Stamford Land H2 profit falls 14.2% to S$17.6 million on lower contributions from property development segment
[SINGAPORE] Property company Stamford Land reported a 14.2 per cent fall in net profit to S$17.6 million for its second half ended March, from S$20.6 million in the year-ago period.
Earnings per share (EPS) stood at S$0.0119, down from S$0.0138.
This came amid a 6.5 per cent decline in revenue, which came in at S$78.3 million as compared to S$83.8 million previously.
The declines were driven by lower revenue in its property development segment, which recorded S$4.6 million less in contributions for H2 compared to the year-ago period, the group said on Friday (May 30).
The hotel owning and management segment faced S$516,000 lower revenue for the half-year while the property investment segment recorded S$204,000 lower revenue.
A final dividend per share of S$0.005 was proposed, unchanged from the year-ago period, with the date payable and book closure date to be announced at a later date.
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For the full year, its net profit stood at S$32.8 million, an increase from S$5.9 million it recorded in the year-ago period. EPS was S$0.0221 versus S$0.004 in the year prior.
Revenue for the year was largely stable, falling by 5.5 per cent to S$148.4 million, from S$157 million previously.
Lower full-year revenue came amid a S$6.4 million or 89.4 per cent decline in revenue from the property development segment, as the group settled one unit during the fiscal year, down from 10 units a year prior.
The hotel owning and management segment's revenue dipped marginally by 1.7 per cent or S$2.1 million. This was primarily due to lower room rates in the group's hotels, caused by softer market conditions, including the depreciation of the Australian dollar against the Singapore dollar. The segment also faced higher operation costs on increased property taxes, alongside staff, energy and other direct costs.
The property investment's revenue was largely stable, rising slightly by 0.1 per cent due to the appreciation of the sterling pound against the Singapore dollar.
In terms of outlook, the group noted that the hotel business faces 'formidable competition' amid global trade uncertainty and trade war tariffs, alongside a tight labour market and rising operational and manpower costs.
The counter ended Friday flat at S$0.375 before the announcement.
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