LHN H2 net profit up 3%; declares S$0.01 dividend for FY

LHN Group on Monday (Nov 28) posted a 2.9 per cent rise in net profit to S$13.6 million for the six months ended Sep 30, despite a 6.9 per cent fall in revenue.

The group, which has businesses in space optimisation, facilities management and logistics, saw its revenue slip to S$52.6 million following lower demand in the dormitory management business.

LHN : 41O 0% said better profitability from the residential co-living properties business helped prop up earnings. Earnings per share was 3.34 Singapore cents, compared with 3.26 cents a year ago.

Share of results of associates and joint ventures jumped 157.1 per cent to S$7 million during the six months.

The group recorded a fair-value gain on investment properties of S$3.6 million, compared with a S$8.9 million loss the year before.

For the full year, net profit rose 63.3 per cent to S$45.8 million despite a 7.6 per cent fall in revenue to S$111.8 million. Revenue from the facilities management business, previously the largest segment, shrank 24.4 per cent. This was offset by a 39 per cent growth in co-living revenue.

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Share of results of associates and joint ventures also increased, growing 349.2 per cent to S$16.5 million. A fair-value gain on investment properties of S$12.3 million was recorded, compared with a S$11.6 million loss the year before.

Earnings per share for the full year was 11.21 cents, compared with 6.94 cents a year ago.

The board is recommending a final dividend of S$0.01 per share for the financial year, unchanged from a year ago.

LHN’s industrial properties had occupancy of 94.9 per cent as at Sep 30. Its commercial properties had occupancy of 97.9 per cent, while co-living had an occupancy of 98.3 per cent. These rates exclude joint-venture properties.

The group said it will continue to focus on the co-living business in FY2023, as rising rental rates and the recent property cooling measures drive demand for alternatives. Upcoming properties will add about 600 keys to the portfolio, bringing total keys to 1,600.

LHN also plans to seek more external facilities management contracts by providing integrated facilities management services. It is also looking to expand its renewable energy solutions to enterprises in Singapore.

The counter ended flat at S$0.305 on Monday, before the results were announced.