Koh Bros turns around previous year's S$17.8m loss to post S$2m H1 net profit

MAINBOARD-listed construction player Koh Brothers Group posted a net profit of S$2 million for the six months ended June 30, reversing from a net loss of S$17.8 million in the preceding year, on the construction industry's road to recovery.

This came on the back of a 35 per cent hike in revenue to S$141.0 million, up from S$104.1 million in 2020, thanks to a pick-up in business activity for its construction and building materials division.

However, the share of profit from associated companies and joint ventures declined 63 per cent to S$1.5 million in the first-half, on lower contribution from a property development project in South Korea. The project was completed in the second half of 2020.

Earnings per share stood at 0.48 Singapore cents for the first half, reversing from a loss per share of 4.30 cents in the year earlier. Net asset value per share was 69.53 Singapore cents as at June 30.

Cash and bank balances stood at S$102.4 million; shareholders' equity stood at S$286.8 million as at June 30. The group's current ratio remains "healthy" at 2.4x, with a net gearing ratio of 0.85 times as at June 30.

No dividend was declared or recommended for the period ended June 30. This was in view of the current uncertainty in the business environment, the group said, adding that it was also done to preserve working capital.

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Shares of Koh Brothers closed down S$0.007 or 3.9 per cent to S$0.172 on Thursday, before the results were released.