GKE Corp says that earnings for its 1HFY2025 ended November 2024 will be a " significant" increase over the year-earlier period.

 

In its 1HFY2024 ended November 2023, GKE reported earnings of $1.9 million, an increase of 90.1% y-o-y over 1HFY2023.

 

The company, which operates warehouses and produces readymix concrete, says the stronger earnings can be attributed to " better business performance."

 

In addition, the company is booking a one-off disposal gain from the divestment of rights to a limestone mine in China.

 

Back in May 2019, GKE paid RMB5.05 million ($946,116.49) for the rights to mine for 9.5 years.

 

GKE expects to report its 1HFY2025 results on or before Jan 14.

GKE Corporation has reported earnings of $4.3 million for the FY2024 ended May 31, 10.1% higher y-o-y.

 

Earnings per share (EPS) stood at 0.56 cents.

 

Revenue rose by 1.5% y-o-y to $110.6 million. The warehousing and logistics segment in Singapore, comprising the relatively higher-margin specialty chemicals, dangerous goods, pharmaceuticals, electronics supply chain management solutions and services contributed to the higher revenue and earnings, which were offset by the group&rsquo s freight and infrastructural materials and services, which faced headwinds during the year. According to GKE Corporation 595 -1.3% , revenue from one major customer of $14.5 million arose from services provided by the warehouse and logistics segment.

 

Gross profit rose by 2.7% y-o-y to $32.5 million while gross profit margin (GPM) rose by 0.4 percentage points y-o-y to 29.4%.

 

Profit before tax, however, fell by 1.8% y-o-y to $6.8 million.

 

During the year, the group declared a final dividend of 0.2 cents per share, unchanged y-o-y.

 

&ldquo We have been prudent and conscientious in the management of our resources amid the challenging economic and business environment in FY2024. This set of results reflected the payoff of our prior investments and efforts to improve our assets and broaden our value-adding solutions and services in our core integrated warehousing and logistics segment. We have now achieved a stable and sustainable foundation for the group,&rdquo says Neo Cheow Hui, CEO and executive director of GKE.

 

&ldquo We believe that our ability to maintain our growth momentum, even if only modestly, is commendable. While our strategic infrastructural materials and services business in China experienced a downturn, our group has managed to stay on course and remain profitable with small improvements,&rdquo he adds. &ldquo We will maintain tight reins over our operations in Singapore and China and be ready to seize growth-enhancing opportunities, as we wait for the macroeconomic situation to improve.&rdquo

 

As at May 31, the group&rsquo s net asset value (NAV) per share was 12.22 cents.

 

The proposed final dividend will be paid on Oct 25.

 

Cybersecurity incident

 

In a separate release, GKE said it was the subject of a ransomware incident. According to the group, an unknown party gained unauthorised access to the group&rsquo s servers.

 

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&ldquo Upon discovering the incident, the group took immediate action to identify, contain and remediate the affected servers. The group has also reported the incident to the relevant authorities. The group is still currently assessing the situation,&rdquo says the group.

 

&ldquo As of the date of this announcement, the group had activated its business continuity plan and customers have continued to be served with minimal disruption,&rdquo it adds.