Boustead Singapore H2 net profit soars 145% to S$22.7 million amid higher revenue

Raphael Lim
Published Fri, May 26, 2023 · 08:47 PM

BOUSTEAD Singapore reported on Friday (May 26) a 145 per cent increase in net profit for its second half, driven by higher revenue, interest income and other gains.

The company said in the bourse filing that net profit for the six months ended Mar 31, 2023 rose to S$22.7 million, up from S$9.3 million in the year-ago period. On a per-share basis, earnings for H2 improved to S$0.0475 from S$0.0192.

The board has proposed a final dividend of S$0.025 per share, unchanged from the preceding financial year. This takes the dividend for FY23 to S$0.04 per share, matching the previous financial year.

Revenue for the second half rose 8 per cent on year to S$314.8 million, largely due to higher contribution from the energy engineering division.

Gross profit improved 29 per cent to S$83.1 million. The group also saw interest income rise to S$7.8 million, almost double the S$4 million in the year-ago period. Boustead Singapore also had other gains of S$9.2 million in the second half, up from S$478,000 in H2 FY22. This was mainly due to a S$8.3 million gain on disposal of subsidiaries.

The group said its net profit for the second half would have been 34 per cent higher year on year, after adjusting for other gains/losses, impairments and the Jobs Support Scheme (JSS), for comparative review.

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For the full financial year, overall revenue was down 11 per cent on year to S$561.6 million, mainly due to lower contribution from the energy engineering division and real estate division.

Net profit rose 48 per cent to S$45.3 million for the full year. However, Boustead said that its net profit would have been 3 per cent lower year on year, after making the adjustments for other gains/losses, impairments and the JSS, for comparative review.

“Our group’s improved profitability in FY2023 is a promising sign that the worst of the pandemic is behind us,” said Wong Fong Fui, chairman and group chief executive officer of Boustead.

“However, inflation, interest rates, volatile global economic conditions and geopolitics may continue to significantly impact overall business sentiment and reverse what has been achieved by the world in exiting the pandemic.”

He added that the group is also exploring the next steps to delist and privatise Boustead Projects, following its voluntary unconditional general offer in February this year.

“It has become of strategic importance that our group is reunited, simplified for organisational agility and flexibility, and will be able to withstand the challenges of an uncertain global environment,” Wong said.

Boustead Singapore’s net asset value per share rose to S$0.949 as at the end of FY23, up from S$0.899 a year earlier.

Shares of Boustead Singapore rose 1.9 per cent on Friday to close at S$0.81, before the earnings announcement.

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