[ad_1]
FIRST Sponsor Group on Thursday evening (Jul 25) reported a net profit of S$11.9 million for the half year ended Jun 30, up 12.4 per cent from S$10.6 million a year ago.
This was despite significantly higher net financing cost in H1 2024, said the company, which operates in property development, property holding and property financing in China, Europe and Australia.
Gross profit increased 9.8 per cent to S$71.8 million, from S$65.4 million previously, mainly due to the sale of properties, property financing and hotel operations. This was offset by lower gross profit from the rental of investment properties.
Earnings per share stood at S$0.0107, down 7 per cent from S$0.0115 in H1 2023. It was lower despite a higher net profit due to the issuance of additional shares upon the exercise of warrants in H1 2024.
Revenue surged 27.2 per cent to S$172.9 million in the six-month period, compared with S$135.9 million in the year-ago period.
First Group attributed the increase in revenue mainly to the sale of properties and hotel operations, though this was partially offset by falls in rental income from investment properties and revenue from property financing.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
On the property development front, pre-sales for the group’s China projects remained muted due to weak property market sentiments, despite significant easing of property-related measures.
But as most of these projects are at advanced stages of construction, the cashflow burden is manageable, First Group added. It is hopeful for a market turnaround in the near future.
As for the property holding business, the European property portfolio remained strong, due mainly to the newly acquired Allianz Tower Rotterdam and strong contributions from various hotels which were closed for renovations for a large part of H1 2023.
This was partially offset by the loss of income due to lease terminations of tenants in Meerparc Amsterdam at the end of 2023, ahead of its redevelopment.
In relation to managing its foreign exchange risk, the group has sufficiently hedged its foreign currency exposure arising from overseas assets through foreign currency debt and financial derivatives that create corresponding foreign currency liabilities.
The counter closed flat at S$1.08 on Thursday, before the announcement.
[ad_2]
Source link
