Metro Holdings profit crashed 29.3% to $91.9m

Blame it on one-off divestment gain.

In a release, Mainboard-listed Metro Holdings Limited reported that its revenue held steady at S$187.1 million for the full year ended 31 March 2013, notwithstanding a decline in rental from its core Property division following the disposal of Metro City Beijing last year. 

Turnover was bolstered by higher sales from the Group’s Retail division, particularly in Singapore and Indonesia, with improving consumer sentiments. Net profit was down 29.3% from S$91.9 million in FY2012 to S$65.0 million in FY2013, mainly due to the one-off divestment gain from the sale of Metro City Beijing in FY2012.

Lt Gen (Rtd) Winston Choo, Metro’s Chairman said, “Looking ahead, FY2014 is shaping up to be an eventful and exciting year for Metro, with several of our property developments coming on-stream.

Residential sale launches will be commencing for the Prince Charles Crescent project in Singapore and the Nanchang project in China.” Concurrent to its ongoing projects, where feasible, the Group continues to embrace opportunities that enable it to recycle capital successfully.

As announced on 4 April 2013, Metro expects to record a gain of approximately S$29.6 million following the disposal of its warehouse property at Pasir Panjang in Singapore. The sale is expected to be completed in FY2014.

At the same time, the Group is looking for further yield improvements through asset enhancement initiatives. While costs of the Property division are expected to be affected by the refurbishment of Metro City Shanghai in FY2014, rental yield is expected to improve following this enhancement exercise.

Notwithstanding keen competition and rising operational costs – in particular, staff and rental costs – in the retail sector both in Singapore and Indonesia, the Retail division seeks to further maintain its sales performance. Profitability of the Retail division’s associated company in Indonesia is likely to be affected by start-up costs of stores, both newly opened and under planning.