Singapore Companies
Published August 26, 2006

One-time gains help lift GuocoLand's profit to $155.6m
Net earnings up 88%; revenue dips 14% to $361m


HELPED by one-time gains, property developer GuocoLand Ltd yesterday reported a sharp rise in full-year net profit despite a revenue fall.

GuocoLand's net profit soared 88 per cent to $155.6 million for the year ended June 30.

The one-time gains - arising from investment and property revaluation gains, a loss provision writeback and a negative goodwill - resulted in its 'other operating income' surging from $46.5 million to $146.9 million. The gains came from a $40.1 million profit from the sale of its investment in Hotel Properties Ltd, $32 million from the revaluation of the group's investment properties Robinson Centre and Tung Centre and $32 million in negative goodwill from further investments in its Malaysian-listed associate GuocoLand Malaysia Bhd.

But group revenue fell 14 per cent to $361.3 million, while gross profit plunged 42 per cent to $42.6 million.

The group said the decrease was because most of the revenue from its Central Park property in Shanghai had already been recognised in the previous year.

The fall in revenue was partially offset by the sale of property development projects in Singapore and from the sale of its remaining interest in the prime Corporate Square office building in Beijing.

About 65 per cent of the group's revenue was from Singapore, with the balance from China.

The group's earnings per share nearly doubled from 12.57 cents to 24.43 cents.

Administrative expenses rose 63 per cent to $14.6 million, while finance costs jumped 70 per cent to $22.8 million, as the group took out more loans to finance its expansion in China.

GuocoLand, which currently has 10 launched developments on the market in Singapore, holds a landbank of around 105,000 square metres in saleable area in Singapore and another 978,000 sq m in China.

It declared a first and final one-tier dividend per share of 8 cents. Yesterday, its share price closed 3 cents higher at $2.30.