Nordic Group reports 49% higher net profit in Q1 to S$5.2m
Boo Zhixuan
NORDIC Group on Wednesday (May 25) posted a net profit of S$5.2 million for Q1 2022, representing a 49 per cent year-on-year increase from S$3.5 million.
In its business update for the first quarter ended Mar 31, 2022, the precision engineering and systems integration solutions provider reported revenue of S$40.1 million, up 64 per cent from S$24.5 million last year.
About a quarter or S$10 million of its revenue for Q1 was derived from cleanroom, air and water services. Another 20 per cent or S$8 million of revenue came from the group’s system integration and facility management segment.
Nordic attributed the strong revenue performance to consistent growth and diversification of its revenue stream, such as through the group’s acquisitions of scaffolding, energy and engineering companies over the past decade.
This has helped to effectively reduce industry-specific risks, noted the group.
Gross profit margin increased by 2 percentage points to 28 per cent, while the group’s net profit margin fell 1 percentage point to 13 per cent.
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The latest set of results brings earnings per share for Q1 to 1.3 Singapore cents, representing a 44 per cent increase from 0.9 cent in Q1 FY2021.
Excluding maintenance contracts, Nordic Group’s order book stood at S$258.5 million as at Apr 30, 2022.
Net asset value per share as at end-March 2022 stood at 26.3 cents as opposed to 25.2 cents as at end-2021.
Noting “some market optimism” on the back of increased crude oil prices, Nordic said it remains positive on its long-term prospects but expects “certain pressures” on cost due to the limit pool of skilled workers in Singapore.
As at 2.12 pm on Wednesday, shares of Nordic Group were trading at S$0.40, up 1 per cent or S$0.005.
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