MCL Land Ltd 2009 Financial S

RNS Number : 6821H

Hongkong Land Hldgs Ld

25 February 2010

 



To:   Business Editor                                                                 25th February 2010

                                                                                                For immediate release

 

MCL Land Limited

2009 Financial Statements and Dividend Announcement

The following announcement was issued today by the Company's 77%-owned subsidiary, MCL Land Limited.

For further information, please contact:

Hongkong Land Limited

G M Brown                                                                                          (852) 2842 8138

GolinHarris

Sue So                                                                                                  (852) 2501 7984

25th February 2010

MCL LAND LIMITED

2009 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

Highlights

·    Record profit of US$154 million

·    Completion of The Fernhill, Tierra Vue and Hillcrest Villa

·    Parvis launched in November with 56% of the units sold

"Sales of residential properties in Singapore are expected to continue at a reasonable level while economic conditions continue to improve, subject to the introduction of government measures to reduce activity in the sector. The Group's results for 2010 will benefit from the completions of Waterfall Gardens and D'Pavilion in Singapore." 

Y K Pang, Chairman

25th February 2010

Group Results

				Financial year ended 31st December
				2009	2008	Change	2009	Change
				US$m	US$m	%	S$m	%
Revenue				452.7	343.1	32	645.4	26
Write down of development      properties for sale				-	(180.2)	-   100	-	-   100
Profit/(loss) before tax				184.1	(93.9)	n/m	261.7	n/m
Profit/(loss) attributable to      shareholders				153.7	(107.3)	n/m	218.5	n/m
				US¢	US¢		S¢
Earnings/(loss) per share				41.53	(29.00)	n/m	59.05	n/m
Gross dividend per share				8.91	6.95	28	12.50	25
				At 31.12.2009	At 31.12.2008	Change	At 31.12.2009	Change
				US$m	US$m	%	S$m	%
Shareholders' funds				533.2	393.9	35	748.2	32
				US$	US$		S$
Net asset value per share				1.44	1.06	36	2.02	32

n/m = not meaningful

The exchange rate of US$1=S$1.40 (31.12.2008: US$1=S$1.44) was used for translating assets and liabilities at the balance sheet date. Average monthly transaction rates were used for translating the results for the financial year (average for 2009:  US$1=S$1.45, 2008: US$1=S$1.41).

The financial results for the financial year ended 31st December 2009 and 31st December 2008 have been prepared in accordance with International Financial Reporting Standards ("IFRS"). The financial results for 31st December 2009 have not been audited or reviewed by the Auditors.

Overview

Sales of new private homes in Singapore recovered in 2009 with 14,688 units transacted for the year, more than three times the level in 2008 and similar to the number sold in 2007.  The volume was driven primarily by pent-up demand in the mass market, strong liquidity and a more positive economic outlook.  This improved market sentiment also flowed through to mid and high-end sectors of the market.  The pace of activity slowed, however, towards the end of the third quarter and into the fourth quarter following concerns that the government may introduce measures to curb speculative activity.

Group Performance

The completion of three developments, The Fernhill, Tierra Vue and Hillcrest Villa, enabled MCL Land to achieve record revenues of US$453 million for the year ended 31st December 2009, an increase of 32% over 2008. The underlying profit for the year was US$154 million, compared with an underlying loss of US$106 million in 2008, which had included a US$180 million write down of development properties.  The profit attributable to shareholders for 2009 reached a record high of US$154 million, compared with a loss of US$107 million for the prior year.  The value of the Group's development properties at the end of the financial year continued to reflect the right down of US$180 million made at the end of the previous year.

Shareholders' funds were US$533 million at the end of 2009, US$139 million higher than the previous year end.  Progress payments received from development properties enabled the Group to record net cash of US$93 million at the end of 2009, compared with net debt and net gearing of US$181 million and 46%, respectively, at the end of 2008.

The Board is recommending a first and final dividend of S¢12.50 per share payable on 26th May 2010, an increase of 25% from 2008.

Properties

Parvis, a freehold condominium joint venture development at Holland Road, met with a good response upon its launch in November with 56% of its 248 units committed at the year end.  By 31st December 2009, pre-sales had reached 44% at D'Pavilion, a 50-unit apartment development at Upper Serangoon Road, and 90% at The Peak@Balmeg, a 180-unit condominium development at Balmeg Road.  In addition, all but two of the 163 units at Hillcrest Villa had been sold.

The Fernhill and Tierra Vue were completed in the first half of the year, and together contributed a net profit of US$39 million. Hillcrest Villa was completed in September 2009 enabling a profit of US$113 million to be recognised. 

Construction of the Group's development projects is progressing well.  Waterfall Gardens and D'Pavilion are scheduled to complete in 2010, followed by The Peak@Balmeg in 2011.  In addition, the Group has a further six development projects in Singapore with a total gross floor area of some 121,000 sq. m that will be launched progressively over the next few years.

The Group's joint venture developments in Malaysia are on track.  Phase 1 of Riana Green was 99% pre-sold at the end of 2009, while at Seremban Forest Heights, a joint venture development in Seremban, 203 of the 396 terrace houses, bungalows, bungalow lots and shop offices were pre-sold.

Wangsa Walk in Kuala Lumpur, a joint venture retail mall development with a net lettable area of 25,000 sq. m, completed in September with 77% of its space leased.

Prospects

Sales of residential properties in Singapore are expected to continue at a reasonable level while economic conditions continue to improve, subject to the introduction of government measures to reduce activity in the sector. The Group's results for 2010 will benefit from the completions of Waterfall Gardens and D'Pavilion in Singapore. 

Y K Pang

Chairman

25th February 2010

MCL Land Limited
Consolidated Profit and Loss Account for the financial year ended 31st December
						2009		2008		Change
			Note			US$'000		US$'000		%
Revenue			2			452,688		343,056		32
Cost of sales						(267,867)		(262,134)		2
Gross profit						184,821		80,922		128
Other income/(expenses)			3			12,025		(174,173)		n/m
Marketing expenses						(1,217)		(1,876)		- 35
Administrative expenses						(7,414)		(2,949)		151
Share of joint ventures' results (net of tax)						(4,128)		4,128		n/m
Profit/(Loss) before tax			2			184,087		(93,948)		n/m
Tax			4			(30,436)		(13,340)		128
Profit/(Loss) after tax attributable to shareholders
		of the Company				153,651		(107,288)		n/m
						US¢		US¢		%
Earnings/(Loss) per share ("EPS") attributable to
		shareholders
		- basic and diluted*	6			41.53		(29.00)		n/m
n/m = not meaningful
*	Diluted EPS is the same as basic EPS, as there were no oustanding dilutive potential ordinary shares.

MCL Land Limited
Consolidated Statements of Comprehensive Income and Changes in Equity
for the financial year ended 31st December
Consolidated Statement of Comprehensive Income for the financial year ended 31st December
			2009		2008
			US$'000		US$'000
Profit/(Loss) after tax			153,651		(107,288)
Other comprehensive income:
	Translation difference		11,121		4,155
Total comprehensive income/(loss) attributable to shareholders
	of the Company		164,772		(103,133)
Consolidated Statement of Changes in Equity for the financial year ended 31st December
		Attributable to shareholders
		Share	Translation	Retained	Total
		Capital	Reserve	earnings	equity
		US$'000	US$'000	US$'000	US$'000
2009
Balance at 1st January		276,657	109,383	7,909	393,949
Total comprehensive income for the financial year		-	11,121	153,651	164,772
Dividend (Note 5)		-	-	(25,493)	(25,493)
Balance at 31st December		276,657	120,504	136,067	533,228
2008
Balance at 1st January		276,657	105,228	142,288	524,173
Total comprehensive income/(loss) for the financial year		-	4,155	(107,288)	(103,133)
Dividend (Note 5)		-	-	(27,091)	(27,091)
Balance at 31st December		276,657	109,383	7,909	393,949
The number of issued ordinary shares as at 31st December 2009 was 369,985,977 (2008: 369,985,977). The Company did not hold any treasury shares as at 31st December 2009 and 2008.

MCL Land Limited
Consolidated Balance Sheet
							At		At
							31.12.2009		31.12.2008
					Note		US$'000		US$'000
Non-current assets 1
Plant and equipment							346		212
Investment properties							15,382		15,985
Investments in joint ventures							30,317		34,739
Deferred tax assets							690		874
							46,735		51,810
Current assets 2
Development properties for sale							543,409		683,534
Amounts owing by joint ventures							72,466		62,018
Debtors and prepayments							67,534		80,797
Bank balances							192,464		131,800
							875,873		958,149
Total assets							922,608		1,009,959
Non-current liabilities 3
Borrowings					8		90,194		298,242
Deferred tax liabilities							270		459
Creditors							7,254		7,137
							97,718		305,838
Current liabilities 4
Borrowings					8		9,550		14,871
Amounts owing to joint venture							482		459
Creditors							249,038		277,437
Current tax liabilities							32,592		17,405
							291,662		310,172
Total liabilities							389,380		616,010
Net assets							533,228		393,949
Equity:
Share capital and reserves
Share capital							276,657		276,657
Translation reserve							120,504		109,383
Retained earnings							136,067		7,909
Shareholders' funds							533,228		393,949
Net asset value per share							US$1.44		US$1.06
Explanatory notes on material variances:
1	The decrease in non-current assets at 31.12.2009 as compared to 31.12.2008 is mainly due to the loss incurred from the Group's joint ventures.
2	The decrease in current assets is mainly due to recognition of the cost of development properties for sale in the profit and loss account upon the projects' completion during the current financial year. This is partially offset by higher bank balances from progress billings collected from the Group's development properties.
3	The lower non-current liabilities at 31.12.2009 as compared to 31.12.2008 is mainly due to repayment of long-term bank loans during the financial year from progress billings collected from the Group's development properties.
4	The lower current liabilities at 31.12.2009 as compared to 31.12.2008 is mainly due to repayment of short-term bank loans during the financial year from progress billings collected and payment to creditors during the current financial year. This is partially offset by higher provision of income tax for the Group's taxable profit.

MCL Land Limited
Company Balance Sheet
							At		At
							31.12.2009		31.12.2008
							US$'000		US$'000
Non-current assets
Plant and equipment							325		182
Interests in subsidiaries							57,561		58,909
Investments in joint ventures							28,482		27,773
							86,368		86,864
Current assets
Amounts owing by subsidiaries							273,493		353,289
Amounts owing by joint ventures							72,466		62,018
Debtors and prepayments							318		280
Bank balances							135,281		70,916
							481,558		486,503
Total assets							567,926		573,367
Non-current liability
Borrowings							-		45,170
Current liabilities
Borrowings							-		9,034
Amounts owing to subsidiaries							126,061		35,564
Amounts owing to joint venture							482		459
Creditors							3,734		3,336
Current tax liabilities							721		2,284
							130,998		50,677
Total liabilities							130,998		95,847
Net assets							436,928		477,520
Equity:
Share capital and reserves
Share capital							276,657		276,657
Translation reserve							102,236		96,048
Retained earnings							58,035		104,815
Shareholders' funds							436,928		477,520
Net asset value per share							US$1.18		US$1.29

MCL Land Limited
Company Statements of Comprehensive Income and Changes in Equity
for the financial year ended 31st December
Company Statement of Comprehensive Income for the financial year ended 31st December
			2009		2008
			US$'000		US$'000
(Loss)/Profit after tax			(21,287)		46,952
Other comprehensive income:
	Translation difference		6,188		2,687
Total comprehensive (loss)/income attributable to shareholders
	of the Company		(15,099)		49,639
Company Statement of Changes in Equity for the financial year ended 31st December
		Attributable to shareholders
		Share	Translation	Retained	Total
		Capital	reserve	Earnings	Equity
		US$'000	US$'000	US$'000	US$'000
2009
Balance at 1st January		276,657	96,048	104,815	477,520
Total comprehensive income/(loss) for the financial year		-	6,188	(21,287)	(15,099)
Dividend (Note 5)		-	-	(25,493)	(25,493)
Balance at 31st December		276,657	102,236	58,035	436,928
2008
Balance at 1st January		276,657	93,361	84,954	454,972
Total comprehensive income for the financial year		-	2,687	46,952	49,639
Dividend (Note 5)		-	-	(27,091)	(27,091)
Balance at 31st December		276,657	96,048	104,815	477,520

MCL Land Limited
Consolidated Statement of Cash Flows for the financial year ended 31st December
					2009		2008
			Note		US$'000		US$'000
Profit/(Loss) before tax					184,087		(93,948)
Non-cash items
	Interest income				(7,746)		(1,361)
	Share of joint ventures' results				4,128		(4,128)
	Depreciation				128		165
	Write down of development properties for sale		3		-		180,245
	Fair value losses for investment properties				881		1,030
	Unrealised translation gains				(2)		(13)
	(Profit)/Loss on disposal of plant and equipment				(70)		2
					(2,681)		175,940
Operating profit before working capital changes					181,406		81,992
Changes in working capital
	Development properties for sale				155,972		(123,643)
	Amount owing by joint ventures				(871)		41,444
	Debtors and prepayments				15,454		95,956
	Creditors				(35,708)		(7,166)
					134,847		6,591
Cash flows generated from operations					316,253		88,583
	Interest received				959		1,419
	Income tax paid				(15,580)		(12,897)
					(14,621)		(11,478)
	Net cash flows generated from operating activities 5				301,632		77,105
Cash flows from investing activities
	Purchase of plant and equipment				(263)		(24)
	Net proceeds from sale of plant and equipment				71		1
	Net cash flows used in investing activities				(192)		(23)
Cash flows from financing activities
	Dividend paid		5		(25,493)		(27,091)
	Drawdown of loans				57,269		287,556
	Repayment of loans				(275,126)		(290,779)
	Net cash flows used in by financing activities 6				(243,350)		(30,314)
Net change in cash and cash equivalents					58,090		46,768
Cash and cash equivalents at the beginning of the financial year					131,800		78,419
Effect of exchange rate changes					2,574		6,613
Cash and cash equivalents at the end of the financial year					192,464		131,800
Explanatory notes on material variances:
	5	The net cash generated from operating activities for the financial year ended 31st December 2009 relates mainly to progress billings collected from the Group's development properties, partially offset by payment to creditors and development costs incurred for the Group's development properties.
	6	The net cash flows used in financing activities for the financial year ended 31st December 2009 relates to the dividend paid on 29th May 2009 and higher long-term loans repaid from the progress billings collected.

MCL Land Limited
Notes
1	Accounting policies and basis of preparation
	The financial statements contained in this announcement are prepared in accordance with the accounting policies and methods of computation set out in the 2008 audited accounts, which are based on International Financial Reporting Standards ("IFRS").  There have been no changes to the accounting policies set out in the 2008 audited accounts except for the adoption of new standards, amendments and interpretations to existing standards which are relevant to its operations as set out below:
	IFRS 8					Operating Segments
	IAS 1 (Revised 2007)					Presentation of Financial Statements
	IAS 23 (Revised 2007)					Borrowing Costs
	Amendments to IFRS 1 and					Cost of an investment in Subsidiary, Jointly Controlled Entity or
		IAS 27				Associate
	Amendment to IFRS 7					Improving Disclosures about Financial Instruments
	IFRIC 15					Agreements for Construction of Real Estate
	IFRIC 16					Hedges of a Net Investment in a Foreign Operation
	Improvements to IFRSs (2008)
	The adoption of the above standards, amendments and interpretations did not have a material impact on the results of the Group.
2	Revenue and Profit/(Loss)
								Group
	For the financial year ended 31st December							2009		2008		Change
								US$'000		US$'000
	Revenue:
	1st half							144,103		718		n/m
	2nd half							308,585		342,338		-     10
								452,688		343,056		32
	Profit/(Loss) after tax:
	1st half							38,082		8,198		365
	2nd half							115,569		(115,486)		n/m
								153,651		(107,288)		n/m
	Profit/(Loss) before tax is determined after including:
	Write down of development properties for sale (Note 3)							-		(180,245)		-   100
	Fair value losses for investment properties							(881)		(1,030)		-     14
	Net exchange gain							-		13		-   100
	Rental income							1,070		1,303		-     18
	Interest income							7,745		1,361		469
	Depreciation on plant and equipment							(128)		(165)		-     22
	Profit/(Loss) on disposal of plant and equipment							70		(2)		n/m
	n/m = not meaningful
3	Other income/(expenses)
	Included in the income/(expenses) for the financial year ended 31st December 2008 is a write down of the Group's development properties for sale amounting to US$180,245,000.

4	Tax
	The provision for income tax is based on the statutory tax rates prevailing in the respective countries in which the Group companies operate after taking into account expenses which are not tax deductible, income not subject to tax, Group tax relief and a tax credit of US$1.9 million in respect of prior years.
5	Dividend
	At the Annual General Meeting to be held on 29th April 2010, a first and final dividend of S¢12.50 per share (amounting to approximately US¢8.91 per share or US$33.0 million) in respect of 2009 will be proposed.  These financial statements do not reflect this dividend payable, which will be accounted for in shareholders' equity as an appropriation of retained earnings in the financial year ending 31st December 2010.
	The dividends paid in 2009 and 2008 were as follows:
				Group and Company
				2009		2008
				US$'000		US$'000
	One-tier dividend of S¢10.00 per share paid in 2009
		(2008: S¢10.00 per share)		25,493		27,091
6	Earnings/(Loss) per share*
				Group
	For the financial year ended 31st December			2009		2008
	Basic earnings/(loss) per share*
	Profit/(Loss) attributable to shareholders (US$'000)			153,651		(107,288)
	Weighted average number of ordinary shares in issue ('000)			369,986		369,986
	Basic earnings/(loss) per share (US¢)			41.53		(29.00)
	Underlying earnings/(loss) per share
	Underlying profit/(loss) attributable to shareholders (US$'000)			153,638		(106,433)
	Basic underlying earnings/(loss) per share (US¢)			41.53		(28.77)
	The reconciliation of the underlying profit/(loss) and profit/(loss) attributable to shareholders is as follows:
				Group
	For the financial year ended 31st December			2009		2008
				US$'000		US$'000
	Profit/(Loss) attributable to shareholders			153,651		(107,288)
	Non-trading items:
		Fair value losses for investment properties (net of deferred tax)		679		855
		Share of fair value gain for investment property of a joint venture
		(net of deferred tax)		(692)		-
	Underlying profit/(loss) attributable to shareholders			153,638		(106,433)
	*	Diluted EPS is the same as basic EPS, as there were no outstanding dilutive potential ordinary shares.

7	Segment information
	Management has determined the operating segments based on the reports reviewed by the chief operating decision-maker that are used to make strategic decisions. The Group's assets are predominantly located in Singapore.  The reportable segments derive their revenue primarily from sales of the Group's development properties in Singapore.  There were no significant inter-segment transactions for the financial year ended 31 December 2009.
	The segment information provided to the chief operating decision-maker for the reportable segments for the financial year ended 31st December 2009 is as follows:
				Development
				Properties		Others	Group
				US$'000		US$'000	US$'000
	For the financial year ended 31st December 2009
	Revenue			451,618		1,070	452,688
	Segment results			185,392		(4,500)	180,892
	Interest income from joint ventures						7,323
	Share of joint ventures' results						(4,128)
	Profit before tax						184,087
	Tax						(30,436)
	Profit after tax						153,651
	Segment assets			610,575		16,096	626,671
	Investment in joint ventures						30,317
	Amounts owing by joint ventures						72,466
	Bank balances						192,464
	Deferred tax assets						690
	Total assets						922,608
	Segment liabilities			352,049		3,987	356,036
	Amounts owing to joint venture						482
	Current and deferred tax liabilities						32,862
	Total liabilities						389,380
	The segment information for the financial year ended 31st December 2008 is as follows:
				Development
				properties		Others	Group
				US$'000		US$'000	US$'000
	For the financial year ended 31st December 2008
	Revenue			341,753		1,303	343,056
	Segment results			(93,967)		(4,671)	(98,638)
	Interest income from joint ventures						562
	Share of joint ventures' results						4,128
	Loss before tax						(93,948)
	Tax						(13,340)
	Loss after tax						(107,288)
	Segment assets			824,714		87,614	912,328
	Investment in joint ventures						34,739
	Amounts owing by joint ventures						62,018
	Bank balances						131,800
	Deferred tax assets						874
	Total assets						1,009,959
	Segment liabilities			539,900		57,787	597,687
	Amounts owing to joint venture						459
	Current and deferred tax liabilities						17,864
	Total liabilities						616,010

8	Group borrowings
					Group
					At					At
					31.12.2009					31.12.2008
					US$'000					US$'000
	Borrowings due within one year
		- unsecured			-					9,034
		- secured			9,550					5,837
					9,550					14,871
	Borrowings due after one year
		- unsecured			-					45,170
		- secured			90,194					253,072
					90,194					298,242
					99,744					313,113

Certain subsidiaries of the Company have mortgaged their development properties as security for bank loans.The net book value of properties mortgaged as at 31st December 2009 was US$289.9 million (31st December 2008: US$296.6 million).

9	Interested person transactions
	Name of interested person		Aggregate value of all interested person transactions (excluding transactions less than S$100,000 and transactions conducted under the shareholders' mandate pursuant to Rule 920)						Aggregate value of interested person transactions conducted under shareholders' mandate pursuant to Rule 920 (excluding transactions less than S$100,000)
				US$'000						US$'000
	Three months ended
	31st December 2009
	Jardine Matheson Limited
	- Internal audit fee			-						28
	Hongkong Land Limited
	- Management consultancy fee			922						-
	Sale of a condominium at Parvis to a
		director		2,283						-
	Twelve months ended
	31st December 2009
	Jardine Matheson Limited
	- Internal audit fee			-						136
	Cycle & Carriage Industries Pte Limited
	- Sale of vehicle			-						71
	- Purchase of vehicle			-						223
	Hongkong Land Limited
	- Management consultancy fee			922						-
	Sale of a condominium at Parvis to a
		director		2,283						-

10	Issue of shares
	There have been no changes in the issued share capital of the Company since 31st December 2008.
	There are no outstanding convertible instruments issued or treasury shares held by the Company as at 31st December 2009.
	The total number of issued share capital (excluding treasury shares) as at 31st December 2009 and 31st December 2008 was 369,985,977.
11	Closure of books
	NOTICE IS HEREBY GIVEN to the members of the Company that the Transfer Books and Register of Members of the Company will be closed on 13th May 2010 for preparation of dividend warrants.  Duly completed and stamped transfers received by the Company's share registrars, M&C Services Private Limited at 138 Robinson Road, #17-00, The Corporate Office, Singapore 068906 before 5.00 pm on 12th May 2010 (the "Books' Closure Date") will be registered to determine shareholders' entitlements to the final dividend.  Shareholders (being depositors) whose securities' accounts with The Central Depository (Pte) Limited are credited with shares as at the Books' Closure Date will be entitled to the payment of the first and final dividend which will be paid on 26th May 2010, subject to approval by shareholders at the Annual General Meeting of the Company to be held on 29th April 2010.
12	Others
	The results do not include any pre-acquisition profits and have not been affected by any item, transaction or event of a material and unusual nature.  No significant transaction or event has occurred between 31st December 2009 and the date of this report.
13	Notification pursuant to Rule 704(11) of the listing manual
	Pursuant to Rule 704(11) of the SGX-ST Listing manual, MCL Land Limited wishes to announce that no person occupying a managerial position in the Company or any of its principal subsidiaries is a relative of a director or the chief executive officer or a substantial shareholder of the Company.
	- end -
For further information, please contact:
MCL Land Limited
Steve Chu
Full text of the Financial Statements and Dividend Announcement for the financial year ended 31st December 2009 can be accessed through the internet at www.mclland.com.sg.

 

END

 

 

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