KSH Holdings Limited, a well established construction, property development and property management group, has announced that its revenue for the half year ended September 30, 2010 increased 15.4 percent to S$144.1 million from S$124.9 million in the previous year.
“I am pleased to report an increase in revenue for the period under review. Construction remains as the core of our business and I am heartened by the strong growth of the civil engineering sector as well as public infrastructure projects,” said Mr. Choo Chee Onn, executive chairman and managing director of KSH Holdings.
The group’s construction business continued to be the strongest revenue contributor in the financial period under review, comprising 98.1 percent of the total revenue and increasing 15.5 percent to S$141.3 million from S$122.3 million in the first half of 2010. This was mainly attributed to revenue contributed from new projects, as well as ongoing projects that have progressed into advanced stages of construction.
Revenue from the group’s property development and management segment made up the remaining 1.9 percent of the total revenue at around S$2.8 million.
With the increased construction revenue, construction costs also rose 21.6 percent to S$125.6 million from $103.3 million a year ago, while average gross margin of the construction segment declined to 11.1 percent from 15.6 percent last year, attributed to rising costs and lower pricing from the new projects awarded.
In terms of quarterly results, KSH posted a net profit of $4.232 million in the second quarter, down 42 percent from $7.335 million over the same period last year, while revenue rose 10 percent to $71.674 million from $64.915 million over the same quarter last year.
Looking forward, Mr. Choo said the group is cautiously optimistic on the outlook of its core construction business, backed by construction order books of over $243.0 million as of 30 September 2010.
“We will remain focused on our strategy, which is to look out for viable opportunities to tender for construction projects, whilst exercising prudence and being mindful of the possible impacts of the uncertainties in economic conditions and rising costs that may have an effect on the performance of our business,” he said.