ISOTeam posts 24% rise in Q2 net profit of S$1.65m

CATALIST-LISTED building solutions company ISOTeam's second-quarter earnings got a boost from government grants, according to unaudited results on Thursday.

Net profit was up 24.1 per cent year-on-year to S$1.65 million for the three months to Dec 31, 2019, even as revenue slid by 22.6 per cent to S$35.5 million on the back of a sharp drop in contributions from the core addition and alteration works segment.

Lifted by S$646,000 in government grants, compared with S$46,000 in the year before, other income more than quadrupled to S$840,000, which made up for the lower gross profit.

Earnings per share was 0.58 Singapore cent for the three months, up from 0.47 cent before, while net asset value inched up to 20.77 Singapore cents a share against 20.2 cents as at June 30, 2019.

For the half-year, ISOTeam's net profit rose 31.7 per cent to S$2.8 million, while revenue fell 12.8 per cent to S$63.8 million.

With construction management player Pure Group and defunct bicycle-rental company Mobike's Singapore assets both added to its portfolio, ISOTeam noted that it could grow in the project consultancy and turnkey solutions business and access regional markets, as well as lead in the Singapore bicycle-sharing industry with its 51 per cent-owned SG Bike subsidiary.

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Chief executive officer Anthony Koh said: "The integration of The Pure Group entities is an important aspect of this as we can now be involved in the whole project value chain from conceptualisation to construction delivery... It is an attractive proposition for potential clients."

The group's order book stood at S$133.3 million for the next two years as at Jan 31, 2020, ISOTeam added in its outlook statement.

Mr Koh also said that, with a S$21.5 million fundraising exercise backed by Japanese partner Taisei Oncho Co in late-2019, "we now have a war chest to support our future growth plans".

No dividend was recommended for the quarter, unchanged from the year before.

ISOTeam shares lost half a Singapore cent or 2.27 per cent to S$0.215 on Thursday before the results were announced.