UOL Group reported a net profit after tax of $307.4 million in FY2021, compared with just $13.1 million in FY2020. The company said this was mainly due to fair value and other gains of $73.8 million, compared to fair value and other losses of $246.7 million in FY2020.
Group pre-tax profit before fair value and other gains/losses amounted to $450.9 million, up 2% y-o-y from $443.2 million in FY2020. Group revenue for the full year rose 32% y-o-y to $2.6 billion with higher contributions from property development and hotel operations.
Property development saw the biggest revenue increase of 67% to $1.6 billion on higher progressive revenue recognition from Avenue South Residence, The Tre Ver, Clavon and The Watergardens at Canberra in Singapore and revenue recognition from sales of units at The Sky Residences in London.
In a media briefing, group CEO Liam Wee Sin said breakeven costs have gone up. “Supply chain disruptioin and construction costs add to total breakeven cost for any development. For developers, momentum of sales were good but there was an increase in pricing of 10% due to rising costs and these also compressed our margins,” he said. This is despite having locked in most of the construction costs for most of UOL’s projects. “The supply chain and cost of raw material will escalate because of the war and making the built environment sector very challenging,” Liam adds.
