Published August 14, 2008

SC Global's Q2 net rises 117% to $11.47m


SC Global Developments has reported a net profit of $11.47 million for Q2 2008, up 117 per cent from the $5.28 million in the year-ago period.

Revenue for the quarter was $32.4 million, marginally lower by 5 per cent compared with $34 million in Q2 2007.

The group saw revenue recognition from residential units sold in its Singapore development projects, namely, The Marq on Paterson Hill and Hilltops. This was also the first quarter of revenue recognition for Hilltops.

SC Global said that its development project under its Kairong brand in Shenyang, China, called Kairong International Gardens, also made a positive contribution for the quarter as construction progressed.

Gross profit for the quarter increased 116 per cent to $16.5 million compared with $7.7 million in the same period last year. Gross margins were also higher at 51 per cent for the quarter versus 23 per cent in 2007.

On a half year basis, gross profit for 1H 2008 was $41.6 million, up 48 per cent compared with $28.1 million a year ago.

SC Global said that higher selling prices achieved for the projects coupled with management of construction costs enabled the group to attain a high gross margin of 55 per cent for 1H 2008 against 32 per cent recorded in the year-ago period.

The group's associate company in Australia, AVJennings Ltd (AVJ), reported that its pre-tax profit for the full year ended 30 June 2008 was A$15.5 million (S$18.8 million) compared with A$17.8 million for the 15-month period ended 30 June 2007 (A$14.2 million annualised).

In Q208, the group increased its investment in AVJ through the subscription of its full entitlement under a rights issue undertaken by AVJ and acquired 32.6 million new shares at an issue price of A$0.67 each, increasing its shareholding from some 43 per cent to about 49 per cent.

Earnings per ordinary share for the quarter period was 2.9 cents compared with 1.65 cents (adjusted) a year ago.

At the close of trading, SC Global shares ended at $1.10 per share, down one cent.

SC Global added that operationally, its developments under construction are proceeding as planned and new projects in Ardmore Park and Sentosa Cove are continuing to progress in the planning stage.