Second Chance Properties H1 profit falls 52.8% to S$4.3 million

SECOND Chance Properties posted a 52.8 per cent fall in its net profit to S$4.3 million for its first half ended Feb 29, 2024, from S$9.2 million a year earlier.

This was mainly due to lower contributions from its properties and securities businesses, the company said on Wednesday (Mar 27).

Earnings per share stood at 0.47 Singapore cents for the half-year period, down from 0.99 cents in the corresponding period a year ago.

Revenue for H1 fell 10.4 per cent to S$13.3 million, from S$14.8 million a year earlier. The group experienced a decline in revenue across all its segments, which are apparels, gold, properties and securities.

Rental revenue from its properties segment fell 26 per cent to S$1.1 million, mainly due to loss of rental income from the sale of two investment properties.

Net profit from the segment also fell 58.4 per cent to S$2.3 million, as the company recorded lower gains on investment property disposals in H1 FY2024.

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Meanwhile, its securities business had a 5.6 per cent fall in revenue to S$3.2 million, due to lower dividends received.

Net profit for the segment also fell 42.4 per cent to S$3 million as it registered an unrealised foreign exchange loss for H1 FY2024, compared with the unrealised foreign exchange gain in H1 FY2023.

Revenue from its apparel business fell 27.4 per cent to S$450,000, as a retail outlet in Singapore was shut down in June 2023 due to a mandatory mall-wide renovation that forced all tenants to relocate.

Net loss from the segment narrowed to S$10,000 from S$520,000, however, as the outlet had high fixed costs.

As for its gold business, revenue fell 8.3 per cent to S$8.5 million due to general market conditions, but net profit rose 33.8 per cent to S$1.9 million due to a rise in gold prices.

No dividend was declared for the half-year, unchanged from the year before.

In a bourse filing earlier in March, the company said it expected its H1 net profit to “decrease significantly”, likely due to lower gains on disposal of investment properties, as well as unrealised foreign exchange losses.

Shares of Second Chance Properties closed flat at S$0.23 on Wednesday, before the results were released.