SINGAPORE (Nov 28): Construction company Keong Hong Holdings posted earnings of $34.7 million in FY2016, a 9% decline from $38.1 million recorded last year.

Group revenue fell 12% to $248.0 million for the financial year ended Sept 30, compared to revenue of $282.0 million in FY2015.

This was mainly due to lower recognition of construction revenue in the current reporting period.

In an SGX filing on Monday, Keong Hong says projects such as Alexandra Central Phase 2 and SkyPark Residences were largely completed in FY2015, while two new projects – Raffles Hospital Extension and Parc Life – were at initial revenue recognition stage.

Looking ahead, Keong Hong says it intends to focus on the commercial, industrial and institutional sector as 2017 will be a difficult year for the local construction sector, particularly in private residential construction.

Cash and cash equivalents stood at $58.6 million as at Sept 30, 2016. This was lower than cash and cash equivalents of $100.3 million at the end of FY2015, mainly due to loans to joint ventures.

The board of directors is recommending a one tier tax-exempt final dividend of 3 cents per share, which would bring the full-year payout to 3.5 cents per share.

This is lower than the one tier tax-exempt final dividend of 4 cents per share, and full-year payout of 4.5 cents per share in FY2015.

Shares of Keong Hong closed flat at 47.5 cents on Monday.