Saturday, November 14, 2009

Second Chance Properties posts 13.7% fall in 1Q net profit to $4.6m

Second Chance Properties says the group’s net profit declined 13.7% to $4.6 million for the three months ending Sept 30, 2009 (1QFY2010) from $5.4 million in 1QFY2009. This was because revenue decreased 7.7% to $17.7 million in 1QFY10 from $19.2 million in 1QFY09 due to weakened economy. Cost of sales and other operating expenses also reduced by $0.7 million.

Revenue from its Malaysian operations increased by $0.1 million or 1.8% from $5.5 million in 1Q09 to $5.6 million in 1Q10. The apparel business in Singapore was affected by the poor economy and recorded a decrease of $0.8 million in revenue; this was a 17.8% drop from $4.5 million in FY2009 to $3.7 million in 1Q10.

The gold business was also affected by the weakened economy. Revenue from the gold business was $6.3 million in 1Q10, which was $0.3 million or 4.6% less than the $6.6 million recorded in the corresponding period of the prior year.

Dividend from securities available-for-sale was $0.3 million in both 1Q09 as well as 1Q10.

Second Chance Properties says rental income from investment properties was lower as well in 1Q10 and stood at $1.8 million as compared to $2.2 million in the corresponding period in the prior year. This represents a $0.4 million or 18.2% decrease from the prior year. This was because two properties were sold during 1Q09 and as such there is a loss of rental income from these properties in 1Q10.

There was also rental income derived from Hari Raya Bazaar in 1Q09; there was no such income in 1Q10.

Source: The Edge, 14 Nov 2009

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