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Centurion's Q3 net profit up 47% on healthy dormitory demand

CENTURION Corporation Limited, which is in the dormitory business, reported on Friday a 47 per cent growth in its net profit to S$7.92 million for the third quarter ended Sept 30, 2014, compared to S$5.39 million a year ago.

Revenue rose by 46 per cent to S$20.90 million, driven mainly by its accommodation business which recorded a revenue growth of 61 per cent to reach S$19.4 million. Its optical business, however, saw a drop in revenue of S$0.8 million in Q3 due to weaker demand.

The comparative figures a year ago were re-represented due to discontinued operations of its Australian optical disc business which was sold in the second quarter of 2014.

During the quarter, the group benefited from an increase in bed capacity at Westlite Toh Guan after upgrading works were completed in January 2014. It also enjoyed an increase in rental and occupancy rates of its workers accommodation in Malaysia, as well as maiden revenue from its student accommodation assets in Australia and the United Kingdom.

Centurion, formerly known as SM Summit Holdings Limited, had a cash and cash equivalent balance of about S$64 million on Sept 30, 2014.

It says it will continue to explore strategic acquisition and partnership opportunities to further enlarge its accommodation business in both existing and new markets.