BBR 2013 earnings up 68.5% at $21.8m

HIGHER revenue recognised from construction and engineering projects helped construction group BBR Holdings to post a net profit of $21.8 million for its financial year ended Dec 31, 2013, 68.5 per cent higher than a year ago.

Revenue was up 55.4 per cent at $426.3 million.

The company said yesterday that revenue growth came from the general construction and specialised engineering segments. Its property development segment recorded lower revenue, but the highest pre-tax profit among the three segments.

A first and final dividend of 0.8 cent a share was declared. This translates to a dividend yield of 3 per cent based on BBR's closing price of 26.5 cents yesterday and a dividend payout ratio of 11 per cent out of 2013's earnings.

The 2013 dividend was down from 1.2 cents a share in 2012 - 0.8 cent a share in ordinary dividends and a special dividend of 0.4 cent a share.

Earnings per share for 2013 were 7.13 cents, up from 4.24 cents a year ago.

Net asset value per share stood at 40.98 cents at end-2013.

The company did not disclose its fourth-quarter results.

CEO Andrew Tan said the company's order book is now at $905 million, comprising mainly civil engineering and building projects in Singapore and Malaysia.

"We strive to maintain our competitive edge through enhancing our technology, cost effectiveness and greater efficiency in project management," he said.

The company said the outlook for the construction industry is expected to be challenging because of slowing sector growth, increasing competition and higher labour costs caused by foreign-worker shortages.

BBR said it will continue to focus on its core business, and continue to conduct feasibility studies to undertake new property development projects.

It is currently working on public and private projects in Singapore and Malaysia such as a $179 million contract from the Housing and Development Board (HDB) to build 17 blocks of 1,386 new homes in Pasir Ris, due to be completed in the second half of this year. It is also developing two condominium projects.

BBR ended one cent higher at 26.5 cents yesterday, before results were released.