Soilbuild reports 13% dip in '14 profits

Singapore

SOILBUILD Construction Group (Soilbuild) reported on Monday a net profit of S$20.9 million for the full year ended 31 December 2014, 13.1 per cent lower compared to the corresponding period a year ago.

This was caused mainly by a S$2.6 million decrease in the share of profits of joint ventures following completion of the development project Solstice Business Centre undertaken by its joint venture in FY2013.

Soilbuild's board of directors recommended a final dividend of 0.5 Singapore cent per share and a special dividend of 1.0 Singapore cent per share, bringing the full year cash dividend for FY2014 to 2.0 Singapore cents per share.

The group earned 3.15 cents per share for 2014 compared to 4.02 cents per share during the preceding year.

Although there was a 13.9 per cent decrease in revenue for FY2014 to S$285.3 million, the group's gross profit had only marginally decreased by 1.2 per cent from S$31.6 million to S$31.2 million - the result of higher gross profit margin of 10.9 per cent in FY2014 compared with 9.5 per cent in FY2013.

Meanwhile, administrative expenses increased by S$1.3 million to S$8.5 million in FY2014, attributable to the increase in employee remuneration, rental expenses, as well as staff training expenses. Other income increased by S$700,000 to S$1.4 million in FY2014 due mainly to increase in rental income, interest and service income.