SINGAPORE - Developer Sing Holdings has suffered a steep fall in profit, with net earnings coming in at a mere $307,000 in the third quarter, against $3.4 million in the same period last year.
Revenue for the three months to Sept 30 fell by more than half to $15.4 million from $31.3 million previously.
Sing Holdings said sales commission and marketing-related costs of Waterwoods continued to be charged as expenses without the corresponding revenue being recognised. The accumulated losses resulted in deferred tax asset of about $1 million.
Revenue for the quarter relates largely to the progressive recognition of proceeds from the sale of units in Robin Residences.
Based on construction progress, some 26 per cent of the contracted sale of Robin Residences was recognised as revenue during the quarter, together with corresponding costs.
As for The Laurels, only one last unit was recognised during the quarter while about 4 per cent of the total sales proceeds then in the same period last year, , thereby resulting in the decrease in revenue.
Other income comprised mainly rental income from trading properties and write back of bad debts recovered.
No performance bonus was accrued in the quarter, thus resulting in a drop in administrative expenses.
Sales and marketing expenses relate mainly to commission incurred for the sale of development properties and amortisation of showflat costs.
Other operating expenses comprise mainly depreciation, and contribution to maintenance fees and property tax for the trading properties.
Earnings per share shrank to 0.08 cent from 0.84 cent previously while net asset value per share eased to 54.82 cents compared to 56.25 cents as at Dec 31.
In its first half financial statements announcement, Sing Holdings disclosed that it expects to report a loss for the second half of 2014.
Although it reported a profit in the third quarter due to recognition of deferred tax asset, it expects to report a loss for the full year.