Boustead Projects' Q2 profit falls 33% to S$5.5m on lower margins

BOUSTEAD Projects, the spun-off real estate arm of Boustead Singapore, reported net profit of S$5.5 million for its second quarter ended Sept 30, 2015, down a third from S$8.16 million a year ago.

Revenue was up 6 per cent to S$53.8 million, from S$50.9 million a year ago.

The decline in profit was mainly due to lower gross margins for its design and build arm, which develops industrial and commercial properties.

Its leasing business is doing better due to contributions from the completion of three design, build and lease projects in the previous financial year.

Boustead Projects closed at S$0.815, up half a cent, before results were out.