Challenger's Q2 profit up 2%

STRONGER gross profit margin and expense reductions buoyed second-quarter earnings for Challenger Technologies.

Net profit for the quarter ended June 30 rose 2 per cent to S$3.84 million from S$3.76 million in the corresponding period of the previous year on an efficiency drive to reduce expenses, the group said on Friday evening.

For the three months ended June 30, revenue sank 13.7 per cent to S$78.68 million from S$91.24 million the previous year.

A weaker performance from retail operations and trade show sales was the key drag on revenue, which was partially offset by contribution from corporate and online sales.

Earnings per share for the quarter edged up to 1.11 Singapore cents from 1.09 Singapore cents from the previous year.

The company has proposed an interim cash dividend of 1.10 Singapore cents per share to be paid out on Aug 23, 2017, unchanged from a year ago.

Challenger said that the drive to reduce costs will continue. Chief executive officer Loo Leong Thye added that the company is looking to "continuously increase sales" at its 14,000 sq ft Bugis Junction retail store, which has started operating for two full months.

The counter finished half a Singapore cent or 1.1 per cent down at S$0.445 on Friday, before its results were released.