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Reclaims Global fiscal 2019 profit tumbles 91.6% on listing-related expenses
LISTING-RELATED expenses of S$2.6 million pared down Reclaims Global's net profit for fiscal 2019.
The construction services company reported a S$270,000 net profit for the financial year ended Jan 31, down 91.6 per cent from S$3.2 million for the year-ago period. Excluding listing expenses, Reclaims Global's profit would have been S$2.9 million.
The expenses, incurred for its listing on the Singapore Exchange's Catalist board on March 11, 2019, included an equity-settled share-based payment of S$1.8 million. The company has raised gross proceeds of S$4.4 million from the initial public offering.
Earnings per share dropped to 0.24 Singapore cent from 2.85 Singapore cents. It did not declare a dividend as it sought to "conserve cash for business growth".
Revenue for the year rose 14.7 per cent to S$31.6 million from S$27.5 million with higher contributions from its excavation services, and logistics and leasing segments. Revenue for excavation services increased S$6.1 million or 74.5 per cent, and that for logistics and leasing rose S$3.7 million or 47.6 per cent, while its recycling segment revenue decreased S$6 million or 52.2 per cent to S$5.5 million from S$11.5 million, due to "lesser reinstatement and demolition works".
Reclaims Global said the Building and Construction Authority of Singapore (BCA) projected local construction demand to reach between S$27 billion and S$32 billion in 2019, with about 60 per cent contributed by the public sector construction demand.
BCA also expects medium-term demand to be sustained by major infrastructure projects such as Changi Airport Terminal 5 and the Cross Island MRT Line.
The group "remains vigilant to market changes and alert to take on any opportunities locally and overseas to grow our business".
Reclaims Global shares closed on Monday up one Singapore cent or 4.76 per cent at S$0.22.