Earnings per share for its continuing operations stands at S$0.0086, down from S$0.0116 previously

 

DEPARTMENT store operator Parkson Retail Asia : O9E 0% posted net profit of S$5.8 million for the fourth quarter ended Dec 31, down 26.3 per cent from S$7.8 million the year before. The figure excludes its discontinued operations.

 

Revenue for the quarter went up by 1.4 per cent to S$58.5 million, from S$57.6 million in the previous corresponding period.

 

Earnings per share for its continuing operations stood at S$0.0086, down from S$0.0116 previously.

 

No dividend was declared for the quarter, as the company is in a position of net current liabilities and accumulated losses.

 

The group has two operating segments &ndash namely, the operation and management of its retail stores and its investment holdings.

 

In a bourse filing on Tuesday (Feb 18), the group said that its retail operations generated higher sales during festive and holiday seasons.

 

Its retail stores in Malaysia, where it has continuing operations, turned in revenue of S$57.7 million for Q4, marginally higher than S$57 million a year ago. The company exited the Vietnam market in 2023.

 

Revenue from its investment holdings stood at S$743,000 for the quarter, up from S$595,000 from the corresponding period a year ago.

 

The group said that inflationary pressures and rising costs of living have affected consumers&rsquo spending power, posing a challenge to the group in FY2025.

 

It added that it will continue to enhance store productivity and manage costs, while exploring expansion opportunities.

The counter later closed at S$0.075, up S$0.007 or 10.3 per cent

 

SHARES of Parkson Retail Asia : O9E +10.29% spiked on Friday (Oct 4) morning amid heavy trading volumes, following an announcement by the mainboard-listed department store retailer that it was exiting the Singapore Exchange (SGX) watch list after more than four years.

 

As at 9.04 am, the counter had risen 16.2 per cent or S$0.011 to S$0.079 with 7.4 million of its securities changing hands, well above the 2.5 million average.

 

Parkson Retail closed S$0.007 or 10.3 per cent higher at S$0.075 on Friday, after 20.1 million shares worth S$1.5 million changed hands.

 

No married deals were recorded in early trade, according to ShareInvestor data. 

 

The company was placed on the SGX watch list in December 2019, for having failed to meet the listing rule requiring it to record a consolidated pre-tax profit based on audited full-year consolidated accounts.

 

Under this rule, the issuer should also have had an average daily market capitalisation of S$40 million or more in the preceding six months.

 

Following the expiry of its 36-month cure period to meet these requirements, the company was granted extensions to meet these requirements in 2022 and 2023.

 

Parkson Retail announced in August that it had submitted its application to exit the watch list after having attained profit before tax of S$23.3 million for the six months ended June 2024.

 

Its exit application was granted on Oct 2, and announced by the company on Friday morning, ahead of the market open.