The impact of the coronavirus pandemic on retailing hit home for jewellery and property player Aspial, with its earnings plunging in the first half.

Net profit came in at $5.5 million for the six months to June 30, down 63 per cent from the same period last year.

Aspial did not declare an interim dividend this year to retain cash for working capital. It paid an interim dividend of 0.38 cent a share for the corresponding period last year.

Revenue for the half year fell 25.1 per cent to $234.2 million, owing to lower contributions from the real estate and jewellery segments. This was partly offset by the financial services segment.

Real estate turnover fell by 38.6 per cent to $98.7 million, with sales for the period coming mainly from its Australia 108 project in Melbourne, which will achieve full completion this year.

Likewise, the jewellery unit's revenue fell by 46.4 per cent to $34 million as shops were closed during the circuit breaker period, Aspial noted on Thursday.

However, turnover from the financial services division rose by 11.7 per cent to $102.8 million, owing to higher contributions from pawnbroking and jewellery trading. This was partially offset by lower revenue from sales of jewellery and branded merchandise in Singapore, as well as the secured lending business.

Aspial expects challenging conditions to persist. "The Covid-19 pandemic has led to major disruptions in supply chain and cross-border travel affecting the economy, employment and retail sentiments," it said.

"Although governments have provided various short-term subsidies and support, the group will need to strengthen its product and service innovation."

THE BUSINESS TIMES