MAINBOARD-LISTED Metro Holdings : M01 0% on Friday (May 26) posted profits of S$8.3 million for its second half ended Mar 31, 2023, a 54 per cent increase from S$5.4 million in the year-ago period.

The results translate to an earnings per share (EPS) of S$0.01, up from S$0.006 in the same period last year. 

For the six months ended March, the property and retail group’s total revenue grew 6.1 per cent to S$63.4 million, from S$59.7 million in H2 2022. 

Takings from retail, which continue to form the main source of income for the company, grew 10.5 per cent to S$56.7 million. Rental income had a 12.8 per cent increase to S$3.3 million. Revenue from the sale of property rights, however, slid 38.8 per cent to S$3.4 million.

The second half results brings Metro’s full-year earnings to S$25.2 million, up 6.1 per cent from S$23.7 million, translating to an EPS of S$0.03. 

Revenue was up 16.7 per cent to S$117.2 million from S$100.5 million on higher contributions from its retail division, due to higher sales from Metro Paragon and Metro Causeway Point. This was partially offset by lower revenue from the property division, which experienced lower sale of property rights for its Jakarta residential development properties. 

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The company also recorded a 68.8 per cent rise in finance costs to S$15.8 million on increased borrowings and rising interest rates. This was partially mitigated by higher interest income, it said. 

Metro’s board recommended a final dividend of S$0.02 per share and special dividend of S$0.0025 per share, bringing the total dividend to S$0.0225. The total dividend represents a payout ratio of 74.1 per cent. The book closure date and date payable will be announced at a later date, the group said. 

The company said that difficulties in the office leasing market in China, particularly in Shanghai, will affect the occupancy of its China investment properties.

For Singapore, Metro expects demand for office space to grow on the back of companies continuing to set up their regional headquarters here, along with demand from finance and professional services businesses.

Its retail business “continues to be impacted by the higher inflation-driven costs in raw material, labour and energy”. While growth in the retail trade sector seems to be slowing, an influx of Chinese tourists may offer a boost to retail sales when more international flights resume in Q2 2023, it added. 

Metro’s shares closed 2.5 per cent or S$0.015 higher at S$0.62 on Friday.