SINGAPORE (Mar 1): Rowsley reported a smaller net loss of $58.0 million in FY17 versus a net loss of $69.8 million in FY16.

The real estate company reported a 9% decrease in group revenue of $93.9 million for FY17 compared to $103.1 million in FY16.

The decrease in revenue was mainly due to the impact of a significant slowdown in Singapore’s private sector building development on the revenues of RSP Singapore which does architecture and engineering works. However, this was offset by strong growth in revenues from its overseas subsidiaries, as well as full-year contribution from Squire Mech, a mechanical and electrical engineering consultancy, which became a wholly-owned subsidiary of the group in August 2016, and AC Consortium, which was acquired in June 2017.

The FY17 results included a total of $34.3 million of non-cash impairment losses on goodwill, of which $20.0 million and $9.6 million were related to RSP and Squire Mech, respectively, offset by $8.5 million of non-cash gain in purchase consideration payable related to Squire Mech.

Tan Wee Tuck, Executive Director and CEO of Rowsley, says, “Business for RSP has been challenging. However, we are beginning to see a turnaround and expecting more activity in the Singapore residential and infrastructure spaces. At the same time, our overseas revenue – Dubai, China and Vietnam – have seen strong growth. Internally, we have embarked on a business transformation with the integration of all Rowsley’s real estate businesses under one roof and the appointment of new leadership. We believe that our multi-business, multi-disciplinary strategy will set us in good stead for the next cycle of growth.”

On Dec 18, the company announced that it had entered into a definitive agreement with Peter Lim Eng Hock, the controlling shareholder of Rowsley, to acquire his 100% stake in Thomson Medical and 70.36% stake in Bursa-listed TMC Life Sciences.

Tan says, “Upon completion, we will become a leading healthcare player in Southeast Asia. This will help us capture the growing demand for quality healthcare in this region.”

Shares in Rowsley closed at 12 cents on Thursday.