OKP Holdings’ net profit surges 57% to S$27m in 2011

Its construction segment reigns as the group’s major contributor, accounting for 82% of total revenue.

In a company statement, OKP Holdings Limited announced profit after tax attributable to shareholders of S$26.6 million, up S$9.6 million, or 57.0 per cent, from S$17.0 million it registered in the previous financial year.

The Group recorded a revenue of S$109.8 million, compared to S$139.9 million in the previous financial year. The Group saw reduced revenue contributions from both the construction and maintenance segments, due primarily to the higher degree of completion of existing projects, coupled with a lower percentage of revenue recognised from a few newly-awarded projects during the year.

The construction segment continued to be the major contributor to the Group’s revenue, accounting for 82.2 per cent of total revenue, while the maintenance segment contributed the remaining 17.8 per cent, quite comparable to the 82.9 per cent and 17.1 per cent respectively in the previous financial year.

Despite turning in a lower revenue, OKP’s gross profit increased by S$13.7 million or 46.5 per cent to S$43.2 million, a leap from the S$29.5 million recorded previously. The Group’s gross profit margin expanded from 21.1 per cent in FY2010 to 39.3 per cent, the increase due largely to cost savings in certain design-and-build construction projects, which yielded higher gross profit margins.

Overall better project management and tighter cost controls also helped.

Basic earnings per share for FY2011 stood at 9.02 cents, a 39.0 per cent increase from 6.5 cents previously.

Record quarterly earnings
On a quarterly basis, the Group also saw record earnings. Its PATMI for the quarter was S$9.5 million, up S$4.9 million or 105.4 per cent, from the previous corresponding quarter. It registered revenue of S$23.2 million, compared to S$29.6 million in the corresponding fourth quarter in FY2010. The decrease in revenue from both segments was due mainly to the higher degree of completion of existing projects, coupled with a lower percentage of revenue recognised from a few newly-awarded projects.

Despite the revenue dip, OKP’s gross profit for the fourth quarter ended 31 December 2011 increased by S$5.0 million, or 50.2 per cent, to S$15.0 million compared to S$10.0 million previously. Its gross profit margin was 64.8 per cent in the fourth quarter ended 31 December 2011, up from 33.8 per cent in the previous corresponding quarter. The increase in OKP’s gross profit was due mainly to cost savings in certain design-and-build construction projects, which yielded higher gross profit margins, and better project management and tighter cost controls.