SINGAPORE (July 31): Koh Brothers Eco Engineering announced that its 2Q18 earnings have increased by 137% to $1.93 million from $0.82 million in 2Q17 on recognition of divestment gains.
This brings 1H18 earnings to $2.30 million, 4% higher than $2.21 million recorded in 1H17.
Revenue for the quarter saw a 33% increase to $66.2 million from $49.8 million in the previous year, primarily contributed by the group’s Engineering and Construction division.
As cost of sales increased by 36% y-o-y to $62.8 million, 2Q18 gross profit came in at $3.35 million, 3% lower than $3.44 million last year.
Other income decreased by 92% to $50,000 from $635,000 a year ago, mainly due to the forfeiture of deposit received from a customer.
During the quarter, the group recorded other gains of $1.79 million, compared to other losses of $0.49 million in 2Q17, mainly attributable to gain on disposal of property, plant and equipment, together with foreign exchange gain and fair value gain on long term financial assets and financial liabilities.
As at June 30, the group’s cash and bank balances stood at $17.5 million.
The group’s order book for the period came up to $872.2 million.
Paul Shin, CEO of Koh Brothers Eco says, “With prospects in the construction sector expected to pick up over the near to medium term, we will continue to leverage on our synergistic competencies to pursue opportunities in the sector.”
However, it is crucial that the group’s financial position remains strong to provide us with greater financial flexibility to secure opportunities to strengthen our order book further and sustain growth for the long term. Therefore, we hope that shareholders will lend their support for our growth plans via our recently proposed renounceable non-underwritten rights cum warrants issue,” adds Shin
The group on June 29 proposed a renounceable non-underwritten rights cum warrants issue where shareholders can subscribe for one rights share at 4.5 cents each, for every two existing shares held.
Subsequently, with every one rights share subscribed, shareholders are entitled to a free warrant which carries the right to subscribe for one new ordinary share in the share capital of Koh Brothers Eco at an exercise price of 5 cents for each new share.
Shares in Koh Brothers Eco closed at 6.4 cents on Tuesday.
