Ksh Sinks Red Net Loss 315 Mil Fy2024
KSH Holdings, a group involved in construction and property development, experienced a significant decrease in profitability in the fiscal year 2024, which ended on March 31. The company reported a net loss of $31.5 million, a sharp decline from the net profit of $22.1 million recorded in the same period last year.
One of the main reasons for the loss was the absence of contributions from property development projects, resulting in a loss of $5.3 million in the share of results of associates and joint ventures. Additionally, the group’s revenue also dropped by 28.2% year-on-year to $214.1 million, mainly due to a decrease in revenue from its construction business.
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Amidst cautious market sentiment, rental income from investment properties also decreased, primarily due to the translation of contributions from the People’s Republic of China (PRC) at a weaker foreign exchange rate. However, other income increased from $11.7 million in the previous fiscal year to $12.8 million due to higher interest income from fixed deposits and additional loans to associates, which were used to finance new projects.
The cost of construction also saw a decline from $278.1 million in fiscal year 2023 to $230.6 million in fiscal year 2024, primarily due to reduced construction work. This decrease was further compounded by the prolonged construction periods, labour shortages, higher materials costs, overheads, utilities, logistics expenses, workers’ dormitory expenses, equipment rentals, and subcontractor costs, which were all exacerbated by the COVID-19 pandemic.
As for its financial position, KSH Holdings reported a cash and bank balance of $134.6 million, while loans and bank borrowings decreased to $133.6 million for the full year. Despite the challenging year, the company has declared a final cash dividend of 0.5 cents per ordinary share, bringing the total dividend declared for fiscal year 2024 to 1 cent per share.
On May 30, shares of KSH Holdings closed 4.348% higher at 24 cents.