Bukit Sembawang H2 profit down 26.2% to S$21.8 million

BUKIT Sembawang Estates : B61 0% posted a 26.2 per cent drop in net profit to S$21.8 million for its second half ended Mar 31, 2023, from S$29.6 million in the previous corresponding period.

This was mainly due to lower profits recognised on development projects, the property development and investment group said in a regulatory filing on Monday (May 22) evening.

Earnings per share stood at 8.43 Singapore cents for the half year, down from 11.42 cents the previous year.

Revenue for the second half fell 14.5 per cent to S$76.5 million, from S$89.4 million a year earlier.

Gross profit for the half year tumbled 53.7 per cent to S$13.9 million, from S$30 million the year before.

For the half year ended Mar 31, 2023, profits were recognised for the group’s properties Nim Collection Phase 2, The Atelier and Liv@MB. Meanwhile, for the half year ended Mar 31, 2022, profits were recognised for 8 St Thomas, Luxury Hills (Signature Collection) and The Atelier.

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A final dividend of four Singapore cents per share and a special dividend of six cents per share was recommended for the year, compared with a final dividend of four cents per share and a special dividend of 12 cents per share a year ago. The date payable will be announced later.

For the full year ended Mar 31, 2023, net profit tumbled 58.5 per cent to S$34.4 million, while revenue was down 31.6 per cent to S$197.1 million.

The group warned that the fresh round of property cooling measures by the Singapore government is likely to lead to a slowdown in sales transactions. “This move has added to the existing challenges during a time of economic uncertainty, with the United States Federal Reserve raising interest rates... and geopolitical tensions due to the ongoing Russia-Ukraine conflict,” it added.

“As a result, the residential property market continues to be impacted by high interest and mortgage rates, shortage of manpower, higher construction and development costs, and lower margins,” said the group.

On its part, the company will focus on the sales of The Atelier, Liv@MB and Pollen Collection, while also preparing for the launch of a new residential development at Bukit Timah Link. It will also continue to monitor the progress of construction for its ongoing projects to ensure timely completion.

Shares of Bukit Sembawang fell S$0.02 or 0.5 per cent to S$4.10 on Monday, before the results were announced.