Roxy-Pacific full-year profit up 5% at S$96.7m despite revenue fall
Singapore
ROXY-PACIFIC Holdings announced on Monday that it has achieved a 5 per cent increase in net profit to S$96.7 million for the full year ended Dec 31, 2014, from S$92.3 million in the previous year.
This was despite a 14 per cent decline in revenue to S$317.8 million, from S$369 million, mainly due to lower revenue contribution from the group's property development segment.
A healthy growth was recorded from the remaining two business segments - hotel ownership and property investment.
The property development segment, which comprises residential and commercial developments, contributed 83 per cent of the group's turnover in FY2014. Revenue from this segment decreased 18 per cent from S$321 million in FY2013 to S$263.3 million in FY2014.
The decline was mainly due to the absence of revenue recognition on completion from WIS@Changi, a commercial development project which obtained its TOP in December 2013, and lower progressive revenue recognition from Spottiswoode 18, Jupiter 18 and Treescape, partially offset by higher progressive revenue recognition from Space@Kovan, The MKZ, Jade Residences and Whitehaven.
Centropod@Changi, a fully sold commercial development project, has obtained its TOP in January 2015. The full recognition of revenue on completion from the project is expected to have a positive financial impact on the group's earnings for FY2015.
"We have remained resilient and delivered our 10th consecutive year of record earnings, amidst a very challenging property development market in Singapore," Teo Hong Lim, executive chairman and CEO of Roxy-Pacific, said.
The board of Roxy-Pacific has proposed a final dividend (one-tier tax exempt) of 1.297 Singapore cents per ordinary share, bringing the total dividend for FY2014 to 1.913 cents per share. This is equivalent to a dividend payout ratio of about 24 per cent of the group's net profit for FY2014.
Roxy-Pacific shares closed trading on Monday at 51 Singapore cents, down 1.5 cents.
