Pacific Star Development says it expects to post net loss for 1QFY20

PACIFIC Star Development has flagged that it expects to report a net loss for the first quarter ended Sept 30, citing tough market conditions and higher finance costs.

In a filing to the Singapore Exchange early Sunday morning, it said that the losses have arisen mainly as a result of challenging market conditions which impacted the sales of Puteri Cove Residences in Malaysia, and higher finance costs associated with a S$70 million facility obtained from a group of third parties in the second quarter of FY19.

Pacific Star added that the group has signed sale-and-purchase agreements (SPAs) with buyers of units in Puteri Cove Residences but these SPAs have yet to meet the revenue recognition criteria as stated in the relevant accounting standard. As such, they did not contribute to the group's revenue for 1QFY20.

The company is still in the process of finalising its results for 1QFY20, which will be released on or before Nov 14.

The counter last closed at 13 Singapore cents on Oct 30, down one cent.