http://www.businesstimes.com.sg/sub/...08853,00.html?

Published October 16, 2010

GuocoLand Q1 profit rises 9% to $13.4m

By WINSTON CHAI

GUOCOLAND'S new financial year has started off on a positive note, with its net profit for the first quarter rising 9 per cent to $13.4 million, from $12.4 million a year earlier.


SALES BOOSTERS
GuocoLand's revenue for the first quarter climbed 15 per cent due to better sales at projects such as Goodwood Residence (above), Sophia Residence and Elliot at the East Coast.

Revenue for three months ended Sept 30 climbed 15 per cent to $109.9 million, from $95.7 million previously.

This was largely due to better sales at local residential projects such as Goodwood Residence, Sophia Residence and Elliot at the East Coast.

However, the top-line increase from Singapore was partly offset by lower sales contributions from its developments in China, GuocoLand said yesterday.

Other income fell 42 per cent to $6.1 million, mainly due to a lower net foreign exchange gain.

Administrative expenses, on the other hand, rose 39 per cent, as headcount was boosted to support the growing operations in the mainland.

Earnings per share came to 1.62 cents, up from 1.5 cents a year earlier.

Net asset value per share as at Sept 30 fell to $2.35 from $2.42 previously.

The company said: 'Healthy growth was experienced by Singapore and China markets. Whilst pursuing attractive opportunities, the group remains mindful and cautious of the inherent risks.'

In August, GuocoLand announced a $532 million rights issue to help fund potential acquisitions, reduce bank borrowings and to boost working capital.

The cash call was approved by shareholders at an extraordinary general meeting yesterday.

In a related announcement, GuocoLand said that non-executive independent director and member of the audit committee Goh Yong Hong has decided to step down.

GuocoLand shares closed unchanged at $2.44 yesterday before its Q1 earnings were released.