Real estate management services group LHN Limited ("LHN", and together with its subsidiaries, the "Group") reported a revenue of approximately S$111.1 million for its full year ended 30 September 2019 ("FY2019"), an increase of 1.7% compared to the corresponding period last year ("FY2018"). Such increase was mainly attributed to an increase in revenue from the (i) commencement of operations of two new premises under the Residential Properties' co-work co-live business; (ii) management of carparks under the Facilities Management Business; and (iii) Logistics Services Business.



FY2019 also recorded (i) a gain on disposal from our security business; and (ii) an increase in share of results of associates and joint ventures ("JV") mainly from increase in share of operating profits and net increase in fair value gain on investment properties. These were partially offset by an increase in cost of sales mainly due to the increase in rental costs relating to the new co-work co-live business, upkeep and maintenance costs and container depot management charges. As a result of the above factors, the Group's net profit increased by 51.2% to approximately S$8.7 million in FY2019.


Revenue from the Group's largest segment, Space Optimisation Business, dropped 2.7% year-on-year mainly due to movement of tenants due to expiry of sub-leases and renewal of sub-leases at lower rental rates. On a positive note, the average occupancy rate of the Commercial Properties increased by 4.6 percentage points to approximately 90.8% in FY2019.


Revenue derived from our Facilities Management Business increased by approximately S$0.9 million or 4.6% from approximately S$19.5 million in FY2018 to approximately S$20.4 million in FY2019 mainly due to increase in revenue from the management of new carparks in Singapore and Hong Kong and full-year revenue contribution in FY2019 from some carparks secured in the second and fourth quarter of FY2018. This was partially offset by the decrease in revenue from the security services business as a result of the completion of the disposal of the business on 31 May 2019.


Revenue derived from our Logistics Services Business increased by approximately S$2.7 million or 12.3% from approximately S$22.2 million in FY2018 to approximately S$24.9 million in FY2019 mainly due to increase in transportation services provided from the trucking business and increase in demand for storage and repairs of leasing containers in Thailand.

Having delivered a better performance this year, the Group proposed a final dividend of 0.5 Singapore cents per share, subject to approval by shareholders at the forthcoming annual general meeting.

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