SINGAPORE (Aug 11): KSH Holdings, the construction, property development and property management group, announced 1Q18 earnings dropped 40.8% to $6.05 million from $10.2 million in 1Q17.
Revenue for the first quarter ended June stood at $28.5 million, a 53.6% decrease from the same period last year. This was mainly due to lower contributions from the Construction segment, as a result of delays in handing over of sites for two new projects. The group says that it has since taken over the sites and commenced work for these projects.
The construction segment posted 1Q18 revenue of $26.9 million, a 55.2% decline from $60.0 million in 1Q17.
Despite this, gross construction margins for this quarter improved to 35.2% following a 65.6% decrease in construction cost to $17.4 million in 1Q18 from $50.6 million in 1Q17, mainly due to the decrease in construction works carried out and cost savings achieved on completed construction projects.
The group’s finance costs decreased by 69.8% to S$0.4 million in 1Q18 from $1.2 million in FY17, mainly attributed to the decrease in borrowings.
Choo Chee Onn, Executive Chairman and Managing Director of KSH Holdings, says, “Cognisant of the recent aggressive bids for land in Singapore, rigorous due diligence is conducted to ensure that these land acquisitions are yield-accretive. We are working alongside long-time partners, with whom we have executed successful projects that have resonated well with buyers through prudent project selection and careful product differentiation and positioning.”
Shares in KSH Holdings closed 2 cents lower at 73 cents on Friday.
