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OKP net profit up 65% in Q1 despite fall in revenue

CONSTRUCTION firm OKP Holdings' net profit rose 65 per cent in the first quarter despite a fall in revenue, as cost of works slipped even more thanks to lower sub-contracting costs.

Net profit increased from S$1.13 million a year ago to S$1.85 million for the three months ended March 31.

This translates to earnings per share of 0.6 Singapore cent, up from 0.37 cent a year ago.

The group's revenue dropped 10 per cent to S$24.6 million, as a large reduction in sales in the maintenance business was only partially offset by a marginal increase in construction revenue.

The lower costs incurred for specialised works such as bored piling and landscaping that are usually contracted to external vendors helped to boost gross profit margin from 9.9 per cent a year ago to 12.1 per cent.

While rising business costs and a shortage of experienced manpower continue to weigh on the industry and business environment, the firm said that it remains optimistic on its near-term prospects due to the pipeline of projects secured last year, as well as a S$9.8 million PUB contract bagged in February this year.

Its net construction order book stood at S$322.1 million as at March 31.