Rowsley, which set off a scrum for its stock after it unveiled plans to acquire the firm that owns Thomson Medical from its majority shareholder Peter Lim, returned to the black in the second quarter.
The group reported a net profit of $1.2 million for the three months to June 30, reversing from a loss of $5.3 million. Revenue was near flat at $22.5 million, compared with $22.3 million in the same period last year. In a statement, Rowsley said the real estate market in Singapore continued to be challenging in the past quarter, which led to a decline in revenue.
However, this was offset by stronger revenue in overseas markets such as Dubai, Vietnam and China as well as new revenue from the acquisition of Squire Mech.
Share of profits from RSP India and RSP Malaysia also turned positive from a loss during the same time last year. Earnings per share was 0.026 cent, compared with a loss of 0.114 cent previously, while net asset value per share eased to 8.63 cents from 8.68 cents as at Dec 31 last year.
Rowsley completed the acquisition of AC Consortium on June 30. RSP managing director Lai Huen Poh said AC Consortium has a strong track record in industrial building design and extensive relationships in the small and medium-sized enterprises sector.
"As Singapore continues to remake its industrial landscape, this acquisition will strengthen our position to capture growth in this space."
In Britain, a revised scheme for its interest in St Michael's is being prepared after an extensive review by Historic England. Once completed, planning approvals will be re-submitted to the Manchester City Council. The outlook for the residential, commercial and hotel market in Manchester continues to be strong, Rowsley noted.
AT A GLANCE
NET PROFIT: $1.2 million (comparison not meaningful)
REVENUE: $22.5 million (+1%)
Rowsley shares skyrocketed last week after Mr Lim unveiled plans to inject medical assets said to be worth up to $1.9 billion into the firm. Mr Lim will pour his 100 per cent stake in the private firm Thomson Medical and 70.36 per cent stake in Malaysia-listed TMC Life Sciences into Rowsley in exchange for new Rowsley shares in a deal valued at up to $1.9 billion.
The shares ended the week up 138 per cent at 17.4 cents.