Fragrance Group's Q1 net profit jumps 57.7% to S$8.5 million

FIRST-QUARTER net profit for Fragrance Group shot up 57.7 per cent to S$8.5 million from the previous year.

Earnings per share grew to 0.13 Singapore cents from 0.08 Singapore cents in the previous year.

The mainboard-listed real estate, investment and hospitality player saw revenue increase 50.6 per cent to S$65.7 million from the preceding year.

This was mainly due to contributions from City Gate project in Singapore, higher rental income from the group's investment properties, and contributions from its hotel investments in the United Kingdom. Two hotels in Australia and the United Kingdom also helped.

In Singapore, Fragrance Group said that it will continue to look for suitable opportunities.

"Market sentiments are generally improving following the wave of en bloc sales in recent months," it said, noting that it has secured 205 Jalan Eunos and 31 Jervois Road for development, and expects to complete the purchase soon.

In Australia, construction for Premier Tower and NV Apartments is ongoing, and it is marketing the remaining units in these two projects as well as the newly launched 555 Collins project.

The total contracted sale value from these projects stand at A$652.602 million (S$653.8 million) with 74.2 per cent, 20.9 per cent and 47.2 per cent of the residential units sold respectively.

But no revenue and profits are expected to be reported in FY 2018, and revenue will only be recognised on completion of their development, Fragrance Group said.

In the United Kingdom, it said, The Crown Hotel, Lyndene Hotel and The Townhouse Hotel will provide stable recurring income in FY 2018.

Fragrance Group shares finished S$0.002 or 1.3 per cent lower at S$0.148 on Tuesday.