SINGAPORE (July 31): Roxy-Pacific Holdings recorded 2Q earnings of $4.2 million, down 16% from $5.0 million a year ago. This brought 1H19 earnings down 27% to $9.3 million.

Earnings per share for the quarter fell to 0.32 cent from 0.38 cent a year ago.

Total group revenue rose 39% to $51.4 million. Revenue from the Property Development segment increased 66% to $37.2 million in 2Q19 from $22.4 million in 2Q18, largely due to revenue recognition from The Hensley upon settlement in 1Q19 and progressive revenue recognition from The Navian and Harbour View Gardens.

For 2Q19, Hotel Ownership segment contributed 24% to the group’s turnover, registered $12.2 million in revenue as compared to $12.5 million in 2Q18.

For 2Q19, Property Investment contributed $1.9 million compared to $2.1 million in 2Q18, comprising rental income from shop units in Roxy Square and NZI Centre.

Cost of sales came in at $35.2 million, up 46% from $24.1 million in the previous year, in line with higher revenue.

Gross profit for the group saw a 25% increase to $16.2 million, approximately half of which was contributed by the property development sector. The hotel ownership and property investment sectors contributed 38% and 11% respectively.

Gain in share of results of associates fell 57% to $2.2 million for 2Q19 on the absence of fair value gain in 2Q18 on investment properties at 205 Queen Street and St Kilda Road.

As at end June, cash and cash equivalents stood at $147 million.

The group has declared an interim cash dividend of 0.195 cent per share.

In its outlook statement, Roxy-Pacific expects the group to be profitable in the financial year ending December, barring any unforeseen circumstances.

In FY2019, Roxy-Pacific intends to launch six projects for sale, comprising a total of 604 units.

Shares in Roxy-Pacific closed 0.5 cent higher at 39 cents on Wednesday.