous year. “We expect dividend income to decrease as we need to adhere to SGX Listing rule 1020 and downsize our existing investment portfolio. The performance of the financial instruments sector will continue to be influenced by market forces, interest rates, and government stimulus,” the company says.
Shares in Second Chance closed at an unchanged 24.5 cents on Oct 30.
