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KSH net profit down 74.8% to S$7.67m

KSH Holdings posted a fall of 74.8 per cent in profit attributable to shareholders to S$7.67 million for the year ended March 31, 2019, down from S$30.4 million the year before, the construction, property development and property management group said on Thursday night.

This was despite revenue rising 51.4 per cent to S$200 million from S$132.1 million the year before. Operating expenses rose 62.8 per cent to S$190.2 million, of which construction costs formed the bulk at S$168.1 million, 73.9 per cent higher than the year before.

Loss from the share of results of associates widened to S$13.6 million, compared with the previous year's loss of S$2.63 million.

Earnings per share were 1.35 Singapore cents, compared with 5.34 Singapore cents the previous year. KSH has declared a final dividend of 1.2 Singapore cents per ordinary share, unchanged from the previous year.

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KSH said it expects construction costs to continue rising, but will continue to try raising productivity and training workers with help from government grants, as well as streamlining operations to reduce expenses. Its order book "remains healthy" at more than S$486 million as at end-April.

Four property developments launched in the current financial year were "well-received" by the market, said KSH, with more than 2,200 units sold to date despite challenging market segments.

As at the end of the current FY2019, KSH has attributable share of progress billings to be recognised as sales revenue of more than S$476 million from property development projects held by associates and joint ventures, which will be progressively recognised and contribute to results after FY2019.

Investment properties held in Singapore and overseas have maintained good occupancy rates and will continue generating recurring income, said KSH. "In view of the above and barring unforeseen circumstances, the group remains cautiously optimistic on the outlook of its performance in FY2020."

KSH shares closed up 0.5 Singapore cent or 1.12 per cent at S$0.45 on Thursday before the results.