OKP Holdings, the Mainboard-listed infrastructure and civil engineering company, today announced a profit after tax attributable to equity holders of $12.1 million for its first half ended 30 June 2011, up 55.6% from previously.
The board of directors has approved an interim dividend of 1.0 cent per share, which works out to a dividend payout ratio of 23.4% based on 1H2011 profits.
OKP turned in revenue of $61.1 million, compared to $73.7 million in the previous corresponding half-year. Earnings per share (basic) for the half year ended 30 June 2011 was 4.27 cents, an improvement of 40.5% compared to 3.04 cents previously.
The group’s construction segment continued to be the major contributor to its overall revenue, registering $52.1 million for the first half, or 85.2 % of revenue. This compares with $62.2 million or 84.4 % of revenue it turned in during the previous corresponding period.
The maintenance segment also saw a dip in revenue, from $11.5 million to $9 million. The decrease in revenue from both segments was due mainly to the completion or substantial completion of existing projects, coupled with a lower percentage of revenue recognised from a few newly-awarded contracts during the period under review.
Despite the lower revenue, the group registered a substantial increase in gross profit for the first half of 2011 of 60.9% or $7.5 million from $12.4 million previously to $19.9 million for the six months ended 30 June 2011. Quarter-on-quarter, its gross profit was up 70% to $11.2 million from $6.6 million previously, and profit after tax rose 61% to $6.9 million from $4.3 million in the previous corresponding period.
This was due primarily to cost savings in certain design-and-build construction projects which resulted in better gross profit margins. Indeed, the group saw its gross profit margin doubled to 32.6% in the six months under review.
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