STRUCTURAL steel fabricator TTJ Holdings returned to the black as it posted a net profit of S$1.6 million for the half-year ended July 31, from a loss of S$14.1 million in the same period a year ago.

Revenue in the same period grew by 48 per cent to S$52.3 million, up from S$35.3 million the year before.

This was due largely to growth in revenue from its structural steel operations, which increased to S$51.9 million from S$34.2 million a year earlier.

Earnings per share for the second half of the financial year stood at S$0.0050, reversing a loss per share of S$0.0358 a year ago.

The group declared a first and final dividend of S$0.008 per ordinary share for the financial year ended July 31.

For the full year that ended that day, net profit was S$4 million, reversing a loss of S$12.7 million a year earlier while revenue was down 3 per cent to S$75.4 million.

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The group attributed the decline in revenue for the year to the slow and gradual restart of project sites in the construction industry after the circuit breaker measures were lifted. This led to a 1.3 per cent dip in structural steel revenue to S$75 million for the year.

Still, the company’s gross profit increased 42 per cent to S$11.3 million, while its gross profit margin improved to 15 per cent from 10.2 per cent a year earlier. It noted that profitability in FY2020 suffered as the group incurred operating costs despite the circuit-breaker measures in SIngapore.  Lockdown restrictions in Thailand also impacted its revenue then. 

TTJ executive chairman Teo Hock Chwee said that while the construction sector is expected to recover this year, the industry will not return to pre-pandemic levels yet and that the company will continue to monitor the situation.

The company also highlighted labour shortages in Singapore due to border restrictions as a potential constraint, although it also highlighted that its order book remains healthy at S$119 million. The orders are expected to be substantially completed between FY2022 and FY2023, depending on the Covid-19 situation and prevailing safe management measures.

Shares of the company closed flat at S$0.161 on Thursday, before the results were announced.