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AGAINST the backdrop of a flagging property and construction market, BRC Asia Limited marked a 46 per cent fall in net profit to S$8.34 million for the full year ended Sept 30.
Despite clocking record sales volumes, the prefabricated steel reinforcement provider saw a 10 per cent drop in revenue to S$346.8 million as unit selling price declined. There was also an absence of foreign exchange gain that was recognised in the year before.
"As the pipeline of building projects continued to thin, main contractors were compelled to tender at increasingly cut-throat prices, sending a shuddering effect down the construction supply chain, which the reinforcing steel sector is an integral part of," the group said on Thursday.
But gross profit margin remained at 8.3 per cent for fiscal 2016, unchanged from fiscal 2015, but down from 13.7 per cent in fiscal 2014.
The group said it expects the business environment to get more challenging going into next year. "BRC will continue to innovate and differentiate as well as focus on cost control and productivity improvements to stay at the forefront of the local reinforcing steel industry."
It has proposed a final dividend of 2.4 Singapore cents per ordinary share for fiscal 2016.