Gallant Venture sinks into the red on higher finance costs, loss from associated companies
Zhao Yifan
INDUSTRIAL parks and resorts developer Gallant Venture posted on Monday (Feb 26) a net loss of S$16.1 million for the six months ended Dec 31, 2023, reversing a net profit of S$3.2 million in the corresponding year-ago period.
Loss per share for the period stood at 0.296 Singapore cent, a decrease from the earnings of 0.059 Singapore cent per share in H2 2022.
The loss came despite a 4 per cent increase in revenue for the half-year to S$94.7 million, from S$91.1 million for the same period a year earlier.
The group, which has properties under management in Indonesia’s Batam and Bintan, attributed the revenue growth to higher income from industrial leases and utilities. This was driven by increased occupancy from the industrial parks segment and higher contribution from a housing project in Batam in the current period, it added.
“The net loss is mainly due to higher finance costs and lower profit contributions from the associated companies,” said Gallant Venture in a separate profit guidance released on Feb 19.
In H2 2023, the group’s administrative expenses increased to S$10.2 million, from S$9.9 million a year earlier.
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Operating expenses, meanwhile, rose significantly to S$15.1 million, from H2 2022’s S$11.9 million. This came on the back of “higher manpower-related costs, professional fees, repair and maintenance and marketing-related expenses”, the group said.
The loss in H2 2023 was additionally attributed to a S$6.8 million loss from the group’s share of associated companies’ results, as compared to a profit of S$11.1 million a year earlier. This was primarily driven by its Indonesia-listed subsidiary, Jakarta-based car manufacturer Indomobil Sukses Internasional (IMAS).
Gallant Venture noted that IMAS’ performance was impacted by higher financing costs and operating expenses. Consequently, the group incurred a share of loss of S$7.3 million in H2 2023; it had booked a share of profit of S$11.1 million from IMAS in H2 2022.
For the full financial year, Gallant Venture reported a net loss of S$15.4 million, widening 12 per cent from the net loss of S$13.8 million booked in FY2022.
No dividend was proposed for FY2023. The group said it is “committing its cash resources to further develop and expand its industrial parks and utilities businesses”.
Shares of Gallant Venture closed flat at S$0.13 on Monday, before the results were announced.
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