k1's net profit for the year rises 95% to $24.9m

One-off gains and lower operating expenses helped investment holding firm k1 Ventures record strong numbers for the year.

Net profit for the 12 months to June 30 surged 95.2 per cent to $24.9 million, while revenue grew 91.6 per cent to $60.6 million, the firm reported yesterday.

The increase was driven by the $45.6 million gained from the sale of China Grand Automotive, but partly offset by an impairment loss of $13.2 million on an investment in education firm K12.

k1 Ventures, which is a unit of Keppel Corp, said it will not make any new investments for now, but will focus on managing its portfolio of assets.

k1 also has investments such as a 10.2 per cent stake in Knowledge Universe Holdings. Transportation leasing is also one of k1's business segments.

  • AT A GLANCE

  • NET PROFIT: $24.9 million (+95.2%)

  • REVENUE: $60.6 million (+91.6%)

STATUS QUO

The proposed capital reduction will not result in any change in the number of shares held by any shareholder.

K1 VENTURES, on its proposal to consolidate every five shares into one share

Earnings per share was 1.15 cents, up from 0.59 cents a year earlier, while net asset value per ordinary share was 10 cents, down from 12 cents at the end of June last year.

The firm also proposed consolidating every five shares into one share. Shareholders will get 1.5 cent for every share with a total of about $32.5 million to be returned to investors.

"The proposed capital reduction will not result in any change in the number of shares held by any shareholder. Each shareholder will hold the same number of shares before and immediately after the proposed capital reduction," said the firm yesterday.

The company said that this will be funded from existing cash and cash equivalents.

"The main objective of the proposed capital reduction is the maximisation of shareholder value through the distribution of surplus cash to shareholders," it said.

The proposed share consolidation is subject to approvals.

k1 shares closed 0.3 cent lower at 19.7 cents yesterday.

A version of this article appeared in the print edition of The Straits Times on August 18, 2015, with the headline 'k1's net profit for the year rises 95% to $24.9m'. Print Edition | Subscribe