Challenger's Q4 profit falls 46% on weak retail sales, impairment charge

CHALLENGER Technologies on Wednesday evening posted a 46 per cent slide in net profit to S$4.15 million for the fourth quarter ended Dec 31, 2016, on the back of weak retail sales and higher impairment provision.

The group said that revenue had fallen 12.8 per cent to S$83.4 million due to lower contribution from its IT products and services business segment by S$12.3 million, attributable to weaker retail operations.

The S$1.14 million impairment provision arose due to an investment in a last-mile delivery company. Without impairment provision, net profit for the quarter would have decreased by 29 per cent instead, said the IT retail group.

Challenger has proposed a dividend per share of 2.70 Singapore cents for the fiscal year, up from 2.65 cents the year before. The counter last traded on Tuesday at 48.0 cents.