LHN Group reports increase in Q1 profit

CATALIST-LISTED LHN Group announced on Monday after trading hours that its net profit for Q1 ended Dec 31, 2016 was S$4.9 million, up from S$1.5 million a year ago.

Revenue went up 1.9 per cent to S$26.4 million year-on-year, mainly due to the increase in revenue from the facilities management business and logistics services business, partially offset by the decrease in revenue from the space optimisation business.

The surge in the group's net attributable profit was due to a S$3.9 million increase in share of results of associates and joint ventures arising from a non-recurring gain of approximately S$4.3 million on acquisition of Four Star Industries Pte Ltd. This was a result of the excess of the group's proportionate share of net fair value gains from identifiable assets and liabilities over the cost of investment.

Earnings per share for Q1 was 1.36 cents, up from 0.42 cents a year ago. As at Dec 31, 2016, net asset value per share was 20.69 cents, up 7.1 per cent year-on-year.

LHN expects the next 12 months to remain challenging because of ongoing economic uncertainties and poor overall sentiments leading to a fall in leasing activities.