Group revenues were down 2% at $20.3 million. Boardroom, its business services subsidiary, delivered a 6% year-on-year increase in revenues and a 16% increase in net profits of $1.7 million.
GK Goh says Boardroom’s numbers have improved in 2017 as the benefits of business restructuring and new growth strategies implemented over the past three years are starting to be realised.
Australian associate Opal Aged Care Group saw a weaker third quarter, partly as a consequence of changes in government funding. Opal’s earnings for the next two years are likely to see continued impact from the policy changes, offset by an increase in capacity from new homes.
Share of Opal’s net profits amounted to $4.4 million compared to $4.6 million last year.
Group investment income, which includes unrealised profits from short-term investments, was slightly lower at $2.4 million.
In its outlook, GK Goh says 4Q will see the net cash flow impact from the sale of our interests in Croesus Retail Trust for $34.8 million. A further $91 million is expected on completion of the EUN disposal.
For 2018, GK Goh expects satisfactory results in aggregate from its operating businesses, while investment returns are difficult to predict.
Shares in GK Goh closed at $1.05 on Friday.
