Boustead Singapore reports fiscal 4Q net profit edged up 2 percent

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Infrastructure engineering group Boustead Singapore reported Monday its fiscal fourth quarter net profit edged up 2 percent on-year to S$7.8 million on gross margin pressure, a higher impairment loss on financial assets, overhead expenses and the share of losses of associated companies and joint ventures.

That was partially offset by a significant income tax credit at separately listed subsidiary Boustead Projects on an accounting policy change, the company added.

Revenue for the quarter ended 31 March increased 27 percent on-year to S$134.3 million, the company said in a filing to SGX.

For the full fiscal year, Boustead Singapore reported net profit rose 24 percent on-year to S$32.5 million, on revenue of S$470.6 million, up 22 percent on-year.

That was partly on sizable other gains, compared with year-ago sizable other losses, from the completed sale of 25 Changi North Rise by Boustead Projects, the filing said.

“We achieved healthy, broad-based topline and bottomline growth in FY2019, with both our Energy-Related Engineering and Real Estate Solutions Divisions returning to full-year revenue and profit growth in a highly challenging market,” Wong Fong Fui, chairman and CEO of Boustead, said in the statement.

“Our Geo-Spatial Technology Division also recorded a third consecutive year of revenue and profit growth. Meanwhile, our new Healthcare Technology Division made nine months of maiden contribution,” he added.

Boustead Singapore said its order book backlog was at a record S$763 million, which included unrecognized project revenue at the end of the fiscal year and the total value of new orders obtained since then.

The company proposed a final dividend of 2 Singapore cents, bringing the full-year dividend to 3 Singapore cents, unchanged on-year.

Wong was cautious in the company’s outlook.

“Although we have witnessed a gradual improvement in the business outlook across our operating sectors, the current global business environment remains shrouded in huge uncertainty posed by strong geo-economic and geo-political headwinds including the trade war and multiple threats to globalisation and the global economy,” Wong said.

But he added the company was in an “excellent position” to weather challenges with its record order book backlog, healthy balance sheet and its technological transformation.

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