Boustead Singapore H2 net profit more than quadruples, proposes special dividend

MAINBOARD-LISTED Boustead Singapore's second-half net profit has more than quadrupled to S$91.3 million from S$18.5 million the previous year, largely due to its real estate division's successful launch of the Boustead Industrial Fund (BIF).

The real estate division (Boustead Projects) was able to unlock value when it divested interests in 14 leasehold properties out of its portfolio of 25 to the Boustead Industrial Fund (BIF).

Boustead Singapore's earnings per share was 18.8 Singapore cents for the half year ended March 31, up from 3.8 Singapore cents in the preceding year, the group said in a regulatory filing on Thursday.

The board has proposed a final ordinary dividend of three Singapore cents per share and a special dividend of four Singapore cents per share, subject to shareholders' approval. Taken along with the interim ordinary dividend of one Singapore cent per share already paid, the total dividend paid and proposed for FY2021 is eight Singapore cents per share, compared with three Singapore cents per share for FY2020.

After adjusting for other gains/losses net of non-controlling interests (mostly the BIF value unlocking gain), one-off net gain from the sale of the water business, impairment losses, one-off legal settlements by Boustead Projects and payouts received from the job support scheme, net profit would have been 14 per cent lower to S$19.5 million from S$22.7 million last year.

Revenue for the second half fell 9 per cent year-on-year to S$396 million, dragged by its real estate division (Boustead Projects) as a result of the Covid-19 pandemic. This was mostly mitigated by positive revenue performances from its energy engineering division and geospatial division.

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Full-year net profit was more than three times higher at S$113.1 million from S$30.9 million the previous year. Revenue dipped 6 per cent to S$685.7 million from S$726.6 million last year. Adjusted net profit would have been 23 per cent higher to S$36.4 million.

Net asset value per share for the group as at March 31, 2020 strengthened to 92.3 Singapore cents from 70.3 Singapore cents at the end of FY2020.

Boustead group's current order book backlog stands at S$447 million, lower than the S$775 million disclosed in FY2020. In addition, the geospatial division had S$69 million in deferred services backlog remaining at the end of FY2021.

Shares of Boustead ended at S$1.08 on Thursday, down S$0.05 or 4.4 per cent.