SINGAPORE (Oct 30): Second Chance Properties saw earnngs for the full year ended Aug increase 35.9% to $9.5 million from $7.0 million a year ago.
This was mainly due to a one-off profit of $2.3 million in FY17 as the company accepted a cash offer on de-listing of one of the available-for-sale securities.
As a result, other income more than trebled to $2.2 million in FY17, from $0.6 million a year ago.
Revenue fell 11.0% to $34.8 million in FY17, from $39.1 million year ago.
This was mainly attributable to a 30% decrease in revenue from its apparel business to $7.6 million in FY17, on the back of the closure of 13 shops in Malaysia, the weakening of the Malaysian ringgit, and the rise of online shopping.
Rental revenue under its properties business fell 9.5% to $7.5 million, due to a loss of rental income from the sale of three investment properties as well as lower rentals received on some lease renewals.
Its securities business saw a 6.6% decline in revenue to $4.0 million in FY17, due to a drop in coupon payments and dividends on the fixed income and equity securities redeemed or sold since FY16.
Revenue from its gold business held steady at $15.7 million.
As at end August, cash and cash equivalents stood at $6.5 million.
Second Chance has declared a first and final cash dividend of 0.3 cents per share. This is 50% higher than the dividend of 0.2 cent per share a year ago.
In its outlook, Second Chance says it is confident its gold business will remain profitable.
However, the group notes that the retail apparel business remains very challenging, especially in Malaysia.
It adds that it expects negative rental revisions, which will lead to overall lower rental income from its properties business.
Shares of Second Chance closed flat at 26.5 cents on Monday.
