The net profit of Wheelock Properties falls by 63.1 percent to $100.95 million for the 12-month period ending on 31 December 2008 from $273.49 million for the nine-month period ending on 31 December 2007. The group has its financial year-end changed from 31 March to 31 December. Investment impairment loss caused the drop in its profit.
“The group changed its financial year-end from March 31 to Dec 31. The group’s businesses are not affected significantly by seasonal factors. Therefore, the results for the 12 months ended Dec 31, 2008 are compared against those of the nine months ended Dec 31, 2007”, Wheelock said.
Wheelock’s investment in SC Global Developments takes $120 million of the $200 impairment loss, while the investment in Hotel Properties expends the remaining $80 million. In the previous year, the share prices of SC Global Developments and Hotel Properties fall 77 percent and 72 percent, respectively. In 2008 financial year, an extra $16 million was invested by Wheelock in SC Global.
The FY2008 revenue was increased by 19.4 percent from $380.89 million to $454.64 million. This was the result of both the Scotts Square development’s units sold revenue recognition during its FY2008 and the equivalence of the nine-month period versus the 12-month period. Wheelock also attained higher profit margins due to Scotts Square, having sold about 13 units. On average, units cost around $4,028 psf.
Wheelock said, “Gross profit margin was 48 per cent compared to 38 per cent for the nine-month period ended Dec 31, 2007”.
While a $37.66 million rise from $24.62 million in property investment revenue was seen for the nine-month period ending on 31 December 2007 for 2008 financial year because of better rental rates, profits from investment profits in fact fall to $116.04 million from $218.07 million during the same periods.
“The decrease in profit for property investment was mainly due to lower valuation surplus of $90 million in 2008 compared to $200 million in 2007 on Wheelock Place”, Wheelock said.
A cash dividend of 6 cents per share totalling to $71.79 million was also proposed by the group. For 2008 financial year, Wheelock’s earnings per share stood at 8.44 cents, compared to the 22.86 cents per share for nine months ending on 31 December 2007. A tax credit totalling to $2.86 million was seen during the same period, compared to the $59.62 million tax expense for the nine-month period, primarily due to a writeback of previous year’s tax provision on the increase of Hamptons Group’s sales.
Wheelock publicised David Lim’s appointment yesterday as one of its independent director, stating that the appointment was a part of the “rejuvenation of the board members”. “Presently, Mr Lim is chairman of Jurong International Holdings and director of Ascendas India Trust”, said the company.
Share price of Wheelock went down 2.5 cents yesterday, closing at 90 cents.