Last checked at 31 Jul 2008 10:20
| To: Business Editor | 31st July 2008 |
| For immediate release |
MCL Land Limited
First Half 2008 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 | |
| Y K Pang | (852) 2842 8428 |
| G M Brown | (852) 2842 8138 |
| (852) 9612 3496 | |
| GolinHarris | |
| Sue So | (852) 2501 7984 |
| 31st July 2008 | |||||||||||||||||||
| MCL LAND LIMITED | |||||||||||||||||||
| FIRST HALF 2008 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT | |||||||||||||||||||
| Highlights | |||||||||||||||||||
| Profit recognised on completion of The Grange in the first quarter Acquisitions of sites at Nim Park and Yishun Avenue 1 completed in the first half, and Casa Nassau in July 2008 | |||||||||||||||||||
| "The current uncertain economic conditions have led to a slowdown in the residential property market in Singapore. Medium to longer-term prospects however, remain positive. The completions of Mera Springs and The Esta in Singapore in the second half of the year should benefit MCL Land's overall performance in 2008." | |||||||||||||||||||
| Y K Pang, Chairman | |||||||||||||||||||
| 31st July 2008 | |||||||||||||||||||
| Group Results | |||||||||||||||||||
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| Six months ended 30th June | |||||||||||||||
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| 2008 | 2007 | Change | 2008 | Change | |||||||||||
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| US$m | US$m | % | S$m | % | |||||||||||
| Revenue | 0.7 | 133.9 | - 99 | 1.0 | - 100 | ||||||||||||||
| Profit before tax | 8.2 | 2.9 | 180 | 11.3 | 151 | ||||||||||||||
| Underlying profit attributable to shareholders * | 8.2 | 2.4 | 242 | 11.3 | 205 | ||||||||||||||
| Profit attributable to shareholders | 8.2 | 3.2 | 157 | 11.3 | 131 | ||||||||||||||
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| US¢ | US¢ |
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| Underlying earnings per share | 2.22 | 0.65 | 242 | 3.04 | 207 | ||||||||||||||
| Earnings per share |
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| 2.22 | 0.86 | 158 | 3.04 | 130 | ||||||||||||
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| At 30.6.2008 | At 31.12.2007 | Change | At 30.6.2008 | Change | ||||||||||||||
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| US$m | US$m | % | S$m | % | ||||||||||||||
| Shareholders' funds | 536.0 | 524.2 | 2 | 730.1 | -4 | ||||||||||||||
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| US$ | US$ | S$ |
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| Net asset value per share |
| 1.45 | 1.42 | 2 | 1.97 | -4 | |||||||||||||
| The exchange rate of US$1=S$1.36 (31.12.2007: US$1=S$1.44) was used for translating assets and liabilities at the balance sheet date and average monthly transaction rates of US$1=S$1.38 (2007: US$1=S$1.53) was used for translating the results for the financial period. | |||||||||||||||||||
| The financial results for the six months ended 30th June 2008 and 30th June 2007 have been prepared based on the International Financial Reporting Standards ("IFRS"). These financial results have not been audited or reviewed by the Auditors. | |||||||||||||||||||
| * The basis for calculating underlying profit and earnings is set out in Note 4 of this report. | |||||||||||||||||||
| CHAIRMAN'S STATEMENT | ||
| Overview | ||
| Inflationary pressures and difficulties in the international finance sector are affecting sentiment in the residential property market in Singapore. Sales activity has fallen as property launches are deferred and buyers remain cautious. Some 1,525 new residential units were sold in the second quarter of 2008, double the number sold in the first quarter, but the total of 2,287 units sold in the first half of 2008 is well down from the 9,912 units sold in the same period last year. Prices of residential properties rose marginally by 0.2% in the second quarter, bringing to 3.9% the growth for the first six months of 2008 compared with an increase of 13.5% in the first half of 2007. | ||
| Group Performance | ||
| The Group recorded revenue of US$0.7 million in the first half of 2008, being primarily rental income from investment properties. This compares with revenue of US$133.9 million for the same period in 2007 mainly in relation to the completion of The Metz. The Group's underlying profit for first half of 2008 was US$8.2 million, which is mainly attributable to the completion in March of The Grange, the Group's joint venture project in Singapore, a write-back of provision of US$2.7 million and the sales of the remaining twelve shops at the Kuala Lumpur Suburban Centre ("KLSC"), the Group's joint venture project in Malaysia. The underlying profit for the first half of 2007 was US$2.4 million, which included a gain of US$3.7 million arising from the completion of KLSC and the write-back of provision of US$0.8 million. | ||
| The Group's profit attributable to shareholders for the first half of 2008 was also US$8.2 million, compared with US$3.2 million in the first half of 2007, which included a US$0.8 million fair value gain of an investment property. | ||
| Shareholders' funds were US$536 million at the end of June 2008, 2% higher than the US$524 million at 31st December 2007 following the payment of a one-tier first and final dividend. The Group's net debt at 30th June was US$343 million, having increased from US$244 million at the prior year end after the payment of US$154.7 million for the purchase of Yishun Avenue 1 partially offset by the receipt of progress billings of US$52.8 million from development projects. Net gearing was 64% at 30th June 2008, compared with 47% at the end of 2007. | ||
| Dividend | ||
| The Board is not recommending the payment of an interim dividend for the first half of 2008 (2007: nil). | ||
| Properties | ||
| Construction work on the Group's development projects is progressing well. The Grange obtained its Temporary Occupation Permit in March 2008. Mera Springs and The Esta are expected to complete in the third and fourth quarters of 2008 respectively. | ||
| No new development projects were launched in Singapore during the period under review. All projects previously launched are fully pre-sold, with the exception of two units at Hillcrest Villa. | ||
| The Group's joint ventures in Malaysia made good progress in the sales of their developments. The 300 shop units at Kuala Lumpur Suburban Centre are now fully sold. The launch of the 391-unit condominium development, Riana Green Phase 1, received a good response with over 74% of the units sold. Progress continued with the sales at the joint venture development in Seremban with 116 of the 270 terrace houses, bungalows, bungalow lots and shop offices sold by the end of June 2008. | ||
| Construction of Wangsa Walk, a retail mall development by the Group's joint venture company, MSL, is progressing well. The development has an estimated net lettable area of 275,000 sq. ft and will be held for investment by the joint venture upon its completion in the first half of 2009. | ||
| Acquisitions | ||
| The Group's acquisitions of Nim Park at Nim Road for US$54.8 million and the 99-year leasehold land parcel in Yishun Avenue 1 for US$154.7 million completed in January and June 2008 respectively. The Group's purchase of Casa Nassau at Upper East Coast Road for US$29.7 million was approved by the Strata Titles Board in April 2008 and completed in July 2008. | ||
| Prospects | ||
| The current uncertain economic conditions have led to a slowdown in the residential property market in Singapore. Medium to longer-term prospects however, remain positive. The completions of Mera Springs and The Esta in Singapore in the second half of the year should benefit MCL Land's overall performance in 2008. | ||
| Y K Pang | ||
| Chairman | ||
| 31st July 2008 | ||
| Statement pursuant to Rule 705(4) of the Listing Manual |
| The directors confirm that, to the best of their knowledge, nothing has come to the attention of the Board of Directors which may render the accompanying unaudited financial results for the six months ended 30th June 2008 to be false or misleading in any material respect. |
| On behalf of the Directors |
| Y K Pang |
| Chairman |
| Hassan Abas |
| Director |
| 31st July 2008 |
| MCL Land Limited | |||||||||||||||||||||||||||||||
| Consolidated Profit and Loss Account | |||||||||||||||||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||||||||||||||||
| 30.6.2008 | 30.6.2007 | Change | 30.6.2008 | 30.6.2007 | Change | ||||||||||||||||||||||||||
| Note | US$'000 | US$'000 | % | US$'000 | US$'000 | % | |||||||||||||||||||||||||
| Revenue | 353 | 133,471 |
| -100 | 718 | 133,864 | - 99 | ||||||||||||||||||||||||
| Cost of sales | - | (133,068) |
| -100 | - | (133,068) | - 100 | ||||||||||||||||||||||||
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| Gross profit | 353 | 403 |
| -12 | 718 | 796 | - 10 | ||||||||||||||||||||||||
| Other operating income | 3,108 | 515 | n/m | 3,618 | 2,820 | 28 | |||||||||||||||||||||||||
| Property related expenses | 13 | (205) | n/m | (164) | (437) | - 62 | |||||||||||||||||||||||||
| Administrative expenses | (1,116) | (987) | 13 | (1,631) | (1,407) | 16 | |||||||||||||||||||||||||
| Marketing expenses | (365) | (445) |
| -18 | (365) | (1,457) | - 75 | ||||||||||||||||||||||||
| Share of joint ventures' results | 1,131 | 2,987 | -62 | 6,072 | 2,632 | 131 | |||||||||||||||||||||||||
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| Profit before tax | 2 | 3,124 | 2,268 | 38 | 8,248 | 2,947 | 180 | ||||||||||||||||||||||||
| Tax | 3 | 60 | (65) | n/m | (50) | 242 | n/m | ||||||||||||||||||||||||
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| Profit after tax attributable to shareholders | 3,184 | 2,203 | 45 | 8,198 | 3,189 | 157 | |||||||||||||||||||||||||
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| Earnings per share ("EPS") | |||||||||||||||||||||||||||||||
| - basic and diluted* | 4 | 0.86 | 0.60 | 43 | 2.22 | 0.86 | 158 | ||||||||||||||||||||||||
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| n/m = not meaningful | |||||||||||||||||||||||||||||||
| * | Diluted EPS is the same as basic EPS, as there were no outstanding share options. | ||||||||||||||||||||||||||||||
| MCL Land Limited | ||||||||||
| Consolidated Balance Sheet | ||||||||||
| At | At | |||||||||
| 30.6.2008 | 31.12.2007 | |||||||||
| Note | US$'000 | US$'000 | ||||||||
| Non-current assets 1 | ||||||||||
| Plant and equipment | 294 | 354 | ||||||||
| Investment properties | 18,067 | 17,675 | ||||||||
| Investments in joint ventures | 38,742 | 30,743 | ||||||||
| Deferred tax assets | 406 | 319 | ||||||||
| 57,509 | 49,091 | |||||||||
| Current assets 2 | ||||||||||
| Development properties for sale | 1,092,484 | 761,363 | ||||||||
| Amounts owing by joint ventures | 67,391 | 100,763 | ||||||||
| Debtors and prepayments | 32,595 | 169,953 | ||||||||
| Bank balances | 65,118 | 78,419 | ||||||||
| 1,257,588 | 1,110,498 | |||||||||
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| Total assets | 1,315,097 | 1,159,589 | ||||||||
| Non-current liabilities 3 | ||||||||||
| Borrowings | 5 | 364,559 | 227,863 | |||||||
| Deferred tax liabilities | 794 | 958 | ||||||||
| Retention money payable | 8,835 | 6,337 | ||||||||
| 374,188 | 235,158 | |||||||||
| Current liabilities | ||||||||||
| Borrowings | 5 | 44,053 | 94,760 | |||||||
| Amounts owing to joint ventures | 485 | 139 | ||||||||
| Creditors | 350,979 | 290,385 | ||||||||
| Current tax liabilities | 9,362 | 14,974 | ||||||||
| 404,879 | 400,258 | |||||||||
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| Total liabilities | 779,067 | 635,416 | ||||||||
| Net assets | 536,030 | 524,173 | ||||||||
| Equity: | ||||||||||
| Share capital and reserves | ||||||||||
| Share capital | 276,657 | 276,657 | ||||||||
| Translation reserve | 135,978 | 105,228 | ||||||||
| Retained earnings | 123,395 | 142,288 | ||||||||
| Shareholders' funds | 536,030 | 524,173 | ||||||||
| Net asset value per share | US$1.45 | US$1.42 | ||||||||
| Explanatory notes on material variances: | ||||||||||
| 1 | The increase in non-current assets at 30.6.2008 as compared to 31.12.2007 is mainly due to the strengthening of S$ against US$ and profit contribution from the Group's joint ventures. | |||||||||
| 2 | The increase in current assets is mainly due to the new acquisitions of land at Yishun Avenue 1 and Nim Park, partially offset by repayment of advances from the Group's joint ventures and progress billings collected from the completed project, The Calrose. | |||||||||
| 3 | The higher non-current liabilities at 30.6.2008 as compared to 31.12.2007 arose mainly from long-term loans drawn down during the period to finance the land purchases. | |||||||||
| MCL Land Limited | |||||||||
| Consolidated Statement of Changes in Equity for the three months ended 30 June |
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| Attributable to shareholders | |||||||||
| Share | Translation | Retained | Total | ||||||
| capital | reserve | earnings | equity | ||||||
| US$'000 | US$'000 | US$'000 | US$'000 | ||||||
| 2008 | |||||||||
| Balance at 1 April | 276,657 | 129,364 | 147,302 | 553,323 | |||||
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| Net gain recognised directly in equity - translation difference | - | 6,614 | - | 6,614 | |||||
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| Profit for the financial period | - | - | 3,184 | 3,184 | |||||
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| Total recognised gain for the financial period | - | 6,614 | 3,184 | 9,798 | |||||
| Dividend | - | - | (27,091) | (27,091) | |||||
| Balance at 30 June | 276,657 | 135,978 | 123,395 | 536,030 | |||||
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| 2007 | |||||||||
| Balance at 1 April | 276,657 | 83,094 | 96,140 | 455,891 | |||||
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| Net loss recognised directly in equity - translation difference | - | (4,128) | - | (4,128) | |||||
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| Profit for the financial period | - | - | 2,203 | 2,203 | |||||
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| Total recognised gain/(loss) for the financial period | - | (4,128) | 2,203 | (1,925) | |||||
| Dividend | - | - | (14,757) | (14,757) | |||||
| Balance at 30 June | 276,657 | 78,966 | 83,586 | 439,209 | |||||
| MCL Land Limited | |||||
| Consolidated Statement of Changes in Equity for the six months ended 30 June |
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| Attributable to shareholders | |||||
| Share | Translation | Retained | Total | ||
| capital | reserve | earnings | equity | ||
| US$'000 | US$'000 | US$'000 | US$'000 | ||
| 2008 | |||||
| Balance at 1 January | 276,657 | 105,228 | 142,288 | 524,173 | |
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| Net gain recognised directly in equity - translation difference | - | 30,750 | - | 30,750 | |
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| Profit for the financial period | - | - | 8,198 | 8,198 | |
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| Total recognised gain for the financial period | - | 30,750 | 8,198 | 38,948 | |
| Dividend | - | - | (27,091) | (27,091) | |
| Balance at 30 June | 276,657 | 135,978 | 123,395 | 536,030 | |
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| 2007 | |||||
| Balance at 1 January | 276,657 | 77,370 | 95,154 | 449,181 | |
| Net gain recognised directly in equity - translation difference | - | 1,596 | - | 1,596 | |
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| Profit for the financial period | - | - | 3,189 | 3,189 | |
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| Total recognised gain for the financial period | - | 1,596 | 3,189 | 4,785 | |
| Dividend | - | - | (14,757) | (14,757) | |
| Balance at 30 June | 276,657 | 78,966 | 83,586 | 439,209 | |
| MCL Land Limited | |||||||||
| Company Balance Sheet | |||||||||
| At | At | ||||||||
| 30.6.2008 | 31.12.2007 | ||||||||
| US$'000 | US$'000 | ||||||||
| Non-current assets | |||||||||
| Plant and equipment | 254 | 304 | |||||||
| Interests in subsidiaries | 110,598 | 103,650 | |||||||
| Investments in joint ventures | 29,343 | 27,684 | |||||||
| 140,195 | 131,638 | ||||||||
| Current assets | |||||||||
| Amounts owing by subsidiaries | 496,734 | 460,975 | |||||||
| Amounts owing by joint ventures | 67,391 | 99,558 | |||||||
| Debtors and prepayments | 206 | 201 | |||||||
| Bank balances | 2,580 | 3,029 | |||||||
| 566,911 | 563,763 | ||||||||
| Total assets | 707,106 | 695,401 | |||||||
| Non-current liability | |||||||||
| Borrowings | 47,724 | 45,025 | |||||||
| Current liabilities | |||||||||
| Borrowings | 44,054 | 94,760 | |||||||
| Amounts owing to subsidiaries | 150,485 | 93,128 | |||||||
| Amounts owing to joint ventures | 484 | 139 | |||||||
| Creditors | 3,994 | 5,101 | |||||||
| Current tax liabilities | 2,413 | 2,276 | |||||||
| 201,430 | 195,404 | ||||||||
| Total liabilities | 249,154 | 240,429 | |||||||
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| Net assets | 457,952 | 454,972 | |||||||
| Equity: | |||||||||
| Share capital and reserves | |||||||||
| Share capital | 276,657 | 276,657 | |||||||
| Translation reserve | 120,545 | 93,361 | |||||||
| Retained earnings | 60,750 | 84,954 | |||||||
| Shareholders' funds | 457,952 | 454,972 | |||||||
| Net asset value per share | US$1.24 | US$1.23 | |||||||
| MCL Land Limited | |||||
| Company Statement of Changes in Equity for the three months ended 30 June |
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| Share | Translation | Retained | Total | ||
| capital | reserve | earnings | equity | ||
| US$'000 | US$'000 | US$'000 | US$'000 | ||
| 2008 | |||||
| Balance at 1 April | 276,657 | 114,402 | 84,610 | 475,669 | |
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| Net gain recognised directly in equity - translation difference | - | 6,143 | - | 6,143 | |
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| Profit for the financial period | - | - | 3,231 | 3,231 | |
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| Total recognised gain for the financial period | - | 6,143 | 3,231 | 9,374 | |
| Dividend | - | - | (27,091) | (27,091) | |
| Balance at 30 June | 276,657 | 120,545 | 60,750 | 457,952 | |
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| 2007 | |||||
| Balance at 1 April | 276,657 | 72,233 | 85,687 | 434,577 | |
| Net loss recognised directly in equity - translation difference | - | (4,218) | - | (4,218) | |
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| Loss for the financial period | - | - | (1,195) | (1,195) | |
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| Total recognised loss for the financial period | - | (4,218) | (1,195) | (5,413) | |
| Dividend | - | - | (14,757) | (14,757) | |
| Balance at 30 June | 276,657 | 68,015 | 69,735 | 414,407 | |
| MCL Land Limited | |||||
| Company Statement of Changes in Equity for the six months ended 30 June |
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| Share | Translation | Retained | Total | ||
| capital | reserve | earnings | equity | ||
| US$'000 | US$'000 | US$'000 | US$'000 | ||
| 2008 | |||||
| Balance at 1 January | 276,657 | 93,361 | 84,954 | 454,972 | |
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| Net gain recognised directly in equity - translation difference | - | 27,184 | - | 27,184 | |
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| Profit for the financial period | - | - | 2,887 | 2,887 | |
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| Total recognised gain for the financial period | - | 27,184 | 2,887 | 30,071 | |
| Dividend | - | - | (27,091) | (27,091) | |
| Balance at 30 June | 276,657 | 120,545 | 60,750 | 457,952 | |
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| 2007 | |||||
| Balance at 1 January | 276,657 | 67,077 | 84,744 | 428,478 | |
| Net gain recognised directly in equity - translation difference | - | 938 | - | 938 | |
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| Loss for the financial period | - | - | (252) | (252) | |
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| Total recognised gain/(loss) for the financial period | - | 938 | (252) | 686 | |
| Dividend | - | - | (14,757) | (14,757) | |
| Balance at 30 June | 276,657 | 68,015 | 69,735 | 414,407 | |
| MCL Land Limited | |||||||||||
| Consolidated Statement of Cash Flows | |||||||||||
| Three months ended | Six months ended | ||||||||||
| 30.6.2008 | 30.6.2007 | 30.6.2008 | 30.6.2007 | ||||||||
| US$'000 | US$'000 | US$'000 | US$'000 | ||||||||
| Profit before tax | 3,124 | 2,268 | 8,248 | 2,947 | |||||||
| Non-cash items |
| ||||||||||
| Interest income | (387) |
| (386) | (810) | (748) | ||||||
| Share of joint ventures' results | (1,131) |
| (2,987) | (6,072) | (2,632) | ||||||
| Depreciation | 43 |
| 78 | 86 | 155 | ||||||
| Fair value gain for an investment property | - |
| - | - | (1,100) | ||||||
| Unrealised translation (gain)/ loss | (10) |
| 1 | (9) | 2 | ||||||
| Profit on disposal of plant and equipment | - |
| - | - | (2) | ||||||
| (1,485) | (3,294) | (6,805) | (4,325) | ||||||||
| Operating profit/(loss) before working capital changes | 1,639 | (1,026) | 1,443 | (1,378) | |||||||
| Changes in working capital |
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| Development properties for sale | (191,864) |
| 96,201 | (277,828) | 39,667 | ||||||
| Amounts owing by joint ventures | 39,364 |
| (109) | 39,696 | (223) | ||||||
| Debtors and prepayments | 30,253 |
| (25,349) | 144,213 | (36,501) | ||||||
| Creditors | 26,732 |
| 8,077 | 44,880 | 66,265 | ||||||
| (95,515) | 78,820 | (49,039) | 69,208 | ||||||||
| Cash flows generated from/(used in) operations | (93,876) | 77,794 | (47,596) | 67,830 | |||||||
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| Interest paid | (2,327) |
| (2,798) | (4,433) | (6,533) | ||||||
| Interest received | 374 |
| 685 | 846 | 954 | ||||||
| Income tax paid | (6,759) |
| (1,243) | (6,799) | (2,000) | ||||||
| (8,712) | (3,356) | (10,386) | (7,579) | ||||||||
| Net cash flows generated from/(used in) operating activities 4 | (102,588) | 74,438 | (57,982) | 60,251 | |||||||
| Cash flows from investing activities |
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| Purchase of plant and equipment | - |
| (3) | (10) | (27) | ||||||
| Net proceeds from sale of plant and equipment | - |
| - | - | 2 | ||||||
| Net cash flows used in investing activities | - | (3) | (10) | (25) | |||||||
| Cash flows from financing activities |
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| |||||||||
| Drawdown of loans | 148,605 |
| 22,040 | 206,868 | 55,165 | ||||||
| Repayment of loans | (46,136) |
| (43,579) | (140,479) | (55,766) | ||||||
| Dividend paid | (27,091) | (14,757) | (27,091) | (14,757) | |||||||
| Net cash flows provided by/(used in) financing activities 5 | 75,378 | (36,296) | 39,298 | (15,358) | |||||||
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| Net change in cash and cash equivalents | (27,210) | 38,139 | (18,694) | 44,868 | |||||||
| Cash and cash equivalents at the beginning of the financial period | 91,280 | 56,105 | 78,419 | 48,801 | |||||||
| Effect of exchange rate changes | 1,048 | (655) | 5,393 | (80) | |||||||
| Cash and cash equivalents at the end of the financial period | 65,118 | 93,589 | 65,118 | 93,589 | |||||||
| Explanatory notes on material variances: | |||||||||||
| 4 | The net cash used in operating activities for the six months ended 30 June 2008 relates mainly to the new acquisitions of land at Yishun Avenue 1 and Nim Park, partially offset by progress billing collected and repayment of advances from joint ventures. | ||||||||||
| 5 | The net cash flows provided by financing activities for the six months ended 30 June 2008 relates to the higher long-term loans drawn down to finance the land purchase, partially offset by dividend paid on 27 May 2008. | ||||||||||
| MCL Land Limited | ||||||||||||||||||||||
| Notes | ||||||||||||||||||||||
| 1 | Accounting policies and basis of preparation | |||||||||||||||||||||
| The financial statements contained in this announcement are consistent with those set out in the 2007 audited accounts which have been prepared in conformity with International Financial Reporting Standards ("IFRS"), including International Accounting Standards ("IAS") and interpretations adopted by the International Accounting Standards Board. | ||||||||||||||||||||||
| There have been no changes to the accounting policies set out in the 2007 audited accounts except for the adoption of the following interpretations which are relevant to its operations: | ||||||||||||||||||||||
| IFRIC 11 | Group Treasury Share Transactions | |||||||||||||||||||||
| IFRIC 14 | The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction | |||||||||||||||||||||
| The adoption of the above interpretations did not have a material impact on the results of the Group. | ||||||||||||||||||||||
| 2 | Profit | |||||||||||||||||||||
| Group | ||||||||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||||||||
| 30.6.2008 | 30.6.2007 | Change | 30.6.2008 | 30.6.2007 | Change | |||||||||||||||||
| US$'000 | US$'000 | % | US$'000 | US$'000 | % | |||||||||||||||||
| Profit before tax is determined after including: | ||||||||||||||||||||||
| Fair value gain for an investment property | - | - | - | - | 1,100 | - 100 | ||||||||||||||||
| Net exchange gain/(loss) | (2) | 2 | n/m | 12 | 3 | 300 | ||||||||||||||||
| Rental income | 353 | 382 | - 8 | 718 | 753 | - 5 | ||||||||||||||||
| Interest income | 387 | 386 | - | 810 | 748 | 8 | ||||||||||||||||
| Depreciation on plant and equipment | (43) | (78) | - 45 | (86) | (155) | - 45 | ||||||||||||||||
| Profit on disposal of plant and equipment | - | - | - | - | 2 | - 100 | ||||||||||||||||
| n/m = not meaningful | ||||||||||||||||||||||
| 3 | Tax | |||||||||||||||||||||
| The provision for income tax is based on the statutory tax rates prevailing in the respective countries in which Group companies operate after taking into account expenses which are not tax deductible, income not subject to tax and Group tax relief. | ||||||||||||||||||||||
| 4 | Earnings per share * | |||||||||||||||||||||||||||||
| Group | ||||||||||||||||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||||||||||||||||
| 30.6.2008 | 30.6.2007 | 30.6.2008 | 30.6.2007 | |||||||||||||||||||||||||||
| Basic earnings per share* | ||||||||||||||||||||||||||||||
| Profit attributable to shareholders (US$'000) | 3,184 | 2,203 | 8,198 | 3,189 | ||||||||||||||||||||||||||
| Weighted average number of ordinary shares in issue ('000) | 369,986 | 369,986 | 369,986 | 369,986 | ||||||||||||||||||||||||||
| Basic earnings per share (US¢) | 0.86 | 0.60 | 2.22 | 0.86 | ||||||||||||||||||||||||||
| Underlying earnings per share | ||||||||||||||||||||||||||||||
| Underlying profit attributable to shareholders (US$'000) | 3,184 | 2,203 | 8,198 | 2,397 | ||||||||||||||||||||||||||
| Basic underlying earnings per share (US¢) | 0.86 | 0.60 | 2.22 | 0.65 | ||||||||||||||||||||||||||
| A reconciliation of the underlying profit and profit attributable to shareholders is as follows: | ||||||||||||||||||||||||||||||
| Group | ||||||||||||||||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||||||||||||||||
| 30.6.2008 | 30.6.2007 | 30.6.2008 | 30.6.2007 | |||||||||||||||||||||||||||
| US$'000 | US$'000 | US$'000 | US$'000 | |||||||||||||||||||||||||||
| Profit attributable to shareholders | 3,184 | 2,203 | 8,198 | 3,189 | ||||||||||||||||||||||||||
| Fair value gain of an investment property (net of tax) | - | - | - | (792) | ||||||||||||||||||||||||||
| Underlying profit attributable to shareholders | 3,184 | 2,203 | 8,198 | 2,397 | ||||||||||||||||||||||||||
| * Diluted EPS is the same as basic EPS, as there were no outstanding share options. | ||||||||||||||||||||||||||||||
| 5 | Group borrowings | |||||||||||||||||||||||||||||
| Group | ||||||||||||||||||||||||||||||
| At | At | |||||||||||||||||||||||||||||
| 30.6.2008 | 31.12.2007 | |||||||||||||||||||||||||||||
| US$'000 | US$'000 | |||||||||||||||||||||||||||||
| Borrowings due within one year | ||||||||||||||||||||||||||||||
| - unsecured | 44,053 | 94,760 | ||||||||||||||||||||||||||||
| Borrowings due after one year | ||||||||||||||||||||||||||||||
| - unsecured | 47,724 | 45,025 | ||||||||||||||||||||||||||||
| - secured | 316,835 | 182,838 | ||||||||||||||||||||||||||||
| 364,559 | 227,863 | |||||||||||||||||||||||||||||
| 408,612 | 322,623 | |||||||||||||||||||||||||||||
| Certain subsidiaries of the Company have mortgaged their development properties as security for bank loans. The net book value of properties mortgaged as at 30 June 2008 was US$543.9 million (31 December 2007: US$325.8 million). | ||||||||||||||||||||||||||||||
| 6 | Interested person transactions | ||||||||||
| 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$100,000) | ||||||||||
| Name of interested person | |||||||||||
| US$'000 | US$'000 | ||||||||||
| Three months ended 30 June 2008 | |||||||||||
| Hongkong Land Limited | |||||||||||
| - Management consultancy fee | 20 | - | |||||||||
| Six months ended 30 June 2008 | |||||||||||
| Hongkong Land Limited | |||||||||||
| - Management consultancy fee | 51 | - | |||||||||
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| 7 | Issue of shares | ||||||||||
| There have been no changes in the issued share capital of the Company since 31 December 2007. There are no outstanding convertibles issued or treasury shares held by the Company as at 30 June 2008. The total number of issued share capital (excluding treasury shares) as at 30 June 2008 and 31 December 2007 was 369,985,977. | |||||||||||
| 8 | 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 30 June 2008 and the date of this report. | |||||||||||
| - end - | |||||||||||
| For further information, please contact: | |||||||||||
| MCL Land Limited | |||||||||||
| Steve Chu | |||||||||||
| Full text of the Financial Statements and Dividend Announcement for the six months ended 30 June 2008 can be accessed through the internet at www.mclland.com.sg. | |||||||||||