Koh Brothers Group (K75) H1 2023 earnings summary

Executive summary

• H1 revenue rose 24% to S$196.59m, while a S$1.06m gross loss and higher expenses led to a S$19.62m net loss versus S$6.05m profit a year earlier.

• Loss attributable to equity holders was S$16.04m; basic and diluted loss per share were 3.89 cents, versus earnings of 1.21 cents in H1 2022.

Financial highlights

• Revenue increased from S$158.88m, mainly on higher revenue recognised from development properties; gross result swung from S$11.69m profit to a S$1.06m loss amid higher costs and construction account finalisations.

• Finance expenses rose to S$7.40m from S$4.42m, mainly due to higher borrowing rates; other gains fell to S$1.22m from S$7.93m, largely on lower PPE disposal gains.

• Share of associates’ and JV results was a S$60,000 loss versus S$1.2m profit, reflecting higher finance expenses on JV investment properties.

• Operating cash flow was S$26.73m; investing activities provided S$3.24m and financing activities used S$30.71m. Cash and bank balances ended at S$81.18m.

Outlook and guidance

• H1 results were in line with the profit guidance announcement issued on 28 July 2023.

• Priorities include executing the S$650.7m construction order book, monitoring project progress and costs, recovering variation-order costs, and tendering for construction work with a disciplined cost approach.

• Land-bank replenishment will remain cautious and selective; progress was noted at Van Holland and the JV project.