SINGAPORE (Feb 26): Aspial Corporation saw its full-year earnings more than double to $2.3 million for the FY17 ended December, from $1.1 million a year ago.
This was due to lower materials and subcontracts costs and finance costs, as well as higher other income and share of results of a joint venture.
FY17 revenue fell 22% to $485.1 million, from $621.0 million a year ago. This was led by a drop in revenue from its Real Estate business, which fell 45% to $185.7 million in FY17.
In a filing to SGX, Aspial says that while it has made good progress in the sales and construction of its overseas projects, it cannot progressively recognise the revenue as the group applies the completed contract method of accounting for its overseas projects.
Revenue from the Financial Service business increased by 15.4% to $188.4 million in FY17, mainly due to higher interest income and sales from the retailing and trading of jewellery and branded merchandise.
Meanwhile, revenue from its Jewellery business fell 8.4% to $118.4 million in FY17, due to the ongoing consolidation of retail network and continued weak consumer sentiments.
Materials and subcontract costs fell 30% to $333.6 million in FY17, due to the lower revenue for the real estate and jewellery businesses.
Finance costs were 25% lower at $26.9 million in FY17, mainly attributable to higher interest capitalised under development properties for its overseas real estate business.
Other income rose 32% to $5.5 million due to gain on disposal of investment securities and higher foreign exchange gain.
Share of results of associates and a joint venture more than doubled to $2.4 million, mainly due to higher profit from share of profit from a joint venture.
As at end December, cash and cash equivalents stood at $54.9 million.
Looking forward, Aspial says it expects its Real Estate business to contribute significantly to the group’s revenue and profitability from FY18 to FY20.
To continue to grow its local core business of pawnbroking and retailing of new and pre-owned merchandise under its Financial Service business, it will also invest in brand building, improve its merchandise range, and review the retail network.
At the same time, the group expects consumer sentiments in its Jewellery business to improve in 2018, and will continue to improve its operational effectiveness and efficiency.
Shares of Aspial closed half a cent higher at 25 cents on Monday.