SINGAPORE (May 7): Property developer World Class Global (WCG) reported 1Q19 earnings of $10.2 million for the 1Q19 ended March, close to 30 times higher than the $0.3 million a year ago.
Earnings per share (EPS) rocketed to 1.11 cents in 1Q19, compared to 0.04 cents in 1Q18.
1Q19 revenue rose 20% to $96.7 million, from $80.7 million a year ago.
Revenue for 1Q19 was primarily in relation to the settlements by purchasers of Australia 108, with the balance from settlements by purchasers of AVANT.
Cost of sales increased by 4% to $71.9 million, from $69.3 million a year ago mainly due to the increase in settlements by purchasers of Australia 108 and AVANT.
WCG registered a net foreign exchange gain of $1.6 million in 1Q19, compared to a net foreign exchange loss of $3.7 million a year ago.
This was mainly due to the strengthening of the Australian dollar and Malaysia ringgit against the Singapore dollar, which is the group’s reporting currency.
Other operating expenses grew 75% to $10.2 million in 1Q19, compared to $5.8 million a year ago.
The increase was mainly due to recognition of sales commission upon the settlements by purchasers of Australia 108 and AVANT, higher holding costs incurred for properties held for sale, and net fair value loss on derivatives.
As at end March, cash and cash equivalents stood at $47.0 million.
Looking ahead, WCG says it expects its Australia 108 development to contribute significantly to the group’s revenue and profitability in FY19 and FY20.
In addition, the group has started hotel operations at some of the completed properties in Penang since FY18, and is currently planning to add 300 keys by the end of 2021 to bring the total to 320 rooms.
WCG says the business and occupancy of its hotels has been encouraging.
Shares in WCG closed flat at 18 cents on Tuesday.
