SINGAPORE (Feb 12): Real estate management services group LHN has announced earnings of $0.8 million for the 1Q19 ended December, climbing out of the red from a net loss of $1.0 million a year ago.

1Q19 revenue grew 3.8% to $26.9 million, from $25.9 million a year ago.

This was mainly due to an increase in revenue from its Facilities Management and Logistics Services businesses.

Revenue derived from its Facilities Management business increased by 12.0% to $5.2 million in 1Q19, mainly due to increase in revenue from management of new car parks in Singapore.

Revenue derived from its Logistics Services business jumped 26.3% to $6.1 million in 1Q19, mainly due to an increase in transportation services provided and increase in demand of storage and repairs of leasing containers.

Gross profit rose 6.0% to $6.2 million during the quarter, as revenue growth outpaced a 3.1% increase in cost of sales to $20.6 million.

LHN saw a 24.1% drop in administrative expenses to $5.5 million in 1Q19, from $7.2 million a year ago.

This was mainly due to the absence of expenses of approximately $1.8 million in 1Q18, relating to the dual primary listing on the Mainboard of the Hong Kong Stock Exchange.

The group also reported a net profit of $0.4 million in share of results of associates and joint ventures, compared to a net loss of $0.1 million a year ago.

Earnings per share rose to 0.21 cent for 1Q19, compared to a loss per share of 0.28 cent a year ago.

As at end December, cash and cash equivalents stood at $21.7 million.

In a press release on Tuesday, LHN announced that it was awarded a three-year lease by the Singapore Land Authority to operate a serviced apartment at 150 Cantonment Road starting January this year. The lease includes a three years option to renew with a further option to renew for another three years.

LHN says this is part of its business strategy to tap on the growing popularity of the co-living space business.

Meanwhile, the group says it will also continue to look for new properties and opportunities to grow and expand its Space Optimisation business. Revenue from the sector shrank 5.1% to $15.6 million in 1Q19.

Shares in LHN closed flat at 17.1 cents on Tuesday.