The construction segment posted 1Q18 revenue of $26.9 million, a 55.2% decline from $60.0 million in 1Q17.
Despite this, gross construction margins for this quarter improved to 35.2% following a 65.6% decrease in construction cost to $17.4 million in 1Q18 from $50.6 million in 1Q17, mainly due to the decrease in construction works carried out and cost savings achieved on completed construction projects.
The group’s finance costs decreased by 69.8% to S$0.4 million in 1Q18 from $1.2 million in FY17, mainly attributed to the decrease in borrowings.
Choo Chee Onn, Executive Chairman and Managing Director of KSH Holdings, says, “Cognisant of the recent aggressive bids for land in Singapore, rigorous due diligence is conducted to ensure that these land acquisitions are yield-accretive. We are working alongside long-time partners, with whom we have executed successful projects that have resonated well with buyers through prudent project selection and careful product differentiation and positioning.”
Shares in KSH Holdings closed 2 cents lower at 73 cents on Friday.
