http://www.businesstimes.com.sg/prem...es-49-20130830

Published August 30, 2013

Guocoland Q4 profit tumbles 49%

By carine lee [email protected]


GUOCOLAND Limited saw its net profit for the fiscal fourth quarter ended June 30 tumble 49 per cent to $32.22 million from $62.99 million last year.

Turnover plunged 47 per cent to $168.56 million from $319.73 million, mainly on lower progressive recognition for Goodwood Residence, which obtained its temporary occupation permit in June.

However, the group did forfeit a buyer's deposit for the purchase of certain Goodwood Residence units under the deferred payment scheme, bringing its other income to $49.96 million. A year ago, other income was $11.47 million.

Earnings per share were 2.82 cents, down from 5.68 cents a year ago.

Full-year profit fell 36 per cent to $40.49 million from $63.19 million before. Turnover was flat at $677.44 million.

Gross profit declined by 29 per cent to $144.01 million from $203.18 million, as the group incurred additional construction cost for Goodwood Residence and Sophia Residence due to default by the main contractor.

Guocoland reported some $96.51 million in other income from higher fair-value gain of its investment properties and income from deposit received for the purchase of certain units in Goodwood Residence. A year ago, it reported other income of $15.02 million.

Earnings per share for the full year were 3.57 cents compared with 5.69 cents a year ago.

Guocoland said its business environment remains challenging as sentiment for luxury residential properties in Singapore remains cautious.

It expects to complete the 1.2 billion yuan (S$250 million) sale of all its interest in a subsidiary which has a project located in Nanjing, China today. The group will recognise a net gain of approximately $81 million upon completion of the sale.

The group maintained its five cent per share first and final dividend, which will be paid on Nov 19.

The counter finished trading down four cents at $1.98 yesterday.