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BBR's Q2 profit plunges 99%
WEIGHED down by lower revenue from the general construction and property development segments, BBR Holdings posted a 99.2 per cent drop in net profit to S$40,000 for the second quarter.
This translates to earnings per share of 0.01 cent for the three months ended June 30, 2015, down from 1.67 cents in the year-ago period.
Revenue for the quarter was down 44.2 per cent to S$106.9 million.
"With the completion of a few major general construction projects at the end of 2014, revenue recognition for the remaining ongoing projects has declined in the current quarter. In Q2 FY2014, the group's development property, Bliss@Kovan was in its active stage of construction, which led to higher revenue as compared to the current quarter," said the group.
Cost of sales fell 43.8 per cent to S$101.8 million in Q2.
Other operating income was down 47.6 per cent to S$642,000, mainly attributable to lower administrative fee income from the training and test centres.
Other expense of S$88,000 in the second quarter comprised foreign-exchange losses as a result of the Malaysian ringgit depreciating against other currencies.
Andrew Tan, BBR's CEO, said: "With an order book of approximately S$500 million, we are geared to pursue new business opportunities for both general construction and specialised engineering. Operational efficiency and cost management remain our top priority. We are pleased to add that construction of executive condominiums at Lake Life in Jurong Lake district is progressing well and Temporary Occupation Permit is expected to be obtained by the end of 2016. BBR has a 35 per cent interest in this development."
The group said the outlook remains challenging in the next 12 months with increasing competition and manpower shortages.
It said it will continue to focus on its core business by leveraging its strong track record in building construction and civil engineering to secure more projects as well as enhancing cost effectiveness and efficiency optimisation in the management of on-going projects.
"BBR will also continue to conduct feasibility studies to undertake new property development projects," it said.