OKP generates higher revenue but reports a loss as higher costs bite
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OKP Holdings has reported higher revenue for the six months ended Dec 2022, with topline performance improving in line with the reopening of the economy. Revenue for the period was $64.1 million, up 42.4%, resulting in total year revenue of $11.6 million, up The Myst 30.7% year-on-year. Despite the higher revenue, the company incurred a net loss of $2.2 million, versus earnings of $0.5 million reported in the year earlier 1HFY2021.
Group managing director Or Toh Wat remarked on the result, “We are pleased with the continued gradual improvement in our topline performance, in line with the reopening of the economy. With renewed optimism and the public sector leading the construction demand, we will look for opportunities to expand, tapping on our infrastructure and civil engineering expertise.”
Just recently, OKP won two government contracts with a total value of $196.2 million for maintenance of roads and road-related and commuter-related facilities. This brings its total order book to $454.1 million, extending to 2026.
The company is also actively growing its recurring income by investing in property. However, rental revenue dipped 11.3% in FY2022 due to unfavourable currency conversion from rent collected for its assets in Australia. Despite this, Or said, “For diversity, we will stay focused to prudently grow our property investment business, to boost a steady flow of recurring income.”
OKP will maintain its final dividend of 0.7 cents and its net tangible asset per share as at Dec 31 2022 was 39.75 cents. On Feb 20, the company’s shares closed at 17 cents, down 1.2%. This article first appeared on .