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Published May 12, 2011

Wheelock Q1 profit rises 3.9% to $52.3m


LUXURY property developer Wheelock Properties (Singapore) saw its net profit rise 3.9 per cent to $52.3 million from a year ago for the first quarter ended March 31.

Group revenue for the quarter was $103 million, a decrease of 3.6 per cent. It attributed the marginal decrease in revenue to the completion of Ardmore II in the second quarter of 2010. This was partially offset by revenue recognised from the sale of three completed units at Orchard View, as well as revenue from its Scotts Square project based on the progress of construction work.

Gross profit was $67 million in Q12011, an increase of 7.5 per cent which was due to the higher profit margin for Scotts Square, Wheelock said. The group's gross profit margin improved to 65 per cent from 59 per cent.

Looking ahead, the group said 55 per cent of the progress billings at Scotts Square have been served and fully collected, and it expects to achieve 85 per cent in the second half of 2011 when the project obtains its temporary occupation permit (TOP). 'The group's revenue and earnings will be boosted this year by remaining profits on sold units at Scotts Square, while 100 per cent of profits will also be recognised on any additional units sold at Orchard View and Scotts Square,' it said.

In February, Wheelock was successful in its bid for five sites in Fuyang City, a county adjacent to Hangzhou in China, at a total bid price of 1.44 billion yuan (S$273 million). The group's cash and cash equivalents of $781 million as at March 31 reflect a decrease of $80 million from December 31, 2010, and this was attributed to the 50 per cent deposit paid up for the sites in Fuyang City.

Earnings per share rose to 4.37 cents in Q12011 from 4.21 cents in the same period last year. The group's gearing ratio as at March 31 was 3.6 per cent, down from 3.7 per cent as at Dec 31, 2010.

Said Wheelock CEO David Lawrence: 'I am pleased with the group's performance this quarter and especially with the acquisition of the five sites in Fuyang City. The acquisition is scheduled to complete in early 2012, after which construction is expected to start in the second half of 2012.'

'The group has a strong cash standing of $781 million and remains well positioned to take advantage of new investment and acquisition opportunities locally or overseas,' he added.

Wheelock shares closed 4 cents down at $1.77 yesterday.