LHN Limited has reported earnings of $14.1 million for the 1HFY2025 ended March 31, 2025, up 8.8% y-o-y.
For the first half of the year, the group saw a 29.4% y-o-y increase in revenue to $70.6 million, due to revenue contribution from its property development business and increase in revenue from its co-living business in the space optimization business and facilities management business.
The group reported a gross profit of $40.64 million for 1HFY2025, up 23.2% y-o-y. Its gross profit margin however declined by 2.9 percentage points to 57.6%.
During 1HFY2025, the space optimization business obtained renewal of eight master leases consisting two industrial properties, two commercial properties and four residential properties.
The group’s property development business saw its maiden revenue contribution of $12.1 million from the sale of strata-titled units at its nine-storey food factory at 55 Tuas South Avenue.
In its facilities management business, the group saw cleaning and related services (ICFM) and car park management businesses improved 12.6% y-o-y to $19.4 million in 1H2025. This is due to new integrated facilities management contracts and car park management projects secured, coupled with the cessation of less efficient car park management projects in Hong Kong.
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The group manages 101 car parks in Singapore with over 27,500 lots, and 1 car park with 500 lots in Hong Kong as at end March. The lease expiry of the last car park in Hong Kong in April saw the group exiting the car park business in Hong Kong.
Under its ICFM business, 43 new contracts were secured during 1H2025 while 92 existing contracts were successfully renewed. ICFM expanded its client base to 121 as at end March 2025.
Finally, its energy business saw a dip in revenue for the reporting period. It secured three solar energy contracts bringing its total solar energy capacity to 9.2 megawatts as at March 31, 2025.
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The group and its JVs have a total of 19 EV charging points as at end March.
The group declared an interim dividend of 1 cent for the reporting period.
On April 15, LHN announced that it is proposing to spin-off and separate listing of its indirect wholly-owned subsidiary, Coliwoo Group, which will hold the group’s co-living business.
LHN says that the application for the spin-off has been submitted to the Hong Kong Stock Exchange and the Singapore Exchange, with the SGX-ST indicating preliminary concurrence that the transaction would not constitute a chain listing subject to compliance with listing requirements. Maybank Securities has been appointed as financial advisor and issue manager for the proposed listing on the SGX-ST Mainboard.
Shares in LHN Group closed 0.5 cents lower or 1% down at 49.5 cents on May 15.
