Boustead Projects H2 net profit nearly doubles to S$10.7 million

BOUSTEAD Projects reported on Thursday (May 25) a near doubling in net profit on the back of slightly higher revenue and a strong improvement in gross profit.

Net profit for the six months ended Mar 31, 2023 rose 97 per cent on year to S$10.7 million, while revenue for the period was up 4 per cent to S$166.2 million, the provider of real estate solutions said in a bourse filing.

The group’s gross profit rose to S$14.8 million, up from S$2.3 million in H2 FY22, mainly due to improved cost management partially offset by the reduction in rental revenue, Boustead Projects said.

On a per share basis, earnings improved to S$0.034 for H2 FY23, up from S$0.017 in the year-ago period.

The board has proposed a final ordinary dividend of S$0.007 per share and a special dividend of S$0.007 per share. This marks an overall increase from the S$0.002 final dividend per share and S$0.008 special dividend per share declared in the preceding financial year.

For the full financial year, Boustead Projects’ net profit rose 62 per cent to S$18.4 million. This was despite a 16 per cent decline in revenue, which fell to S$284 million from S$339.1 million.

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Boustead Projects said the improved Covid-19 situation in FY23 has meant that construction activities have been largely restored to pre-pandemic levels.

The group added it expects to grow its real estate portfolio by “building its development pipeline and optimising assets through active management and leasing efforts, using a cautious approach to mitigate the rising risks brought about by the volatile interest rate environment and capital markets”.

It also said it expects to deliver “steady results” in FY24, barring unforeseen circumstances.

Net asset value per share for the group rose to S$1.28 as at the end of FY23, up from S$1.253 a year earlier.

Boustead Projects shares last traded at S$0.955 in March this year, before they were suspended, as the company no longer met the free float requirements under SGX listing rules.

In February this year, Boustead Project’s parent, Boustead Singapore, launched a voluntary unconditional general offer for the company. The exercise saw the offeror and concert parties’ effective interest in Boustead Projects climb to 95.5 per cent as at end-March this year, up from 73.98 per cent at end-FY22.