Profit shares from associated firms and joint ventures slumped from S$6.26 million to S$2.11 as Heeton stopped recognising earnings from completed residential projects NEWest, KAP and KAP Residences (pictured) (Image: Oxley Sanctuary Pte. Ltd.).
Heeton Holdings Limited’s revenue increased by 12.4 percent to S$15.49 million in the first quarter of 2017 compared to S$13.79 million in the same period last year, revealed an SGX filing on Friday (13 May).
The gain in revenue was mainly due to the recognition of higher sales proceeds from residential project Onze@Tanjong Pagar amounting to S$9.78 million, up from S$7.08 million in the first quarter of 2016.
However, net profit plunged by 56.8 percent to S$2.52 million from S$5.84 million in Q1 2016 because of the absence of earnings from completed projects.
Similarly, the share of profit from associated firms and joint ventures slumped by 66.2 percent to S$2.11 million versus S$6.26 million as Heeton stopped recognising earnings from residential projects KAP, NEWest, and KAP Residences, following their completion in Q4 2016.
Meanwhile, the developer is cautiously optimistic regarding the short term outlook for Singapore’s residential property market as home prices appear to be stabilising.
Based on the latest data from the Urban Redevelopment Authority (URA), the rate of decline in private home prices slowed down to 0.4 percent in Q1 2017 compared to the 0.5 percent dip in the previous quarter.
This article was edited by Denise Djong.
