TA Corp swings into 1Q losses of $1.7 mil on lower revenue

Revenue during the current quarter took a 46.3% dip to $32.8 million, compared to $61.0 million in the previous year.

This was mainly due to the group’s real estate development segment not recording any revenue during the period as there were no sales of units, compared to revenue of 18.6 million in 1Q17. The group’s construction segment, as well as distribution of tyres business also recorded lower revenue contribution for 1Q18.

This was partially offset by a $0.8 million revenue increase in the group’s real estate investment segment to $4.4 million in 1Q18.

With cost of sales decreasing by 49.1% y-o-y to $24.9 million, gross profit for 1Q18 came in at $7.88 million, 34.9% lower than $12.1 million a year ago.

Selling and distribution costs dropped 75.1% to $0.24 million from $0.95 million last year, due mainly to the absence of show-flat cost.

General and administrative expenses increased by 15.9% y-o-y to $4.85 million, due mainly to higher staff costs resulting from higher head count in the construction segment including for PPVC and precast business and salaries increment.

As at March 31, the group’s cash and cash equivalents stood at $67.3 million.

Neo Tiam Boon, CEO and executive director of TA Corp says, “In view that the outlook for Singapore’s private residential property sector is improving gradually over the near-to-medium term, the group will continue to selectively evaluate land acquisition opportunities in Singapore. Outside of Singapore, we will continue to tap strategic partnerships in South East Asia to expand our property development business. We will also continue to expand our network of distributorships and increase distributorships of new products regionally to grow our distribution business.”

Shares in TA Corp closed at 22 cents on Tuesday.