Roxy-Pacific Q1 net profit rises 19% to S$7 million despite fall in revenue

PROPERTY and hospitality group Roxy-Pacific Holdings has posted on Monday a 19 per cent increase in first quarter net profit to S$7 million from S$5.9 million in the same period a year ago, because of higher share of results of associates.

For the three months ended March 31, revenue tumbled 29 per cent year on year to S$46.4 million. The decrease in revenue was mainly due to lower contribution from the property development and property investment segments, partially offset by higher revenue from hotel ownership segment, the group said.

The bottom line was boosted by a 121 per cent increase in the share of results of associates (net of income tax) to S$5.8 million.This was mainly due to fair value gain from 117 Clarence Street in Australia, partially offset by stamp duty incurred for the acquisition of office building at St Kilda Road in Australia, as well as additional tax provision for an associate.

The group's associate company has entered into a heads of agreement to sell 117 Clarence Street. The sale is subject to a due diligence exercise to be carried by the purchaser.

Earnings per share increased to 0.59 Singapore cent from 0.50 Singapore cent in the year-ago period. Net asset value per share was flat at 42.16 Singapore cents as at March 31, compared to three months ago.

Roxy-Pacific shares closed 0.5 Singapore cent, or one per cent, down at S$0.515 on Monday, before the results were announced.