SINGAPORE (July 22): SP Corporation, the subsidiary of property developer and investor Tuan Sing Holdings, has posted earnings of $1.3 million for the half year ended June 30, 2020 (1H20), a 38% increase y-o-y. 

That said, the company also saw a sharp 77% fall in revenue for the same period. No dividend has been declared or recommended for 1H2020. 

Likewise, cost of sales fell 77% y-o-y to $10.854 million from $47.004 million, with gross profit falling 76% y-o-y to $293,000. 

SP Corporation cites lower sales volume from coal and rubber, impacted by the current spread of Covid-19, and the drop in coal price as contributing factors to the decline in revenue.

“The outbreak of Covid-19 and related global responses have caused material disruptions to businesses around the world, leading to an economic slowdown. This situation has affected the Group’s results for the first half year ended 30 June 2020,” said the company in a Wednesday statement.

1H20 profit was buoyed by an increase in interest income to the tune of half a million y-o-y. Interest income was $1.9 million compared to $1.4 million in 1HFY2019, with the increase attributed to interest income from trade receivables with related parties and a loan granted to a related party. 

Administrative expenses fell 22% y-o-y to $1.0 million in 1H20, mainly due to lower manpower costs following the cessation of the company’s managing director and CEO in February 2020, and receipt of Jobs Support Scheme payouts.

As at June 30, earnings per share (EPS) stood at 3.76 cents year-to-date (YTD), compared to the 2.73 cents posted last year. 

Cash and cash equivalents as at June 30 stood at $2.0 million, its lowest half-year showing following $4.768 million at 2HFY2019 and $3.887 million this time last year. 

The company’s total assets were $60.2 million as at 30 June 2020, a decrease of $4.0 million from $64.2 million as at 31 Dec 2019.

“As the Company still has accumulated losses as at 30 June 2020 and its current priority is to achieve long-term growth for the benefit of its shareholders, its profits will therefore be retained for investment in future opportunities,” it added. 

Shares in SP Corporation closed flat at 50 cents on July 22.