Rowsley

Rowsley swung to 3QFY15 net loss of $4.2m, while revenue slumped 16% to $17.6m amid broad weakness in the Singapore weakness.

Contributions from architectural services and civil and structural engineering services fell, while project management services contributed nil income.

There were other losses of $0.6m, contrasting other income of $55.8m last year, with this difference largely attributable to fair value changes, where $52.1m was relating to a re-measurement of the purchase consideration payable to RSP vendors last year, relative to a $3.8m adjustment loss recorded in the quarter.
Bottom line was also impacted by $1.7m of MTN interest costs.

In Singapore, ongoing property cooling measures will continue to weigh on RSP’s prospects in the near term. In August, Rowsley acquired an effective 34.7% stake in RSP Design Consultants in India, giving Rowsley a foothold in the emerging economy.

The group has also been seeking out new business opportunities:
1) In Aug, it has entered into a 75% owned JV with Gary Neville, Ryan Giggs and Beijing Construction and Engineering Group to develop a mixed-used development called St Michael’s in Manchester. Rowsley’s investment is £40m

2) Simultaneously, the group agreed to acquire a 75% stake in a hotel, a restaurant, and its brand management company for £29.1m. The hotel is next to Old Trafford Stadium.

3) In Sep, Rowsley announced plans to reposition the Vantage Bay project in Iskandar into a healthcare city from a residential township. The GDV is expected to be RM5b, consisting hospitals, care facilities and an urban wellness resort.
Rowsley is currently trading at 1.9x P/B