SLB Development has reported a loss of $2.8 million for the 2HFY2023 ended May 31, down from its earnings of $14.2 million in the corresponding period the year before.
As guided on July 20, the company’s loss was due to lower revenue and higher finance costs for the period.
In the 2HFY2023, SLB Development’s revenue plunged by 82.1% y-o-y to $9.5 million due to lower revenue recognised from INSPACE as the construction for the project progressed. INSPACE has obtained its temporary occupation permit (TOP) in January 2023.
Gross profit fell by 78.9% y-o-y to $3.1 million due to the lower revenue recognised from INSPACE.
Share of results of joint ventures (JVs) and associates fell by 98.7% y-o-y to $129,000 due to lower development profits recognised from Affinity @ Serangoon and Riverfront Residences as the respective projects’ construction progressed.
As a result, the group reported a loss before tax of $1.4 million compared to the profit before tax of $19.7 million in the 2HFY2022.
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For the FY2023, the group’s earnings plunged by 79.9% y-o-y to $5.3 million as revenue and gross profit fell on a y-o-y basis.
Earnings per share (EPS) stood at 0.58 cents on a fully diluted basis, down from the 2.88 cents in the previous year.
Revenue for the full-year fell by 48.6% y-o-y to $47.7 million due to the lower revenue recognised from INSPACE.
FY2023 gross profit fell by 45.8% y-o-y to $9.6 million for the same reason.
Share of results of JVs and associates fell by 51.7% y-o-y to $9.3 million from the lower development profits recognised from Affinity @ Serangoon and Riverfront Residences as the respective projects’ construction progressed. Both Rezi24 and Riverfront Residences were completed and obtained their TOPs in January and May respectively.
Accordingly, profit before tax for the 12-month period fell by 68.5% y-o-y to $11.1 million.
A final dividend of 0.1 cent has been declared for the period, lower than the 0.2 cents per share distributed in the year before.
Cash and cash equivalents as at May 31 stood at $21 million.
Shares in SLB Developments closed flat at 15 cents on July 25.
