SINGAPORE - A strong performance on investments saw mainboard-listed Second Chance Properties boost its earnings by over 38 per cent to $19.7 million for the full year ended Aug 31, 2023.

This was a $5.5 million rise from the previous year’s earnings of $14.2 million.

Topline revenue slipped over 2.8 per cent to $41.9 million, down from $43.1 million a year ago, largely due to a slide in retail sales.

The company, led by founder Mohamed Salleh Marican, said the bottom-line boost came largely from higher income generated from quoted securities as well as disposal gains of investment properties.

The results translated into earnings per share of 2.12 cents, compared with 1.66 cents a year earlier.

The group, which started as a retail business in the 1980s but then grew a significant portfolio of rentable commercial properties, realised gains of $5.4 million on the disposal of equity investments it held.

Pre-tax profit from securities and investment activities rose to $18.9 million for the year, a 95 per cent surge from the previous year’s $9.7 million.

But its gold and property divisions saw slides in earnings, while apparel was in the red.

Profit contribution from gold retail fell 16.9 per cent to $3.2 million, while property saw its profit contribution slide 17.4 per cent to $4.19 million. The apparel business was in the red to the tune of about $830,000.

Over the past three years, Mr Salleh has led the company on a pivot away from its traditional retail and gold business towards investments, primarily in quoted securities. The funds for the investments are derived primarily from the sale of some of its commercial property assets, which have significantly gained in value over the years.

The investment segment is expected to contribute to the core of the company’s earnings in the years to come.

The company declared a final dividend of 0.55 cent per share. Its counter closed unchanged at 24.5 cents on Monday.