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Second Chance Properties Q1 net profit plunges 55.8%

MAINBOARD-LISTED Second Chance Properties' net profit for the three months ended Nov 30, 2014 - its fiscal first quarter for FY2015 - has plunged 55.8 per cent to S$1.7 million from a year ago.

This is mainly attributed to the revenue slump from the closure of six apparel retail outlets in Singapore and Malaysia, as well as expenses incurred from acquiring property to carry out its apparel business in Malaysia.

Over the same period, its revenues had slumped 4 per cent to S$8.84 million.

Second Chance is involved in three core businesses: apparel retail, gold jewellery retail and property investment.

In Q1 FY2015, revenue from its apparel business dived 16.36 per cent to S$2.25 million and rental revenue from properties dipped 2.92 per cent to S$2.33 million, while revenues from its gold business inched up by 0.6 per cent to S$3 million.

The decline was partially offset by revenue from securities, which increased by 11.5 per cent to S$1.26 million.

"The performance of the financial instruments segment in the next 12 months is highly dependent on market forces," the company said in a statement, adding that the pace of global economic recovery is expected to be uneven.

"The ongoing restructuring and tight labour constraints will have a dampening effect on Singapore's economic growth in the coming year," it said.

As at Nov 30, 2014, earnings per share stood at 0.25 Singapore cents, while net asset value per share was 38.73 Singapore cents.

No dividends were declared for the quarter.

On Wednesday, Second Chance's counter closed at S$0.445, unchanged from the previous day's close.