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KSH posts 33.4% drop in full-year profit

CONTRACTOR-CUM-DEVELOPER KSH Holdings reported a 33.4 per cent drop in net profit for the year ended March 31 to S$40.98 million, dragged by lower revenue and share of results of associates.

Revenue slipped 18.8 per cent to S$199.26 million on the back of lower contribution from projects and rental income from investment properties.

Share of results of associates slumped by 82.5 per cent to S$8.49 million mainly due to the decrease of S$12.2 million contribution from the development project Sequoia Mansion in Beijing, S$3.9 million of preliminary costs in a development project in Gaobeidian in China, S$3.6 million of provision for impairment loss on unsold properties in Singapore by associates, and the decrease in profit recognition in development projects in Singapore.

The S$6 million increase in share of results of joint ventures is mainly due to the profit recognised from the residential development project, High Park Residences, as construction progressed.

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KSH has proposed final and special cash dividends of 1.5 Singapore cents and 0.5 cent per share respectively, bringing the total dividends declared in fiscal 2017 to 3.25 cents per share. In the preceding fiscal year, KSH had paid out an additional 0.3 cent per share in an interim special dividend.

The group also proposed on Friday to issue one bonus share for every four existing shares. The bonus issue, which is aimed at expanding its issued share capital base, is subject to approval from SGX.

KSH had, together with its consortium partners, secured a residential land through a private en bloc deal to acquire Rio Casa, a former HUDC estate in Hougang, for S$575 million this week.

It owns 35 per cent stake in Oxley-Lian Beng Venture Pte Ltd, which submitted the tender. Oxley Holdings also own 35 per cent stake, followed by Lian Beng (20 per cent) and Apricot Capital (10 per cent).

Apricot Capital is the private investment firm of Super Group's Teo family.