Revenue for the financial period was 1.8% lower at $10.1 million from $10.3 million a year ago. With changes in fair value of investment securities coming in at a loss of $137,000, compared to gains of $5.2 million last year, gross profit was 50.4% lower y-o-y at $5.6 million.
The decrease in revenue was mainly due to a 20% y-o-y drop in the group’s investment segment to $1.1 million, but was partially offset by a 0.9% y-o-y gain in the group’s rental segment to $9.0 million.
Share of after tax results of associates and joint ventures saw a significant increase to $2.8 million from just $0.5 million a year ago.
As at Dec 31, 2021, cash and cash equivalents stood at $24.9 million.
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The group has declared a final cash dividend of 1 cent per share, unchanged from the previous year.
On the outlook, the group is cautious on the current Covid-19 situation, with Omicron affecting its UK market. Occupancy levels for its UK commercial properties was lower. Hence, to enhance the marketability of the vacant space, the group has started refurbishment and marketing of the space will commence shortly.
In the UK, the sale of 58 Queensgate property was completed in January this year and the proceeds from the sale have been received. The group expects to record a gain of approximately $14.4 million.
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Meanwhile in Singapore, all the group’s properties have performed well and are fully let.
The group will also be exploring a change to its accounting policy for investment properties from the cost model to the fair value model in order to unlock or increase shareholder value from this financial year. A decision will be made after an independent party is appointed to assess the revalued net asset values of the group.
Shares in Hwa Hong closed at 32 cents on Jan 28.
