LHN H2 net profit up 55.9% to S$21.3 million; S$0.02 dividend declared for FY

LHN Group : 41O 0% posted a 55.9 per cent rise in net profit to S$21.3 million for its second half ended Sep 30, 2023, from S$13.6 million in the previous corresponding period.

This was while the Catalist-listed company’s revenue for the period was up 30.7 per cent to S$50.8 million, from S$38.8 million the previous year, it said in a bourse filing on Friday (Nov 24) evening. LHN Group has businesses in space optimisation, facilities management and logistics.

Earnings per share stood at S$0.0082 for the second half, down from S$0.0433 a year ago.

A final dividend of S$0.01, and a special dividend of S$0.01, was declared for the full year, up from S$0.01 in the previous corresponding period.

The proposed final and special dividends will be paid on Feb 23, 2024, and May 31, 2024, respectively, after books closure on Feb 7, 2024.

For the full year, the group’s net profit fell 16.6 per cent to S$38.2 million, though revenue was up 10.9 per cent to S$93.6 million.

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In a regulatory filing, the group said that the trimmed full-year net profit was due to net fair value losses associated with its investment properties and the investment properties of its joint ventures for the period, which amounted to S$8.7 million.

This was compared to the fair value gains made by the company in FY2022 of S$24.8 million.

By segment, the group’s space optimisation business continues to be its “primary revenue and growth driver”, it said, accounting for 64.5 per cent of its overall revenue for the full year.

It said that its primary focus for FY2024 would be to identify and capitalise on new opportunities within this sector, particularly in the Coliwoo co-living business segment, which is expected to experience “significant growth”.

The renovation of properties in Pasir Panjang Road, Arab Street and Rangoon Road are on track to be completed in the next financial year. These will add an estimated 121 keys to the group’s co-living portfolio, it said.

Commenting on the results, Kelvin Lim, LHN Group’s executive chairman, said: “Our robust occupancy rates in the Coliwoo projects and successful divestments… underscore our ability to adapt and thrive amid challenging conditions.”

“We remain committed to driving growth in our key segments, particularly in co-living and renewable energy, while maintaining our focus on sustainability and corporate governance,” added Lim, who is also the group’s executive director and group managing director.

Shares of LHN closed flat at S$0.34 on Friday before the announcement.