Second Chance posts 56% drop in first-quarter net profit

SINGAPORE - Property and apparel company Second Chance has reported a 56 per cent drop in its net profit for the first quarter from the same period a year ago, to $1.7 million, as revenue dropped across its apparel, gold and securities business.

Revenue fell 4 per cent from a year ago to $8.8 million, after the company closed six of its retail outlets in Singapore and Malaysia.

The firm also suffered a loss of rental income as a result of the sale of three investment properties.

However, this loss was partially offset by the rental income derived from a newly acquired property in Malaysia, a 10-storey commercial building earmarked as the flagship store for the company's First Lady apparel business.

Net asset value per share stood at 38.73 cents as at Nov 30, 2014, down from 38.87 cents as at Aug 31, 2014.

Earnings per share fell to 0.25 cents at the end of November 2014, from 57 cents a year before.

Looking ahead, the firm said that despite the decline in profits, its gold business is expected to remain profitable.

"The drop in revenue of the apparel segment is mainly due to the closure of several outlets and also increased competition. However, we are confident that it will continue to be profitable," it added.

"Retail rents are facing pressures and rentals are expected to trend downwards slightly. The performance of the financial instruments segment in the next 12 months is highly dependent on market forces."