SC Global Posts 35% Drop In Q2 Net To $5.3m

Source : The Business Times, August 15, 2007

HIGH-END property developer SC Global Developments said net profit fell 35 per cent to $5.3 million in the second quarter ended June 2007 from a year ago, due mainly to the presence of a one-time investment gain of $5.3 million in the previous period.

Revenue in Q2 2007 fell to $34 million from $50.1 million in the same quarter last year, while earnings per share decreased to 3.30 cents from 6.73 cents. Excluding the one-time item, however, net profit for the quarter would have shown an 89 per cent increase, said the group, which also announced special interim dividends for the first time and a stock split.

'Although revenue was lower in the second quarter this year, the group's business activities continued to perform well,' SC Global said.

While gross margins during the quarter decreased slightly due to the different mix of units sold as compared to last year, sale prices achieved for each project improved. During the quarter, the group completed the sale of its remaining units at The Tomlinson. In June, it also launched its new ultra-luxury project, The Marq on Paterson Hill.

The group said share of profits from AVJennings, its associated company in Australia, increased 66 per cent to $2.9 million as compared to the same quarter last year.

For the first half of 2007, net profit rose 74 per cent to $16.2 million from a year ago.

SC Global has declared a special interim dividend of 7 cents per share, less tax, and said it intends to utilise its balance Section 44A credits to frank the payment of the proposed dividends as well as create greater share liquidity in the market through offering a scrip dividend scheme.

To further increase the liquidity and affordability of its shares, the group is also proposing a share split of every existing share into two shares.

SC Global shares closed up 25 cents at $5.55 yesterday.