Thakral Corporation has reported FY2020 earnings of $6.5 million, down 28% over the preceding year. Revenue in the same period was down 16% to $90.1 million.
Thakral notes that its GemLife retirement home joint venture in Australia “did well beyond” its own internal forecast and enjoyed higher sales versus the previous year.
"GemLife benefitted from its superior product, excellent locations, brand goodwill and public awareness and also from steps taken by management to help residents cope with the pandemic," the company says.
GemLife bought four new sites in 2020 and has additional land to expand its current resort portfolio to over 2,400 homes. It has also taken new options to acquire more sites that will take it past its target of 4,000 homes.
Thakral owns a portfolio of offices and hotels in Japan as well, and the latter is hit by the pandemic. On the other hand, it managed to improve rental revenues at the office properties.
“The group will maintain a prudent approach while exploring options for alternate uses to boost long-term returns from its hotel investments. It will also consider divesting some properties at the right price to recycle capital for future acquisitions,” the company says.
The company, which runs a lifestyle products business in China and Hong Kong, enjoyed a rebound in the second half of the year.
Thakral’s chairman Natarajan Subramaniam is “pleased” with the company’s results, given the challenges faced during the year. “We have stayed profitable in FY2020, which is testimony of the strength and success of our strategies,” he says.
As at Dec 31 2020, the company’s net asset value was 113.03 cents, versus 103.37 cents as at Dec 31 2019.
The company plans to pay an interim dividend of two cents.
Thakral shares closed Feb 25 unchanged at 42 cents.
