Page 9 - ar2012

05 Annual Report 2012
Revenue
Revenue increased by $25.6 million, from $30.4
million in FY2011 to $56.0 million in FY2012.
In FY2012, the revenue recognised by the Group
from development projects were of higher value
compared to that recognised in FY2011. These
development projects include Suites@Topaz,
Royce Residences, The Shoreline Residences I
and The Shoreline Residences II.
Construction services in both FY2012 and FY2011
were provided to companies within the Group.
Hence, revenue arising from these construction
services were eliminated at the Group level.
Cost of Sales and Gross Proft
Cost of sales, in line with the increase in revenue,
increased from $19.7 million in FY2011 to $36.3
million in FY2012. Therefore, gross proft for FY2012
was $19.7 million compared to $10.7 million in
FY2011, representing relatively stable gross proft
margins of 35.2% and 35.3% for FY2012 and FY2011
respectively.
Other Operating Income
Other operating income increased by $8.3 million
from $2.7 million in FY2011 to $11.0 million in FY2012.
The risewas duemainly to the increase in fair value
gains resulting from the revaluation of investment
properties which were based on valuations
performed by independent professional valuers
during FY2012.
Administrative Expenses
Administrative expenses increased by $2.0 million
from $3.0 million in FY2011 to $5.0 million in FY2012.
This was due mainly to higher salaries, bonuses
and related costs paid out to existing employees
of the Group.
Interest Income
Finance income increased by $0.022 million from
$0.004 million in FY2011 to $0.026 million in FY2012
due to the increase in interest earned from fxed
deposits placed.
Finance Costs
Finance costs decreased from $0.5 million
in FY2011 to $0.2 million in FY2012 due to the
capitalisation of certain project-related interest
expenses into development properties for sale.
Share of Results of Associated Companies
Share of results of associated companies
increased by $1.5 million from $0.4 million in FY2011
to $1.9 million in FY2012. This was due mainly to
a higher percentage of completion in FY2012 as
compared to FY2011 for the development project
Aristo @ Amber, undertaken by associated
company AG Capital Pte. Ltd. and the share of
results, recognised for the frst time in FY2012 of
the development project Vibes @ East Coast,
undertaken by associated company Goodland
Sunny Pte. Ltd.
Financial
Review