Net profit fell at Tuan Sing Holdings in the fourth quarter due to a reassessment of some of its properties.
It booked fair value losses from its non-hotel investment properties in Perth, Australia, and made an allowance for diminution in value of its development properties here.
The accounting process helped send earnings down 41 per cent to $14.4 million for the three months to Dec 31, while revenue rose 28 per cent to $143.42 million. Full-year earnings came in 13 per cent up at $68.8 million on a 91 per cent surge in turnover to $677.12 million.Net profit from property, the key driver of the group, rose 38 per cent to $50.4 million for the 12 months.
AT A GLANCE
$143.4 million (+28%)
$14.4 million (-41%)
0.6 cent per share (+20%)
Progressive recognition of revenue for units sold at Seletar Park Residence, Sennett Residence and Cluny Park Residence formed the bulk of property revenue and profit.
Seletar Park Residence and Sennett Residence are both about 95 per cent sold while Cluny Park Residence is about 50 per cent taken up.
"The group has low stock of unsold units and does not face imminent regulatory fees," it said, adding revenue and profit this year should continue to come from these three residential projects.
Net profit from hotel investment fell 60 per cent to $5.2 million for the year, mainly due to the absence of the one-time Grand Hotel Group net acquisition gain in December 2014.
Net profit from industrial services was 30 per cent lower at $1.3 million, weighed down by its listed subsidiary SP Corporation's subdued tyre distribution and commodities trading activities.
Earnings per share came in at 1.2 cents for the fourth quarter, compared with 2.1 cents a year earlier.
Net asset value was 74.4 cents at Dec 31, up from 68.3 cents a year earlier.
A first and final dividend of 0.6 cent per share was declared for the year, up from 0.5 cent previously.
"In Australia, Grand Hotel Group is expected to perform satisfactorily with arrivals into Melbourne continuing to grow, even though Perth may remain affected by the depressed mining industry in Western Australia," Tuan Sing said in a statement yesterday.
"The group will continue to actively seek well-located sites for residential and commercial development in both Singapore and overseas markets," it added.
Tuan Sing shares closed down 0.5 cent to 29.5 cents yesterday.