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OKP generates higher revenue but reports a loss as higher costs bite

By The Edge Singapore

/ The Edge Singapore |

February 21, 2023 11:13 AM SGT

OKP, which has been actively growing its recurring income by investing in property, is maintaining this strategy, even though rental revenue dipped by 11.3% in FY2022. (Picture: Samuel Isaac Chua/The Edge Singapore)

SINGAPORE (EDGEPROP) - OKP Holdings has reported higher revenue for 2HFY2022 but because of higher admin and finance costs, it incurred a net loss of $2.2 million, versus earnings of $0.5 million reported for the year earlier 1HFY2021.

Revenue, for the six months to Dec 2022 was $64.1 million, up 42.4%. This brings full year revenue to $11.6 million, up 30.7% over FY2021.

The company, which is in construction and property development, reported a loss of $1 million, versus earnings of $1.5 million for FY2021.

Despite the net loss, the company plans to maintain a final dividend of 0.7 cents.

"We are pleased with the continued gradual improvement in our topline performance, in line with the reopening of the economy," says group managing director Or Toh Wat.

"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, the company won two contracts worth $196.2 million from the government for maintenance of roads and road-related and commuter-related facilities.

This brings the company's total order book to $454.1 million, to be fulfilled till 2026.

OKP, which has been actively growing its recurring income by investing in property, is maintaining this strategy, even though rental revenue dipped by 11.3% in FY2022 because of unfavourable currency conversion from rent collected for its assets in Australia.

“For diversity, we will also stay focused to prudently grow our property investment business, to boost a steady flow of recurring income," says Or.

The company's NTA, as at Dec 31 2022, was 39.75 cents.

OKP shares closed Feb 20 at 17 cents, down 1.2%.

This article first appeared on The Edge Singapore.

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