SINGAPORE (Feb 28): The Straits Trading Company, a diversified investment company with interests in real estate, hospitality and resources, reported FY16 earnings surged to $67.3 million from $8.5 a year ago, supported by improved performance across all its business segments.
Its real-estate operations was a major contributor in FY16 with a profit contribution of $52.7 million, underpinned by higher contributions from associates and joint ventures as well as a net gain from the sale of 114 William Street in Australia.
The group’s 54.8%-owned Malaysian Smelting Corporation Berhad (MSC) also benefited from higher tin prices and better profit margins. This resulted in an improved profit contribution of $5.7 million.
The group’s hospitality segment recorded a profit of $4.3 million, compared with $2.0 million in FY15, mainly attributable to a net gain on the sale of a hotel in Australia in 2016.
Net asset value per share of the group increased from $3.18 in FY15 to $3.34 in FY16 while balance sheet remained robust with cash and cash equivalents of $291.1 million and net debt to total equity of 22.5% as at 31 December 2016.
The group has declared an interim dividend of 6 cents per share for FY2016.
Chew Gek Khim, Executive Chairman of Straits Trading, said, “We are delighted with our 2016 results and the increased dividend reflects the improvement in our businesses. The results of our property engines which are part of a larger property eco-system, have borne fruit. We continue to work on our other business engines with a view to getting each engine to produce long term, sustainable returns for our shareholders.”
Shares of Straits Trading closed 3 cents lower at $2.05.
