Landrich Holding profit drops nearly 50% amid revenue decline

Landrich Holding announced its final results for the year ended March 31, 2025, revealing a profit decline of 49.0% to HK$13.3 million, compared to HK$26.1 million in the previous year. The decrease was mainly attributed to a 6.3% drop in revenue, from HK$1,366.9 million to HK$1,281.1 million, driven by reduced engineering works as projects concluded. While direct costs decreased by 3.5% to HK$1,241.1 million, the gross profit margin contracted to 3.1% from 5.9% in 2024 due to lower margins on subcontracting projects and certain main contracting projects. Earnings per share were impacted, with basic earnings at HK$0.85 compared to HK$1.67 the prior year. The company's board did not recommend a final dividend. Landrich held approximately HK$311.7 million in net current assets, cash position of HK$215.0 million, and has 27 projects, valued at HK$2,345.1 million under construction. The company faces a HK$24.7 claim in a sub-contract agreement.