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Metro posts net loss in Q2 FY18, dragged down by one-off expense

PROPERTY and retail group Metro Holdings sank into the red with a net loss of S$13.59 million for the second quarter ended Sept 30, weighed down by share of results of joint ventures.

Share of results of joint ventures recorded a loss of S$17 million, against a gain of S$3.91 million in Q2 FY2017, mainly due to a one-off expense from the expiry of conditional remission of additional buyer's stamp duty (ABSD) for its joint venture project, The Crest at Prince Charles Crescent. This was partially offset by a reversal of a S$9.5 million writedown of amount due from a joint venture.

Stripping out the impact of one-off items, profit after tax would have been S$4.6 million, against a profit of S$16.43 million a year ago.

Top line for Q2 FY18 expanded 6.8 per cent to S$30.25 million, lifted by higher sales from the retail division. Metro's retail top line improved by 7.2 per cent to S$28.6 million but "pressures on margins and higher operating and overhead costs affected profitability", the company said.

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The group posted a loss per share of 1.6 Singapore cents for the latest period, compared to earnings per share of two Singapore cents previously.

For the half year ended Sept 30, net profit was 54.6 per cent lower year on year at S$11.78 million, while revenue edged up around 4 per cent to S$62.67 million.

Shares in Metro closed at S$1.22 on Monday, down two-and-a-half Singapore cents.