Property and hospitality group Roxy-Pacific Holdings has posted a 19 per cent increase in first-quarter net profit to $7 million, from $5.9 million in the same period a year ago, because of a jump in the share of results of associates.
Revenue for the three months ended March 31, however, fell 29 per cent year-on-year to $46.4 million.
The drop in revenue was mainly due to lower contribution from the property development and property investment segments.
Property development, which made up 68 per cent of Roxy-Pacific's turnover in the quarter, fell by 39 per cent to $31.8 million from $51.7 million.
The mainboard-listed company said it was largely due to lower revenue recognition from Trilive, a project at its final stage of completion, and an absence of revenue recognition from Jade Residences, Whitehaven and LIV on Wilkie, following the completion of these projects last year.
The bottom line was boosted by a 121 per cent increase from a year ago in the share of results of associates (net of income tax) to $5.8 million.
AT A GLANCE
REVENUE: $46.4 million (-29%)
NET PROFIT: $7 million (+19%)
This was mainly due to a $9 million fair value gain from 117 Clarence Street in Sydney, Australia, but this was partially offset by stamp duty incurred for the acquisition of an office building at 312 St Kilda Road in Melbourne, as well as additional tax provision for an associate.
The group's associate company, Feature-Roxy, has entered into a heads of agreement to sell 117 Clarence Street. The sale is subject to a due diligence exercise to be carried out by the purchaser.
Earnings per share increased to 0.59 cent from 0.5 cent in the year-ago period.
Net asset value per share was flat at 42.16 cents as of March 31, compared with three months ago.
Roxy-Pacific said it currently has eight development sites in Singapore, and plans to launch another six development sites for sale in FY2018, depending on market conditions.
It also expects to be profitable this year, barring any unforeseen circumstances.
Roxy-Pacific shares closed 0.5 cent, or 1 per cent, down to 51.5 cents yesterday, before the results were announced.