CSE Global H1 earnings up 8.5% at S$16.3 million, boosted by growth of communications business
However, its order book for H1 fell by 17.1 per cent to S$573.8 million compared to a year ago.
[SINGAPORE] Technology solutions provider CSE Global reported a profit of S$16.3 million for the first half of FY2025, up 8.5 per cent from the corresponding period in 2024.
Revenue for H1 was up 2.8 per cent at S$440.9 million, from S$428.9 million, led by the growth of its communication business segment in the Americas region.
The communication business segment grew 12.7 per cent to S$128 million in H1, from S$113.6 million a year earlier.
However, its other two business segments saw a slight drop in revenue.
Revenue for its electrification business fell by 0.9 per cent to S$214.8 million, mostly due to the weakening of the US dollar.
Revenue for its automation business fell 0.5 per cent to S$98.1 million due to plant and equipment and technical know-how intangibles being written off amounting to S$5.1 million in H1.
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In line with the overall higher revenue, the group’s gross profit increased to S$123 million, up 3.8 per cent from S$118.4 million.
However, its order book for H1 fell by 17.1 per cent to S$573.8 million.
Operating expenses for H1 rose by 6.2 per cent or S$5.9 million to S$101.4 million. This increase was mainly due to higher personnel costs of S$2.7 million, higher building and equipment expenses of S$2.1 million and increase in depreciation expenses of S$1 million.
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Interest expenses were 11 per cent lower year on year, decreasing from S$4.6 million in H1 FY2024 to S$4.1 million in H1 FY2025.
Lim Boon Kheng, the chief executive officer of CSE Global, said that the company will benefit from the growing data centre industry, which will fuel strong demand for its electrification and communications solutions.
“With the recent acquisition of Chicago Communications, we have established a presence in four states for our communications business in the US, supporting our regional expansion strategy. In the coming months, we will further expand our capacity for the electrification and communications business,” he added.
CSE Global’s board of directors has recommended an interim dividend of S$0.0114 per share, lower than S$0.0125 from a year ago. The dividend will be paid out on Sep 26.
Shares of CSE Global fell 1.4 per cent or S$0.01 to close at S$0.68 on Wednesday, ahead of the results announcement.
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