Boustead Projects reports fiscal year net profit dropped 91 percent

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Boustead Projects reported Wednesday its fiscal year net profit tumbled 91 percent on-year to S$11.3 million due to a year-earlier one-off gain of S$134.8 million due to the launch of the Boustead Industrial Fund.

Revenue for the 12 months ended 31 March rose 13 percent on-year to S$339.1 million, the company said in a filing to SGX.

The revenue increase was mainly due to higher revenue recognition on engineering and construction (E&C) projects, partly offset by lower rental revenue in the real estate segment, Boustead Projects said.

The current order backlog, or unrecognized project revenue at fiscal year-end plus the new order value since then, was a “healthy” S$235 million, the filing said.

The company proposed a final dividend of 0.2 Singapore cent a share and a special dividend of 0.8 Singapore cent. That compared with a final dividend of 0.009 Singapore cent and a special dividend of 14.5 Singapore cents in the previous year, the filing said.

“In view of the progress of the E&C Business, Real Estate Business and addition of full-fledged fund management activities, we expect to remain profitable for FY2023, barring any unforeseen circumstances and further disruptions caused by the pandemic,” Wong Yu Wei, executive deputy chairman of the company, said in the statement.

“We are increasingly building up our recurring income streams with successful execution of asset ownership, asset management and fund management, and look forward to our various real estate platforms delivering growth, improving resilience and transforming our business to be less reliant on traditional E&C activities,” Wong said.