OKP's gross profit dipped by 7.9% to $6.8 million in FY2021 from S$7.4 million in FY2020 whilst gross profit margin decreased by 3.1 percentage points to 7.5%. The lower gross profit margin for FY2021 was largely due to lower profit margins for new and current construction and maintenance projects as a result of the increase in overheads, prices of materials and rising manpower costs. Other gains had decreased by $3.0 million to $7.7 million in FY2021, from $10.7 million in FY2020. The decrease was mainly due to the decrease in receipt of payouts and rebates from the government, a one-off reversal of impairment allowance following the disposal of a former associated company in FY2020 which did not recur in FY2021, a decrease in interest income and a decrease in the gain on foreign exchange, partially offset by an increase in net fair value gain.
OKP's balance sheet remains strong with net tangible assets (NTA) of $123.5 million while NTA per share was 40.25 cents as at Dec 31, compared to OKP's share price of $0.19 as at Feb 21. KP’s free cash and cash equivalents stood at $45.8 million as at end-2021, compared to $74.0 million a year ago. Earnings per share (basic) for FY2021 stood at 0.49 cents, as compared to 1.07 cents in FY2020.
During the year, the Group clinched four projects from PUB totalling $154.6 million. As of Dec 31, 2021, the Group’s order book stood at $329.2 million, with projects extending till 2025.
On the property development front, the Group’s joint venture residential project, The Essence, which was launched in March 2019 and achieved favourable sales, is now fully sold. The Group’s 74-unit residential project in Bukit Panjang, Phoenix Residences, is expected to TOP in November 2023. As of Feb 21, approximately 38% of the 74 units have been sold.
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OK's investment property at 6-8 Bennett Street in Perth, Australia continues to generate good recurring rental income. As part of the Group’s effort to grow its recurring income through a portfolio of investment properties, the Group had completed the acquisitions of 35 Kreta Ayer Road, and 69 and 71 Kampong Bahru Road in 2021. Both acquisitions have contributed positively towards the Group’s performance.
