Tuan Sing recorded a revenue of $142.9 million in H1 2014, down 22 percent over the corresponding period last year led by lower revenue from its property and industrial services.
Gross profit decreased in tandem to $24.3 million with gross profit margin at 17 percent, and profit after tax stood at $19.5 million.
Property revenue declined 19 percent to $74.2 million and profit after tax rose 8 percent to $13.7 million.
Its current revenue and profit were mainly from the progressive revenue recognition based on percentage of construction completion on units sold at Seletar Park Residence (pictured) and Sennett Residence, as well as the initial recognition on new bookings at Cluny Park Residence.
Revenue from investment properties grew 61 percent as rental income from Robinson Point kicked in.
Overall, Tuan Sing’s property arm contributed 52 percent of the group’s total revenue, and 70 percent of the Group’s total profit after tax for the period.
The Group will continue to strengthen its property portfolio: “In Singapore, the Group had secured total order book of $749.5 million on Seletar Park Residence, Sennett Residence and Cluny Park Residence as at end-June 2014. The progress of construction work has been generally on track and this would enable revenue and profits from the projects to be progressively recognised, which in turn would form the bulk of the revenue and profit for the current year and in 2015.”
Additionally, full year performance is expected to be better than last year.