KSH’s share of profit from associated companies also posted lower, mainly due to the decreases in share of profit from Sequoia Mansion, preliminary costs on its China Gaobeidian project (pictured), impairment losses on unsold properties and decrease in sales and percentage-of-unsold properties. (Artist’s Impression: KSH Holdings Limited)
KSH Holdings Limited saw its net profit for the financial year ended 31 March 2017 decline by 33.4 percent to S$41 million from S$61.5 million during the previous year.
This comes as revenue fell 18.8 percent to S$199.3 million, primarily due to a 19.1 percent drop in contribution from the construction segment.
KSH also posted lower share of results of associated companies at S$8.5 million, mainly due to the S$12.2 million decrease in share of profit from Sequoia Mansion, the S$3.9 million preliminary costs incurred on the Gaobeidian project in China, S$3.6 million provision for impairment loss on unsold properties by associated companies, as well as the decrease in sales and percentage-of-completion recognition on development projects in Singapore.
However, share of results of joint ventures climbed to S$5.7 million on the back of profit recognised from High Park Residences project.
With this, the company proposed “final and special cash dividends of 1.5 Singapore cents and 0.5 Singapore cent per share, respectively, bringing the total dividends declared in FY2017 to 3.25 cents per share”.
KSH also proposed to issue one bonus share for every four existing shares, with the “bonus subject to approval from Singapore Exchange Securities Trading Limited”.
“Our order book remains healthy at S$340 million, as at March 31, 2017,” said KSH Holdings executive chairman and managing director Choo Chee Onn.
“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.”
This article was edited by Denise Djong.
