SINGAPORE (Mar 28): Second Chance Properties saw its earnings dip slightly to $1.96 million in the 2Q ended February, 1.0% lower than $1.98 million a year ago.
Revenue fell 11.0% to $6.8 million in 2Q18, from $7.6 million a year ago.
This was mainly due to the closure of 13 shops under its apparel business since last year.
In addition, Second Chance attributes the decline to intense competition amid a rising trend in online shopping.
As at end February, cash and cash equivalents stood at $9.6 million.
Looking ahead, Second Chance anticipates that its overall business will continue to face challenges, despite Singapore’s economy expected to perform well in 2018.
While its apparel business is expected to have lower losses this year, the group says it will close down four more stores in 2018 to prevent future losses.
This will leave Second Chance with only one First Lady Store in Singapore and its flagship company-owned store in Malaysia.
Meanwhile, the group has also guided that its Golden Chance business will see lower revenue and profits this year.
At the same time, rental income is expected to be lower in 2018, with retail rents continuing to come under pressure even as the group sees a loss of rental income from properties sold.
Shares of Second Chance Properties closed flat at 24 cents on Wednesday.