Why Courts Asia should not panic yet despite weak quarter

Revenue rose by a tad 3%.

According to a report by HSBC, Courts recorded a revenue increase of 10%, to SGD794m, for FY Mar 2013 and 3% y-o-y in the fourth quarter, to SGD189m. 

Growth was driven by Singapore, with a 10% revenue increase for the full year while Malaysia realized 6% annual growth. 

Here's more from the report:

SSSG remains strong in Singapore at 8.2% despite a relatively weak retail environment while, in Malaysia, SSSG improved to 6.3% in FY Mar 2013 versus 1.4% in FY Mar 2012.

We believe Courts’ underlying results remain strong despite the weaker-than-anticipated quarter as evidenced by its improving sales per square foot.

SSSG in the fourth quarter was also solid in Singapore at 6% and Malaysia at 6.4%, all in local currency term.

Courts highlighted that its 4Q FY Mar 2012 results benefited from a positive service charge income transfer of SGD7.5m which boosted its top and bottom line.

In 4Q FY Mar 2013, the positive income transfer was significantly lower at SGD0.2m as a result of lower credit sales as a proportion of total sales.

This resulted in an apparent weak revenue growth for the quarter.