SINGAPORE (Nov 9): Thakral Corporation has swung back to profitability in 9M17, posting earnings of $36.2 million compared to a loss of $0.4 million in 9M16.
This came on the back of the revaluation of warehouse properties in Hong Kong to net disposal value.
Thakralhas declared a special interim dividend of 3 cents per share, bringing its total dividend payout for FY17 to 5 cents per share.
Revenue for the nine months ended September was 35% lower at $111.0 million from $170.5 million a year ago, on the back of improved performance at both the group’s investment and lifestyle divisions.
The group’s investment division recorded a 9% gain in revenue to $23.0 million from $21.2 million last year, while the lifestyle division declined by 44.9% to $88.0 million from $149.4 million a year ago.
Concurrently, cost of sales dropped 45% to $78.7 million compared to $142.8 million last year.
Hence, gross profit for the period amounted to $32.3 million, 17% higher than $27.7 million in 9M16., while gross profit increased to 29.1% from 16.2% last year.
For 9M17, the group recorded valuation gain on asset held for sale of $34.2 million, which was absent in 9M16.
This was from the signing of the sale agreement for the Hong Kong properties in the current period and it has revalued the Hong Kong properties based on the actual selling price to reflect the true value of the assets as well as the revaluation gain in the current period although the sale will only be completed in Nov 2017.
Finance costs maintained at $4.0 million compared to a year ago.
Administrative expenses increased 13% to $15.0 million from $13.3 million a year ago, mainly due to accrual in the current period of bonuses amounting to $2.4 million for certain executive directors and staff extensively involved in the warehouse property disposal.
Natarajan Subramaniam, independent non-executive chairman of Thakral, says, “With the positive economic outlook of our key markets, we are optimistic of our Group’s overall performance in the coming months. The sale of our Hong Kong properties will free up financial resources and boost our liquidity, enabling us to explore new markets to grow our investment portfolio. Barring any unforeseen circumstances, we expect to remain profitable for FY17.”
Shares in Thakral closed 56 cents on Thursday.
