Tradewinds net profit jumps fourfold

KUALA LUMPUR: Tradewinds Corp Bhd net profit for the third quarter ended Sept 30 (3QFY12) surged 321.5% to RM9.99 million from RM2.37 million previously, despite a lower revenue due to a RM7.1 million fair value gain on its investments.

Revenue for the period declined 4.2% to RM123.7 million from RM129.1 million in the previous corresponding quarter after lower revenue contributions from three of its business divisions.

“The decrease in revenue was mainly due to lower revenue from hotel, properties and manufacturing and trading divisions. However, this has been offset by better results from financial services division compared with the corresponding quarter last year,” Tradewinds said in a filing with Bursa Malaysia yesterday.

The group recorded a net loss for the nine-month period ended Sept 30 of RM190.8 million compared to a net profit of RM21.2 million a year ago due to several write-offs and provisions made during the period.

“The loss before tax was mainly due to the writing off of hotel property of RM147.8 million, investment property of RM39.5 million, impairment loss of RM5.7 million on plant and equipment and the recognition of provision for closure expenses of approximately RM67 million in the previous quarter in respect of the development of Tradewinds Centre,” it said.

“Excluding the impact on the development of Tradewinds Centre, the group recorded higher profit before tax of RM52.1 million compared with RM37.1 million recorded in the corresponding period last year,” said Tradewinds.

Revenue for the period also dropped 2.15% to RM376.6 million from RM384.8 million last year.

Loss per share was 17.25 sen compared with 1.92 sen previously while net assets per share stood at RM1.73.

Looking ahead, the group is anticipating a poorer financial performance than 2011 but expects the renovation and development of Tradewinds Centre to be beneficial in the medium term.

“The development of Tradewinds Centre and renovation of the hotels — which will be completed in stages — are expected to benefit the group in the medium to long term,” it said.