BRC Asia posts 2% fall in H2 net profit to S$49.5 million
Tan Nai Lun
STEEL solutions provider BRC Asia posted a 2 per cent fall in net profit to S$49.5 million for its second half ended Sep 30, 2023, from S$50.4 million in the same period a year earlier.
The company saw a weaker performance in FY2023 compared with record results in FY2022. But it had been on a steady recovery path over the last six months, with gradually normalising activity levels of local construction projects, BRC Asia said on Tuesday (Nov 21).
Earnings per share stood at 18.05 Singapore cents for the half-year period, down from 18.36 cents the previous year.
Revenue for H2 was largely flat at S$909.9 million, from S$905.9 million a year earlier.
For the full year ended Sep 30, 2023, net profit fell 16 per cent to S$75.7 million while revenue fell 4 per cent to S$1.6 billion.
In FY2023, the company navigated a temporary slowdown in the local construction industry resulting from project safety timeouts, and also incurred losses and impairment of S$7.8 million in an investment in a Maldives resort, it said.
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While it saw a lower contractual offtake and market-driven lower selling prices in the first half, the decrease was partially offset by improved sales volume in H2.
On the back of improving industry prospects and solid company fundamentals, the company is proposing a final dividend of 5.5 cents per share, and a special dividend of 5.5 cents per share, for the half-year period.
In comparison, BRC Asia declared a final dividend and special dividend of six cents per share each in the same period last year.
The dividends proposed in H2 FY2023 bring the total dividend for FY2023 to 16 cents per share, representing a payout ratio of 58 per cent. The books closure date and payment date will be announced later.
Commenting on the company’s performance, BRC Asia chief executive Seah Kiin Peng noted that it still managed to secure the second-highest full-year net profit in its history on the back of a strong second half.
Looking ahead, the company expects that the local construction sector will continue to recover.
It also expects to be well-positioned to fulfil its strong order book and seize additional growth opportunities in the foreseeable future.
Shares of BRC Asia closed flat at S$1.65 on Tuesday, before the results were released.
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