Net profit amounting to $67.4 million has been reported by Allgreen properties yesterday. This year’s net profit has declined by 86.34 percent, a fall from $493.5 million of last year. This decline in the company’s net profit comes along with the $8.35 million decrease in fair value gain on investment properties.
Allgreen’s revenue amounted to $353.7 million, a 37.8 percent decline from 2007’s $568.8 million. The company also had a $16.76 million worth of write-back of provision for the reduction of the value of the development properties, lower than the $56.76 million of the previous year.
Several provisions were made to record two residential properties’ land values, which have not been launched.
It has been recommended to have a dividend of 2 cents per share.
The decline in group revenue is attributed to a fall in revenue of development properties. “The number of units sold during 2008 was significantly lower than in the previous corresponding period as a result of the subdued market,” Allgreen said.
Total revenue accumulated from development sales amounted to $185.87 million, a decline from $421.16 million in 2007. In 2008 the hotel segments and investment property of Allgreen performed satisfactorily due to better room rates and rents.
On 31 December 2008, the company had a total of $1,137.6 worth of borrowing with gearing of 0.45 times, as compared to 0.3 times and $743.6 million of net borrowing of the previous year.
Allgreen explained that the increase in borrowing was mainly attributed to purchase of development properties in Singapore and to overseas investments.
In 2008, the company’s earning per share after fair value gain on investment properties, fall down to 4.24 cents from 31.40 cents in 2007.
The share price of Allgreen closed at 44.5 cents yesterday, an increase by half cents.