KSH Holdings records 7% decline in earnings on lower revenue

Mr Choo Chee Onn, executive chairman and managing director of construction firm and developer KSH Holdings, in a photo from March 13, 2014. The firm recorded a 7 per cent decline in net profit to $41.7 million for the year to March 31. -- ST PHOTO: K
Mr Choo Chee Onn, executive chairman and managing director of construction firm and developer KSH Holdings, in a photo from March 13, 2014. The firm recorded a 7 per cent decline in net profit to $41.7 million for the year to March 31. -- ST PHOTO: KEVIN LIM

SINGAPORE - Construction and property development firm KSH Holdings recorded a 7 per cent decline in net profit to $41.7 million for the year to March 31.

This was on the back of a 15.7 per cent fall in revenue to $246.1 million, as revenue from projects dropped 16 per cent to $239.9 million and rental income from investment properties lost 1.8 per cent to $6.2 million.

Earnings per share for the year was 10.09 cents, down from 10.81 cents a year earlier.

Net asset value was 61.37 cents at March 31, up from 52.43 cents a year ago.

A total dividend of 2.75 cents per share was declared, including a final dividend of 1.5 cents and interim dividend of 1.25 cents per share.

It was lower than the total dividend of three cents per share in the 2014 financial year, which included a final dividend of 1.75 cents and interim dividend of 1.25 cents per share.

Mr Choo Chee Onn, executive chairman and managing director of KSH Holdings, noted the construction business has been operating in a challenging environment amidst rising costs, while the property development business in Singapore has been impacted by cooling measures.

"Through strategic consortiums and joint ventures, we continue to build new recurring income streams to diversify our portfolio and capitalise on opportunities amidst macro uncertainties."

This includes its first step into the British real estate market, as it acquired with a consortium of investors a freehold property on Glenthorne Road, London, near Hammersmith Underground Station. The consortium intends to redevelop the property into a serviced apartment building of about 85 rooms.

"This will be a good addition to our property investment portfolio, where we receive a steady income stream through our interests in Prudential Tower in Singapore and Tianxing Riverfront Square in Tianjing, China."