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GS Holdings posts S$5.49m H1 net profit, reverses year-ago loss

CATALIST-LISTED dishwashing firm GS Holdings on Monday reported a net profit of S$5.49 million for its financial year's first six months ended June 30, 2019, reversing from a S$1.24 million loss in the year-ago period.

Revenue rose to S$15.8 million from S$5 million in the year-ago period, due mainly to the receipt of service fees from 14 branding, operation and procurement service agreements entered into by its subsidiary Wish Hospitality Holdings. The agreements have an aggregate quarterly contract sum of 50 million yuan (S$10 million).

Also contributing to the rise was revenue from Hao Kou Wei, a company which GS Holdings acquired on Apr 1, 2019.

Revenue from GS Holdings' dishware washing and cleaning business segment, however, fell by about 16 per cent to S$4.2 million, down from S$5 million in the year-ago period. This was for several reasons: certain coffeeshops did not renew contracts after expiry; under a sales rationalisation plan implemented in the previous financial year, some sales contracts with low profit margins were not renewed after expiry; and a key customer representing average monthly sales of S$45,000 went into liquidation in early September 2018.

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Earnings per share for the first half were 3.51 Singapore cents, compared to a loss per share of 0.94 Singapore cent in the year-ago period. No dividend was declared, similar to the year-ago period.

GS Holdings shares last closed unchanged at 42 Singapore cents on Aug 8.