Centurion Q1 revenue grows 47% on new capacity, business streams

GROUP revenue for mainboard-listed Centurion Corp rose about 47 per cent to S$45.1 million in the first quarter ended Mar 31, 2022, from S$30.7 million in the year-ago period.

This was mainly driven by an enlarged portfolio capacity and new business streams in its purpose-built workers’ accommodation (PBWA) segment across Singapore and Malaysia, as well as recovery in the financial occupancy of its purpose-built student accommodation (PBSA) in the UK and Australia.

In a business update on Tuesday (May 10) night, the property management company said the average financial occupancy of its Singapore PBWA assets improved after travel restrictions were eased over the second half of 2021, and arrivals resumed for dormitory-bound work pass holders via travel lanes.

Revenue from Singapore grew some 51 per cent year on year to S$30.6 million for the first quarter, mainly due to 2 added quick-build dormitories, which started operating in Q2 and Q4 2021, as well as a slight recovery in occupancy rates at Centurion’s purpose-built dormitories.

In Malaysia, the inflow of new workers continues to be affected by Covid-19 pandemic-management measures and knock-on effects on businesses, resulting in a manpower shortage. Nonetheless, revenue from Malaysia inched up by 3 per cent to S$3.4 million for the quarter.

The UK saw a 56 per cent boost in revenue to around S$8.6 million, amid a recovery in occupancy levels for the current academic year, which commenced in September 2021. Bookings for the 2022 academic year “also remain robust”, the company said.

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Centurion chief executive Kong Chee Min noted the broad-based improvements in revenue across the portfolio. These primarily came from new revenue streams from its quick-build dormitories and onboard centres, formerly known as migrant worker onboarding centres, in Singapore, and the recovery in occupancies for the PBSA segment.

He added that the group is cognisant of inflationary pressures and rising interest rates, which may impact its business and performance, and will “closely monitor” those developments.

Shares of Centurion : OU8 0% fell 2.8 per cent or S$0.01 to close at S$0.345 on Tuesday, before the business update was released.