OKP Q1 profit tumbles 55% on high costs

OKP Holdings posted a 55.1 per cent decline in net profit to $1.07 million for the first quarter ended March 31, 2014, despite a 13.7 per cent increase in turnover.

Turnover at the infrastructure and civil engineering company rose to $30.21 million from a year ago.

However, cost of works jumped 24.9 per cent to $27.6 million. Gross profit margin fell to 8.7 per cent from 16.8 per cent a year earlier, largely due to lower profit margins for new and existing construction and maintenance projects as a result of industry competition and the rising cost of works.