SINGAPORE - Developer World Class Global has sunk further into the red as it posted a full-year net loss of S$9 million from S$6.3 million a year ago.
The overseas real estate arm of Aspial Corporation said on Tuesday (Feb 13) that the loss was mainly due to an increase in employee benefits, listing expenses incurred with respect to its initial public offering, and higher holding costs incurred for properties held for sale in Malaysia.
World Class Global, which has an overseas presence in Australia and Malaysia, was listed on the Catalist board of the Singapore Exchange last June.
For the full-year ended Dec 31, loss per share (LPS) stood at 1.04 Singapore cents. LPS for FY2016 was 0.79 Singapore cent.
World Class Global said that the group did not record any revenue from the sale of development properties as none of its development projects were completed and handed over to the purchasers in FY2017.
The company said that the allowance for write-down of development properties and properties held for sale of S$1.3 million was mainly made on the development properties in Malaysia due to an increase in interest costs and major refurbishment, upgrading and building work done.
With respect to some ongoing projects in Australia, World Class Global said that it has locked in more than S$1.2 billion of sales revenue as at Feb 13. The group expects to receive more than S$700 million of sales proceeds when these completed development units are handed over to the purchasers.
The group's net cash used in operating activities for FY2017 was S$268.8 million, up from S$145.7 million in FY 2016.
This was mainly from the increase in development properties of S$255.2 million, as well as interest expenses and income taxes paid of S$30.2 million, partially offset by a decrease in trade and other receivables of S$11.6 million and an increase in trade and other payables of S$13.1 million.
World Class Global closed unchanged at S$0.24 on Tuesday.