GKE Corp has reported record interim earnings of $4.41 million for its 1HFY2025 ended Nov 30, up 132.5% over the year-earlier period. Revenue was up 13.8% to $63.16 million. The company attributes the better bottom line to better operational performance of its warehouses.
In addition, GKE booked a one-off gain of $1.1 million from the sale of its mining rights and its related equity investment in China.
The company plans to pay an interim dividend of 0.05 cents per share. "We are delighted to share the fruits of our focused efforts with our key stakeholders, who have placed their trust and support in us," says CEO Neo Cheow Hui.
Following the divestment of the mining rights, GKE maintains a presence in China with its ready-mixed concrete plant. It says it "remains vigilant in conducting its infrastructural materials and services business in China, focusing on cost efficiency as the economy gradually recovers."
The warehousing and logistics business, here in Singapore, has maintained a moderate level of growth and stability.
Last October, the company set up a wholly-owned unit to explore overseas opportunities.
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More recently, on Jan 9, GKE announced plans to diversify into the mobile handsets distribution business. This move requires shareholders' approval and an EGM will be called.
“We believe that it is timely for us to embark on new business opportunities to diversify our business and broaden our earnings base, leveraging the sound foundation of our core operations and strategic investments," says Neo.
"While these initiatives offer attractive long-term growth potential that could in turn enhance shareholders’ value and returns, we maintain our prudence in pursuing these viable business opportunities to safeguard the interest of our key stakeholders," he adds.
GKE Corp shares closed at 10.4 cents on Jan 13, up 0.97% for the day and up 48.57% in the past 12 months.
