SINGAPORE (May 26): KSH Holdings saw earnings fall 33.4% to $41.0 million for the full year ended March, from $61.5 million a year ago.
This was mainly due to significantly lower share of results of associates, which decreased by 82.5% to $8.5 million in FY2017.
The decline was mainly due to the decrease in contribution from the development property project - Liang Jing Ming Ju Phase 4 - Sequoia Mansion in Beijing; preliminary costs incurred on a development project in Gaobeidian; provision for impairment loss on unsold properties in Singapore by associates; and the decrease in sales and percentage of completion recognised on development property projects in Singapore.
Group revenue fell 18.8% to $199.3 million, from $245.5 million a year ago.
The decrease was mainly due to lower revenue from its construction business, which fell 19.1% to $193.6 million in FY2017.
Revenue from rental income from investment properties also fell by 9.6% to S$5.7 million.
Due to an overall decline in expenses, KSH’s profits from operations increased 78.7% to $32.7 million in FY2017, compared to $18.3 million last year.
Cash and cash equivalents stood at $115.8 million as at March 31, 2017.
The group has proposed final and special cash dividends of 1.5 cents and 0.5 cent per share, respectively.
This brings the total dividends declared in FY2017 to 3.25 cents per share.
KSH has also proposed to issue one bonus share for every 4 existing shares, subject to regulatory approvals.
“Although the operating environment remains challenging, we believe our requisite credentials and track record in public construction projects, and close relationships with strategic customers in the private space will allow us to remain resilient,” says KSH executive chairman and managing director, Choo Chee Onn.
Shares of KSH closed 1 cent higher at 88 cents on Friday.
