KSH Holdings’ revenue drops 24.2% to S$54.4m in 2Q12

As earnings of its construction segment plunged 47% to S$33.3m.

KSH Holdings Limited announced a 26.1% increase in profit after taxation to S$5.3 million on the back of a revenue of S$54.4 million for the second quarter ended September 30, 2011.

Performance Review
In 2QFY2012, the Group’s revenue dipped 24.2% from S$71.7 million in 2QFY2011 to S$54.4 million, mainly due to a decrease in the Construction segment earnings to S$33.3 million in 2QFY2012 from S$70.3 million in 2QFY2011. KSH’s construction segment contributed 61.2% of the Group’s revenue.

The decrease in revenue from KSH’s construction segment was offset by a surge in revenue in the Property Development and Management segment, which made up the remaining 38.8% of the Group’s revenue in 2QFY2012. This was mainly due to an increase in revenue recognised from the sale of development property worth S$19.8 million, of which none was recognised in 2QFY2011.

In line with the decrease in construction revenue, KSH’s cost of sales decreased 30.9% from S$62.6 million in 2QFY2011 to S$43.3 million in 2QFY2012. Finance costs also decreased 31.6% from S$0.6 million in 2QFY2011 to S$0.4 million in the current quarter due to a decline in borrowings and interest rate. The provision of bonuses and salaries as well as accommodation expenses for staff and workers led to personnel expenses amounting to S$2.5 million in 2QFY2012.

Profit before taxation increased 33.1% from S$5.1 million in 2QFY2011 to S$6.8 million in 2QFY2012. Correspondingly, the Group’s net profit attributable to shareholders also rose from S$4.2 million in 2QFY2011 to S$5.2 million in 2QFY2012.

For the half year ended September 30, 2011, the Group’s total revenue declined 34.0% to S$95.1 million from S$144.1 million in the same corresponding period. This was mainly due to a decrease in revenue from the construction business to S$72.7 million in 1HFY2012 from S$141.3 million in 1HFY2011, which was offset by the increase in revenue recognised from sale of a development property valued at S$19.8 million.

As at September 30, 2011, the Group maintained a healthy balance sheet and working capital position, with cash and cash equivalents and fixed deposits of S$50.3 million. The Group’s earnings per share and net asset value stood at 1.51 cents and 38.47 cents respectively, as at September 30, 2011.