Fragrance to launch at least 6 more home projects in H2

Group posts 11.4% rise in Q2 net profit to $17.7 million

FRAGRANCE Group says it intends to launch at least another six residential projects with about 480 units in the second half of this year.

It said this in its latest financial results statement, which showed it posted an 11.4 per cent year-on-year increase in net profit for the second quarter ended June 30 to $17.7 million. Turnover rose 33.1 per cent to $79.5 million.

For the first half, the group's net earnings slipped 8.9 per cent year- on-year to $27.8 million despite a 15.5 per cent improvement in turnover to $130.3 million. The lower bottom line was partly due to lower profit margins by the property development business as a result of lower selling prices.

Earnings per share increased from 1.9 cents in Q2 2008 to 2.1 cents in Q2 2009. Net asset value per share rose from 15.3 cents on Dec 31 last year to 18 cents on June 30, 2009.

For Q2 2009, profit before taxation (PBT) from property rose 9.8 per cent year-on-year to $15 million and PBT from hotels increased 7.6 per cent to $5.9 million.

The group's cash and bank balances stood at $25.7 million on June 30, 2009, up from $13.8 million on Dec 31, 2008. Its total borrowings decreased to $178.4 million from $212.1 million on Dec 31, 2008, mainly due to loan repayment relating to sold and completed projects, which was partly offset by new loans for development projects.

The group generated a positive cash flow from operations of $53.6 million during the first half of 2009. This arose mainly from the projects that were sold and completed during the period.

These proceeds were used to settle the borrowings pertaining to the sold and completed projects as well as purchase of property, plant and equipment.

Source: Business Times, 22 July 2009