Nordic Group obtains S$151.6m worth of contracts

NORDIC Group MR7 : MR7 0%has clinched S$151.6 million in contracts through its different divisions and its newly-acquired Starburst Holdings subsidiary.

The contracts come from new and repeat customers in Singapore, Malaysia, China and the Middle East, the systems integration solutions provider said in a bourse filing on Monday night (Mar 21).

As at Jan 31, Starburst Holdings, which holds the group's system integration and facility management divisions, has remaining capital projects and maintenance contracts worth about S$32.6 million and S$57.5 million respectively. The capital projects will mainly be completed in Q1 2023, while the maintenance contracts span 1-11 years.

Earlier this year, Nordic made a S$0.238 per share offer for Starburst, which was listed on the Singapore Exchange's Catalist board at the time. Subsequently, Starburst was delisted after losing its free float.

Starburst is one of the few regional players with capabilities in anti-ricochet ballistic protection systems, which are used for shooting ranges and tactical training mock-ups.

Nordic's cleanroom, air and water engineering solutions division bagged maintenance and capital projects of around S$20.4 million and S$23.4 million respectively.

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Its precision engineering division bagged around S$9.8 million for machining services and mechanical assembly. These contracts will be mainly completed in Q2 2022.

The group's scaffolding, insulation services and petrochemical and environmental engineering divisions obtained S$4.8 million for insulation, scaffolding work and maintenance of plant and equipment at certain infrastructures. The contracts are mainly for 1 year, ending Dec 31, 2022.

Meanwhile, the group's system integration division obtained about S$3.1 million in contracts for a series of 16 new vessels and variation orders on existing orders. These systems will be delivered from H2 2022 to Q1 2023.

Nordic does not expect the contracts to have a material impact on its consolidated net tangible assets per share and earnings per share for the current financial year.

Shares of mainboard-listed Nordic were trading 2.5 per cent or S$0.01 higher at S$0.415 on Tuesday as at 9.23 am.

READ MORE:

• Nordic Group confirms offer for Starburst at S$0.238 per share

• Nordic Group's offer for Starburst turns unconditional

• Nordic Group's offer for Starburst closes with 94.3% valid acceptances

• Starburst gets regulatory nod to delist