Roxy-Pacific Holdings' profit jumps 116% to S$8.2m

Thanks to robust property gains.

Roxy-Pacific Holdings Limited announced net profit of S$8.2 million for the period ended September 30, 2012, and revenue of S$43.6 million.

Excluding fair value gains recorded for September 30, 2011, the Group’s profit before tax surged 63% from S$6.6 million in 3Q2011 to S$10.7 million in 3Q2012. Corresponding, net profit was up 116% to S$8.2 million in 3Q2012 from S$3.8 million in 3Q2011.

Revenue holds steady at S$43.6 million. Profit after tax, excluding fair value gains, rises 116% to S$8.2 million. Earnings from Property development, Hotel ownership and Property investment segments rise 70%, 50% and 87% respectively.

Progress billings of S$844.7 million as of 28 October 2012, to be recognised from 4Q2012 to FY2016, bring strong earnings visibility. Sizeable landbank with total attributable gross floor area of approximately 296,991 square foot for development. Strong financial flexibility with cash and cash equivalents amounting to S$240.8 million as at September 30, 2012

Said Mr Teo Hong Lim, Executive Chairman and CEO of Roxy-Pacific: “The Group’s performance for 3Q2012 is in line with expectations. We are pleased to report that the Group continues to stride forward in our three business segments, Property Development, Hotel Ownership and Property Investment, notwithstanding volatile macro economic conditions. We view our positive performance to be a result of the Group’s ongoing diversification of our property development portfolio, successful execution of marketing strategies for our residential, commercial and mixed development projects, as well as exposure to the hospitality sector through the Grand Mercure Roxy Hotel.

“Going forward, the Group will continue to enjoy a healthy cashflow, considering that the Group has a balance amount of attributable progress billings of approximately S$844.7 million, to be recognised from 4Q2012 to FY2016. In addition, we have a sizeable landbank that comprises five attractive freehold sites with a total attributable gross floor area of approximately 296,991 square foot. Our healthy amount of cash and cash equivalents along with our net debt to ANAV of 0.31 times gives us the financial flexibility and agility to execute new projects as well as expand the hotel business, when we find suitable opportunities.”