Straits Trading expects to swing to net loss for H1
But its overall financial position remains healthy with sufficient liquidity to meet its operational and financial commitments, says the group
[SINGAPORE] The Straits Trading Company is expected to swing to a net loss for the first half of FY2025 ended June, the group with operations and financial interests in resources, property, and hospitality said in a regulatory filing on Wednesday (Aug 6).
It had reported a net profit for the corresponding year-ago period.
The net loss is mainly attributable to loss from the share of results of an associate due to a change in fair value of investment properties in the UK as a result of higher capitalisation rates and weaker market sentiments.
Net loss arising from the remeasurement of exchangeable bonds due to the withdrawal of
real estate management group ESR’s listing in Hong Kong also contributed to the bottom line.
However, as the fair value losses are non-cash in nature, they are not expected to have an impact on the operating cash flow of the group.
The Straits Trading Company said the group’s overall business and financial position remain healthy with sufficient liquidity to meet its operational and financial commitments.
The Straits Trading Company shares rose by S$0.02 or 1.2 per cent to S$1.65 on Wednesday, before the profit guidance was published.
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