King Wan Corporation (554) H1 2024 earnings summary

Executive summary

• H1 ended 30 September 2023 revenue fell 5% YoY to S$39.2m; net profit was S$3.0m versus a S$5.1m loss a year earlier.

• Profitability reflected a return to positive gross profit and a S$3.7m write-back of loss allowances, partly offset by ongoing project losses and higher finance costs.

Financial highlights

• Revenue was S$39.190m, down 5% YoY; gross profit was S$0.411m versus a gross loss of S$0.158m.

• Profit before tax was S$2.779m versus a S$5.347m loss; net profit was S$2.962m versus a S$5.067m loss.

• Other operating income rose to S$2.0m, including higher accrued interest on associate loans; administrative expenses fell to S$2.9m, partly due to no repeat of prior-period settlement and related costs.

• Net cash used in operating activities narrowed to S$0.2m from S$6.7m; cash and cash equivalents ended the period at S$9.0m.

Outlook and guidance

• M&E operations and portable lavatory rental are expected to continue generating income; M&E remains the core business based on secured order books.

• M&E contract order book stood at S$141.2m as of the announcement date; maintaining sufficient liquidity remains a priority.