Hit on multi-fronts by the Covd-19 pandemic, Chip Eng Seng Corporation has reported losses of $81.1 million for FY2020 ended Dec 2020, a big swing from earnings of $33.3 million in the preceding FY2019.
The company’s various businesses in property development, construction and hospitality all reported lower turnover. Revenue for FY2020 was $464.1 million, down 41.4% from $792 million recorded in the preceding year.
Besides the operational hit, the company wrote off some $11 million in fair value losses from its investment properties too.
The company’s relatively new business in education was the only segment reporting higher revenue, up 87.8% to $25.9 million, thanks to contribution from newly-acquired schools.
Since the last update on Jan 11, Chip Eng Seng’s development projects have achieved more sales.
SEE: Chip Eng Seng to acquire 38% stake in education business for $5.4 mil
For example, Park Colonial has increased to 95.4% from 94.5%; Parc Komo up from 48.9% to 50.7%; and Kopar at Newton from 44.4% to 46.3%. Grandeur Park Residences, meanwhile, has since been fully sold, based on options to purchase issued.
The company warns that there’s still economic uncertainty and yet the property market is seeing higher prices, drawing concerns from the government.
“Any measure taken by the government to ensure stability in property prices may have adverse impact on sales of the remaining dwelling units held by the group,” says Chip Eng Seng in its earnings commentary.
The company plans to pay a first and final dividend of two cents per share, versus four cents paid for FY2019.
As at Dec 31 2020, Chip Eng Seng’s net asset value was 103.38 cents, versus 117.35 cents as at Dec 31 2019.
The company’s shares closed unchanged at 43 cents on Feb 9.
