Heeton Holdings' Q2 net profit rises by 24% to $6.5 million

Property group Heeton Holdings has reported a 23.9 per cent rise in second quarter net profit to $6.5 million.

Revenue for the three months to June 30 was up 66.9 per cent to $18.5 million.

Earnings per share climbed to 2.89 cents from 2.33 cents previously while net asset value per share firmed to 130.86 cents compared to 127.97 cents as at Dec 31.

Turnover for the first half year increased by 60.8 per cent to $31.4 million. This was mainly due to revenue contribution from residential projects, Lincoln Suites and the Britton in London, which was higher than that recognised from The Lumos and Lincoln Suites in the same period last year.

The group recorded a $3.8 million fair value gain on three investment properties: Tampines Mart, The Woodgrove and 62 Sembawang Road.

However, cost of properties sold rose by 190.9 per cent, as a result of higher cost of development for Lincoln Suites.

Accordingly, gross margin, after taking into account other operating expenses, decreased to 23.6 per cent from 42.7 per cent a year ago.