Aspial posts 63% fall in H1 net profit; no interim dividend declared

JEWELLERY and property player Aspial Corp saw its earnings fall 63 per cent to S$5.5 million for the half-year ended June 30, with its topline hit by the fall in retail sales amid the Covid-19 pandemic.

Aspial also did not declare an interim dividend this year to retain cash for working capital. The company had declared an interim dividend of 0.38 cents per share for the corresponding period last year.

The company's H1 revenue fell 25.1 per cent to S$234.2 million, due to lower contributions from both its real estate and jewellery segments. This was partly offset by its financial-services segment.

Its real estate revenue fell 38.6 per cent to S$98.7 million in H1. Its revenue for the period mainly came from its Australia 108 project in Melbourne, which will achieve full completion this year.

Likewise, the jewellery business' revenue fell 46.4 per cent to S$34 million, as retail shops were closed during the circuit-breaker period.

However, revenue from the financial-service business rose 11.7 per cent to S$102.8 million, due to higher contributions from pawnbroking and the trading of jewellery. This was partially offset by lower revenue from the retail of jewellery and branded merchandise in Singapore, as well as the secured lending business.

Looking ahead, Aspial expects challenging conditions to persist. "The Covid-19 pandemic has led to major disruptions in supply chain and cross-border travel affecting the economy, employment and retail sentiments. Although governments have provided various short-term subsidies and support, the group will need to strengthen its product and service innovation," the company said.

Shares of Aspial closed flat at S$0.16 on Thursday, before the results.