GGRAsia – Rich Goldman expects FY net profit to have doubled

Rich Goldman expects FY net profit to have doubled

Aug 06, 2018 Newsdesk Latest News, Macau, Top of the deck

Casino gambling junket investor Rich Goldman Holdings Ltd has announced it expects net profit for its financial year ended June 30 to have been at least double the HKD$39.9 million (US$5.08 million) it recorded the year before.

The listed firm, formerly known as Neptune Group Ltd, was at one time judged by analysts as one of the biggest Macau VIP investors judged by turnover of its associates’ high-roller rooms.

The company told the Hong Kong Stock Exchange on Thursday that its latest business forecast was based on a preliminary assessment of its unaudited consolidated management accounts.

Rich Goldman attributed the expected increase mainly to an increase in hotel revenue of about HKD236,000.

It said this was due primarily to: the completion of the purchase of Harbour Bay Hotels Ltd; an undisclosed increase in revenue from money lending due mainly to expansion; a share of loss of associated company Ever Praise Enterprises Ltd turning into a share of profit; and the absence of an impairment loss of about HKD397.3 million on intangible assets to do with gaming and entertaining.

The company also noted that in the anticipated reporting period there was also an absence of a one-off loss of about HKD62.9 million on disposal of an associated company that had dragged results in the prior year; and a decrease in amortisation of intangible assets to do with gaming and entertaining due to the cessation of the profit stream from two gaming business lines.

The company said it expected those positive effects to have been offset in part by a decrease in revenue contributed by gaming and entertaining due to the cessation; the absence of a fair value gain on investment properties of about HKD10.4 million and a one-off gain of about HKD4.3 million on the bargain purchase relating to Ever Praise; and an decrease in reversal of impairment of trade receivables to do with gaming and entertaining.

Rich Goldman reported in February a net profit of HKD7.26 million for its financial first half, 72 percent down from a year earlier, on revenue that shrank by 52.7 percent to HKD64.24 million.

Rich Goldman officially changed its name from Neptune Group last September.