Centurion's Q4 profit tumbles in absence of one-off gains

CENTURION Corporation on Tuesday reported that its net profit for the fourth quarter ended Dec 31, 2016, tumbled 90 per cent to S$7.5 million, compared with about S$73 million a year ago, due to the absence of one-off gains.

The company, which owns and operates dormitories for foreign workers in Singapore and Malaysia, reported an 8 per cent rise in revenue to S$28.3 million, thanks to higher rents and occupancy. Its Westlite Woodlands workers accommodation also obtained its temporary occupation permit in July 2015.

The group's share of operational gains from associated companies and joint venture in Q4 2015 included a fair value loss S$0.4 million from an investment property in Malaysia. In contrast, it enjoyed a fair valuation gain of S$22.5 million from investment properties a year ago. Excluding fair valuation adjustments, Centurion's share of operational profits was S$1.7 million, an increase of S$0.2 million from a year ago.

The group's investment properties comprising workers and student accommodation were fair valued as at Dec 31, 2015, resulting in a fair valuation gain of S$3.6 million recognised in Q4 2015 as compared with a S$40.3 million fair valuation gain in Q4 2014.

Most of Centurion's earnings came from its accommodation business. Its optical disc business saw breakeven for Q4 2015. This included the cost of S$0.3 million in ceasing its Indonesian optical disc manufacturing operations.

For the full year 2015, its net profit fell 69 per cent to S$34.1 million on a 24 per cent revenue growth to S$104.5 million.

Excluding the one-off gain on sales of factory units, fair value gains and the re-assessment of investment in an associated company, the net profit from the group's core business operations recorded a growth of 14 per cent to S$35.6 million in FY2015.

Centurion's balance sheet remains healthy and robust with S$138.4 million cash and cash equivalents.

Its board has declared a final dividend of one Singapore cent a share, unchanged from a year ago.