Building-materials and engineering-supplies firm Arnhold Holdings has posted a 192 per cent jump in profit for the year to December 31, despite lower turnover. The company's net profit increased to HK$6.08 million from HK$2.08 million in 1998, even as turnover plummeted almost HK$200 million to HK$674.3 million. Chairman Michael Green attributed the strong performance to lower overheads such as a pay freeze and relocation of production to the mainland during the year. The marble business, which accounted for 27 per cent of the total sales, became the largest profit contributor, he added. Earnings per share came in at 2.78 HK cents and a dividend of 3.41 HK cents per share was recommended. Meanwhile, Mr Green said the company would continue to expand its existing business through the reverse takeover by an investor group led by former Hutchison Whampoa taipan Simon Murray. Mr Murray's group plans to turn the company into an Internet play. 'We expect the old business will still have significant growth. 'But we believe the growth in the new business may be faster,' Mr Green said. He declined to comment what proportion of the business would be Internet-related and how much would focus on the old business after completion of the acquisition. Last month, the two companies announced Mr Murray's group would pay HK$357.2 million for about 60 per cent of Arnhold's share capital.