STRUCTURAL steel fabricator TTJ Holdings saw net profit dive 58 per cent to S$3.8 million for the financial year 2019 ended July. This translates to an earnings per share of 1.08 Singapore cents, compared to 2.55 cents a year ago. 

The company has declared a first and final dividend of 0.4 Singapore cent per share for the year, lower than the 0.7 cent dividend a year ago. 

Revenue for the year dropped 17 per cent to S$76.6 million, mainly due to lower contributions from the structural steel business, with fewer works completed for ongoing projects. Revenue recognition was hit by project delays, arising from the rescheduling of certain projects. 

TTJ's waste management business generated S$300,000 in revenue, as operations remain "in the early stage", the company said. 

Gross profit margins weakened to 15.8 per cent, compared to 20.5 per cent in FY2018, given the nature of the projects. The company also recorded other losses of S$1.2 million, mainly due to writing off bad trade receivables and intangible assets. 

Net operating cash flows improved to S$7.6 million, compared to S$1.3 million used in operations the previous year. The company has S$39.3 million in cash and S$8 million in borrowings as at end-July. 

TTJ has a sizeable order book of S$182 million, with projects expected to be mostly completed between FY2020 and FY2022. But it expects tougher times ahead. 

"Although the Building and Construction Authority has projected stronger construction demand in 2020 and 2021 as compared to 2019, the industry has become increasingly competitive and margins have narrowed," the company said in a commentary accompanying its results. 

TTJ chairman and managing director Teo Hock Chwee however remains optimistic about the company's entry into the wood pellet manufacturing business. 

"We remain positive on the group's prospects as we continue our ongoing diversification into the wood pellet manufacturing business, where we have commenced enhancement and testing of the wood pellet manufacturing machinery at our facility in Thailand," he said in a press release. 

"Construction works are also underway at our wood recycling plant in Singapore to, among others, further enhance our production line as we prepare for anticipated growth in demand for wood pellets in Asia," Mr Teo added. 

Shares of TTJ closed flat at S$0.25 on Monday.