SINGAPORE (May 25): Metro Holdings reversed into 4Q losses of $1.9 million from earnings of $34.2 million a year ago.

However, the property group backed by retail operations still reported earnings of $156.5 million for the full year, up 94% from a year ago, mainly lifted by gain from associate Top Spring International Holdings’ disposal of eight property projects.

Metro has proposed a final dividend of 2.0 cents and final special dividend of 3.0 cents per share.

Revenue for the 4Q18 ended March rose 1.8% to $34.3 million from a year ago as the retail division reported higher sales. However, gross profit for 4Q18 decreased to $2.3 million as compared to 4Q17’s $2.8 million due to lower margins.

Other net income increased to $29.4 million for 4Q18 from $3.8 million for 4Q17 mainly due to a divestment gain of $15.8 million from the disposal of the group’s 30% equity interest in associate in Nanchang.

The group also recorded a gain on disposal of available-for-sale investments of $3.6 million and unrealised foreign exchange loss incurred was lower by $5.4 million.

Changes in fair value of short term investments relate to an unrealised fair value loss of $1.4 million in 4Q18 as compared to an unrealised fair value gain of $3.6 million in 4Q17, of the group’s portfolio of short-term equity investments in REITs held by the property division.

Share of results of associates recorded a loss of $24.3 million in 4Q18 from a gain of $20.1 million in 4Q17 mainly because of a decline in the group’s share of Top Spring’s results as it made provisions for doubtful debts and impairment for available-for-sale investments, and recorded higher staff costs.

Share of results of joint ventures decreased to $3.2 million in 4Q18 from $6.8 million in 4Q17 mainly because the 50% held joint venture that owns 5 Chancery Lane, London, recording a fair value loss on investment property of $4.2 million, mainly representing acquisition costs.

As a result of the above, profit before taxation decreased to $6.0 million in 4Q18 from $32.5 million in 4Q17.

Metro says it has actively grown its presence in the key markets of China, Indonesia and the UK over the year. However, China continues to be a core market for the group and it intends to grow its presence in the high-growth city of Shanghai.

Shares in Metro closed 1 cent higher at $1.17 on Thursday.

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