During the year under review, the Group recorded total revenue of approximately HK$508.1 million (FY2017: HK$467.5 million), with gross profit rising by 14.2% year-on-year to approximately HK$76.9 million (FY2017: HK$67.3 million). Gross profit margin climbed to 15.1% - up from 14.4% in the preceding year. Profit for the year amounted to approximately HK$21.8 million, compared with approximately HK$8.7 million for the corresponding period last year. Net profit margin reached 4.3% (FY2017: 1.9% and approximately 4.1% excluding listing expenses).
Environmental Hygiene and Related ServicesEnvironmental hygiene and related services constituted the primary revenue contributor of the Group, generating revenue of HK$467.7 million (FY2017: HK$432.6 million) for the year, and accounting for 92.1% of the Group's total revenue. Segmental gross profit of HK$72.6 million was recorded as compared with HK$62.4 million for the corresponding period last year, with gross profit margin at 15.5% (FY2017: 14.4%). The estimated total value of contracts in hand as at 31 March 2018 was HK$940 million, HK$581 million of which was ongoing contracts. The Group won 19 new contracts during the year, valued at approximately HK$33.9 million in total.
As one of the significant environmental hygiene services providers in Hong Kong, the Group has leveraged its stature, expertise and dynamic workforce of approximately 1,862 full-time and part-time workers to earn contracts with respectable property owners and management companies, a mass transit transportation operator and the Hong Kong Government. In the past year, the Group has continued to add to its portfolio of upscale residential projects, providing hygiene services to premium properties, which have contract sums of approximately HK$0.5 million and HK$0.4 million per month respectively. In addition, the Group has retained its contract with the aforementioned mass transit transportation operator. The contract - valued at over HK$2 million per month - entails cleaning of tracks, tunnels and plant rooms, including certain high-level cleaning services, i.e. areas that are above three metres.
Airline Catering Support ServicesThe airline catering support services business has been a welcomed addition to the Group since 2013, providing a steady source of supplemental income. During the year ended 31 March 2018, the business generated revenue of HK$40.4 million (FY2017: HK$34.9 million). However, due to a rise in cost of services, gross profit fell to HK$4.3 million (FY2017: HK$5.0 million), with gross profit margin slipping to 10.7% (FY2017: 14.2%).
The healthy generation of revenue largely reflects income from existing contracts held by the Group, the majority of which will not expire until the 2018 and 2019 financial years. As at 31 March 2018, the estimated total value of contracts in hand amounted to approximately HK$66.6 million, of which HK$16.6 million represented ongoing contracts.
Irrespective of market conditions, the management recognises the need to constantly bolster operations in order to maintain the Group's competitiveness and appeal to existing and potential customers. Correspondingly, the Group will continue to adopt and upgrade relevant technologies that aid its ability to monitor all facets of operation, leading to the optimisation of processes. It will also look to lessen its dependence on human labour where feasible in view of escalating costs resulting from the labour shortage, while at the same time enhance training of those workers who are indispensable for certain services, including safety-related training so as to protect the Group's sterling reputation for safety. Such training and safety-mindedness are among the features that have distinguished the Group from its peers, and the management is fully committed to harnessing their associated benefits going forward.
Madam Ng Sing Mui, Chairperson and Executive Director of Winson, said, "Despite the continuous market challenges, we are pleased to see that the Group managed to achieve satisfactory results over last financial year. Going forward, the management will look to strengthen ties with its many customers to realise new business opportunities. At the same time, it will leverage the Group's track record of successfully providing end-to-end services to attract new clients to the fold."
About Winson Holdings Hong Kong Limited (Stock code: 8421)Winson Holdings Hong Kong Limited is a Hong Kong-based service provider specialising in environmental hygiene and related services and airline catering support services in Hong Kong. The Group started off as an environmental hygiene and related service provider in 1983 via the incorporation of Winson Cleaning. In 1993, the Group set up Winson Pest Control as a separate pest management service provider. To diversify the Group's business, the Group has commenced the provision of airline catering support services since 2013.
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