Koh Brothers Group Ltd, an established construction, property development and specialist engineering solutions provider, has achieved a 25 percent increase in net profit to S$6.7 million in the first half of the year.
The group’s profit before income tax rose 37 percent to S$8.8 million, despite a 10 percent year-on-year decline in revenue to S$159.3 million.
“Our recent results demonstrate our growing presence in the property development scene as sales from our real estate division continues to boost our gross margin,” said Francis Koh, Group CEO and Managing Director of Koh Brothers.
In terms of quarterly results, the company recorded a 41 percent increase in net profit to S$3.4 million in Q2 2011, compared with S$2.4 million over the same period last year, while its revenue slipped 16 percent to S$76.9 million.
It also announced earnings per share of 1.41 cents in the first half of 2011, compared with 1.13 cents a year ago.
Koh noted that while demand for construction, especially from the public sector, is expected to remain positive, “we are also mindful about the competitive nature of the industry.”
“However, with our strong cash position and our A1 grading by the Building and Construction Authority, we are well-positioned to seize more opportunities and will exercise caution and prudence in tendering for projects,” he said.
Going forward, Koh said that the company will maintain its position to seek accretive projects both in construction and building materials and real estate sectors.
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