Boustead Singapore posts 11% higher H2 net profit at S$18.5m

MAINBOARD-LISTED Boustead Singapore has reported S$434.5 million in revenue for its second half, a 61-per-cent year-on-year increase.

However, its net profit climbed at a slower pace of 11 per cent to S$18.5 million, mainly due to gross margin pressure, other losses largely due to fair-value losses on investment securities, higher administrative, finance and income tax expenses, and impairment losses related to the end of legacy projects.

Boustead Singapore's earnings per share was 3.8 Singapore cents for the half-year ended March 31, up from 3.4 Singapore cents in the preceding year, the group said in a regulatory filing on Tuesday. 

For the full year ended March 31, total revenue rose 54 per cent year on year to S$726.6 million. Net profit fell five per cent year on year to S$30.9 million, which the group attributed to gross margin pressure; other losses were largely due to fair-value losses on investment securities; higher administrative, finance and income tax expenses; and impairment losses related to the end of legacy projects. The previous financial year also saw a S$5.9 million pre-tax gain on the sale of 25 Changi North Rise. 

For a comparative review after adjusting for other gains and losses net of non-controlling interests, and excluding the impairment losses and gain on the sale of 25 Changi North Rise, net profit for FY2020 would have been 34 per cent higher year-on-year, the group said.

Net asset value per share for the group as at March 31, 2020 strengthened to 70.3 Singapore cents from 68.2 Singapore cents a year ago.

Boustead group's current order book backlog stands at S$775 million, up from S$763 million the preceding year.

It has also proposed a final cash dividend of two cents per share, taking the total dividend proposed for FY2020 to three cents per share. This matches the total dividend paid for the preceding year.

Units of Boustead Singapore closed at S$0.645 on Tuesday, down 0.5 Singapore cents or 0.77 per cent.