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View Full Version : Allgreen Q3 profit rises 48%



mr funny
03-11-06, 12:21
Singapore Companies
Published November 3, 2006

Allgreen Q3 profit rises 48%

By KALPANA RASHIWALA

ALLGREEN Properties, which has posted a 48 per cent jump in third-quarter net profit to $22.2 million, is paying shareholders a special interim cash dividend of a net 30 cents per share, which will come in handy for those who wish to participate in its proposed 1-for-2 rights issue at 60 cents a share.


http://img155.imageshack.us/img155/8568/bt5055241031120061d0765yy5.jpg (http://imageshack.us)
Great world: The company cited a stronger showing from development and investment properties and hotels

Allgreen said the proposed cash dividend is to reward shareholders and pass on its Section 44A tax credits.

The rights shares are priced at a 64.5 per cent discount to Allgreen's $1.69 closing price yesterday. The non-underwritten issue will see up to 530.15 million new shares being issued.

Allgreen, controlled by Malaysian tycoon Robert Kuok, expects the rights issue to be fully subscribed. The issue will see the conversion of retained earnings to share capital.

The company's 48 per cent year-on-year bottomline improvement for the third quarter ended Sept 30, was achieved on the back of a near doubling of revenue to $146.1 million from $74.3 million. The company attributed the increase to a stronger showing from development properties, investment properties and its hotel business.

The group owns the Great World City mall, offices and service apartments, as well as 55.4 per cent of Tanglin Mall and Traders Hotel. During the quarter, Allgreen received Temporary Occupation Permit and Certificate of Statutory Completion for The Shaughnessy condo in Yishun, enabling the developer to book 33 per cent of earnings from units sold in the project.

Earnings per share rose to 2.1 cents for Q3 this year from 1.42 cents for Q3 last year. Net asset value per share stood at $1.56 as at Sept 30, hardly changed from the figure at the end of last year. Net gearing improved to 0.32-time with net borrowings of $602 million as at Sept 30 - compared with 0.39 and $726 million as at Dec 31, 2005.

For the nine months ended Sept 30, Allgreen's net profit rose 44 per cent to $52.9 million on the back of an 89 per cent jump in revenue to $343.4 million.

Shareholders can take up their full rights entitlement without incurring any cash outlay if they elect to use the special dividend payout for this purpose. The rights issue is renounceable and not underwritten. Kuok (Singapore) and other entities controlled by Mr Kuok - who together control 55.7 per cent of Allgreen - have given an irrevocable undertaking to take up their rights entitlements. In addition, Kuok (Singapore) has undertaken to mop up any unsubscribed rights shares - after all applications and excess applications for the rights shares have been satisfied.