Sing Holdings 5IC has reported earnings of $5.3 million for the 2HFY2022, 20.1% lower than the earnings of $6.7 million in the same period the year before.
For the FY2022, earnings increased by 10.3% y-o-y to $10.8 million, which includes the sales proceeds from completed industrial units and rental income from the group’s investment properties.
2HFY2022 revenue fell by 82.9% y-o-y to $11.3 million due to the absence of revenue recognition from development properties during the period. At the same time, cost of sales fell by 92.4% y-o-y to $3.9 million.
As a result, gross profit fell by 49.4% y-o-y to $7.4 million.
Other income for the half-year period surged by 151.8% y-o-y to $1.4 million mainly from interest income and rental income from completed properties.
Sales and marketing expenses surged to $2.1 million, up from $87,000.
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Finance costs fell by 99.7% y-o-y to $3,000.
Profit before tax for the 2HFY2022 fell by 66% y-o-y to $3.9 million.
Revenue for the FY2022 fell by 49.1% y-o-y to $62.0 million. This includes the recognition of balance sales proceeds from a private condominium development which obtained its temporary occupation permit (TOP) in the 1HFY2022.
Cost of sales fell by 56.0% y-o-y to $40.8 million.
Gross profit for the FY2022 fell by 26.5% y-o-y to $21.2 million.
Other income surged by 105.3% y-o-y to $2.2 million due to higher interest income and dividend income, gain on sale of a motor vehicle and forfeiture of option money for non-exercise of sale and purchase agreement
FY2022 sales and marketing expenses surged to $3.9 million from $115,000 the year before.
Other operating expenses and finance costs fell by 67.8% y-o-y and 52.2% y-o-y to $1.3 million and $1.1 million respectively. The lower other operating expenses was due to fair value loss being recorded for a decline in the valuation of the investment property in the preceding year.
FY2022 profit before tax fell by 30.7% y-o-y to $13.7 million.
As at Dec 31, 2022, cash and cash equivalents stood at $102.4 million.
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A final cash dividend of 1 cent per share has been declared for the period, unchanged from the year before.
In its results statement, the group says its hospitality asset in Melbourne, Australia, Travelodge Docklands, is expected to contribute positively to its earnings on the back of a sustained improvement in revenue per available room (RevPAR) supported by growth in both occupancy rates and average daily rates.
It adds that it is “cautiously optimistic” of Singapore’s economy outlook and property market for the year ahead. In addition, it is mindful of the uncertain macroeconomic environment along with the high interest rates, geopolitical tensions and potential recession that may have on consumer confidence and business sentiments.
“[The group] will continue to exercise due care and diligence as it explores property development and investment opportunities.”
Shares in Sing Holdings closed flat at 36.5 cents on Feb 22.
