Sustainable engineering solutions provider Koh Brothers Eco reported earnings of $1.2 million in 1HFY21 ended June, a reversal from the losses of $13.6 million posted a year ago.
On a fully diluted basis, this translates to earnings pare share of 0.06 cents, compared to losses per share of 0.7 cents in 1HFY20.
With this, net asset value per ordinary share came in at 5.05 cents on June 30, compared to 5.19 cents on Dec 31.
Revenue for the first six months of the year was up 39% to $78.7 million, due to an increase in revenue from its engineering and construction division.
Cost of sales consequently increased by 18% to $104.0 million, in line with the higher revenue.
Gross profit for 1HFY21 came in at $5.5 million, reversing from the gross loss of $9.5 million logged the year before thanks to the gradual resumption of construction activities.
Other income shrank by 71% to $19,000 following a considerable drop in interest income. Other gains were down by 27% to $722,000, due to a decrease in net foreign exchange gains arising from trade receivables and bank balances under the bio-Refinery and renewable energy division.
In this time, selling and distribution expenses were up 68% to $114,000 due to an increase in allowance made for impairment of trade receivables for certain outstanding receivables for the bio-refinery and renewable energy division.
Administrative expenses were down 3% to $3.3 million while finance expenses dropped by 33% to $767,000 on the back of lower bank borrowings and interest rates.
As at June 30, Koh Brothers Eco’s cash and cash equivalents stood at $61.1 million, down from $69.9 million in the year before. Its net gearing ratio was 0.07x.
The group’s order book stood $582.3 million in end June.
CEO Paul Shin says the group will “continue to scrutinise and manage our operating costs closely, and focus on raising productivity, as we position ourselves to tap on opportunities in the public sector.”
Challenges come in the form of disruptions in construction works and lower business activity of its bio-refinery and renewables energy counterparts due to the Covid-19 restrictions.
Shares in Koh Brothers Eco closed up 0.3 cents or 5.45% at 5.2 cents on Aug 5.
Cover image: Koh Brothers Eco
