Roxy Pacific Holdings’ net profit jumps 16% to S$49.7m in 2011

As revenue from its Hotel Ownership segment grew 9% last year.

In a company statement, Roxy-Pacific Holdings Limited reported a net profit of S$49.7 million for the full year ended December 31, 2011 on the back of revenue of S$183.7 million in FY2011.

Revenue from the Hotel Ownership segment grew 9% in FY2011 due to improved AOR of 94.6% and ARR of S$188.3. However, this was offset by a 22% decline in revenue from the Group’s core Property Development segment due to the absence of revenue recognised from The Ambrosia, The Adara and The Ambra, as well as a 19% decline in revenue from the Group’s Property Investment segment due to the redevelopment of Kovan Centre.

The Group’s bottomline was lifted up by an increase in the Group’s other operating income to S$24.9 million in FY2011 from S$10.4 million in the previous corresponding period, due to higher fair value gains on retail shops in Roxy Square and the transfer of Kovan Centre from investment property to development property.

The Company proposed a one-tier final cash dividend of 2.0 cents per share, which is 33% higher compared to prior year.

Performance Review
The Group registered revenue for the fourth quarter ended December 31, 2011 of S$42.1 million. Revenue from the Property Development segment, which made up 70% of the Group’s turnover, fell 16% from S$35.3 million in the fourth quarter ended December 31, 2010 to S$29.4 million in 4Q2011, largely due to absence of revenue recognized from The Florentine and The Ambrosia. It has also obtained TOP for three of its projects, The Lucent and The Azzuro in November 2011 as well as Nova 48 in December 2011.

The remaining 30% of the Group’s turnover in 4Q2011 was attributable to the Group’s Hotel Ownership and Property Investment segments. Revenue from the Hotel Ownership segment increased 7% to S$12.3 million in 4Q2011 from S$11.4 million in 4Q2010. The hotel’s average occupancy rate improved from 93.6% in 4Q2010 to 96.1% in 4Q2011. Its average room rate was also up 10.6% to S$188.2 in 4Q2011 as compared to S$170.1 in 4Q2010. Overall, the Group’s revenue per available room increased by 13.6% from S$159.2 in 4Q2010 to S$180.9 in the current quarter.

Revenue from the Group’s Property Investment segment, which constituted the 1% of the Group’s turnover, slipped by 52% for the current quarter compared to 4Q2010. The dip was mainly due to the redevelopment of Kovan Centre.