Singapore-based property and hospitality group Roxy-Pacific Holdings Ltd achieved a net profit of S$24.9 million in the first half of 2011, up 14 percent from S$21.9 million over the same period last year.
However, H1 revenue declined 16 percent to S$97.1 million, mainly due to lower contributions from its property development segment, and partly offset by a stronger revenue contribution from its Hotel Ownership and Property Investment segments.
"We are heartened and pleased to have achieved good bottomline growth for our first half performance notwithstanding a challenging property development environment and global economic uncertainty," said Teo Hong Lim, Executive Chairman and CEO of Roxy-Pacific.
"To date, we have approximately S$531.1 million of progress billings to be progressively recognised from 3Q2011. In addition, we have accumulated seven plots of land for a mix of commercial, retail and residential developments with a total gross floor area of approximately 300,000 sq ft."
In terms of quarterly results, the group's revenue dropped 16 percent to S$46.7 million in the second quarter of 2011, while pre-tax profit improved nine percent to S$17.2 million, from S$15.7 million a year ago.
The decline in Q2 revenue was largely attributed to a 22 percent drop in revenue from the property development segment, due to the absence of revenue recognition from The Adara and The Ambrosia.
Other developments such as The Verte, The Azzuro, The Lucent, The Florentine, Nova 88, Nova 48, Jupiter 18 and Studios@Tembeling have contributed to 73 percent of the company's total Q2 revenue.
Going forward, Teo said the company will continue to be prudent, leveraging on the healthy cash position and possible joint ventures with strong partners to grow its portfolio.
"We will continue to exercise prudence as we explore opportunities amidst the current challenging property environment and global economic uncertainty," he said.
To contact the journalist, you may send your message to firstname.lastname@example.org