SLB Development has reported a loss of $22.1 million for the FY2024 ended May 31, reversing from earnings of $8.4 million in the year before.
The group made a deeper loss of $17.5 million for the 2HFY2024, compared to the loss of $2.2 million in the 2HFY2023.
Full-year revenue plunged by 98.3% y-o-y to $805,000 mainly due to the absence of revenue from property development projects after INSPACE obtained its temporary occupancy permit (TOP) on January 2023. The project’s revenue was also fully recognised in FY2023.
The revenue recognised this year was mainly from distributions from the group’s fund investments and fees from development management services.
FY2024 gross profit fell by 97.0% y-o-y to $394,000 mainly due to the lack of contributions from property development projects.
Other operating income inched up by 5.5% y-o-y to $10.2 million due to higher rental income from SLB Developments’ development property, foreign exchange (forex) gain and gain on disposal of plant and equipment. The gains were offset by lower interest income.
Share of results of joint ventures and associates also fell to a $4.1 million loss compared to the gain of $9.3 million in the year before. The lower share of results was mainly due to lower development profits recognised from the group’s associates and joint venture projects in FY2024. The group also recognised its share of pre-launch expenses, finance costs, sales and marketing expenses recognised from its new projects where revenue was not recognised in FY2024.
This year, the group also booked an impairment loss of $14.7 million on development property for 225 King Street, Melbourne, Australia.
No dividend was declared this year, compared to the final dividend of 0.1 cent per share declared the year before.
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“No dividend has been declared or recommended for the financial year ended May 31 as to retain funds for working capital requirements of the group and to allow the group to capitalise on potential investment opportunities,” says SLB Development in its financial statement.
As at May 31, cash and cash equivalents stood at $43.9 million.
Shares in SLB Development closed flat at 12.4 cents on July 29.
