SINGAPORE (June 29): Second Chance Properties posted earnings of $5.4 million for the third quarter ended May, up 72.3% from $3.1 million a year ago.
This was mainly attributable to a four-fold increase in other income to $2.8 million, from $0.7 million in 3Q16, comprising mainly of profit on disposal of securities.
During the period, the company accepted cash offer on de-listing of one of the available-for sale equity securities resulting in a profit of $2.2 million. There was no disposal of available-for-sale securities a year ago.
Revenue in 3Q fell 7.7% to $9.4 million, from $10.2 million in the corresponding period last year.
For the nine months ended May, revenue fell 8.9% to $24.5 million.
This was mainly due to declines in Second Chance’s apparel, properties, and securities businesses, which saw revenue fall by 28.2%, 10.4%, and 9.4%, respectively.
Revenue from its apparel business fell to $4.6 million, mainly due to the closure of 13 shops in Malaysia, the weakening of the ringgit, and intense competition.
Rental income from properties fell to $5.7 million, mainly due to the sale of two investment properties, as well as lower rentals received on some lease renewals.
Revenue from its securities business fell to $3.0 million, due to the sale of fewer fixed income securities.
Revenue from its gold business rose slightly by 3% to $11.3 million in 9M17, from $11.0 million in the same period a year ago.
Cash and cash equivalents stood at $5.6 million as at May 31, 2017.
Looking ahead, Second Chance says the retail industry continues to be negatively affected by online and overseas shopping, as well as higher operating cost.
Meanwhile, its apparel business in Malaysia continues to be affected by the weakening ringgit and poor consumer spending
Shares of Second Chance Properties closed flat at 25 cents on Thursday.
