Second Chance Properties Q3 net profit falls 61.6%

NET profit for Second Chance Properties in its third quarter fell 61.6 per cent to S$2.1 million from the year-ago period, the group said in a Singapore Exchange filing on Thursday evening.

For the three months ended May 31, revenue increased 3.2 per cent to S$9.7 million from the year-ago period.

Earnings per share fell to 0.28 Singapore cents from 0.72 Singapore cents in the previous year.

For the nine months ending May 31, net profit dropped 27.5 per cent to S$6.3 million from the previous year, as its securities business booked a $4.05 million lower profit.

While this segment saw higher revenues, it also booked in the same financial period a year ago higher profits due to the acceptance of cash offer on de-listing of one of the equity securities. It also saw the unrealised loss of $1.16 million recorded on financial assets, at fair value through profit or loss in the nine months ended May 31 this financial year compared with an unrealised gain of $0.65 million recorded in the year-ago period. Revenue dropped 7.5 per cent to S$22.6 million from the previous year, due to declines in its apparel, property and gold business. Earnings per share dropped to 0.83 Singapore cents from 1.15 Singapore cents in the year-ago period.

The company said that it will close four more apparel stores in 2018 to prevent future losses, leaving one First Lady Store in Singapore and its flagship company-owned store in Malaysia. It also expects losses in the apparel business to be lower this year.

It expects profit from the gold business to be lower as compared to its "recent past", while tight labour laws and loss of rental income from properties sold are expected to result in lower rental income.

Moreover, interest rates are expected to go up, and "market forces will determine the performance of the financial instruments sector". Second Chance Properties shares closed unchanged at S$0.24 on Thursday.