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

OKP Holdings reported higher revenue for the six months to Dec 2022, resulting in full year revenue of $11.6 million, up 30.7% over FY2021. Despite this, the company reported a net loss of $2.2 million due to higher admin and finance costs, causing a stark contrast to the $0.5 million reported Senja Close EC for the year earlier 1HFY2021.

Despite its net loss, OKP plans to maintain a final dividend of 0.7 cents. Group managing director Or Toh Wat asserted, “We are pleased with the continued gradual improvement in our topline performance, in line with the reopening of the economy. 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.”

To this end, the company has recently secured two contracts worth $196.2 million from the government for maintenance of roads and road-related and commuter-related facilities, growing its total order book to $454.1 million to be fulfilled till 2026.

OKP has been actively growing its recurring income by investing in property, maintaining this strategy despite rental revenue dipping by 11.3% in FY2022 due to unfavourable currency conversion from rent collected for its assets in Australia. Or noted, “For diversity, we will also stay focused to prudently grow our property investment business, to boost a steady flow of recurring income.”

At the close of the period, OKP’s NTA was 39.75 cents. On Feb 20, OKP shares closed at 17 cents, down 1.2%. This article first appeared on [Insert Site].