Boustead Singapore reports fiscal year net profit dropped 73 percent

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Boustead Singapore reported Thursday its fiscal year net profit fell 73 percent on-year to S$32.3 million on a year-earlier S$134.8 million gain on the launch of the Boustead Industrial Fund (BIF).

Revenue for the 12 months ended 31 March declined 8 percent on-year to S$631.8 million, the company said in a filing to SGX.

The revenue decline was due to “the impact of the prolonged Covid-19 pandemic, inflationary pressures and volatile global geo-economic and geopolitical environment resulting in a lack of business development opportunities, affecting revenue and order backlog,” Boustead Singapore said.

After adjusting for other gains/losses, impairments and government job support benefits, net profit for the full year would have been down 28 percent on-year, Boustead said.

The current order backlog is S$274 million, which includes unrecognized project revenue remaining at the end of the fiscal year plus the value of new orders since then, Boustead Singapore said.

The company proposed a final dividend of 2.5 Singapore cents a share, which when combined with the interim dividend of 1.5 Singapore cents, totals 4.0 Singapore cents for the year. In the previous year, Boustead paid an interim dividend of 1 Singapore cent, a final dividend of 3 Singapore cents, and a special dividend of 4 Singapore cents.

Wong Fong Fui, chairman and group CEO of Boustead, said in the statement:

“FY2022 bore the full brunt of Covid-19 and this was made worse by challenges like supply chain and cost disruptions, inflationary pressures and geopolitical events with impacts that are most deeply felt on our engineering & construction activities. Among our divisions, Geospatial delivered steadfast results while Healthcare continued to underperform and in this respect, we will step up on our efforts to address the challenges faced.”

“Moving ahead, we hope to see an easing of the pandemic’s impact, with Covid-19 cases receding and restrictions lifted in many parts of the world. However, we expect the overall business situation to continue to be challenging in the coming year, with no imminent end to the Ukraine-Russia conflict that has escalated challenges like inflationary pressures.”