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| Launches BSL to Further Diversify Business Portfolio |
HONG KONG, June 24, 2021 - (ACN Newswire) - IBI Group Holdings Limited ("IBI" or the "Company", together with its subsidiaries as the "Group"; Stock Code: 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 2021 ("FY2021"), nothing short of remarkable in light of the devastating impact to the global economy caused by the COVID-19 pandemic.
During the year under review, the Group recorded revenue of approximately HK$556.7 million (FY2020: HK$591.1 million). Though its revenue dropped slightly, its gross profit increased by 53.1% to HK$79.4 million. Profit attributable to the owners of the Company for the year surged by 151.5% to approximately HK$54.4 million, mainly attributable to the strategic investments made during FY2021. Basic and diluted earnings per share climbed 151.9% to HK6.8 cents.
The Group maintained a strong financial position with cash and cash equivalents of approximately HK$87.1 million and no bank borrowings as at 31 March 2021. The Board has recommended payment of a final dividend of HK4.0 cents per share for the year ended 31 March 2021 (FY2020: not applicable). Based on the current share price of HK$0.31, the total yearly dividend yield equates to an impressive 16.13%.
Business Review
Contracting
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. Due to its proven track record and established reputation, IBI remained busy in the Hong Kong market despite the impact of the pandemic, completing 13 projects and being awarded 12. During the year under review, revenue from the segment totalled approximately HK$511.0 million (FY2020 approximately: HK$591.1 million) with segmental gross profit amounting to HK$35.3 million
Building Solutions
During the year under review, IBI set up a new subsidiary, Building Service Limited ("BSL"), which provides high-tech solutions utilising innovative products and services to fulfil its mission of creating healthy, productive and efficient indoor environments. Since its launch, the Group has been working diligently to develop the business, design and open a showroom and most importantly, to secure distribution rights for five product ranges. With arising public awareness of healthy living and increased hygiene amid the COVID-19 pandemic, BSL's focus on air quality and clean air technologies target environmental improvements based on science, data and a deep sense of caring for the human condition.
Strategic Investments
In early 2020, the Group established a new strategic investments division to ensure the efficient use of its available capital. During the year under review, the Directors saw an opportunity in the depressed markets of the United Kingdom, Australia and Hong Kong to invest in blue chip, high dividend yielding companies that were both sizeable and which possessed a long history and ability to withstand market disruption. Over the course of the year, the investments performed well and delivered impressive results with segmental profit reaching approximately HK$43.9 million. Moving forward, the Group is looking into several new potential investment opportunities including property development projects in jurisdictions outside Hong Kong and is diligently working to secure these opportunities in order secure additional profits for the Group.
Prospects
Although the Covid-19 pandemic is expected to continue to weigh heavily on the global economy, IBI remains prudently optimistic about the market improving and recovering. Mass vaccination is clearly a critical component in controlling the COVID-19 pandemic and returning our society back to normal and in this regard, IBI has instigated a Group wide incentive scheme to encourage its employees to get vaccinated. The Group hopes this initiative will set an example for other companies to follow and ultimately, to help facilitate the return of the City's buoyant business environment. With a return to more normal business activity levels and a healthy level of liquidity, the Group is confident of fully exploiting business opportunities moving forward.
Mr. Neil Howard, Chairman and CEO of IBI, said, "Although FY2021 was a year of unprecedented challenges, by implementing a sound tactical development strategy, IBI continued to deliver exceptional performance. We are thrilled to see our net profit up 151.5% and to have launched our new subsidiaries. The new subsidiaries will strengthen our ability to provide integrated, innovative solutions and we look forward to seeing the results of these synergies in the coming year and to witness their positive impact on the Group's reputation, results and ultimately, the long-term value delivered to shareholders."
About IBI Group Holdings Limited (stock code: 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, include businesses providing 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 of innovation, sustainability and wellness. For more information, please refer to IBI's website: https://ibighl.com/.
Topic: Press release summary
Source: IBI Group Holdings Limited
Sectors: Construct, Engineering
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From the Asia Corporate News Network
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