Low Keng Huat posts 78% rise in Q1 profit to $4.88m

Low Keng Huat posts 78% rise in Q1 profit to $4.88m




PROPERTY firm Low Keng Huat (Singapore) yesterday reported a 78 per cent rise in Q1 net profit to $4.88 million, even though revenue slipped 7 per cent to $26.79 million.


The firm was helped by a more than proportionate fall in cost of sales to $21.2 million for the first quarter ended April 30. Meanwhile, earnings per share for the quarter dropped to 1.32 cents – from 1.34 cents in Q1 2007.


During the period, construction sales dropped 28 per cent to $11.3 million due to the completion of major projects, that is, Novena Square Extension, The Chuan, Twin Regency and Domain 21 in FY07/08 and the lower percentage of completion of ongoing projects.


However, net loss before tax and minority interests for the construction segment narrowed to $3.3 million in Q1 as more projects were completed in FY07/08.


‘These construction projects were undertaken by the group for associated companies at prices determined at the time of entering into the joint venture agreement with the partners to tender for the sites. Management is working with the partners to recover some of the cost increases,’ said the company.


Under the hotel and F&B segment, turnover rose from $13 million in Q107 to $15.4 million in Q108 – attributable to higher contributions from Duxton Hotel Saigon and Duxton Hotel Perth and the F&B business arm consisting of the Starworth group of companies. This came about as a result of increased room rates in both hotels during the period, the firm said.


Meanwhile, associated firms reported a 64 per cent jump in contributions to $4.3 million, thanks to contributions from Regency Suites, Southbank, one-north residences and Duchess Residences.


Looking ahead, the group remains cautiously optimistic about its business prospects despite the volatility in global markets and increased inflationary pressures on costs.


Source: Business Times