Pan-United posts S$18.7m net profit for FY21

PRODUCER of ready-mix concrete Pan-United Corporation P52 on Tuesday (Feb 22) posted a net profit of S$18.7 million for the full year ended Dec 30, 2021, up from the S$1 million the previous year.

Earnings were driven by the higher share of results of its associate of S$5.3 million.

Revenue was up 45 per cent to S$586.9 million from S$405 million. The bulk of revenue came from the group's concrete and cement (C&C) business, which grew 48 per cent year on year to S$573.5 million, with the recovery of construction activities in Singapore.

But the group is bracing for a tougher operating environment in Singapore amid the ongoing manpower crunch, higher raw material costs as well as volatile freight costs and energy prices.

It had already in FY2021 been dealt with higher operating costs such as that of raw materials. Staff cost and other expenses have also increased due to manpower challenges from a tighter labour market and the increase in business activities, said Pan-United.

Earnings per share for FY2021 came in at 2.67 Singapore cents, versus 0.15 cent the year before. Net asset value per share stood at 29.3 cents as at Dec 31, 2021, up from 27.7 cents as at end-2020.

A final dividend of 1.1 cent per share has been proposed and will, subject to shareholders' approval, be paid on May 13.

Pan-United said that the demand for construction in the private sector is expected to be comparable to last year's. It will be further lifted by an increase in commercial and institutional construction demand as hotels and attractions undergo refurbishment and older commercial premises are earmarked for redevelopment.

Private residential construction demand is expected to moderate amid more cautious market sentiments.

Shares of Pan-United ended Tuesday at S$0.355, S$0.01 or 2.9 per cent higher.