http://www.straitstimes.com/Money/St...ry_767489.html

Roxy-Pacific's full-year net profit rises 16%

Published on Feb 17, 2012

By Yunita Ong


PROPERTY and hospitality group Roxy-Pacific yesterday unveiled a 16 per cent jump in full-year net profit to $49.7 million.

This came despite a 15 per cent tumble in revenue to $183.7 million for the year ended Dec 31.

The fall was largely driven by the absence of revenue recognised from the sale of units at The Ambrosia, The Adaras and The Ambra, all of which were completed in 2010.

Property development made up 72 per cent of the group's revenue.

However, the impact on the bottom line was mitigated largely by a leap in operating income from $10.4 million to $24.9 million, due to a higher fair value gain of $13.5 million on its investment properties as compared to $10 million in 2010.

Fourth-quarter net profit slid 5 per cent to $11.4 million, on the back of an 11 per cent fall in turnover to $42.1 million.

Revenue for the fourth quarter was hurt by a 16 per cent fall in property development turnover to $29.4 million.

A final dividend of two cents a share was proposed, up from 1.5 cents the previous year.

Full-year earnings per share rose from 6.72 cents to 7.8 cents. Net asset value per share increased from 26.68 cents to 32.98 cents.

Looking ahead, Roxy-Pacific said the slowdown in the Singapore economy and uncertainties in the global economic outlook, coupled with government cooling measures, had affected general sentiment in the residential market.

However, it also noted that it has a pipeline of earnings from a dozen ongoing projects that will be recognised progressively from this year till 2015.

Roxy-Pacific said it will continue its prudent approach in seeking suitable opportunities in the development of residential, commercial and mixed-use sites.

In the hotel segment, it anticipates robust demand for hotel rooms this year due to strong visitor arrivals here.

Barring unforeseen circumstances, Roxy-Pacific expects to remain profitable this year.