KPA-BM HLDGS (02663) announced that based on a preliminary review of the group's unaudited consolidated management accounts for the six months ended September 30, 2025, it expects post-tax profit for the period to decrease by no less than 50% compared to the same period in 2024.

The decline is primarily attributed to reduced revenue, leading to lower gross profit. Management noted that structural engineering revenue decreased as most outstanding contracts as of March 31, 2025, were substantially completed, while newly secured projects during the period had relatively smaller contract values.

The drop in gross profit was partially offset by savings in administrative, operational expenses, and financing costs. Meanwhile, the group is assessing whether there are impairment indicators for contract assets, trade, and other receivables. Any impairment provisions, if recognized, would further reduce the period's profit.

The board emphasized that such provisions are non-cash in nature and will not impact the group's cash position.