Roxy-Pacific's net profit sinks 70% in H1 2020

PROPERTY and hospitality group Roxy-Pacific Holdings saw its net profit sink 70 per cent to S$2.79 million for the half-year ended June 30, dragged down by the impact of Covid-19.

Revenue fell 16 per cent to S$118.07 million, mainly due to lower revenue from the property-development and the hotel-ownership segments.

Earnings per share stood at 0.21 Singapore cents, down from 0.72 cents a year ago.

There was no dividend declared this time around.

In its half-year results, the revenue of its property-development segment fell 11 per cent to S$99.3 million, mostly due to the absence of revenue recognition from The Hensley and The Navian. In addition, the closure of construction sites due to Covid-19 restrictions resulted in delays for residential projects such as 120 Grange and Harbour View Gardens, resulting in a lower recognition of revenue.

The group's hotel operations was harder hit by the Covid-19 outbreak, as many countries imposed border-control measures, impacting the tourism industry; revenue from the hotel-ownership segment fell 39 per cent to S$15.1 million in H1 2020.

In its outlook, the group said that as a result of the challenging market conditions brought about by Covid-19, its financial results will be "adversely affected", and the extent of the impact will depend on the future trajectory of the pandemic and its recovery.

"While the group managed to stay profitable in H1 2020, mainly due to the successful divestment of its retail building in the Ginza, Japan, management expects the financials in H2 2020 to be adversely impacted by the ongoing unprecedented market uncertainty, including operational performance during the period and risk of asset impairments at year end," said the group in its outlook.

Roxy-Pacific said that it will continue to monitor the evolving pandemic situation and adjust and react proactively with appropriate counter-measures to minimise the financial impact for the financial year ending Dec 31, 2020.

The group's shares ended flat at 32.5 Singapore cents on Tuesday, before the release of its results.