MCL Land Net Gain Falls 53% To US$3m

Source : The Business Times, July 28, 2007

PROPERTY company MCL Land yesterday reported a 53 per cent slide in its half-year net profit to US$3.2 million.

Revenue for the six months to June 30 was US$133.9 million, compared to US$4.1 million for the year-ago period.

Singapore-listed MCL said first-half revenue was mainly attributed to its development The Metz which was completed in April 2007 with a loss that had been fully provided in prior years. The group, a member of the Jardine Matheson group under Hongkong Land Holdings, also said its interim net profit included a US$800,000 fair value adjustment for a non-current asset held for sale.

Underlying profit for the group for the first half of this year was US$2.4 million, down 64 per cent.

The net profit mainly represented a US$3.7 million gain on the completion of the Kuala Lumpur Suburban Centre shops in Malaysia and the write-back of a US$800,000 provision.

The 2006 comparative largely comprised a gain of US$3 million arising from a land sale and the write-back of provisions of US$3.3 million, said MCL.

Earnings per share for the group were 86 US cents for 1H2007; underlying earnings per share were about 65 US cents.

Shareholders' funds were US$439 million at the end of June, US$10 million lower than at the prior year-end, following the dividend payment in May.

Sale proceeds from development projects over the same period reduced net debt from US$262 million to US$217 million. This lowered net gearing to 49 per cent at June 30, 2007 from 58 per cent at end-2006.

MCL chairman YK Pang said: 'The prospects for the residential property market in Singapore are expected to remain buoyant for the remainder of the year.' He added that the level of MCL Land's overall profit for 2007 would depend on whether The Calrose was completed before the end of the year or in early 2008.

The Metz obtained its Temporary Occupation Permit in April, while the 56-unit Mera East will contribute to profit for the year following completion in the third quarter.

MCL also said its US$29.7 million offer to purchase all units of Casa Nassau and an adjoining bungalow at Upper East Coast Road has been accepted by a majority of owners.