PROPERTY developer Bukit Sembawang Estates has posted a hefty $41.9 million fourth quarter net profit in a strong comeback from a $61.4 million net loss in the same period last year.
This was despite higher expenses, mainly the higher construction and land costs of the company's development projects.
For the full year ended March 31, Bukit Sembawang posted a $53 million net profit, reversing a $48.4 million net loss in the year before.
This was partly attributable to a write-back of allowance for foreseeable losses amounting to $40 million, arising from an increase in the valuation of the group's Fairways development project.
Fourth quarter revenue more than quadrupled to $21 million from $4.9 million in the same period a year earlier.
Full-year revenue was $66 million, up 5.4 per cent from the previous year's figure.
Bukit Sembawang said in a statement yesterday that it expects profit for the current year ending March 31 next year to surpass its recent result.
The group cited Urban Redevelopment Authority statistics, showing that new residential property sales had hit 4,380 units in the first quarter of this year.
'With the positive economic climate and improved sentiment in the Singapore residential property market, the group expects a sustainable pace of sale of our residential development projects this year,' the report said.
Last month, the group launched Luxus Hills Phase 3, involving 46 units, to strong response from home buyers. All units have been sold.
In the months to come, the group is set to launch two more residential development projects. These are Paterson Suites (82 units) and The Vermont on Cairnhill ( 158 units).
Full-year earnings per share were 22.71 cents, down from a loss per share of 39.35 cents the previous year.
The group's net asset value per share stood at $3.21 as of March 31, down from $3.77 a year earlier.
The company's board has recommended a final dividend of four cents a share.
Bukit Sembawang shares closed three cents lower at $4.60 yesterday.
Source: Straits Times, 22 May 2010