Hersing Full-Year Net Income Doubles

Source : The Business Times, Feb 27, 2008

It does not expect the record real estate activity of ‘07 to be repeated.

HERSING Corporation, which owns the ERA real estate marketing franchise here, the StorHub self-storage business and a 51 per cent stake in the Singapore network of US remittance giant Western Union, yesterday reported a doubling of full-year net income and revenue to $38.8 million and $197.2 million respectively.

But the group said it does not expect the record real estate activity of 2007 to be repeated this year.

It also said profit attributable from its financial services business will be diluted as Western Union has a 49 per cent share of after-tax profit from the remittance network in Singapore from Jan 1, 2008.

ERA brokered about 30,000 property deals in Singapore last year, more than double the number in 2006, said Hersing Corporation president Jack Chua.

Private property deals accounted for more than 70 per cent of Hersing’s $169.5 million real estate brokerage and related services turnover.

ERA had about a 40 per cent market share of total HDB resale and private residential property sales in Singapore last year, Mr Chua said.

Shareholders will receive a three cents per share special interim dividend payable on March 25 and a one cent per share final dividend payable on May 11.

Hersing’s $38.8 million net earnings for the year ended Dec 31, 2007 equates to roughly a quarter of the group’s $151.1 million market cap based on its closing price of 51.5 cents yesterday.

Hersing owns the master franchise for the ERA brand in the Asia-Pacific and operates the ERA business directly in Singapore and China. Mr Chua said the group is now pursuing the appointment of an ERA franchisee for China.

If that happens, the franchisee will pay Hersing a one-time lump sum and a monthly royalty fee.

Hersing will also start operating two new StorHub facilities in Singapore this year.