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Second Chance Properties reports higher profit for Q4

SECOND Chance Properties nearly doubled its net profit from S$834,000 to S$1.64 million for the fourth quarter ended Aug 31.

The bottom line was bolstered by lower expenses, as well as a gain on fair valuation of properties amounting to S$789,000, versus a loss on fair valuation of properties of S$2.44 million a year ago.

Revenue fell over 13 per cent year-on-year to S$8.98 million, while earnings per share rose to 0.22 Singapore cent from 0.11 cent per share previously.

The group's full-year net profit fell over 16 per cent to S$7.91 million, while revenue decreased by over 9 per cent to S$31.61 million in FY18 due to lower contributions from its apparel, gold and properties businesses.

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The company has declared a final dividend of 0.3 Singapore cent per share, similar to what it paid out last year. 

Second Chance Properties said: "The outlook for the external sector is highly uncertain with increased global protectionism creating a possibility of some significant risk to Singapore's economy in the near future."

It added that the retail apparel business remains very challenging - especially in Malaysia - and that the group has consolidated its operations in this segment by closing all remaining small outlets and operating just one flagship First Lady store in Malaysia.

It said: "We are confident about our gold business and expect it to remain profitable."

On the property market, which recently saw fresh cooling measures in Singapore, it said: "Our rental income from this sector is negatively affected due to loss of rental income from properties sold and lower rentals from lease renewals. Interest rates are expected to increase further in the near future."

The counter closed at 22 Singapore cents on Monday, when it was last traded.