Gross profit increased 8.1% to approximately HK$58.4 million
HONG KONG — IBI Group Holdings Limited (“IBI” or the “Group”; Stock Code: 1547), a building contractor focusing on providing renovation services as a main contractor for property projects in the private sector in both Hong Kong and Macau, has announced the first annual results of the Company and its subsidiaries (collectively the “Group”) for the year ended 31 March 2017 (“FY2017”) since its listing in Hong Kong during October last year.
During the year under review, the Group recorded revenue of approximately HK$615.4 million (FY2016 approximately: HK$661.1 million). Gross profit increased 8.1% to approximately HK$58.4 million (FY2016 approximately: HK$54.0 million) with gross profit margin at about 9.5%. Excluding the one-off listing expenses, profit after tax amounted to approximately HK$27.1 million (FY2016 approximately: HK$28.8 million). Due mainly to the one-off listing expenses of approximately HK$16.3 million, the Group recorded profit for the year of approximately HK$10.8 million (FY2016 approximately: HK$28.3 million). Basic and diluted earnings per share were HK1.6 cents (FY2016: HK4.7 cents).
The Group maintains a strong financial position with cash and cash equivalents of approximately HK$122.3 million at the end of FY2017 with no bank borrowings as at 31 March 2017. The Board has recommended a payment of a final dividend of HK1.0 cents per share for the year ended 31 March 2017 (FY2016: not applicable).
Business Review
The Group is engaged in two main types of projects, namely fitting-out projects and alteration and addition (“A&A”) projects. The Group’s proven track record and established reputation mean that it benefits from a consistent stream of tender opportunities. Moreover, once projects have been secured, the Group’s stringent project management system as well as prudent execution and diligent monitoring of projects have differentiated IBI from its competitors and earned the continuous trust from its major customers both in Hong Kong and Macau. The Group’s major customers include a number of multi-national banks, hotel and casino operators, a racing and betting operator and numerous property developers.
Hong Kong and Macau are the two principal geographic areas where the Group operates. During the year ended 31 March 2017, revenue from Hong Kong and Macau has been recorded at approximately HK$520.6 million (FY2016 approximately: HK$609.8 million) and HK$94.8 (FY2016 approximately: HK$51.3 million) respectively. The Group has completed a total of 27 projects and was awarded 27 projects, 25 of which were fitting-out projects with the other two being A&A projects.
In Hong Kong, the Group has completed work on one of Hong Kong’s largest private sector corporate office fitting-out projects. The client, one of the world’s largest multi-national banks, moved the majority of its operations from Central to Kwun Tong and is now one of the largest operations in that district. In Macau, despite that market being subdued by the general reduction in VIP gamblers during the review year, the Group achieved record highs in both its revenue and profits. The Group continues to benefit from its long-term relationships with specific hotel and casino operators and in addition, has completed the refurbishment of the headquarters of one of Hong Kong’s leading banking institution in Macau.
Prospects
Moving forward, the Group remains optimistic about the Hong Kong market as it continues to receive a high number of tender opportunities in the region and has already managed to secure several sizeable projects in the first three months of the financial year ending 31 March 2018. Meanwhile, the Group is also targeting a number of developers in the territory with the aim of securing a greater number of larger-scale projects. In addition, the Group is continuing to work with its long-term clients in Macau and striving to secure work outside of the hotel and casino industry to ensure that the business in this territory is not overly reliant on one source of income. Furthermore, the Group is also looking at potential acquisition opportunities that would boost its presence in other territories, thus enhancing its competitiveness and solidifying its market position to take on larger-scale projects in the future.
Mr. Neil Howard, Chairman and CEO of IBI, said: “I am extremely pleased with the continuing performance of the Group and am honoured to be working alongside so many talented colleagues. We are committed to delivering solid and consistent results and to leverage our competitive strengths in order to create greater and sustainable value to our shareholders.”