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Fragrance Group posts FY2018 net profit of S$266m
PROPERTY developer Fragrance Group's net profit for its fiscal 2018 ended Dec 31 more than quintupled to S$266 million from S$48.5 million in the previous year.
For the 12 months ended Dec 31, revenue jumped 64.7 per cent to S$326.2 million from the previous year, from its sale of 555 Collins Street in Melbourne. Fragrance had completed the sale for A$140 million (S$134.7 million) last year.
Higher rental revenue from its commercial properties, full-year hotel operations income from ibis Styles Hobart in Australia and The Imperial Hotel in the United Kingdom also helped.
Its hospitality investment segment, comprising The Crown Hotel, Lyndene Hotel, St Chads Hotel and The Townhouse Hotel in the United Kingdom, contributed S$2.9 million of revenue.
Earnings per share rose to 3.96 Singapore cents from 0.72 Singapore cent in the year-ago period.
The group said it is working on the sales launch of 31 Jervois Road, to be redeveloped into a 36-unit residential development, and 205 Jalan Eunos, which will be a 237-unit condominium after already getting provisional permission.
It also plans to redevelop Waterloo Apartments into a hotel.
It is also currently engaged in planning works for redeveloping 15 Hoe Chiang Road into a hotel after obtaining provisional permission.
The group meanwhile is working to increase the occupancy of its investment properties in Singapore.
In Australia, it has a total contracted and unconditional sale of A$458 million from Premier Tower and NV Apartments, amounting to 75.4 per cent and 26.4 per cent respectively of the residential units sold. This revenue will only be recognised on completion of the properties.
It also has obtained planning permission to refurbish its existing Municipal building in Liverpool into a luxury hotel and redevelop the former Park Hotel in Paignton as an international brand hotel. It is now working on redevelopment plans or refurbishment works for the rest of the properties in the UK.
An interim dividend was declared and paid in November 2018.
Fragrance closed unchanged on Thursday at S$0.137 before results were announced.