ISOTeam posts 34.1% rise in profit for FY2015

ISOTeam, a provider of building maintenance and estate upgrading services, on Friday posted a 34.1 per cent rise in net profit to S$8.1 million for fiscal year 2015, on the back of higher revenue generated.

Earnings per share were 6.45 Singapore cents, compared to 5.19 Singapore cents for FY2014.

Revenue for the full year ended June 30, 2015, shot up 16.9 per cent to S$81.7 million, driven by a robust repairs & redecoration (R&R) business segment and a newly expanded "others" business segment, which achieved a nine-fold increase in revenue.

The double-digit growth comes even as expenses rose from active business acquisitions and operations expansion last year. This included S$0.8 million in other operating expenses comprising amortisation of intangible assets and goodwill written off, which the group did not incur in FY2014, and a 50.1 per cent increase in general and administrative expenses to S$9.5 million.

Anthony Koh, the group's executive director and chief executive officer, said: "FY2015 was a remarkable year for ISOTeam. Despite the challenging economic conditions and substantially higher expenses arising from our strategic acquisitions, we were able to build our order book strongly and achieve a 34.1 per cent baseline growth. Moreover, taking into account expenses associated with our mergers and acquisition exercise, which are extraordinary in nature, the growth in our operating profit for FY2015 would be even higher than that."

The board has proposed a final dividend of 1.15 Singapore cents per share for FY2015, which represents a dividend payout ratio of 20.3 per cent of net attributable profit.

As at end-June, ISOTeam's order book stood at S$84.7 million, including S$55.9 million worth of new R&R, A&A (addition & alteration), coatings & paintings and waterproofing projects it secured in the second half of FY2015. These projects will be progressively delivered over the next 24 months.

Looking ahead, the group said it expects "to benefit from the general increase in public sector upgrading, retrofitting and maintenance of buildings and facilities in Singapore driven by ongoing Government initiatives to renew and rejuvenate middle-aged and mature estates".

Still, it added it remains mindful of rising cost pressures in the next 12 months, including higher labour costs due to progressive increases in foreign workers' levies.