The Hour Glass Group clocks best performance with S$76.2m in earnings for FY2020

LUXURY watch retailer The Hour Glass Group has clocked its best performance to date, having reported earnings of S$76.2 million for the full year ended March 31.

The listed retailer's net profit rose 8 per cent year on year, helped by stronger income in the first half of the financial year. In a regulatory filing on Monday, the company's financial statements showed that after-tax profit jumped 26 per cent in the six months to last September. But in the second half of FY2020, net profit weakened by 3 per cent.

Top line for the year was up marginally by 4 per cent to S$749.5 million, from S$720.9 million. Meanwhile, gross margin improved to 28.8 per cent for FY2020, against 27 per cent a year ago.

Earnings per share also improved to 10.81 Singapore cents, versus 9.99 cents a year ago.

A first and final dividend of 2 cents per share has been proposed, and is subject to the approval at the annual general meeting on Aug 28. Payment date of the dividend is to be announced.

The retailer's balance sheet "remains healthy" with consolidated net assets of S$607.9 million, with cash and cash equivalents of S$183.1 million, The Hour Glass said in the filing.

As at March 31, group inventory was S$285.5 million; cash and cash equivalents stood at S$183.1 million. Net asset value per share stood at S$0.86, marginally higher than S$0.79 a year ago.

Michael Tay, group managing director of The Hour Glass, said: "The group's overall performance in FY2020 was a gratifying outcome, borne out of the internal transformation of our technology backbone and front-end digital customer experience management platforms the last three years. We continue to prepare for seen and unforeseen changes taking place in the industry and the global economy. This ability to pivot and adapt to on-going disruptions has served the group well."

The retailer also said that its operations and financial results will continue to be adversely impacted by business disruptions and dampened consumer sentiment amid the virus outbreak. Given the evolving circumstances, the impact is difficult to quantify at this juncture.

The counter closed flat at S$0.665 on Monday, before the financial results went public.