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Tuan Sing Q4 profit dips 4% to S$24.3m, dragged down by other operating expenses
TUAN Sing's net profit for the fourth quarter ended Dec 31, 2014 dipped 4 per cent from a year ago to S$24.34 million, as other operating expenses and finance costs offset a surge in revenue.
Revenue for the quarter rose 72 per cent year on year to S$112.1 million, attributable to higher revenue from the property segment and the consolidation of revenue from Grand Hotel Group (GHG) from Dec 2 to Dec 31, 2014, after the group completed its acquisition of the remaining 50 per cent stake in GHG.
But the group also recognised a negative goodwill of S$26.9 million under "other operating income" arising from the excess of fair value of net assets acquired over the purchase consideration of GHG, the associated stamp duty and other expenses of S$17.8 million.
For the full year, however, Tuan Sing achieved a 17 per cent growth in revenue to S$354.8 million and an 18 per cent rise in net profit to S$61.2 million, thanks mainly to strong contribution from its property division.
Progressive revenue recognition based on percentage of construction for units already sold at Seletar Park Residence and Sennett Residence formed the bulk of the revenue last year.
In Singapore, the group's total order book on development projects had increased to S$763.2 million as at end-December. The bulk of the group's revenue and profit in 2015 will continue to come from the existing development projects. In Australia, fully owned GHG would contribute to the group's assets base, revenues and earnings, Tuan Sing said.