Feb 11, 2010

Soilbuild's profit at record $84m

SOILBUILD Group Holdings, which develops homes and industrial properties, said its full-year net profit rose 10 per cent to a record $84.3 million.

Revenue was up 34 per cent to $320.1 million while gross profit climbed 28 per cent to $116.4 million.

The results were boosted in part by higher contributions from ongoing residential and business space sales and a 49 per cent rise in recurrent rental income base, Soilbuild said.

It completed three residential developments - Espa, The Centrio and Leonie Parc View last year.

Fourth-quarter net profit rose 11 per cent to $27.2 million, on the back of a 27 per cent rise in revenue to $63.5 million.

Given its higher net operating cash flow from development sales and recurrent rental income, the firm said it has proposed a dividend payout of $13 million, or six cents a share, up from four cents a share a year ago.

This comprises a first and final dividend of 2.5 cents and a special dividend of 3.5 cents.

Also, the firm has proposed a one-for-one share split, which would increase its number of shares to 435.2 million. Including the conversion of warrants, this may rise to as many as 538.7 million shares.

Its executive director Low Soon Sim said the firm sold 388 units worth $248 million in its financial year, including all the housing units of The Mezzo.

Soilbuild will launch this year the second phase of Meier Suites and market additional units of the recently completed Leonie Parc View and Heritage 9. It launched these projects last year.

It will also start selling and marketing West Point Bizhub.

Earnings per share reached 38 cents, up 12 per cent from a year earlier. Net asset value per share rose to $1.25, up 38 per cent from a year ago.

Yesterday, Soilbuild shares closed one cent higher at $1.05.