SINGAPORE –Second Chance Properties reported a sharp rise in full-year profit on Wednesday, announced a dividend and bonus warrants, and proposed a name change to reflect its new core business as an investment company.

The mainboard-listed firm, which is changing its name to Second Chance Strategic, recorded net profit of $14.2 million in the 12 months to Aug 31, up 44 per cent from $9.82 million a year earlier. This came on the back of an 18 per cent rise in revenue to $43.12 million, up from $36.58 million in 2021.

The company announced a dividend of one cent a share, which works out to a 5 per cent yield based on Tuesday’s closing price of 24 cents.

Second Chance also plans to issue two bonus warrants per ordinary share, with a conversion price of 22 cents, free to all shareholders.

The firm, led by founder and chief executive Mohamed Salleh Marican, attributed its strong performance to a shift in its core business, which it said was centred on investing in battered-down stocks with strong fundamentals and high dividends for recurring dividend income. The bulk of its earnings previously came from rental income from numerous retail units located in various shopping areas around the city and the outskirts.

“Since 1999, the group’s main core business has been investing in retail properties for rental income,” it said. “Over the last few years, it has been divesting its properties progressively and investing the proceeds of such divestments in listed stocks to augment its dividend income.”

Its earnings in the most recent financial year were boosted by a realised gain of $6.66 million on the sale of equities.

The company intends to continue divesting its properties and believes its proposed name change to Second Chance Strategic will better represent its business activities and strategy, “allowing the public to better identify with the company”.