BT : SC Global Q2 profit soars 5 times

Business Times - 14 Aug 2010

SC Global Q2 profit soars 5 times

Revenue rises 18%; group's total financial liabilities fall slightly

By UMA SHANKARI

SC Global Developments, a developer of exclusive high-end luxury residences, yesterday reported a five-fold increase in Q2 net profit to $40.4 million - up from $7.8 million a year ago.

Higher revenue recognition from the group's development projects, including The Marq on Paterson Hill, Hilltops and Martin No. 38, contributed strongly to the reported profit as construction progressed for these projects.

Revenue for the three months ended June 30, 2010 rose 18 per cent to $267.7 million from $226.4 million.

'We are very pleased with the group's strong performance,' said chief executive Simon Cheong. 'Operationally, our developments under construction in Singapore are proceeding as planned and have resulted in higher revenue recognition based on the progress of construction.'

Earnings per share for Q2 2010 rose to 10.12 cents from 1.98 cents a year ago.

For the first half of 2010, SC Global's net profit rose 194 per cent to $53.8 million from $18.3 million a year ago. Group revenue for the half year increased 28 per cent to $458.4 million from $357.6 million last year. Revenue from a development project in China, Kairong International Gardens in Shenyang, and the group's subsidiary in Australia, AVJennings, also contributed to first-half revenue.

SC Global's total financial liabilities fell slightly to $1.62 billion as at end-June 2010 compared to $1.66 billion as at end-December 2009. Gearing, as measured by total debt to total assets, fell to 63 per cent from 65 per cent at the end of 2009.

The company held cash and cash equivalents of $177.6 million at end-June 2010, down from $264 million at the end of 2009. It said the decrease was mainly due to the repayment of reserve facilities, which were drawn to hold as additional liquidity since the fourth quarter of 2008 when the financial markets and credit environment became more volatile.

Mr Cheong added that SC Global holds a land bank of over 1.1 million square feet of developable gross floor area in the prime areas of Orchard Road and Sentosa Cove. Its operations in China and Australia also continued to expand and strengthen, he said: 'These will continue to underpin the group's performance going forward.'

SC Global shares gained three cents to close at $1.63 yesterday.

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