Boustead Singapore H1 profit dips 2%, revenue up as real estate business recovers

BOUSTEAD Singapore posted a 2 per cent drop in net profit to S$21.3 million for the half-year ended September, thanks to the resumption of "more normalised" revenue recognition at its real estate unit, Boustead Projects.

The company has declared an interim dividend of 1.5 Singapore cents per share, up from 1 Singapore cent per share in the year-ago period.

However, adjusted for other items, including impairments and the Jobs Support Scheme, net profit was down 24 per cent to S$19 million, the infrastructure company announced on Friday (Nov 12).

Revenue for the half-year rose 17 per cent to S$340.3 million. This growth was led by Boustead Projects, which posted a S$179.1 million topline, more than double last year's, on improved revenue recognition for engineering and construction projects. Most of these projects were hit by the nationwide four-month closure last year.

Meanwhile, revenue in the geospatial division held steady at S$86.2 million, due to "firm and stable" demand for geospatial technology and smart mapping capabilities in the region, Boustead Singapore said.

The healthcare segment was a weak spot, with revenue dipping 8 per cent to S$6.4 million. Clients are focusing more on the pandemic, dampening demand for the company's rehabilitative care and sports science solutions. The division is in the red, posting a loss before income tax of S$1.7 million.

Amid the challenging conditions, Boustead Singapore has thus far clinched S$93 million in new contracts in FY2022. This is expected to improve as borders reopen and vaccination rates increase. The company has a current order backlog of S$342 million, which it described as "marginally healthy".

With a net cash position of S$362.8 million, Boustead Singapore said that it continues to look at a "wide range of available financing options and is in a stable position to weather the highly challenging global landscape".

Its shares closed at S$1.04 on Friday, up 4 per cent.