http://www.straitstimes.com/archive/...venue-20150218

Property sales boost lifts Koh Brothers' Q4 revenue

Published on Feb 18, 2015

By Michelle Lee


INCREASED property sales helped to lift fourth-quarter revenue at construction firm Koh Brothers Group.

Turnover for the three months to Dec 31 came in at $102.3 million, up 17 per cent from the $87.6 million recorded in the same period a year earlier. That helped full-year revenue rise 10 per cent to $395.1 million.

Net profit for the fourth quarter dipped 2 per cent to $6.2 million, from $6.3 million, although full-year net profit surged 38 per cent to $29.5 million, up from $21.3 million the previous year.

The construction, property development and engineering specialist attributed the rise in full- year earnings to increased sales from its real estate division.

Property sales rose 67.3 per cent last year, thanks in large part to strong buyer interest in Parc Olympia in Pasir Ris, a 486- unit sports-themed condominium launched in July 2012.

Koh Brothers managing director and chief executive officer Francis Koh said in a statement yesterday: "The success of Parc Olympia's sales will continue to provide us with good earnings visibility. In challenging times, we will place an even greater emphasis on unique or innovative features to differentiate our developments."

Earnings per share was 1.42 cents for the fourth quarter, up from 1.39 cents, while net asset value was 55.73 cents as at Dec 31, up 13.8 per cent from 48.97 cents the year earlier.

Despite declining property prices and a tight labour market, the group continues to be optimistic about the year ahead.

Mr Koh said: "There are bright spots in the construction sector (and) we are well poised to meet the Government's requirements and push towards greater efficiency and productivity."

He added that the group would adopt a "strong emphasis on value engineering" in order to counter the tight labour market.

The group proposed a special dividend of 0.3 cent per ordinary share, up from 0.2 cent previously, and a final dividend of 0.5 cent per ordinary share, unchanged from the year before. Koh Brothers Group shares closed 0.5 cent up at 31 cents yesterday.

[email protected]