mr funny
30-01-11, 23:29
http://www.businesstimes.com.sg/sub/companies/story/0,4574,423964-1296331140,00.html?
Published January 29, 2011
Q4 revenue, profit up for Fragrance
By MICHELLE QUAH
FRAGRANCE Group reported higher revenue and net profit for the fourth quarter ended Dec 31, 2010, as it recognised better takings from its property projects and higher occupancy and room rates at its hotels.
Its full-year revenue, however, dipped slightly due to lower takings from its property arm - but better profit margins helped the company to boost its gross profit and its bottomline.
Fragrance's revenue for the fourth quarter rose 14.8 per cent to $64.09 million, with its property arm contributing 83.2 per cent of total revenues or $53.34 million - a 14.8 per cent increase from the year before. It recognised progressive revenue from its development projects, such as Prestige Heights and The Cotz, and its landed six-unit housing project at Sennet Road.
Its hotel arm contributed $10.75 million in the fourth quarter - a 15.1 per cent increase from the year before, due mainly to higher occupancy and room rates at its existing hotels, and the revenue contributed by one new hotel.
Its net profit for the fourth quarter rose 4.9 per cent, year-on-year, to $18.5 million. Its earnings per share for the period was 1.1 cents, up from 1.0 cents the year before.
For the full year, the group's revenue was down 2.5 per cent at $237.7 million; it saw a lower contribution from its property division, which was partially offset by higher takings from its hotel arm.
A lower cost of sales helped Fragrance's gross profit jump 23.1 per cent to $112.8 million from the year before. This was due mainly to higher gross profit margins from its property business - a result of higher property prices.
Its net profit for the period rose 18.5 per cent, year-on-year, to $71.7 million. Its earnings per share was 4.3 cents for FY2010, up from 3.6 cents in FY2009.
It has proposed a final dividend of $0.005 per share. The company has paid out two interim dividends of $0.0025 and one interim dividend of $0.005 per share, earlier this year.
For the year ahead, Fragrance expects property prices to moderate - as a result of recent measures announced by the government - and for transactions to remain fairly stable.
It will launch a new project - Suites @ Eastcoast, a 116-unit freehold condominium at Upper East Coast Road.
'In addition, we have eight more development sites in the pipeline. These include residential-cum-commercial development sites, landed houses and an industrial development site. All these sites can potentially yield 203 commercial units, 314 residential flat units, 20 landed dwelling houses and eight industrial units,' it said.
The group also expects the uptrend in the hospitality sector to continue in FY2011. 'Our new premium brand, Parc Sovereign hotel, with 170 guest rooms located at 175 Albert Street has been completed with temporary occupation permit granted. Another two hotels strategically located in the city area, with about 197 guest rooms, are in the pipeline and are slated for completion this year,' it said.
'Barring unforeseen circumstances, the directors expect the group to remain profitable in FY2011,' it added.
Fragrance shares closed trading yesterday at 44.5 cents apiece.
Published January 29, 2011
Q4 revenue, profit up for Fragrance
By MICHELLE QUAH
FRAGRANCE Group reported higher revenue and net profit for the fourth quarter ended Dec 31, 2010, as it recognised better takings from its property projects and higher occupancy and room rates at its hotels.
Its full-year revenue, however, dipped slightly due to lower takings from its property arm - but better profit margins helped the company to boost its gross profit and its bottomline.
Fragrance's revenue for the fourth quarter rose 14.8 per cent to $64.09 million, with its property arm contributing 83.2 per cent of total revenues or $53.34 million - a 14.8 per cent increase from the year before. It recognised progressive revenue from its development projects, such as Prestige Heights and The Cotz, and its landed six-unit housing project at Sennet Road.
Its hotel arm contributed $10.75 million in the fourth quarter - a 15.1 per cent increase from the year before, due mainly to higher occupancy and room rates at its existing hotels, and the revenue contributed by one new hotel.
Its net profit for the fourth quarter rose 4.9 per cent, year-on-year, to $18.5 million. Its earnings per share for the period was 1.1 cents, up from 1.0 cents the year before.
For the full year, the group's revenue was down 2.5 per cent at $237.7 million; it saw a lower contribution from its property division, which was partially offset by higher takings from its hotel arm.
A lower cost of sales helped Fragrance's gross profit jump 23.1 per cent to $112.8 million from the year before. This was due mainly to higher gross profit margins from its property business - a result of higher property prices.
Its net profit for the period rose 18.5 per cent, year-on-year, to $71.7 million. Its earnings per share was 4.3 cents for FY2010, up from 3.6 cents in FY2009.
It has proposed a final dividend of $0.005 per share. The company has paid out two interim dividends of $0.0025 and one interim dividend of $0.005 per share, earlier this year.
For the year ahead, Fragrance expects property prices to moderate - as a result of recent measures announced by the government - and for transactions to remain fairly stable.
It will launch a new project - Suites @ Eastcoast, a 116-unit freehold condominium at Upper East Coast Road.
'In addition, we have eight more development sites in the pipeline. These include residential-cum-commercial development sites, landed houses and an industrial development site. All these sites can potentially yield 203 commercial units, 314 residential flat units, 20 landed dwelling houses and eight industrial units,' it said.
The group also expects the uptrend in the hospitality sector to continue in FY2011. 'Our new premium brand, Parc Sovereign hotel, with 170 guest rooms located at 175 Albert Street has been completed with temporary occupation permit granted. Another two hotels strategically located in the city area, with about 197 guest rooms, are in the pipeline and are slated for completion this year,' it said.
'Barring unforeseen circumstances, the directors expect the group to remain profitable in FY2011,' it added.
Fragrance shares closed trading yesterday at 44.5 cents apiece.