KPA-BM HLDGS issued a profit warning, expecting that the interim consolidated profit after tax will decrease by no less than 50% year-on-year
KPA-BM HLDGS issued a profit warning, expecting that the interim consolidated after-tax profit for the period ending September 30, 2025, will decrease by no less than 50% year-on-year. The main reason is the decline in revenue leading to a reduction in gross profit. Management pointed out that the outstanding contracts have been largely completed, and the contract amounts for new projects are relatively small, resulting in decreased revenue from structural engineering work. Although gross profit has declined, some cost savings have offset administrative and other operating expenses as well as financial costs. The group is assessing impairment indicators for contract assets and receivables; any loss provisions will further reduce profits but will not affect cash position
According to the announcement from KPA-BM HLDGS (02663), based on the preliminary assessment of the group's unaudited consolidated management accounts for the six months ending September 30, 2025, the group expects its consolidated profit after tax for this period to decrease by no less than 50% compared to the same period in 2024. The main reason for the decrease is the decline in revenue, leading to a reduction in gross profit.
Management believes that due to the completion of outstanding contracts as of March 31, 2025, and the relatively small contract amount of newly acquired projects during this period, the revenue from structural engineering work has decreased. The reduction in gross profit has been partially offset by cost savings in administrative and other operating expenses as well as financial costs during this period.
On the other hand, the group is assessing whether there are any impairment indicators for contract assets, trade, and other receivables. Any loss provisions, if any, will further reduce the profit for this period. However, the board emphasizes that loss provisions are of a non-cash nature and will not affect the group's cash position
