Sing Holdings' Q2 profit surges

Singapore

PROPERTY development and investment group Sing Holdings on Tuesday reported a 590.5 per cent leap in net profit for the second quarter ended June 30, 2015. Net profit soared to S$2.244 million from S$325,000 a year ago, on the back of higher revenue recognition from the group's development project.

Revenue for the second quarter increased by 482.5 per cent to S$25.3 million from S$4.35 million a year ago, due to progressive recognition of proceeds from the sale of units in Robin Residences.

Net profit for the half year jumped to S$1.3 million from S$17,000 and revenue rose to S$32.1 million from S$10.8 million a year ago.

Earnings per share for Q2 were 0.56 cent, up from 0.08 cent in the same period last year.

The company also saw other sources of income due mainly to cost of sales written back stemming from cost savings from a completed development project, and higher interest income from fixed deposits.

The group also saw an increase in administrative costs, after a one-off gratuity payment to the founding chairman, approved during an annual general meeting, and further incurred an increase in higher sales and marketing expenses for Robin Residences after sales commenced in July 2014. The company has two development projects - Robin Residences, a wholly owned private condominium development, and Waterwoods, an executive condominium development joint venture with Greatearth Pte Ltd. Sing Holdings owns 70 per cent of Waterwoods, while Greatearth owns the remaining 30 per cent.

As at Tuesday, some 37 per cent of Robin Residences units have been issued an option to purchase, bringing in a contracted sales value of about S$105.7 million. Revenue is recognised progressively based on the stage of construction, and by the end of the second quarter this year, Robin Residences was about 58 per cent completed.

The group also owns 48 strata units in BizTech Centre.