Heeton profit up 12% to $6.3mln

Set to commence construction of iLiv@Grange in second half of 2010 following Juluca and The Lumos.

Niche property developer Heeton Holdings has reported a 11.7% growth in net profit, to $6.3 million for 2Q10 on revenue of $9.5 million, compared with net profit of $5.6 million on revenue of $7.3 million a year ago, according to a Heeton report.

This takes into account a $189,000 profit contribution in 2Q09 from the operation of wet markets, which were divested in 1Q10. Excluding this item, the increase in net profit from continuing operations was 15.7%.

Mr Danny Low, COO of Heeton said, “Our improved performance was mainly driven by the recognition of sales from the Group’s residential developments, Juluca and The Lumos, as well as lower interest expense.”

The Group ended the quarter with net asset value per share standing at 89.76 cents, up 11.1% from 80.8 cents as at 31 December 2009. Cash and cash equivalents also rose to $3.1 million from $2.3 million. Heeton is declaring an interim cash dividend of 0.2 cents per share.

Following the unveiling of iLiv@Grange, the Group expects to commence construction of the project in the second half of the year. Furthermore, the Group is also in the midst of finalizing drawing plans for its 3,700m2 joint-venture Killiney Road site, and hopes to launch this project by the first quarter of 2011. It is also actively on the lookout for land tender or en-bloc acquisition opportunities to replenish its land bank. Meanwhile, further sales recognition from Juluca and The Lumos can be expected for the rest of the year, as the Group makes further progress on their construction.