IBI Group Holdings Limited (IBI or the Company, together with its subsidiaries as the Group; HKG: 1547), a publicly listed company that holds investments in companies focusing on the Built Environment, today announced its business results for the financial year ended 31 March 2022 (FY2022).
During the year under review, the Group recorded an income of approximately HK$405.9 million (FY2021: HK$556.7 million). Gross profit was approximately HK$68.0 million (FY2021: HK$79.4 million) and profit attributable to the owners of the Company was approximately HK$27.0 million compared with approximately HK$54.4 million from the previous financial year (which included a one-off gain of approximately HK$43.6 million generated from its strategic investments segment). Basic and diluted earnings per share was HK3.4 cents (FY2021: HK6.8 cents).
The Group maintained a strong financial position with cash and cash equivalents of approximately HK$141.6 million (FY2021: HK$87.1 million) and no bank borrowings as at 31 March 2022. The Board has recommended payment of a final dividend of HK1.0 cent per share for the year ended 31 March 2022 (FY2021: HK4.0 cents).
IBI provides world-class interior fitting out and building refurbishment services in Hong Kong and Macau, undertaking two main types of projects namely fitting-out projects and alteration and addition projects. Owing to its established reputation and proven track record, the Hong Kong component of the Company remained busy during FY2022 despite the continuing shadow cast by the Covid-19 pandemic, completing 11 fitting-out projects and being awarded 14 more. During the year under review, revenue from the segment totaled approximately HK$403.9 million (FY2021: HK$511.0 million) with segmental gross profit increasing by an exceptional 91.0% amounting to approximately HK$67.4 million.
2. Building Solutions
In April 2020, IBI set up its subsidiary, Building Solutions Limited (“BSL”), a provider of products and services that enhance the performance and well-being of the built environment in order to provide modern, healthy and high-performing spaces for its occupants. During the year under review, BSL has been working diligently to develop the business and secure orders. The second year of its operations has shown significant penetration into the market, leading to improved sales figures. BSL has additionally secured distribution rights to a cutting-edge lighting product that has been very well received and will be reflected in the sales figures for the coming financial year. BSL registered a segment loss of approximately HK$2.7 million in FY2022.
3. Strategic Investments
The financial year was spent in part, divesting the Group of its earlier stock investments which had generated phenomenal returns in the previous reporting period. In addition, IBI’s efforts were targeted toward property-related investment deals and these efforts have generated considerable early success. During the latter part of FY2022, the Group secured development land in Hokkaido, Japan located in close proximity to a future station of the planned Shinkansen high-speed rail line, and is now working with a local development specialist to establish the most efficient use of the land and the timing of the development. Moving forward, the Group will continue to look at potential investment opportunities. Subsequent to the financial reporting period, the Group recently acquired Adelaide Chambers, a building located in the heart of Dublin, Ireland. The investment is a period building with approximately 20,000 square feet of commercial office space and is a value-add proposition with improvements to be made, in both building upgrades and lease improvements, in order to increase the overall asset value and to secure additional profits for the Group.
Hong Kong has now lifted many of the restrictions put in place during the pandemic and life is very quickly returning to normal. The Group is optimistic that Hong Kong will start to regain its full international status once the city’s strict quarantine restrictions are further reduced, returning to more normal business activity levels along with stabilization of the market environment. Moving forward, the Group is confident that the capital allocated for its investment will be fully vested within the coming financial year.
Mr. Neil Howard, Chairman and CEO of IBI, said, “Amid unprecedented challenges created by COVID-19 pandemic, we have remained steadfast and resilient in driving our growth and investment strategies. IBI is excited for the year ahead and believes that the business environment will move from strength to strength as we slowly transition into the pre-pandemic period. As a result of our strategic business decisions, IBI continued to deliver stable performance and we are extremely proud to be able to retain our full workforce during these challenging times. We are thrilled to see growth in our subsidiaries, especially BSL, and look forward to reporting significantly improved financials as it moves out of its infancy and into its development phase. Our FY2022 results are a testament to our ability to provide integrated, innovative solutions and we look forward to bringing stronger results and add long-term value to shareholders.”
About IBI Group Holdings Limited (HKG: 1547)
IBI Group Holdings Limited is a publicly listed holding company on the Hong Kong Stock Exchange, focused on investments in the Built Environment. The Group’s investments whilst principally centering around the role of contracting, including businesses providing an innovative, high-quality product and supply solutions across a diverse range of the built environment. Our mission is to deliver premium products, services and customer experiences with a strong influence on innovation, sustainability and wellness. For more information, please refer to IBI’s website: https://ibighl.com/.