Writeback boost for Bt Sembawang
By EMILYN YAP
THANKS mainly to a $40 million allowance writeback, property developer Bukit Sembawang Estates(BSE) turned in a net profit of $41.9 million for the fourth quarter ended March 31. The results were a turnaround from the net loss of $61.4 million a year ago when it provided a $70 million allowance for foreseeable losses on development properties.
The bottomline was also helped by a more than four-fold surge in revenue from $4.9 million to $21 million. But gross profit was up just 29.1 per cent higher at $5.5 million as cost of sales soared because of higher construction and land costs for its development projects.
Bukit Sembawang wrote back $40 million worth of allowance for foreseeable losses on development properties because the valuation of its Fairways development project increased. Q4 earnings per share were 17.52 cents, against a loss per share of 54.6 cents a year earlier. For the full year, the group also returned to the black with a net profit of $53 million, against a net loss of $48.4 million for the preceding 12 months. Full-year revenue inched up 5.4 per cent to $66 million. Bukit Sembawang has proposed a final dividend of four cents per share, double that a year earlier.
The developer is positive about prospects. Last month, it launched the third phase of sales for Luxus Hills and all 46 units have been sold.
There are plans to launch the 82-unit Paterson Suites near Orchard MRT station, and the 158-unit The Vermont on Cairnhill near Cairnhill Road, in the current financial year.
'With the positive economic climate and improved sentiments in the Singapore residential property market, the group expects a sustainable pace of sales for our residential development projects this year,' Bukit Sembawang said. It foresees profit for the year ending March 31, 2011, to exceed that of the preceding year.
Bukit Sembawang shares closed three cents down yesterday at $4.60.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
GOOD SHOW
Bukit Sembawang Estates is positive about prospects. Last month, it launched the third phase of sales for Luxus Hills and all 46 units have been sold
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