SC Global's Q2 net rises 117% to $11.47m

August 14, 2008
SC Global's Q2 net rises 117% to $11.47m
By ARTHUR SIM

SC Global Developments has reported a net profit of $11.47 million
for Q2 2008, up 117 per cent from the $5.28 million in the year-ago
period.

Revenue for the quarter was $32.4 million, marginally lower by 5 per
cent compared with $34 million in Q2 2007.

The group saw revenue recognition from residential units sold in its
Singapore development projects, namely, The Marq on Paterson Hill and
Hilltops. This was also the first quarter of revenue recognition for
Hilltops.

SC Global said that its development project under its Kairong brand
in Shenyang, China, called Kairong International Gardens, also made a
positive contribution for the quarter as construction progressed.

Gross profit for the quarter increased 116 per cent to $16.5 million
compared with $7.7 million in the same period last year. Gross
margins were also higher at 51 per cent for the quarter versus 23 per
cent in 2007.

On a half year basis, gross profit for 1H 2008 was $41.6 million, up
48 per cent compared with $28.1 million a year ago.

SC Global said that higher selling prices achieved for the projects
coupled with management of construction costs enabled the group to
attain a high gross margin of 55 per cent for 1H 2008 against 32 per
cent recorded in the year-ago period.

The group's associate company in Australia, AVJennings Ltd (AVJ),
reported that its pre-tax profit for the full year ended 30 June 2008
was A$15.5 million (S$18.8 million) compared with A$17.8 million for
the 15-month period ended 30 June 2007 (A$14.2 million annualised).

In Q208, the group increased its investment in AVJ through the
subscription of its full entitlement under a rights issue undertaken
by AVJ and acquired 32.6 million new shares at an issue price of
A$0.67 each, increasing its shareholding from some 43 per cent to
about 49 per cent.

Earnings per ordinary share for the quarter period was 2.9 cents
compared with 1.65 cents (adjusted) a year ago.

At the close of trading, SC Global shares ended at $1.10 per share,
down one cent.

SC Global added that operationally, its developments under
construction are proceeding as planned and new projects in Ardmore
Park and Sentosa Cove are continuing to progress in the planning
stage.