Koh Brothers' profit up 166% to $3mln

Revenue rose 39% to $84.8mln behind improved performance from the Group's Construction & Building Materials division.

Koh Brothers Group Limited, a construction, property development and specialist engineering solutions provider, on Wednesday reported a 166% surge in net profit attributable to shareholders ("Net Profit") to S$3.0 million for the first quarter ended March 31, 2010 (“Q1FY2010”), compared to the previous corresponding period (“Q1FY2009”).

According to a Koh Brothers' report, this was achieved on the back of a 39% increase in sales to S$84.8 million mainly attributable to the Group's Construction & Building Materials division. The Group's profit before tax also surged by 262% to S$3.7 million compared to S$1.0 million in the previous corresponding period.

Said Mr Francis Koh, Group Managing Director and CEO of Koh Brothers: "We have navigated through a turbulent year caused by the global credit crunch and have emerged resilient with an improved set of numbers for both top and bottomlines. Construction and Building Materials division continues to be our main driver of growth given our established brand name and strong track record. I am optimistic that with our strong cash position, we are well positioned to seize more opportunities, while exercising prudence in tendering for these projects."

Prospects and Growth Plans
The Singapore economy grew by 13.1% in the first quarter of 2010. With this positive start, MTI is now forecasting a growth of 7% to 9% for 2010.

"We expect the residential property market to continue being active in 2010, with general market sentiments on the positive side. We will monitor our Real Estate division closely and release more residential units for sale at the appropriate time.
As for the Construction and Building Materials division, we have a healthy order book over the next two years. Also, we are pleased by the Government’s decision to sustain the current level of infrastructure expenditure," added Mr Koh.

The outlook for the Hospitality division has improved, with an increase in occupancy rate. The Group is cautiously optimistic that this trend will continue.