LHN Group 41O has reported earnings of $38.2 million for its FY2023 ended Sept 30, down 16.6% compared to its earnings of $45.8 million in FY2022.
Including discontinued operations, earnings per share for FY2023 came to 9.34 cents, down from 11.21 cents last year.
Following the disposal of LHN Logistics on Aug 28, LHN recorded earnings from discontinued operations of $19.7 million in FY2023.
However, LHN posted a 10.9% increase in revenue to $93.6 million for the full-year period, up from $84.5 million in FY2022.
The company’s cost of sales increased slightly by 3.4% to $35.7 million in FY2023 from $34.5 million in the previous year.
The earnings drop in FY2023 was attributed to fair value losses associated with its investment properties and its joint venture (JV) investment properties of $8.7 million, compared to the fair value gains of $24.8 million recorded in FY2022.
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Despite the lower earnings, LHN notes that net cash generated from operating activities increased to approximately $54.2 million for FY2023 compared to $41.2 million for FY2022 as a result of better working capital management.
For the full-year period ended Sept 30, the company’s gross profit also increased to $58.0 million, up from $50.0 million last year.
Accordingly, LHN’s cash and cash equivalents increased by some $22.0 million to $62.6 million as at Sept 30.
The company has announced a special and final dividend of 1.0 cent each per share for FY2023. Including LHN’s interim dividend of 1.0 cent, the total dividend per share for FY2023 amounts to 3.0 cents, a 71.4% increase over its total dividend of 1.75 cents per share last year.
Looking ahead, the company’s primary focus in FY2024 for its space optimisation business will be to identify and capitalise on new opportunities within the sector, particularly in the Coliwoo co-living business sector, which is expected to experience significant growth.
LHN says it will also continue to expand its property development, facilities management and energy businesses.
Kelvin Lim, executive chairman and managing director of LHN, says: “Our robust occupancy rates in the Coliwoo projects and successful divestments, like LHN Logistics, underscore our ability to adapt and thrive amidst challenging conditions.”
“As we transit to the Mainboard of the SGX-ST, we remain committed to driving growth in our key segments, particularly in co-living and renewable energy, while maintaining our focus on sustainability and corporate governance,” he adds.
Shares in LHN closed 1 cent or 3.03% up at 34 cents on Nov 24.
