Second Chance Properties reports 44.5% increase in net profit for FY2022, proposes name change

Earnings per share for FY2022 stood at 1.66 cents, up from the 1.30 cents in FY2021.

The company attributed its strong performance to the strategic shift in its core business, centered on investing in battered down stocks with strong fundamentals and high dividends for recurring dividend income.

Adjusted EBITDA increased by 40% to $17.57 million. Additionally, there was a realised profit of $6.6 million in FY2022 upon cash acquisition and disposal of few equity instruments held by the group, classified as financial assets at fair value through other comprehensive income. This gain was taken directly through retained earnings.

As at end Aug 31, cash and cash equivalents stood at $1.15 million.

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The company has also announced that it is changing its name to Second Chance Strategic. In a statement, it said the company’s core business since 1999 has been investing in retail properties for rental income. Over the last few years, however, it has been divesting its properties progressively and investing the proceeds of such divestments in listed stocks to augment its dividend income.

The company intends to continue the strategic divestment of its real estate properties for this purpose.

“The board believes that the proposed change of name to Second Chance Strategic will better represent the group’s business activities and strategy, allowing the public to better identify with the company,” it adds.

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For FY2022, a final dividend of 1 cent is to be declared, subject to shareholders’ approval at the forthcoming AGM.

Shares in Second Chance closed 1 cent higher or 4.34% up on Oct 26 at 24 cents.