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Second Chance Properties doubles net profit in 1HFY2023 with sale of seven properties

Jovi Ho
Jovi Ho • 2 min read
Second Chance Properties doubles net profit in 1HFY2023 with sale of seven properties
Second Chance Properties' founder Mohamed Salleh Marican. Photo: The Edge Singapore
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Second Chance Properties has reported net profit of $9.21 million for 1HFY2023 ended Feb 28, double that of the $4.60 million reported this time last year. This is mainly due to gain of $4.33 million on disposal of seven investment properties, says the company on March 29.

Less the gain on disposal of investment properties and the unrealised foreign exchange gain of $2.60 million, adjusted ebitda for 1HFY2023 would have been $4.04 million, down from $5.27 million this time last year.

Revenue, meanwhile, fell 7.96% y-o-y to $14.83 million for the period.

The net cash flow from operating activities was $1.53 million in 1HFY2023.

Cash and cash equivalents at the end of the period, or Feb 28, was $0.49 million, compared to $1.15 million at the beginning of the period, or Aug 31, 2022.

No dividend has been declared for the period, unchanged from this time last year. Instead, management has decided to declare a dividend at the end of the financial year with the full year results announcement.

See also: Second Chance Properties reports 44.5% increase in net profit for FY2022, proposes name change

Earnings per share for the period is 0.99 cents, up from 0.59 cents the year prior.

Second Chance Properties, an investment holding company, operates in the retail of gold, jewellery and ready-made garments in Singapore and Malaysia.

Its apparel store, First Lady Singapore, will cease operations in June when all tenants are required to move out for extensive upgrading of the mall.

See also: Second Chance set to report higher 1HFY2023 net profit

“Despite the challenges faced by our apparel business from the ever increasing trend of online shopping and intense competition, we expect it to be profitable in Malaysia… Our gold business will continue to remain profitable and will operate in the company’s owned premises in City Plaza,” says the company.

The rental income of the group has been reducing, notes the company, and will decrease further because of the disposal of seven investment properties since last year. Rental revenue from properties decreased by $0.64 million to $1.54 million in 1HFY2023.

“As the group continues to add more high yielding dividend stocks to its portfolio, the dividend income should increase significantly. Market forces, interest rates as well as government stimulus measures will continue to determine the performance of the financial instruments sector," adds the company.

Shares in Second Chance Properties closed flat at 24 cents on March 29.

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