SINGAPORE (May 27): Bukit Sembawang Estates sank into the red with losses of $11.6 million for the 4Q18/19 ended March, compared to earnings of $22.0 million a year ago.

This represented losses per share of 4.46 cents for 4Q18/19, compared to earnings per share of 8.48 cents in 4Q17/18.

This was mainly attributable to a surge in other operating expenses to $22.0 million during the current quarter, from $1.5 million a year ago.

The increase was mainly due to impairment loss of $9.7 million on property, plant and equipment relating to Fraser Residence Orchard, Singapore, and allowance of $10.0 million for foreseeable losses relating to Makeway View.

This brings Bukit Sembawang’s full-year earnings to $101.3 million for FY18/19, doubling from earnings of $50.7 million in FY17/18.

4Q18/19 revenue jumped 72% to $56.5 million, from $32.8 million a year ago, on profits recognised for 8 St Thomas, Nim Collection Phase 1 and 2, and Watercove during the current quarter.

However, cost of sales surged to $34.0 million in 4Q18/19, from $5.2 million a year ago, mainly due to reversal of costs no longer required on development projects in 4Q17/18.

Consequently, gross profit fell 19% to $22.5 million for 4Q18/19, from $27.7 million a year ago.

Administrative expenses rose 84% to $2.1 million, mainly due to higher professional charges, higher salaries as a result of increase in staff and pre-opening expenses of the serviced apartment.

Finance costs jumped to $4.7 million in 4Q18/19, from $33,000 a year ago. The increase was mainly due to the interest costs paid for financing the purchase of Katong Park Towers and Makeway View.

As at end March, cash and cash equivalents stood at $72.2 million.

The board has recommended a final dividend of 4 cents per share and a special dividend of 18 cents per share.

This is higher than the final dividend of 4 cents per share and special dividend of 14 cents per share declared a year ago.

Looking ahead, the group says it plans to launch Luxus Hills (Phase 8, 9 and 16) for sale in 3Q19.

Shares in Bukit Sembawang closed 1 cent lower at $5.66 on Monday.