STAMFORD LAND CORPORATION LTD Company Registration No H

Transcription

1 STAMFORD LAND CORPORATION LTD Company Registration No H Unaudited First Quarter Financial Statement and Dividend Announcement PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3) HALF-YEAR AND FULL YEAR RESULTS 1 (a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year Unaudited financial statements for the three months ended 30 June Group Income Statement % increase/ for the Period Ended 30 June (decrease) S$'000 S$'000 Revenue 47,880 50,227 (4.7) Raw materials and consumables used (7,029) (7,067) (0.5) Staff costs (20,509) (21,934) (6.5) Depreciation expense (3,398) (3,831) (11.3) Other expenses (11,683) (13,197) (11.5) 4 Financial income 1,168 1,431 (18.4) 5 Financial expense (4,127) (4,420) (6.6) Gain on sale of investment properties held for sale 281 3,502 (92.0) 1 Profit before tax 2,583 4,711 (45.2) Income tax expense (17) (12) 41.7 Profit attributable to shareholders 2,566 4,699 (45.4) Notes 1 The profit before tax declined by 45.2% due to higher profits recognised in prior period for sale of investment properties. 2 The weakening of the Australian dollar and New Zealand dollar had resulted in lower revenue and expenses recognised in the current period. 3 The closure of our hotel in New Zealand, Stamford Plaza Auckland, for four months with effect from 1 June 2006 for renovation and development of residential apartments, had resulted in lower revenue and expenses for the Group. Jun 2006 Jun Financial income comprise: S$'000 S$'000 Dividend income Interest income Foreign exchange transaction gains Gain on disposal of available-for-sale investments Gain on revaluation of current investments - 2 Gains from disposal of current investments ,168 1,431 5 Financial expense comprise: Interest expense (3,935) (4,298) Loss on revaluation of current investments (192) - Foreign exchange transaction losses - (122) (4,127) (4,420) Page 1 of 9

2 1 (b)(i) A balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year GROUP COMPANY Jun 2006 Mar 2006 Jun 2006 Mar 2006 S$'000 S$'000 S$'000 S$'000 Current assets 2 Cash and cash equivalents 60,504 38,413 2,435 2,473 Current investments 18,389 10, Trade and other receivables 10,974 13, Amounts due from subsidiaries (non-trade) - - 1, Properties held for sale 2,326 3, Inventories at cost 1,879 2, ,072 67,310 3,807 2,647 Non-current assets Available-for-sale investments Investments in subsidiaries , ,231 Amounts due from subsidiaries (non-trade) , ,102 Property, plant and equipment 471, , Properties under development 139, , Deferred income tax , , , ,533 Total assets 704, , , ,180 Current liabilities Short-term borrowings (8,392) (8,090) - - Trade and other payables (21,174) (31,217) (291) (232) Amounts due to subsidiaries (non-trade) - - (4,252) (2,152) Current tax payable (77) (67) Current portion of long-term borrowings (87,904) (41,386) - - (117,547) (80,760) (4,543) (2,384) Non-current liabilities Long-term borrowings (193,671) (190,794) - - Amounts due to subsidiaries (non-trade) - - (150,511) (150,511) (193,671) (190,794) (150,511) (150,511) Total liabilities (311,218) (271,554) (155,054) (152,895) Net assets 393, , , ,285 Equity Share capital 143, , , ,611 Other reserves 20,521 16,960 (21,824) (20,941) Retained earnings 229, , , ,615 Total equity 393, , , ,285 Notes 1 In the balance sheets, closing rates were used to translate the Australian dollar and New Zealand dollar at S$ (Mar 2006: S$1.1606) and S$ (Mar 2006: S$0.9927) respectively. 2 Cash and cash equivalents increased significantly due to drawdown of A$40 million loan during the period. 1 (b)(ii) Aggregate amount of group's borrowings and debt securities Amount repayable in one year or less, or on demand As at 30/6/2006 As at 31/3/2006 Secured Unsecured Secured Unsecured $ 96,296,000 - $ 49,476,000 - Amount repayable after one year As at 30/6/2006 As at 31/3/2006 Secured Unsecured Secured Unsecured $ 193,671,000 - $ 190,794,000 - Details of any collateral The following properties are charged by way of mortgages and fixed and floating equitable charges for the above borrowings: 1 Stamford Grand North Ryde 2 Stamford Plaza Melbourne 3 Stamford Grand Adelaide 4 Stamford Plaza Adelaide 5 Stamford Plaza Auckland 6 Sir Stamford at Circular Quay 7 Stamford Plaza Sydney Airport 8 Stamford Plaza Brisbane 9 Stamford Marque 10 9th Floor Southpoint Building Page 2 of 9

3 1 (c) A cash flow statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year Jun 2006 Jun 2005 S$'000 S$'000 Cash flows from operating activities: Profit for the period 2,566 4,699 Adjustments for: Income tax expense Depreciation expense 3,398 3,831 Dividend income (32) (198) Foreign exchange transaction (gains)/losses (235) 122 Gain on disposal of available-for-sale investments - (150) Interest expense 3,935 4,298 Interest income (803) (987) (Gain)/loss on disposal of property, plant and equipment (13) 1 Operating profit before working capital changes 8,833 11,628 (Increase)/decrease in current investments (7,993) 1,731 Decrease in properties held for sale 807 1,080 Decrease in inventories Decrease in receivables 2,404 2,653 (Decrease)/increase in payables (9,625) 2,701 Cash generated from operations (5,416) 19,890 Income tax paid (8) (8) Net cash (used in)/from operating activities (5,424) 19,882 Cash flows from investing activities: Disposal of property, plant and equipment 20 5 Purchase of property, plant and equipment (1,083) (1,710) Proceeds from available-for-sale investments Additions to properties under development (15,646) (17,156) Interest received Dividends received Net cash used in investing activities (15,921) (17,459) Cash flows from financing activities: Increase in borrowings 47,444 - Interest paid (4,352) (5,502) Net cash from/(used in) financing activities 43,092 (5,502) Effect of exchange rate changes in consolidating subsidiaries (238) 113 Net increase/(decrease) in cash and cash equivalents 21,509 (2,966) Cash and cash equivalents at beginning of the period 30,323 43,741 Effect of foreign exchange rate adjustment Cash and cash equivalents at end of the period 52,112 40,849 Notes Cash and cash equivalents comprise the following: Jun 2006 Jun 2005 S$'000 S$'000 Bank and cash 60,504 49,468 Short-term borrowings (8,392) (8,619) 52,112 40,849 Page 3 of 9

4 1 (d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year Foreign Capital Fair value currency Share Share redemption adjustment translation Retained Total GROUP capital premium reserve reserve reserve earnings equity S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 Balance at 1 Apr ,283 57, , , ,108 Changes in accounting policy FRS Restated balance 86,283 57, , , ,402 Changes in equity Available-for-sale investments: Valuation gains taken to equity Realisation on disposal of available-forsale investment (143) - - (143) Foreign currency translation differences ,363-2,363 Net income and expense recognised directly in equity (142) 2,363-2,221 Profit for the period ,699 4,699 Total recognised income and expense for the period (142) 2,363 4,699 6,920 Balance at 30 Jun ,283 57, , , ,322 Balance at 1 Apr , , , ,120 Changes in equity Available-for-sale investments: Valuation losses taken to equity (24) - - (24) Foreign currency translation differences ,585-3,585 Net income and - expense recognised directly in equity (24) 3,585-3,561 Profit for the period ,566 2,566 Total recognised income and expense for the period (24) 3,585 2,566 6,127 Balance at 30 Jun , , , ,247 Page 4 of 9

5 Foreign Capital Fair value currency Share Share redemption adjustment Revaluation translation Retained Total COMPANY capital premium reserve reserve reserve reserve earnings equity S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 Balance at 1 Apr ,283 57, (13,066) 126, ,429 Changes in accounting policy FRS , ,891 Restated balance 86,283 57, , (13,066) 126, ,320 Changes in equity Available-for-sale investments: Valuation gains taken to equity Realisation on disposal of available-forsale investment (143) (143) Foreign currency translation differences ,059-1,059 Net income and expense recognised directly in equity (142) - 1, Profit for the period Total recognised income and expense for the period (142) - 1, Balance at 30 Jun ,283 57, , (12,007) 126, ,306 Balance at 1 Apr , , (26,855) 115, ,285 Changes in equity Available-for-sale investments: Valuation losses taken to equity (24) (24) Foreign currency translation differences (859) - (859) Net income and expense recognised directly in equity (24) - (859) - (883) Loss for the period (140) (140) Total recognised income and expense for the period (24) - (859) (140) (1,023) Balance at 30 Jun , , (27,714) 115, ,262 page 5 of 9

6 1 (d)(ii) Details of any changes in the company's share capital arising from right issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issues of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year There have been no changes in the issued share capital of the Company since 31 March As at 30 June 2006, there were no outstanding share options (Jun 2005 : 1,000,000 share options). 2 Whether the figures have been audited, or reviewed and in accordance with which standard (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard) The figures have not been audited or reviewed by auditors. 3 Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of matter) 4 Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied The Group has adopted the same accounting policies and methods of computation in the financial statements for the current reporting period compared with the audited financial statements as at 31 March If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change 6 Earnings per ordinary share of the group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends Jun 2006 Jun 2005 Earnings per ordinary share:- (i) Based on the weighted average number of ordinary shares in issue; and 0.3 cent 0.5 cent (ii) On a fully diluted basis 0.3 cent 0.5 cent Note to item (i) Group basic earnings per ordinary share is calculated by dividing Group net profit attributable to members by the weighted average number of ordinary shares in issue during the period of 863,833,482 shares (Jun 2005: 862,833,482 shares). Note to item (ii) Group fully diluted earnings per ordinary share is calculated by dividing Goup net profit attributable to members by the adjusted weighted average number of ordinary shares in issue during the period of 863,833,482 shares (Jun 2005: 863,119,196 shares). The weighted average number of ordinary shares as at 30 June 2005 had been adjusted for the dilutive effect arising from the potential exercise of all outstanding share options granted to employees where such shares would be issued at a price lower than fair value (average share price during the period). There is no potential dilutive shares as at 30 June Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the (a) current period reported on and (b) immediately preceding financial year GROUP COMPANY Jun 2006 Mar 2006 Jun 2006 Mar 2006 Net asset value per ordinary share based on existing issued share capital as at the end of the period reported on $0.46 $0.45 $0.27 $0.28 Page 6 of 9

7 8 A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. The review must discuss any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors. It must also discuss any material factors that affected the cash flow working capital, assets or liabilities of the group during the current financial period reported on REVENUE 3 months ended Jun 2006 Jun 2005 Change % S$'000 S$'000 S$'000 Hotel Owning & Management 44,409 47,267 (2,858) (6.0) Property Development & Investment (13) (3.6) Trading 3,093 2, ,849 50,181 (2,332) (4.6) Unallocated corporate revenue (15) (32.6) 47,880 50,227 (2,347) (4.7) The hotel segment achieved an increase of revenue per available room ("revpar") by 8.81% compared to the previous period due to better performance from all our hotels except for the hotel in New Zealand. However, the translation of revenue denominated in Australian dollar and New Zealand dollar into Singapore dollar at lower exchange rates contributed S$3.1 million to the hotel segment's decline in revenue. For the three months' results, the Australian dollar and New Zealand dollar were translated at an average rate of S$ (Jun 2005: S$1.2753) and S$ (Jun 2005: S$1.1842) respectively. The trading segment reported an improvement in revenue due to contribution from the group's travel and interior decoration companies. OPERATING PROFIT 3 months ended Jun 2006 Jun 2005 Change % S$'000 S$'000 S$'000 Hotel Owning & Management 5,789 4,735 1, Property Development & Investment (28) 1 (29) NM Trading 111 (13) 124 NM 5,872 4,723 1, Unallocated corporate expenses (624) (524) (100) ,248 4,199 1, The hotel owning and management segment achieved a 22.3% increase in operating profit to S$5.8 million due to better performance from all our hotels except for the hotel in New Zealand. The New Zealand hotel was closed from 1 June 2006 for renovation and ongoing residential development. The reduction in operating costs also contributed to the improved results. The trading segment staged a turnaround with a profit of S$0.1 million compared with a loss in the previous period. The unallocated corporate expenses increased by S$0.1 million due to higher staff costs and higher travelling expenses incurred in current period. Page 7 of 9

8 9 Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results 10 A commentary at the date of the announcement of the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months We anticipate better overall performance for our hotel operations in the current year with favourable operating environment. Additionally, the completion of the Stamford Marque residential project in November this year will contribute substantially to the Group's profits. 11 Dividend (a) Current Financial Period Reported On Any dividend declared for the current financial period reported on? No Name of Dividend Dividend Type Dividend Rate Tax Rate (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? No Name of Dividend Dividend Type Dividend Rate Tax Rate (c) (d) Date payable Books closure date 12 If no dividend has been declared/recommended, a statement to that effect Page 8 of 9

9 PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT (This part is not applicable to Q1, Q2, Q3 or Half Year Results) 13 Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year Segmented revenue and results for business segments Jun 2006 Hotel Owning & Management Property Development & Investment Trading Eliminations Consolidated S$'000 S$'000 S$'000 S$'000 S$'000 REVENUE External sales 44, ,093-47,849 Inter-segment sales (110) - 44, ,105 (110) 47,849 Unallocated corporate revenue 31 Total revenue 47,880 RESULTS Segment result 5,789 (28) 111-5,872 Unallocated corporate expenses (624) Profit from operations 5,248 Financial income 1,168 Financial expense (4,127) Other credits/(charges) 294 Profit before tax 2,583 Income tax expense (17) Profit after tax 2,566 Jun 2005 Hotel Owning & Management Property Development & Investment Trading Eliminations Consolidated S$'000 S$'000 S$'000 S$'000 S$'000 REVENUE External sales 47, ,554-50,181 Inter-segment sales (112) - 47, ,568 (112) 50,181 Unallocated corporate revenue 46 Total revenue 50,227 RESULTS Segment result 4,735 1 (13) - 4,723 Unallocated corporate expenses (524) Profit from operations 4,199 Financial income 1,431 Financial expense (4,420) Other credits/(charges) 3,501 Profit before tax 4,711 Income tax expense (12) Profit after tax 4, In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments Please see item no. 8. BY ORDER OF THE BOARD Rebecca Marie Stephanie Tai-Yeo Hsiu Erh Company Secretary 27 July 2006 Page 9 of 9