SINGAPORE (June 28): Second Chance Properties reported 3Q19 earnings increased by 12.5% to $2.3 million, compared to $2.1 million in 3Q18.
This brings earnings for 9M19 to $4.4 million, 30.0% lower than $6.3 million in 9M18 on lower other income mainly on foreign exchange gain and loss and absence of profit from sale of investment properties.
During the quarter under review, revenue came in at $10 million, 2.6% higher than $9.7 million last year.
With cost of sales increasing by 1.7% y-o-y to $5.0 million, gross profit came in at $5.0 million, 3.5% higher than $4.8 million in the previous year.
Total expenses remained flat at $1.6 million compared to a year ago.
For the 9M19 period, its Apparel reported $0.08 million profit from a year ago while Gold reported a 8.1% rise in profit to $1.47 million. Profit from Properties fell 19% to $4.08 million due to lower rentals and fair valuation while profit from Securities fell 56.1% to $0.9 million.
As at May 31, the group’s cash and cash equivalents stood at $11.0 million.
The group says that it will declare an interim dividend of 0.4 cents per share and that no further dividend will be declared for the current FY19.
Looking forward, the group expects the pace of economic growth in Singapore to further weaken this year amid uncertainties over US-China relations.
The group’s apparel business in Malaysia is expected to be profitable this year, thanks to its flagship First Lady store. However, First Lady Singapore is facing great challenges mainly from stiff competition and changes have been implemented to mitigate these challenges.
Meanwhile, the group’s rental income is expected to be adversely affected due to loss of rental income from properties sold. Furthermore, the weakening rental market will pose challenges in lease renewals.
Shares in Second Chance last traded 2.08% lower at 24 cents on Thursday.
