SINGAPORE (THE BUSINESS TIMES) – Real estate agency PropNex reported on Wednesday (Nov 10) a 113.2 per cent improvement in its bottom line for its fiscal third quarter together with a doubling of its revenue.

Net profit surged 113.2 per cent to $14.4 million for the three months ended Sept 30, from $6.8 million in the year-ago period.

Earnings per share was 3.89 cents, up from 1.83 cents in the year-ago period.

Revenue surged 98.8 per cent to $234.4 million from $117.9 million previously, mainly driven by higher commission income from agency services of $67.5 million and from project marketing services of $48.9 million.

This was due to a higher number of transactions completed in Q3 2021 following improvements in both the Covid-19 situation and the economy, PropNex said.

Other income increased 7.4 per cent or $376,000 for the first 9 months of the financial year to $5.5 million, from $5.1 million in the corresponding period a year ago. This was mainly due to an increase in referral fee income of about $1 million, other general income of approximately $400,000, corporately gift income of some $200,000 partially offset by a decrease in government grants amounting to $700,000 and rental rebate of about $400,000.

Staff costs for the first nine months increased by $1.9 million or 18.8 per cent, to $12.1 million from $10.2 million in the year-ago period.

Other expenses increased by $2.1 million or 40 per cent, in the first 9 months, to $7.4 million from $5.3 million previously. This was mainly due to the increase in referral fee expenses, recruitment expenses, impairment loss on trade and other receivables, legal and professional fees, corporate gift expenses, and advertising and marketing expenses.

Ismail Gafoor, co-founder, executive chairman and chief executive of PropNex said the company delivered a commendable revenue and profit this quarter, demonstrating broad-based strength and the resilience of its business model.

“Besides our key drivers of growth in agency services and project marketing services, we are also heartened to see heightened activity in the en bloc space, and have made significant progress in securing viable projects in this regard. Keen interest is expected for the Lakeside Condominium at the reserve price of $640 million with tender closing on Dec 22, 2021,” noted Gafoor.

For the nine months to September, PropNex reported a 111.9 per cent increase in net profit at $45.8 million, from $21.6 million during the same period last year.

Revenue grew 99.6 per cent year on year to $715.5 million.

“To stay ahead of the curve, we continue to invest significant resources in talent development, innovation and technology. Our financial strength allows us to make timely investments to transform the businesses that we operate, enables us to deliver better experiences for customers, to win market share and to reinforce our leadership position over the long term,” added Mr Gafoor.

Shares of PropNex closed down one cent or 0.5 per cent to $1.90 on Tuesday.