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Koh Brothers' Q3 profit up 3% at S$7.1m

Mixed financial results from builders

By Mindy Tan

[email protected]@MindyTanBT

12 Nov


BUILDERS posted mixed results for the three months ended September.

Koh Brothers saw its net profit for the third quarter ended September rise 3 per cent, from S$6.9 million to S$7.1 million. This is even as revenue slid 7 per cent, from S$88.2 million to S$82.2 million. The increase in profit was largely due to general improvement in margins for the real estate and construction and building materials divisions.

"We have a diversified revenue stream given our three business segments - construction and building materials, real estate, and leisure and hospitality divisions. To grow, we will continue to increase collaboration opportunities amongst these business lines to harness synergies and economies of scales," said Francis Koh, managing director and group CEO of Koh Brothers.
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For the nine months ended September, the group posted a net profit jump of 56 per cent, from S$15 million to S$23.3 million. Revenue rose 8 per cent, from S$271.5 million to S$292.9 million.

The group also recorded other gains of S$8.5 million for the nine months under review as compared to S$1.7 million in the previous corresponding period, due to higher fair value of investment properties

Koh Brothers' counter ended trading unchanged at 30.5 Singapore cents on Tuesday.

Separately, CSE Global posted profit after tax and non-controlling interests from continuing operations of S$9.4 million, down 17.6 per cent from Q3 2013's S$11.4 million earnings, which comprised S$6.7 million from continuing operations and S$4.7 million from discontinued operations. The group divested its CSE-UK businesses through an initial public offering in December 2013.

Excluding discontinued operations, net profit from continuing operations rose 39.6 per cent.

For the quarter under review, its revenue from continuing operations rose 15.2 per cent to S$112.3 million, driven mainly be higher revenues achieved in Asia Pacific and the Americas region.

Its EPS from continuing operations were 1.82 Singapore cents in Q3 2014 as compared to 1.31 cents a year ago. Including discontinued operations, the preceding corresponding Q3's EPS were 2.21 cents.

New orders received for the quarter were S$119.3 million, an increase of 29.1 per cent as compared with a year ago. Outstanding orders at the end of Q3 stood at S$201.7 million.

CSE said that it is "cautiously optimistic" that its performance for FY2014 will be better than the previous financial year.

Its counter ended trading up half a cent, at 70 Singapore cents.

Meanwhile, BBR Holdings's net profit for the third quarter ended September dropped 82.9 per cent, from S$8.4 million to S$1.4 million. This is despite the fact that revenue rose 42.7 per cent, from S$120.2 million to S$171.6 million.

The group's cost of sales jumped 56.2 per cent from S$108.3 million to S$169.1 million and share of results of associations reversed from a gain of S$3.3 million to a S$193,000 loss.

The group has an order book of approximately S$760 million for construction projects, predominantly in Singapore and Malaysia. It expects to remain profitable for FY 2014.

BBR Holdings's counter ended trading down half a cent, at 29.5 Singapore cents.