Bukit Sembawang H1 net profit rises 11% to S$73.7m

Singapore

BUKIT Sembawang Estates reported a net profit of S$73.7 million for the first half of its financial year ending in September, up 11 per cent from S$66.6 million the year before.

The group's earnings per share were lifted to 28.45 cents, up from 25.73 cents last year.

The company's revenue for the quarter inched up 2 per cent to S$223.3 million, from S$218.7 million last year.

However, cost of sales outpaced the growth in revenue, rising 6 per cent to S$124.9 million from S$117.9 million last year. This, along with lower profit recognised on development projects, caused the group's gross profit to fall by 2 per cent to S$98.4 million.

Bukit Sembawang booked S$881,000 in other income, mainly due to the receipt of grants doled out by the Singapore government during the Covid-19 pandemic.

Other operating expenses for the period fell 35 per cent to S$4.9 million from S$7.5 million due to lower depreciation on impaired assets of Fraser Residence Orchard, Singapore, as well as 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, as well as Fraser Residence Orchard, Singapore.

In the same period last year, profits were recognised for 8 St Thomas, Luxus Hills (Signature Collection), Nim Collection Phases 1 and 2, Watercove and Fraser Residence Orchard, Singapore.

Bukit Sembawang recorded a net cash inflow of S$174.7 million for the first half of the financial year. Net cash generated from operating activities came in lower at S$206.4 million, due to working capital movements.

Bukit Sembawang said it is continuing to plan for the construction and sales launches of The Atelier and LIV@MB condominium despite the "uncertain" global economic conditions.

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 S$0.05 or 1.4 per cent higher at S$3.66 on Tuesday.