Bukit Sembawang H1 net profit down 28% to S$53.4m

BUKIT Sembawang Estates's B61 : B61 0% net profit for the first half ending Sep 30 fell 28 per cent to S$53.4 million, from S$73.7 million the year before.

The group's earnings per share dropped to 20.61 Singapore cents from 28.45 cents last year. Revenue also fell 11 per cent to S$198.8 million, while cost of sales inched upwards by 3 per cent to S$128.5 million. This, along with lower profit recognised on development projects, led gross profit to fall 29 per cent to S$70.3 million from the previous year's S$98.4 million.

Bukit Sembawang's other income decreased by 18 per cent to S$722,000, mainly due to less government grant income which came as relief measures during the pandemic.

Other operating expenses decreased by 44 per cent to S$2.8 million for the period, due to lower maintenance charges and property tax arising from there having been fewer unsold units of completed development properties.

For the period under review, Bukit Sembawang said profits were recognised for 8 St Thomas, Luxus Hills (Signature Collection) and Luxus Hills (Contemporary Collection), Nim Collection Phases 1 and 2, The Atelier as well as Fraser Residence Orchard, Singapore. In the same period last year, profits were recognised for all of the above except The Atellier, which was only launched this year.

Bukit Sembawang recorded a net cash outflow of S$26.4 million for the half year, after last year's net inflow of S$174.7 million. Net cash used in financing activities amounted to S$175.8 million, mainly for dividend payments and full repayment of borrowings relating to The Atelier.

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Net cash generated from operating activities also came in lower at S$149.5 million, due to working capital movements.

The group added that it will continue to monitor the health of the overall economy and residential property market, and calibrate its approach and timing of the launches of new residential projects.

Bukit Sembawang shares ended 4 cents or 0.8 per cent lower at S$5.18 on Friday's (Nov 12) close.